The market for Energy as a Service Market is expected to reach US$ 42.35 million by 2027.
The global energy as a service market is expanding rapidly and is expected to grow at an 11.9% CAGR from 2019 to 2027, starting at US$ 42.35 billion in 2018.A key factor driving the growth of the global energy as a service market is a growing demand for reducing building energy costs. Electricity consumption in commercial, industrial, and residential buildings accounts for over 60% of the total energy consumed across the world. Owing to the constantly increasing demand for energy in buildings, the owners, especially in the commercial and industrial sectors, are focusing on ways to decrease the cost of electricity. This has encouraged the adoption of EaaS solutions, which decrease the consumption of energy considerably.
The rise in the consumption of renewable energy is identified as one of the key emerging trends in the global energy as a service market. The ongoing depletion of conventional fossil fuel sources, growing environmental concerns, and the rising economic burden of importing fuel commodities are driving the rise in renewable energy consumption. Countries are concentrating on the diversification of energy sources rather than relying on a single or few energy sources, along with the escalating need to ensure total energy security. This provides an opportunity for the growth of the global EaaS market. However, globally, the solar energy industry is the fastest-growing source of new capacity additions. Solar panels have become extremely efficient in energy conversion owing to the advancements in solar cell technology and silicon manufacturing.
Service Analysis
Rising revenue generation streams for utilities will drive the demand for energy as a service globally.
The energy supply services segment is expected to hold the largest market share by 2024. Consumers are looking for resilient energy supplies to ensure they can operate without the grid as prices rise. Also, with the growing focus on various energy supply sources such as renewable, fossil fuels, nuclear, biomass, and biofuels, the energy as a service model mainly supports renewable energy as it lowers energy costs, reduces carbon footprints, ensures high energy efficiency, and is environmentally friendly. It provides consumers with options for ownership, pricing, and financing. It also helps the operators customize energy generation designs based on consumer requirements, which are modern and robust. It enables easy and rapid integration of distributed generation and energy storage assets.
Dominance is led by rising power projects coupled with intensifying energy investment toward renewable energy to drive market growth.
The market in North America is estimated to be the largest in the coming years. Utilities in countries such as the US, Canada, and Mexico are implementing energy efficiency projects and looking to cut down on energy generation costs. New approaches, such as pay-for-performance, are being introduced in the US to achieve energy efficiency at a larger scale in the commercial sector. For instance, in 2018, California energy efficiency policies mandated that at least 60% of the savings achieved through obligation schemes needed to be delivered by third-party service providers. Also, an increase in the share of renewable power generation and energy efficiency activities is expected to drive the market in this region.
This study report includes an analysis of each segment from 2017 to 2027, with 2018 as the base year. The compound annual growth rate (CAGR) for each of the respective segments is estimated for the forecast period from 2019 to 2027.
The current report also encompasses qualitative and qualitative market valuation factors such as key market drivers, market trends, restraints, and opportunities that give a better understanding of the overall energy market as a service market. Additionally, the global report also comprises a graphical representation of the competitive landscape based on their market initiatives and strategies, product portfolios, and business strengths.
The market for Energy as a Service Market is expected to reach US$ 42.35 million by 2027.
The Energy as a Service Market is expected to see significant CAGR growth over the coming years, at 11.9%.
The report is forecasted from 2019-2027.
The base year of this report is 2018.
Schneider Electric, Siemens, Johnson Controls, Bernhard Energy Solutions, Wendel Energy Services are some of the major players in the global market.