Energy As A Service (EaaS) Market Size, Share, Opportunities, And Trends By Service Type (Construction, Operation And Maintenance, Energy Optimization And Efficiency, Others), By End User (Industrial, Commercial), And By Geography - Forecasts From 2023 To 2028

The global Energy as a Service market is projected to expand at a CAGR of 50.88% over the forecast period. 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 the energy and power industry from centralized generation to decentralized grids, there is a rising demand for services provided by EaaS providers across the globe. The emerging trend of outsourcing energy portfolios and turnkey vendors provides a comprehensive set of deployment models, and financial, and 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 are further encouraging end-user such as utilities and government agencies to use comprehensive energy-efficiency services so as to reduce operating expenses.

By service type, the energy optimization and efficiency segment will witness significant market growth during the forecast period. Major EaaS providers are continuously investing in diversifying their offerings with new smart building technologies and a more ongoing service presence. These companies are making use of big data analytics solutions and developing statistical models for determining project risk and return profiles. The 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, the increasing number of renewable energy projects is further boosting the demand for different energy services in the region. Europe is also projected to experience significant demand for energy services on account of high investments in the renewable energy sector. APAC will witness the fastest regional market growth between 2017 and 2023 majorly due to a high number of installations 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
o Construction
o Operation and Maintenance
o Energy Optimization and Efficiency
o Others

• By End User
o Industrial
o Commercial

• By Geography
• North America
o US
o Canada
o Others

• South America
o Brazil
o Argentina
o Others

Europe
o UK
o Germany
o France
o Italy
o Others

• Middle East and Africa
o Saudi Arabia
o UAE
o Israel
o Others

• Asia Pacific
o China
o India
o Japan
o Australia
o Others