Market Research Report

Product code

1064177

Energy as a Service Market Forecasts to 2028 - Global Analysis By Component (Solutions, Services), End User (Industrial, Government, Residential, Commercial), and By Geography

Published: March 1, 2022 |

Stratistics Market Research Consulting | 200+ Pages | Delivery time: 2-3 business days

Price

Description
Table of Contents
List of Tables

Add to Compare

According to Stratistics MRC, the Global Energy as a Service Market is accounted for $58.75 billion in 2021 and is expected to reach $100.69 billion by 2028 growing at a CAGR of 8.0% during the forecast period. Energy as a service is a swiftly growing and newly developed model that offers various energy related services and provides energy optimization solutions across small, medium and large businesses. Energy as a Service (EaaS) can be characterized as at one or more aspects of a customer's energy portfolio including methodology, program the executives, vitality supply, vitality use, and resource the board by applying new items, administrations, financing instruments, and technology solutions. It also increases awareness toward better management and increased installation of distributed generation sources. Energy as a service is used in different service types and detailed overview on these segments is given in the market study.

Market Dynamics:

Driver:

Rising adoption of distributed energy resources

Increasing investment in energy distribution systems would create demand for distributed energy resources (DER), which will help to propel the market. Aging infrastructure for generating and transmitting power has forced utilities to invest and upgrade the policies for (DER). Distributed energy resources include renewable energy, demand-response capabilities, and other energy saving technologies to control and reduce energy use and better manage bills. For instance, the California Public Utilities Commission (CPUC) has planned to invest USD 9 billion over the next three years to upgrade its electric distribution system and enhance its capabilities to operate the system. Therefore, the rising need for distribution systems and significant investment to improve grid efficiency is expected to drive the demand for Energy as a Service market.

Restraint:

High transformation cost

The replacement of existing grid infrastructure advances the capabilities of the electricity delivery systems, which is driving the market growth. As per the Institute of Energy Economics and Financial Analysis, India needs an investment of USD 60-80 billion over the next five years in grid infrastructure to achieve its tremendous growth in renewable energy capacity. In addition, electric utilities have planned to invest USD 3.2 trillion globally in new and replacement transmission and distribution infrastructure. This infrastructure investment will be necessary due to growing electricity demand, aging assets, and new power generation projects, including intermittent renewable resources straining the grid. Therefore, the rising need for transforming grid infrastructure, which is primarily driven by significant investment, restrain the market growth.

Opportunity:

Growing investment in renewable energy sources

Growing investment in renewable energy is driving the EaaS market growth. Rising focus on integrating distributed generation, renewable energy, energy storage, thermally activated technologies, and demand response into the electricity distribution and transmission system has enabled more investment in renewable energy. According to the report on Global Trends in Renewable Energy Investment 2019 published by United Nations Environment Programme, global investment in renewable energy in 2018 increased to USD 272.9 billion, the fifth successive year in which it has exceeded USD 250 billion. In addition, the growing investment in storage solutions is also augmenting this market. For instance, in September 2018, the World Bank Group announced a program to invest USD 1 billion to accelerate investments in battery storage for energy systems in developing countries. This program aims at ramping up the use of renewable energy to improve energy security, increase grid stability, and expand access to electricity. Therefore, increasing investment in renewable energy sources and storage solutions will fuel the market in the forthcoming years.

Threat:

Disruptions due to COVID-19 pandemic

The outbreak of COVID-19 pandemic had led to partial or complete shutdown of production facilities, which do not come under essential goods, owing to prolonged lockdown in major countries such as the U.S., China, Japan, India, and Germany. Electricity demand dropped to lower levels under lockdown, with dramatic reductions in services and IT industries and partial offset by higher residential use. In June and July, the electricity demands, corrected itself by 10% and 5%, respectively, below the 2019 level of the same month in most countries except India, where the recovery was more pronounced. EaaS projects offer energy efficiency as well as cost saving for long term. However, high capital investments in initial stages have led many companies to reduce such investments. Companies are already struggling to keep up with fixed costs and trying to survive the impact from COVID-19, any commitment to such huge capital investment is either put off, cancelled, or delayed.

The commercial segment is expected to be the largest during the forecast period

The commercial segment is estimated to have a lucrative growth. The commercial segment is expected to hold the largest market share and the fastest growing market with energy service implementations being mandated across global regions in the commercial sector. The commercial segment includes industries such as educational institution, airports, healthcare, data centers, leisure centers, warehouses, hotels, and others. According to the American Council for an Energy-Efficient Economy, these establishments account for about 19% of the energy consumed in the US. Furthermore, commercial consumers will have access to their energy efficiency through energy as a service that will, in turn, help them improve their energy consumption. More than half the energy used by commercial buildings goes toward heating and lighting. This is mainly because of significant structural impacts, namely, economic growth.

The services segment is expected to have the highest CAGR during the forecast period

The services segment is anticipated to witness the fastest CAGR growth during the forecast period. With the increasing prices, the consumers are looking to procure 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 also helps the operators customize energy generation designs based on consumer requirement, which are modern and robust. It enables easy and rapid integration of distributed generation and energy storage assets. It gives the consumers the flexibility of choice on ownership, pricing, and financing.

Region with highest share:

North America is projected to hold the largest market share during the forecast period owing to the increase in the share of renewable power generation and energy efficiency activities in the region. 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 example, in 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.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period owing to the presence of key players and huge consumer base in the region. Furthermore, energy as a service is gaining importance, owing to increase in transformation across the energy industry including digitization, decarbonization, and rapid growth in distribution generation services, which is expected to augment growth of the energy as a service (EAAS) market during the forecast period. Moreover, the adoption of green building models, increasing investment in renewable energy, and rising government support are the prominent factors attributed to the market's growth.

Key players in the market

Some of the key players profiled in the Energy as a Service Market include Bernhard Energy Solutions, Ameresco Inc, Edison, Honeywell, Alpiq, General Electric, Johnson Controls, Noresco, Schneider Electric, Enertika, Engie, Siemens, Smartwatt, Veolia, and WGL Energy.

Key Developments:

In June 2021, Honeywell launches Battery Energy storage systems platform to help users forecast and optimize energy costs. This product launch will expand the product portfolio of the company in the battery storage for grid stability and energy resource management.

In July 2021, Ameresco Inc., a leading firm in energy efficiency and renewable energy, signed a contract for a long-term energy-as-a-service agreement with Northwestern University. The company will deliver ongoing energy management and related services and identify and implement energy efficiency upgradation for the campus.

In August 2021, Engie Group has signed an agreement with Google to supply a carbon-free energy agreement in Germany. The agreement will contribute to google 2030 carbon-free energy targets for its data center, cloud region, and offices worldwide.

In August 2020, Schneider Electric, the French multinational corporation is providing energy and digital automation solutions, partnered with Huck Capital, an investment firm, to deliver clean energy as a service to commercial and industrial buildings.

Components Covered:

Solutions
Services

End User Covered:

Industrial
Government
Residential
Commercial

Regions Covered:

North America
- US
- Canada
- Mexico
Europe
- Germany
- UK
- Italy
- France
- Spain
- Rest of Europe
Asia Pacific
- Japan
- China
- India
- Australia
- New Zealand
- South Korea
- Rest of Asia Pacific
South America
- Argentina
- Brazil
- Chile
- Rest of South America
Middle East & Africa
- Saudi Arabia
- UAE
- Qatar
- South Africa
- Rest of Middle East & Africa

What our report offers:

Market share assessments for the regional and country-level segments
Strategic recommendations for the new entrants
Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
Strategic recommendations in key business segments based on the market estimations
Competitive landscaping mapping the key common trends
Company profiling with detailed strategies, financials, and recent developments
Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

Company Profiling
- Comprehensive profiling of additional market players (up to 3)
- SWOT Analysis of key players (up to 3)
Regional Segmentation
- Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
Competitive Benchmarking
- Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Product Code: SMRC18519

1 Executive Summary

2 Preface

2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
- 2.4.1 Data Mining
- 2.4.2 Data Analysis
- 2.4.3 Data Validation
- 2.4.4 Research Approach
2.5 Research Sources
- 2.5.1 Primary Research Sources
- 2.5.2 Secondary Research Sources
- 2.5.3 Assumptions

3 Market Trend Analysis

3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 End User Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19

4 Porters Five Force Analysis

4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 Global Energy as a Service Market, By Component

5.1 Introduction
5.2 Solutions
- 5.2.1 Load Management Solution
- 5.2.2 Energy Portfolio Advisory Solution
- 5.2.3 Off-Site Energy Supply
- 5.2.4 On-Site Energy Supply
5.3 Services
- 5.3.1 Energy Efficiency & Optimization Services
- 5.3.2 Energy Supply Services
- 5.3.3 Operational and Maintenance Services
- 5.3.4 Demand Services
- 5.3.5 Infrastructure Services
- 5.3.6 Technical Services
- 5.3.7 Power Generation Services

6 Global Energy as a Service Market, By End User

6.1 Introduction
6.2 Industrial
6.3 Government
6.4 Residential
6.5 Commercial

7 Global Energy as a Service Market, By Geography

7.1 Introduction
7.2 North America
- 7.2.1 US
- 7.2.2 Canada
- 7.2.3 Mexico
7.3 Europe
- 7.3.1 Germany
- 7.3.2 UK
- 7.3.3 Italy
- 7.3.4 France
- 7.3.5 Spain
- 7.3.6 Rest of Europe
7.4 Asia Pacific
- 7.4.1 Japan
- 7.4.2 China
- 7.4.3 India
- 7.4.4 Australia
- 7.4.5 New Zealand
- 7.4.6 South Korea
- 7.4.7 Rest of Asia Pacific
7.5 South America
- 7.5.1 Argentina
- 7.5.2 Brazil
- 7.5.3 Chile
- 7.5.4 Rest of South America
7.6 Middle East & Africa
- 7.6.1 Saudi Arabia
- 7.6.2 UAE
- 7.6.3 Qatar
- 7.6.4 South Africa
- 7.6.5 Rest of Middle East & Africa

8 Key Developments

8.1 Agreements, Partnerships, Collaborations and Joint Ventures
8.2 Acquisitions & Mergers
8.3 New Product Launch
8.4 Expansions
8.5 Other Key Strategies

9 Company Profiling

9.1 Bernhard Energy Solutions
9.2 Ameresco Inc
9.3 Edison
9.4 Honeywell
9.5 Alpiq
9.6 General Electric
9.7 Johnson Controls
9.8 Noresco
9.9 Schneider Electric
9.10 Enertika
9.11 Engie
9.12 Siemens
9.13 Smartwatt
9.14 Veolia
9.15 WGL Energy

List of Tables

Table 1 Global Energy as a Service Market Outlook, By Region (2020-2028) ($MN)
Table 2 Global Energy as a Service Market Outlook, By Component (2020-2028) ($MN)
Table 3 Global Energy as a Service Market Outlook, By Solutions (2020-2028) ($MN)
Table 4 Global Energy as a Service Market Outlook, By Load Management Solution (2020-2028) ($MN)
Table 5 Global Energy as a Service Market Outlook, By Energy Portfolio Advisory Solution (2020-2028) ($MN)
Table 6 Global Energy as a Service Market Outlook, By Off-Site Energy Supply (2020-2028) ($MN)
Table 7 Global Energy as a Service Market Outlook, By On-Site Energy Supply (2020-2028) ($MN)
Table 8 Global Energy as a Service Market Outlook, By Services (2020-2028) ($MN)
Table 9 Global Energy as a Service Market Outlook, By Energy Efficiency & Optimization Services (2020-2028) ($MN)
Table 10 Global Energy as a Service Market Outlook, By Energy Supply Services (2020-2028) ($MN)
Table 11 Global Energy as a Service Market Outlook, By Operational and Maintenance Services (2020-2028) ($MN)
Table 12 Global Energy as a Service Market Outlook, By Demand Services (2020-2028) ($MN)
Table 13 Global Energy as a Service Market Outlook, By Infrastructure Services (2020-2028) ($MN)
Table 14 Global Energy as a Service Market Outlook, By Technical Services (2020-2028) ($MN)
Table 15 Global Energy as a Service Market Outlook, By Power Generation Services (2020-2028) ($MN)
Table 16 Global Energy as a Service Market Outlook, By End User (2020-2028) ($MN)
Table 17 Global Energy as a Service Market Outlook, By Industrial (2020-2028) ($MN)
Table 18 Global Energy as a Service Market Outlook, By Government (2020-2028) ($MN)
Table 19 Global Energy as a Service Market Outlook, By Residential (2020-2028) ($MN)
Table 20 Global Energy as a Service Market Outlook, By Commercial (2020-2028) ($MN)
Table 21 North America Energy as a Service Market Outlook, By Country (2020-2028) ($MN)
Table 22 North America Energy as a Service Market Outlook, By Component (2020-2028) ($MN)
Table 23 North America Energy as a Service Market Outlook, By Solutions (2020-2028) ($MN)
Table 24 North America Energy as a Service Market Outlook, By Load Management Solution (2020-2028) ($MN)
Table 25 North America Energy as a Service Market Outlook, By Energy Portfolio Advisory Solution (2020-2028) ($MN)
Table 26 North America Energy as a Service Market Outlook, By Off-Site Energy Supply (2020-2028) ($MN)
Table 27 North America Energy as a Service Market Outlook, By On-Site Energy Supply (2020-2028) ($MN)
Table 28 North America Energy as a Service Market Outlook, By Services (2020-2028) ($MN)
Table 29 North America Energy as a Service Market Outlook, By Energy Efficiency & Optimization Services (2020-2028) ($MN)
Table 30 North America Energy as a Service Market Outlook, By Energy Supply Services (2020-2028) ($MN)
Table 31 North America Energy as a Service Market Outlook, By Operational and Maintenance Services (2020-2028) ($MN)
Table 32 North America Energy as a Service Market Outlook, By Demand Services (2020-2028) ($MN)
Table 33 North America Energy as a Service Market Outlook, By Infrastructure Services (2020-2028) ($MN)
Table 34 North America Energy as a Service Market Outlook, By Technical Services (2020-2028) ($MN)
Table 35 North America Energy as a Service Market Outlook, By Power Generation Services (2020-2028) ($MN)
Table 36 North America Energy as a Service Market Outlook, By End User (2020-2028) ($MN)
Table 37 North America Energy as a Service Market Outlook, By Industrial (2020-2028) ($MN)
Table 38 North America Energy as a Service Market Outlook, By Government (2020-2028) ($MN)
Table 39 North America Energy as a Service Market Outlook, By Residential (2020-2028) ($MN)
Table 40 North America Energy as a Service Market Outlook, By Commercial (2020-2028) ($MN)
Table 41 Europe Energy as a Service Market Outlook, By Country (2020-2028) ($MN)
Table 42 Europe Energy as a Service Market Outlook, By Component (2020-2028) ($MN)
Table 43 Europe Energy as a Service Market Outlook, By Solutions (2020-2028) ($MN)
Table 44 Europe Energy as a Service Market Outlook, By Load Management Solution (2020-2028) ($MN)
Table 45 Europe Energy as a Service Market Outlook, By Energy Portfolio Advisory Solution (2020-2028) ($MN)
Table 46 Europe Energy as a Service Market Outlook, By Off-Site Energy Supply (2020-2028) ($MN)
Table 47 Europe Energy as a Service Market Outlook, By On-Site Energy Supply (2020-2028) ($MN)
Table 48 Europe Energy as a Service Market Outlook, By Services (2020-2028) ($MN)
Table 49 Europe Energy as a Service Market Outlook, By Energy Efficiency & Optimization Services (2020-2028) ($MN)
Table 50 Europe Energy as a Service Market Outlook, By Energy Supply Services (2020-2028) ($MN)
Table 51 Europe Energy as a Service Market Outlook, By Operational and Maintenance Services (2020-2028) ($MN)
Table 52 Europe Energy as a Service Market Outlook, By Demand Services (2020-2028) ($MN)
Table 53 Europe Energy as a Service Market Outlook, By Infrastructure Services (2020-2028) ($MN)
Table 54 Europe Energy as a Service Market Outlook, By Technical Services (2020-2028) ($MN)
Table 55 Europe Energy as a Service Market Outlook, By Power Generation Services (2020-2028) ($MN)
Table 56 Europe Energy as a Service Market Outlook, By End User (2020-2028) ($MN)
Table 57 Europe Energy as a Service Market Outlook, By Industrial (2020-2028) ($MN)
Table 58 Europe Energy as a Service Market Outlook, By Government (2020-2028) ($MN)
Table 59 Europe Energy as a Service Market Outlook, By Residential (2020-2028) ($MN)
Table 60 Europe Energy as a Service Market Outlook, By Commercial (2020-2028) ($MN)
Table 61 Asia Pacific Energy as a Service Market Outlook, By Country (2020-2028) ($MN)
Table 62 Asia Pacific Energy as a Service Market Outlook, By Component (2020-2028) ($MN)
Table 63 Asia Pacific Energy as a Service Market Outlook, By Solutions (2020-2028) ($MN)
Table 64 Asia Pacific Energy as a Service Market Outlook, By Load Management Solution (2020-2028) ($MN)
Table 65 Asia Pacific Energy as a Service Market Outlook, By Energy Portfolio Advisory Solution (2020-2028) ($MN)
Table 66 Asia Pacific Energy as a Service Market Outlook, By Off-Site Energy Supply (2020-2028) ($MN)
Table 67 Asia Pacific Energy as a Service Market Outlook, By On-Site Energy Supply (2020-2028) ($MN)
Table 68 Asia Pacific Energy as a Service Market Outlook, By Services (2020-2028) ($MN)
Table 69 Asia Pacific Energy as a Service Market Outlook, By Energy Efficiency & Optimization Services (2020-2028) ($MN)
Table 70 Asia Pacific Energy as a Service Market Outlook, By Energy Supply Services (2020-2028) ($MN)
Table 71 Asia Pacific Energy as a Service Market Outlook, By Operational and Maintenance Services (2020-2028) ($MN)
Table 72 Asia Pacific Energy as a Service Market Outlook, By Demand Services (2020-2028) ($MN)
Table 73 Asia Pacific Energy as a Service Market Outlook, By Infrastructure Services (2020-2028) ($MN)
Table 74 Asia Pacific Energy as a Service Market Outlook, By Technical Services (2020-2028) ($MN)
Table 75 Asia Pacific Energy as a Service Market Outlook, By Power Generation Services (2020-2028) ($MN)
Table 76 Asia Pacific Energy as a Service Market Outlook, By End User (2020-2028) ($MN)
Table 77 Asia Pacific Energy as a Service Market Outlook, By Industrial (2020-2028) ($MN)
Table 78 Asia Pacific Energy as a Service Market Outlook, By Government (2020-2028) ($MN)
Table 79 Asia Pacific Energy as a Service Market Outlook, By Residential (2020-2028) ($MN)
Table 80 Asia Pacific Energy as a Service Market Outlook, By Commercial (2020-2028) ($MN)
Table 81 South America Energy as a Service Market Outlook, By Country (2020-2028) ($MN)
Table 82 South America Energy as a Service Market Outlook, By Component (2020-2028) ($MN)
Table 83 South America Energy as a Service Market Outlook, By Solutions (2020-2028) ($MN)
Table 84 South America Energy as a Service Market Outlook, By Load Management Solution (2020-2028) ($MN)
Table 85 South America Energy as a Service Market Outlook, By Energy Portfolio Advisory Solution (2020-2028) ($MN)
Table 86 South America Energy as a Service Market Outlook, By Off-Site Energy Supply (2020-2028) ($MN)
Table 87 South America Energy as a Service Market Outlook, By On-Site Energy Supply (2020-2028) ($MN)
Table 88 South America Energy as a Service Market Outlook, By Services (2020-2028) ($MN)
Table 89 South America Energy as a Service Market Outlook, By Energy Efficiency & Optimization Services (2020-2028) ($MN)
Table 90 South America Energy as a Service Market Outlook, By Energy Supply Services (2020-2028) ($MN)
Table 91 South America Energy as a Service Market Outlook, By Operational and Maintenance Services (2020-2028) ($MN)
Table 92 South America Energy as a Service Market Outlook, By Demand Services (2020-2028) ($MN)
Table 93 South America Energy as a Service Market Outlook, By Infrastructure Services (2020-2028) ($MN)
Table 94 South America Energy as a Service Market Outlook, By Technical Services (2020-2028) ($MN)
Table 95 South America Energy as a Service Market Outlook, By Power Generation Services (2020-2028) ($MN)
Table 96 South America Energy as a Service Market Outlook, By End User (2020-2028) ($MN)
Table 97 South America Energy as a Service Market Outlook, By Industrial (2020-2028) ($MN)
Table 98 South America Energy as a Service Market Outlook, By Government (2020-2028) ($MN)
Table 99 South America Energy as a Service Market Outlook, By Residential (2020-2028) ($MN)
Table 100 South America Energy as a Service Market Outlook, By Commercial (2020-2028) ($MN)
Table 101 Middle East & Africa Energy as a Service Market Outlook, By Country (2020-2028) ($MN)
Table 102 Middle East & Africa Energy as a Service Market Outlook, By Component (2020-2028) ($MN)
Table 103 Middle East & Africa Energy as a Service Market Outlook, By Solutions (2020-2028) ($MN)
Table 104 Middle East & Africa Energy as a Service Market Outlook, By Load Management Solution (2020-2028) ($MN)
Table 105 Middle East & Africa Energy as a Service Market Outlook, By Energy Portfolio Advisory Solution (2020-2028) ($MN)
Table 106 Middle East & Africa Energy as a Service Market Outlook, By Off-Site Energy Supply (2020-2028) ($MN)
Table 107 Middle East & Africa Energy as a Service Market Outlook, By On-Site Energy Supply (2020-2028) ($MN)
Table 108 Middle East & Africa Energy as a Service Market Outlook, By Services (2020-2028) ($MN)
Table 109 Middle East & Africa Energy as a Service Market Outlook, By Energy Efficiency & Optimization Services (2020-2028) ($MN)
Table 110 Middle East & Africa Energy as a Service Market Outlook, By Energy Supply Services (2020-2028) ($MN)
Table 111 Middle East & Africa Energy as a Service Market Outlook, By Operational and Maintenance Services (2020-2028) ($MN)
Table 112 Middle East & Africa Energy as a Service Market Outlook, By Demand Services (2020-2028) ($MN)
Table 113 Middle East & Africa Energy as a Service Market Outlook, By Infrastructure Services (2020-2028) ($MN)
Table 114 Middle East & Africa Energy as a Service Market Outlook, By Technical Services (2020-2028) ($MN)
Table 115 Middle East & Africa Energy as a Service Market Outlook, By Power Generation Services (2020-2028) ($MN)
Table 116 Middle East & Africa Energy as a Service Market Outlook, By End User (2020-2028) ($MN)
Table 117 Middle East & Africa Energy as a Service Market Outlook, By Industrial (2020-2028) ($MN)
Table 118 Middle East & Africa Energy as a Service Market Outlook, By Government (2020-2028) ($MN)
Table 119 Middle East & Africa Energy as a Service Market Outlook, By Residential (2020-2028) ($MN)
Table 120 Middle East & Africa Energy as a Service Market Outlook, By Commercial (2020-2028) ($MN)