Key Market Insights
“Increasing government spending for power utilities along with growing energy demand will boost the market”
The global energy as a service market is growing proficiently, projected to grow at a CAGR of 11.9% during the expected period from 2019 to 2027, starting from US$ 42.35 Bn in 2018.
A key factor driving the growth of the global energy as a service market is the 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 sector, are focusing on ways to decrease the cost of electricity. This has encouraged the adoption of EaaS solutions, which decreases the consumption of energy considerably.
The rise in 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 is 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 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
Market Synopsis
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. With the increasing prices, the consumers are looking to procure resilient energy supply to ensure that they can operate without the grid. Also, with the growing focus on various energy supply sources such as renewable, fossil fuels, nuclear, biomass, and biofuels, energy as a service model mainly supports renewable energy as it lowers energy costs, reduces carbon footprint, ensures high energy efficiency, and is environment-friendly. It gives the consumers the flexibility of choice on ownership, pricing, and financing. It also helps the operators customize energy generation designs based on consumer requirement, which are modern and robust. It enables easy and rapid integration of distributed generation and energy storage assets.
Regional Analysis
“Dominance is led by rising power projects coupled with intensifying utility investments towards renewable energy to drive the market growth.”
The market in North America is estimated to be the largest market in the coming years. Utilities in countries such as the US, Canada, and Mexico are implementing energy efficiency projects and are looking to cut down 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 have mandated that at least 60% of the savings achieved in obligation schemes need 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.
List of Companies Covered:
- Engie
- Schneider Electric
- Siemens
- Johnson Controls
- General Electric
- EDF Renewable Energy
- Edison
- Alpiq
- Enel X
- Bernhard Energy Solutions
- Entegrity
- Smartwatt
- Enertika
- Noresco
- Veolia
- Honeywell
- Centrica
- Wendel Energy Services
Key Industry Development:
- In June 2019, MAN Energy solutions signed a global service agreement with the Wallem Group. The contract involves the supply of generators, turbochargers, spares and services, and abroad vessels that are currently managed by Wallem.
- In August 2019, Trimark Associates Inc. a leading provider of SCADA, metering, and energy storage technology solutions bagged a contract by the Clearway Energy Group for multisite monitoring and maintenance.
Historical & Forecast Period
This study report represents analysis for each segment from 2017 to 2027 considering 2018 to be the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period from 2019 to 2027.
Market Segmentation
| ATTRIBUTE |
DETAILS |
| Research Period |
2017-2027 |
| Base Year |
2018 |
| Forecast Period |
2019-2027 |
| Historical Year |
2017 |
| Unit |
USD Billion |
| Segmentation |
Service Type (2017–2027; US$ Bn)
• Energy Supply Services
• Operational and Maintenance Services
• Energy-Efficiency and Optimization Services
|
|
End-user (2017–2027; US$ Bn)
• Commercial
• Industrial
|
|
Geography (2017–2027; US$ Bn)
• North America (U.S., Canada)
• Europe (U.K., Germany, Spain, Italy, Rest of Europe)
• Asia Pacific (Japan, China, India, Rest of Asia Pacific)
• Rest of the World (Latin America, Middle East & Africa)
|
The current report also comprehends qualitative and qualitative market valuation factors such as key market drivers, market trends, restraints and opportunities that give a better market understanding of the overall energy as a service market. Additionally, the global report also comprises graphical representation of competitive landscape based on their market initiatives and strategies, product portfolio and business strengths.
Key questions answered in this report
- What are the current market trends and dynamics in the energy as a service market and valuable opportunities for emerging players?
- Which segment accounts for the fastest CAGR during the forecast period?
- Which type segment holds a larger market share and why?
- Are low and middle-income economies investing in the energy as a service market?
- What is the market trend and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
