Global Energy as a Service (EaaS) Market (by Service Type, End-User, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2026)

Description

Market Insight:

EaaS is a solution for increasing market acceptance of advanced, low-carbon technologies. Customers can pay for an energy service using the energy as a service business model without any prior capital commitment. EaaS providers are responsible for managing and monitoring the energy supply, minimising clients' operational expenses, and increasing profitability.

Rather than simply delivering power, the EaaS model provides clients with a variety of energy-related services. The consumer benefits from avoiding direct electricity payments, costly updates for electrical equipment or software, or device administration while still enjoying the benefits of the gadget. Governments across the world are adopting significant initiatives and regulations to raise awareness about the benefits of utilizing renewable energy, which has resulted in a growth in renewable energy demand and driven the total energy as a service industry. The global energy as a service market is expected to reach US$72.62 billion in 2023, growing at a CAGR of 8.95% during the forecast period.

Segment Covered:

By Service Type: In terms of service type, the report provides the bifurcation of the global energy as a service market into three segments: Energy Supply Services, Operational and Maintenance Services, and Energy Efficiency & Optimization Services. The energy supply services segment accounted for the largest share in the global energy as a service market owing to the rapid rise of distributed energy generation sources such as solar, wind, fuel cells, and heat and power, which in turn, has enhanced the demand for energy supply services.
By End User: The report further provided the segmentation on the basis of end user of the energy as a service market: Commercial and Industrial. Commercial sector is expected to grow at the highest CAGR owing to the rise in demand for optimization of energy consumption in the commercial sector to reduce energy bills and support sustainable environmental growth.

Geographic Coverage:

According to this report, the global energy as a service market is divided into five regions: Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. The countries covered in Asia Pacific region are China, India, Japan, South Korea, Australia, and the Rest of the Asia Pacific, while North America includes the US, Canada, and Mexico. Moreover, Germany, France, the UK, Italy, Spain, and the Rest of Europe are included in the Europe region.

The Asia Pacific dominated the market with maximum share of the global market. Asia is also expected to grow at the highest CAGR in the forecasted years owing to increased investments in smart energy infrastructure, renewable energy, and increasing urbanization across the region. Within North America, the US dominates the energy as a service market. The US energy as a service market is segmented into three service types: Energy Supply Services, Operational and Maintenance Services, and Energy Efficiency & Optimization Services. The US energy as a service market is further segmented based on end-user: Commercial and Industrial. The US energy efficiency and optimization services market is expected to grow at the highest CAGR owing to the increase in the installation of the smart grid and smart meters.

Top Impacting Factors:

Growth Drivers

Increasing Renewable Energy Generation
Proliferation of Electric Vehicles
Increasing Investment in Clean Energy and Energy Efficiency
Rapid Growth in Distributed Energy Resources

Challenges

High Integration and Deployment Cost
Cybersecurity Vulnerabilities

Trends

Internet of Energy
Increasing Use of Smart Grid
Advanced Engineering in Renewables
Increasing Use of Blockchain
Driver: Increasing Renewable Energy Generation

Renewable energy helps to safeguard the environment by emitting little to no harmful pollutants. Therefore, more emphasis is being focused on renewable and non-green energy sources for eco-friendly energy management, thermal conservation, and reducing CO2 emissions. On the other hand, corporations have increasingly been looking for sustainable or renewable resources of energy. Additionally, public spending on renewable energy is also increasing, which has further led to an increase in renewable energy generation. Therefore, the growing dependence on renewable energy sources has positively impacted the adoption of the EaaS model and is likely to drive the growth of the global energy as a service market during the forecast period.

Challenge: High Integration and Deployment Cost

EaaS solution requires the deployment of advanced IoT devices and equipment for tracking energy consumption and usage patterns. This data is later used by service providers for setting energy tariffs and suggesting energy management techniques. However, the installation of these devices can be a cumbersome process, especially in the case of existing large commercial or industrial environments. A major challenge in the implementation of the EaaS model is the installation of renewable energy systems and battery storage systems at the end-user premises. These systems are installed to minimize the dependence on power grids and reduce electricity bills. Although the deployment of these systems would result in savings for users in the long run, the initial cost of their deployment can be considerably high and may discourage customers from opting for an EaaS solution. This is likely to impede the growth of the market during the forecast period.

Trend: Increasing Use of Smart Grid

Smart Grid is an Electrical Grid with Automation, Communication, and IT systems that can monitor power flows from points of generation to points of consumption (even down to appliances level) and control the power flow or curtail the load to match generation in real-time or near real-time. In the smart grid, the energy consumer (typically called a prosumer), not only utilizes energy but also generates and provides electricity back to the grid. Also, a smart grid entails technology applications that allow easier integration and higher penetration of renewable energy. Moreover, the smart grid is essential for accelerating the development and widespread usage of plug-in hybrid electric vehicles (PHEVs) and their potential use as storage for the grid. Hence, it is expected that the smart grid installation would increase in the coming years, which in turn, escalate the growth of the EaaS market.

The COVID-19 Analysis:

The COVID-19 outbreak had an adverse effect on the energy as a service market. Industries that predominantly depend on renewable energy sources for operations were forced to function partially or shut down completely due to the rising number of cases. This impacted the renewable energy demand and affect the overall energy as a service market. In the post-COVID era, it is expected that the energy-as-a-service model would grow in importance to be a part of the smart energy community of its ability to reduce energy costs.

The energy investments in the initial stages of the pandemic have reduced significantly. Companies were already struggling to keep up with fixed costs and trying to survive the impact of COVID-19, any commitment to such huge capital investment is either put off, canceled, or delayed. Thus, the impact on the EaaS market was high in 2020. However, in 2021, annual global energy investment is set to rise to US$1.9 trillion, rebounding nearly 10% from 2020 and bringing the total volume of investment back towards pre-crisis levels.

Analysis of Key Players:

The global energy as a service market is highly fragmented. Several well-established players are looking to adopt different product strategies such as launching new products to stay competitive in the overall market. A wide spectrum of stakeholders can benefit from EaaS because of the physical, digital and communication infrastructure required. Major electrical companies and manufacturers of industrial equipment are already creating energy-as-a-service products. The same goes for businesses in the telecommunications, technology, and oil & gas sectors, all of which offer unique advantages. The key players in the global energy as a service market are:

Honeywell International Inc.
ENGIE
Enel S.p.A (Enel X)
Johnson Controls International PLC
Veolia Environment S.A.
Centrica plc
Siemens AG
General Electric Company (GE)
Electricite de France S.A. (EDF Renewables)
ABB Group
Schneider Electric SE
Edison International (Edison Energy, LLC)
AltaGas Ltd. (WGL Energy)

Most industry players are working to position themselves as a leader in the EaaS field, proving high-efficiency, low-emission power generation products and services that enable customers to increase their power resilience and lower energy costs & carbon emissions. The industry witnesses rising numbers of EaaS agreements formed by oil and gas customers for high reliability, more environmentally friendly power solutions for their operations. Other strategies opted by market players are mergers & acquisitions. For instance, in June 2022, Schneider Electric announced collaborating with Hitachi Energy to provide greater customer value and accelerate the energy transition. Also, in November 2021, ENGIE, alongside with the company's partner Credit Agricole Assurances, signed an agreement to acquire Eolia, a renewable company in Spain. With 0.9 GW of operating assets and 1.2 GW of renewable projects pipeline, this acquisition would add to ENGIE's scale in the Iberian Peninsula.

1. Executive Summary

2. Introduction

2.1 Energy as a Service: An Overview
- 2.1.1 Introduction to Energy as a Service
2.2 Energy as a Service Segmentation: An Overview
- 2.2.1 Energy as a Service Segmentation

3. Global Market Analysis

3.1 Global Energy as a Service Market: An Analysis
- 3.1.1 Global Energy as a Service Market by Value
- 3.1.2 Global Energy as a Service Market by Service Type (Energy Supply Services, Operational and Maintenance Services, and Energy Efficiency & Optimization Services)
- 3.1.3 Global Energy as a Service Market by End-User (Commercial and Industrial)
- 3.1.4 Global Energy as a Service Market by Region (Asia Pacific, North America, Europe, Latin America, and Middle East & Africa)
3.2 Global Energy as a Service Market: Service Type Analysis
- 3.2.1 Global Energy Supply Services Market by Value
- 3.2.2 Global Operational and Maintenance Services Market by Value
- 3.2.3 Global Energy Efficiency and Optimization Services Market by Value
3.3 Global Energy as a Service Market: End-User Analysis
- 3.3.1 Global Commercial Energy as a Service Market by Value
- 3.3.2 Global Industrial Energy as a Service Market by Value

4. Regional Market Analysis

4.1 Asia Pacific Energy as a Service Market: An Analysis
- 4.1.1 Asia Pacific Energy as a Service Market by Value
- 4.1.2 Asia Pacific Energy as a Service Market by Region (China, India, Japan, South Korea, Australia, and the Rest of the Asia Pacific)
- 4.1.3 China Energy as a Service Market by Value
- 4.1.4 India Energy as a Service Market by Value
- 4.1.5 Japan Energy as a Service Market by Value
- 4.1.6 South Korea Energy as a Service Market by Value
- 4.1.7 Australia Energy as a Service Market by Value
- 4.1.8 Rest of Asia Pacific Energy as a Service Market by Value
4.2 North America Energy as a Service Market: An Analysis
- 4.2.1 North America Energy as a Service Market by Value
- 4.2.2 North America Energy as a Service Market by Region (The US, Canada, and Mexico)
- 4.2.3 The US Energy as a Service Market by Value
- 4.2.4 The US Energy as a Service Market by Service Type (Energy Supply Services, Operational and Maintenance Services, and Energy Efficiency & Optimization Services)
- 4.2.5 The US Energy Supply Services Market by Value
- 4.2.6 The US Operational and Maintenance Services Market by Value
- 4.2.7 The US Energy Efficiency and Optimization Services Market by Value
- 4.2.8 The US Energy as a Service Market by End-User (Commercial and Industrial)
- 4.2.9 The US Commercial Energy as a Service Market by Value
- 4.2.10 The US Industrial Energy as a Service Market by Value
- 4.2.11 Canada Energy as a Service Market by Value
- 4.2.12 Mexico Energy as a Service Market by Value
4.3 Europe Energy as a Service Market: An Analysis
- 4.3.1 Europe Energy as a Service Market by Value
- 4.3.2 Europe Energy as a Service Market by Region (Germany, France, the UK, Italy, Spain, and the Rest of Europe)
- 4.3.3 Germany Energy as a Service Market by Value
- 4.3.4 France Energy as a Service Market by Value
- 4.3.5 The UK Energy as a Service Market by Value
- 4.3.6 Italy Energy as a Service Market by Value
- 4.3.7 Spain Energy as a Service Market by Value
- 4.3.8 Rest of Europe Energy as a Service Market by Value
4.4 Latin America Energy as a Service Market: An Analysis
- 4.4.1 Latin America Energy as a Service Market by Value
4.5 Middle East & Africa Energy as a Service Market: An Analysis
- 4.5.1 Middle East & Africa Energy as a Service Market by Value

5. Impact of COVID-19

5.1 Impact of COVID-19 on Energy as a Service Market
5.2 Impact of COVID-19 on Energy Demand
5.3 Impact of COVID-19 on Energy Investment
5.4 Post COVID-19 Impact on Energy as a Service Market

6. Market Dynamics

6.1 Growth Driver
- 6.1.1 Increasing Renewable Energy Generation
- 6.1.2 Rapid Urbanization and Industrialization
- 6.1.3 Increasing Carbon Emissions
- 6.1.4 Increasing Investment in Clean Energy and Energy Efficiency
- 6.1.5 Proliferation of Electric Vehicles
- 6.1.6 Rapid Growth in Distributed Energy Resources
- 6.1.7 Multi-Beneficial Model
6.2 Challenges
- 6.2.1 High Integration and Deployment Cost
- 6.2.2 Cybersecurity Vulnerabilities
6.3 Market Trends
- 6.3.1 Internet of Energy
- 6.3.2 Increasing Use of Smart Grid
- 6.3.3 Increasing Installation of Smart Meters
- 6.3.4 Advanced Engineering in Renewables
- 6.3.5 Rapid Digitalization
- 6.3.6 Increasing Use of Blockchain

7. Competitive Landscape

7.1 Global Energy as a Service Market Players: Merger and Acquisitions

8. Company Profiles

8.1 ENGIE
- 8.1.1 Business Overview
- 8.1.2 Operating Segment
- 8.1.3 Business Strategy
8.2 Honeywell International Inc.
- 8.2.1 Business Overview
- 8.2.2 Operating Segment
- 8.2.3 Business Strategy
8.3 Veolia Environment S.A.
- 8.3.1 Business Overview
- 8.3.2 Revenue by Business Line
- 8.3.3 Business Strategy
8.4 Enel S.p.A (Enel X)
- 8.4.1 Business Overview
- 8.4.2 Operating Business Line
- 8.4.3 Business Strategy
8.5 Johnson Controls International PLC
- 8.5.1 Business Overview
- 8.5.2 Operating Segments
- 8.5.3 Business Strategy
8.6 AltaGas Ltd. (WGL Energy)
- 8.6.1 Business Overview
- 8.6.2 Operating Segments
- 8.6.3 Business Strategy
8.7 Centrica plc
- 8.7.1 Business Overview
- 8.7.2 Operating Segments
- 8.7.3 Business Strategy
8.8 Electricite de France S.A. (EDF Renewables)
- 8.8.1 Business Overview
- 8.8.2 Operating Segments
- 8.8.3 Business Strategy
8.9 ABB Group
- 8.9.1 Business Overview
- 8.9.2 Operating Businesses Areas
- 8.9.3 Business Strategy
8.10 Siemens AG
- 8.10.1 Business Overview
- 8.10.2 Operating Segments
- 8.10.3 Business Strategy
8.11 General Electric Company (GE)
- 8.11.1 Business Overview
- 8.11.2 Operating Segments
- 8.11.3 Business Strategy
8.12 Schneider Electric SE
- 8.12.1 Business Overview
- 8.12.2 Operating Segments
- 8.12.3 Business Strategy
8.13 Edison International (Edison Energy, LLC)
- 8.13.1 Business Overview
- 8.13.2 Business Strategy
Table of Figures
Figure 1: Energy as a Service Segmentation
Figure 2: Global Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 3: Global Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 4: Global Energy as a Service Market by Service Type; 2021 (Percentage, %)
Figure 5: Global Energy as a Service Market by End-User; 2021 (Percentage, %)
Figure 6: Global Energy as a Service Market by Region; 2021 (Percentage, %)
Figure 7: Global Energy Supply Services Market by Value; 2017-2021 (US$ Billion)
Figure 8: Global Energy Supply Services Market by Value; 2022-2026 (US$ Billion)
Figure 9: Global Operational and Maintenance Services Market by Value; 2017-2021 (US$ Billion)
Figure 10: Global Operational and Maintenance Services Market by Value; 2022-2026 (US$ Billion)
Figure 11: Global Energy Efficiency and Optimization Services Market by Value; 2017-2021 (US$ Billion)
Figure 12: Global Energy Efficiency and Optimization Services Market by Value; 2022-2026 (US$ Billion)
Figure 13: Global Commercial Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 14: Global Commercial Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 15: Global Industrial Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 16: Global Industrial Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 17: Asia Pacific Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 18: Asia Pacific Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 19: Asia Pacific Energy as a Service Market by Region; 2021 (Percentage, %)
Figure 20: China Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 21: China Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 22: India Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 23: India Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 24: Japan Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 25: Japan Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 26: South Korea Energy as a Service Market by Value; 2017-2021 (US$ Million)
Figure 27: South Korea Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 28: Australia Energy as a Service Market by Value; 2017-2021 (US$ Million)
Figure 29: Australia Energy as a Service Market by Value; 2022-2026 (US$ Million)
Figure 30: Rest of Asia Pacific Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 31: Rest of Asia Pacific Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 32: North America Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 33: North America Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 34: North America Energy as a Service Market by Region; 2021 (Percentage, %)
Figure 35: The US Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 36: The US Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 37: The US Energy as a Service Market by Service Type; 2021 (Percentage, %)
Figure 38: The US Energy Supply Services Market by Value; 2017-2021 (US$ Billion)
Figure 39: The US Energy Supply Services Market by Value; 2022-2026 (US$ Billion)
Figure 40: The US Operational and Maintenance Services Market by Value; 2017-2021 (US$ Billion)
Figure 41: The US Operational and Maintenance Services Market by Value; 2022-2026 (US$ Billion)
Figure 42: The US Energy Efficiency and Optimization Services Market by Value; 2017-2021 (US$ Billion)
Figure 43: The US Energy Efficiency and Optimization Services Market by Value; 2022-2026 (US$ Billion)
Figure 44: The US Energy as a Service Market by End-User; 2021 (Percentage, %)
Figure 45: The US Commercial Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 46: The US Commercial Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 47: The US Industrial Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 48: The US Industrial Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 49: Canada Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 50: Canada Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 51: Mexico Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 52: Mexico Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 53: Europe Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 54: Europe Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 55: Europe Energy as a Service Market by Region; 2021 (Percentage, %)
Figure 56: Germany Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 57: Germany Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 58: France Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 59: France Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 60: The UK Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 61: The UK Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 62: Italy Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 63: Italy Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 64: Spain Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 65: Spain Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 66: Rest of Europe Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 67: Rest of Europe Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 68: Latin America Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 69: Latin America Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 70: Middle East & Africa Energy as a Service Market by Value; 2017-2021 (US$ Billion)
Figure 71: Middle East & Africa Energy as a Service Market by Value; 2022-2026 (US$ Billion)
Figure 72: Global Primary Energy Demand Relative to 2019; 2019-2021 (Percentage, %)
Figure 73: Global Energy Investment; 2018-2021 (US$ Billion)
Figure 74: Global Net Renewable Capacity Additions in Solar PV; 2019-2022 (Gigawatts)
Figure 75: Global Share of Urban Population in Total Population; 2015-2050 (Percentage, %)
Figure 76: Global Annual Carbon Emission; 2005-2021 (GtCo2)
Figure 77: Global Investment in Clean Energy and Energy Efficiency; 2017-2021 (US$ Billion)
Figure 78: Global Sales Market Share of Electric Vehicles; 2015-2021 (Percentage, %)
Figure 79: Global Internet Of Things (IoT) Value in Energy Market; 2020-2025 (US$ Billion)
Figure 80: Global Smart Grid Technology Market Size; 2021-2026 (US$ Billion)
Figure 81: ENGIE Revenues by Segment; 2021 (Percentage, %)
Figure 82: Honeywell International Inc. Net Sales by Segment; 2021 (Percentage, %)
Figure 83: Veolia Environment S.A. Revenue by Business Line; 2021 (Percentage, %)
Figure 84: Enel S.p.A Revenue by Business Line; 2021 (Percentage, %)
Figure 85: Johnson Controls International PLC Net Sales by Segment; 2021 (Percentage, %)
Figure 86: AltaGas Ltd. Revenue by Segment; 2021 (Percentage, %)
Figure 87: Centrica Revenue by Segment; 2021 (Percentage, %)
Figure 88: Electricite de France S.A. Sales by Segment; 2021 (Percentage, %)
Figure 89: ABB Group Revenues by Business Areas; 2021 (Percentage, %)
Figure 90: Siemens AG Revenue by Segments; 2021 (Percentage, %)
Figure 91: General Electric Company (GE) Revenues by Segments; 2021 (Percentage, %)
Figure 92: Schneider Electric SE Revenue by Segment; 2021 (Percentage, %)
Table 1: Global Energy as a Service Market Players: Merger and Acquisitions; 2021