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 2023 to 2030, starting from US$ 57.4 Bn in 2021.
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 decreases the consumption of energy considerably.
The rise in the consumption of renewable energy is identified as one of the key emerging trends in 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
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 2030. With the increasing prices, consumers are looking to procure a 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 consumers the flexibility of choice on 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.
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:
Key Industry Development:
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Energy as a Service market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Billion |
| Segmentation | |
Service Type
| |
End-user
| |
|
Region Segment (2022-2032; US$ Billion)
|
Key questions answered in this report
