Energy as a Service Market - Forecasts from 2018 to 2023

The global Energy as a Service market is projected to expand at a CAGR of 50.88% over the forecast period of 2017 - 2023. According to the U.S. Department of Energy (DOE), Energy Service Companies (ESCOs) develop, design, build, and fund projects that reduce energy costs as well as operations and maintenance costs while saving energy. With the shift of energy and power industry from centralized generation to decentralized grids, there is a rising demand for services provided by EaaS providers across the globe. Emerging trend of outsourcing of energy portfolios and turnkey vendors providing a comprehensive set of deployment model, financial, technical options, in order to efficiently manage overhead electricity costs that tend to fluctuate as demand shoots up and by time-of-day rates, is fueling the demand for EaaS. Strict regulations regarding the use of sustainable energy solutions is further encouraging end-user such as utilities and government agencies to use comprehensive energy-efficiency services so as to reduce the operating expense.

By service type, the energy optimization and efficiency segment will witness a significant market growth during the forecast period. Major EaaS providers are continuously investing in diversifying their offerings with new smart building technologies and more on-going services presence. These companies are making use of big data analytics solutions and develop statistical models for determining project risk and return profiles. Operational and maintenance segment will also experience considerable market growth during the projected period.

Geographically, North America holds the major share of global energy as a service market on account of stringent energy efficiency standards in countries like the U.S. Moreover, increasing number of renewable energy projects is further boosting the demand for different energy services in the region. Europe is also projected to experience a significant demand for energy services on account of high investments in renewable energy sector. APAC will witness the fastest regional market growth between 2017 and 2023 majorly due to high number of installation of renewable energy projects in the region. According to the International Renewable Energy Agency (IRENA), globally, China alone is responsible for around 40% of total renewable energy capacity growth, majorly due to high concerns regarding air pollution. The government is also taking necessary measures to further increase the capacity. For instance, the country issued a draft renewable energy obligation policy in March 2018 that assigns provincial quotas for hydro and non-hydro electricity consumption to electricity users including grid companies, electricity retail companies, and large end-users. Furthermore, high investments in new transmission lines and expansion of distributed generation are expected to speed up the deployment of solar and wind energy in the country.

Major industry players profiled as part of the report are ADI Energy, Ameresco, Inc., Global Energy Services, Global Energy (Group) Limited, and Siemens AG among others.

Segmentation

The Energy as a Service market is segmented by service type, end user, and geography:

By Service Type

Construction
Operation and Maintenance
Energy Optimization and Efficiency
Others

By End User

Industrial
Commercial

By Geography

North America
US
Canada
Others

South America
Brazil
Argentina
Others

Europe
UK
Germany
France
Italy
Others

Middle East and Africa
Saudi Arabia
UAE
Israel
Others

Asia Pacific
China
India
Japan
Australia
Others