Global Energy as a Service Market Expected to Grow At a CAGR of 11.9% During the Forecast Period
The latest market report published by Brisk Insights, “Energy as a Service Market: Growth, Future Prospects, and Competitive Analysis, 2019 - 2027” the energy as a service market was valued at US$ 42.35 Bn in 2018 and expected to grow at a CAGR of 11.9% during the forecast period from 2019 to 2027.
"Increasing adoption for distributed energy resources along with decreasing cost of renewable power generation and storage will upgrade the market growth during the forecast period"
Energy as a service (EaaS) can be defined as one or more aspects of a customer’s energy portfolio including strategy, pr0ogram management, energy supply, energy use, and asset management by applying new products, services, financing instruments, and technology solutions. EaaS market consists of third-party vendors, utility services companies, and potential business model disruptors deploying niche technical, financing, or procurement solutions like solar PV power purchase agreements, energy services performance contracts, and deregulated electricity market retail brokerage services.
The drivers for energy as a service market are rising energy consumption and price volatility, and the growing potential of renewable energy. Several trends are expected to come together to push the growth of the energy as a service market during the forecast period. Corporations have increasingly been looking for sustainable or renewable resources of energy. The restraints for energy as a service markets are integration and deployment challenges, and dominance of existing centralized utility models. Backward and Forward Integration are presenting opportunities for the EaaS market. The major challenge for the EaaS market is the results manifest with a scale that is expected to hinder the EaaS market.
Key Industry Developments:
- In May 2019, Engie was awarded an energy efficiency performance contract by UAC Berhad, a Malaysian manufacturing company, to improve energy efficiency by more than 18% electricity cost savings, up to 520 tons of CO2 per year. The agreement was signed to improve the energy efficiency of the compressed air system at UAC. ENGIE intends to strengthen its capabilities for energy as a service.
Key Market Movements:
- Globally, the energy as a service market is rising at a CAGR of 11.9% for the estimated period from 2019 to 2027.
- Asia Pacific is expected to be the leading market for EaaS during the forecast period. Rising demand from the power and oil & gas industry is driving the demand for EaaS market in this region.
- North America is estimated to be the largest from 2019 to 2024. 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.
- However, sustainable market growth, the introduction of smart cities, and regulatory developments along with consumer focused government incentive schemes across the regions will drive the overall demand.
List of Companies Covered:
- Schneider Electric
- Johnson Controls
- General Electric
- EDF Renewable Energy
- Enel X
- Bernhard Energy Solutions
- Wendel Energy Services
Browse the full report at https://www.briskinsights.com/report/energy-as-a-service-market
The Global Energy as a Service Market is Segmented into:
By Service Type (2017–2027; US$ Bn)
By End-user (2017–2027; US$ Bn)
By Geography (2017–2027; US$ Bn)
*Complete segmentation list is on the report page