Vertical market expansion into the energy industry presents both opportunities and challenges. There are many subsectors within energy that could be pursued, from oil and gas to renewables to smart grids. Companies should pursue no more than one or two vertical markets at a time and thoroughly evaluate each opportunity for strategic fit and market potential. The energy industry faces increasing complexity from factors like renewable energy growth, electric vehicles, and decentralized power systems. Both new entrants and existing competitors are exploring industry convergence and new business models in energy. Success in expanding into energy requires investing for the long term, defining a clear value proposition, understanding business models, and potentially partnering with other organizations.