Chicago, Feb. 20, 2023 (GLOBE NEWSWIRE) -- The global Energy as a Service Market is expected to grow from USD 64.7 billion in 2022 to USD 105.6 billion by 2027, at a CAGR of 10.3% according to a new report by MarketsandMarkets™. Increasing distributed energy resources, new revenue generation streams for utilities, availability of federal and state tax benefits for energy-efficiency projects and decreasing cost of renewable power generation and storage solutions are driving the demand for energy as a service globally. Due to the manufacturing advances and various technological improvements, the costs of various renewables and storage systems such as solar PVs, fuel cells, grid-based energy storage, especially batteries, and combined heat and power declined significantly in the recent times. The decreasing costs of solar PV are encouraging users to install these resources for generating electricity. Also, governments across the globe are revising energy policies and providing incentives that are encouraging and facilitating a shift from traditional power generation techniques to power generation from clean and renewable forms of energy, including wind and solar. This is evident from the huge investments in the renewable sector in the past decade.
Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=23172723
The utilities are therefore offering sophisticated solutions, which include technological as well as financing support to reduce energy consumption and improve energy efficiency, thereby creating new revenue generating streams for themselves. They have started providing solutions that combine energy procurement, efficiency, and load balancing. The utilities are also providing long-term Energy Service Performance Contract (ESPC), Utility Energy Saving Contracts (USPC), and Power Purchase Agreement (PPA) that are either pay-for-service or similar to a performance contract in which costs are covered by energy savings. These contracts help the utilities secure revenue for a long time from the end-users.
The Energy as a Service Market includes prominent Tier I and Tier II manufacturers like ENGIE, Enel X, Schneider Electricity, Ameresco and Siemens. These companies have their spread across Europe, North America, Asia Pacific, and other regions. Various services are offered by these players for instance, energy efficiency solutions, energy infrastructure, energy intelligence software, operation and maintenance services and many more. These services is used to increase the efficiency of the end-user industry and the growth of these industries is expected to also lead to the growth of the Energy as a Service Market.
Energy as a Service Market Scope:
| Report Coverage | Details |
| Market Size | USD 105.6 Billion by 2027 |
| Growth Rate | 10.3% of CAGR |
| Largest Market | North America |
| Market Dynamics | Drivers, Restraints, Opportunities & Challenges |
| Forecast Period | 2022-2027 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Energy as a Service Market by Type, End User, and region. |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and South America |
| Report Highlights | Updated financial information / product portfolio of players |
| Key Market Opportunities | Increasing use of energy-efficient technologies |
| Key Market Drivers | Increasing distributed energy resources |
The energy supply services segment is expected to dominate the Energy as a Service Market.
Energy supply services refer to the idea where a building’s energy requirements are taken care of by an outside company, typically utilities or service providers. The current energy markets are more complex than they have been in the past. Utilities traditionally would provide electricity to a building at a rate based on the time of consumption, and there was not much a building owner could do to change their overhead energy costs. Also, energy supply services protect end-users from grid blackouts and weather extremes that would threaten the operations of a traditional grid connected commercial and industrial entities. In energy as a service operation, energy supply services are increasingly delivered through Energy Services Agreements (ESAs) that are performance-based contracts through which a service provider agrees to finance, develop, and deploy renewable energy projects for clients without any upfront capital expenditures. In addition to this, consumers do not have any responsibility to maintain and upgrade the equipment.
Request Sample Pages: https://www.marketsandmarkets.com/requestsampleNew.asp?id=23172723
Energy as a Service Market Dynamics:
Drivers:
New revenue generation streams for utilities Increasing distributed energy resourcesDecreasing cost of renewable power generation and storage solutionsAvailability of federal and state tax benefits for energy-efficient projectsRestraints:
Integration and deployment challenges Dominance of existing centralized utility modelsOpportunities:
Deeper operational and maintenance savingsIncreasing use of energy-efficient technologiesChallenges:
Uncertainty about agreement structureBuilding ownership constraintsThe North America likely to emerge as the largest Energy as a Service Market
Energy as a service represents a shift from customer-owned equipment toward a model where the service provider maintains ownership, and the customer pays for the services provided by the equipment. Key country-wise markets in the regions have also been studied in this section. North America is expected to lead the Energy as a Service Market with major utilities in the region looking to diversify their revenue streams with major transformations driven by decarbonization, decentralization, and digitization. In addition to this, as the regions demand cleaner and sustainable power increases, energy efficiency in North America is moving to integrate Distributed Energy Resources (DERs) to help ensure grid reliability, meet state and provincial efficiency requirements, and help commercial and industrial users to meet their emissions reduction targets and goals.
Speak to Analyst: https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=23172723
Key Market Players:
Some of the key players in the Energy as a Service Market are ENGIE (France), Enel X (Italy), Schneider Electric (France), Ameresco (US), Siemens (France), General Electric (US), Veolia (France), Honeywell (US), Centrica (Netherlands), Alpiq (Switzerland), WGL Energy (US), Orsted (Denmark), Bernhard Energy Solutions (US).
Browse Adjacent Markets: Energy and Power Market Research Reports & Consulting
Browse Related Reports:
Energy Management Systems Market - Global Forecast to 2027
Distributed Energy Resource Management System Market - Global Forecast to 2026
