Europe Energy as a Service Market By Service Type (Power Generation Services, Energy Efficiency & Optimization Services, Operational & Maintenance Services), End User (Commercial, Industrial), Region, Competition Forecast & Opportunities, 2018-2028F

Europe Energy as a Service market is anticipated to register an impressive CAGR during the forecast period.

In the power sector, a service business model based on energy (commonly called energy as a service) provides energy services, such as lighting, to customers for a recurring fee. Customers can benefit from using their devices while parallelly benefiting from paying direct electricity bills and avoiding expensive appliance and software upgrades or device services. Similar to service models in other sectors, EaaS makes better technology (such as energy devices and software) more accessible, potentially benefiting consumers, service companies, the power grid, and society at large. Although the term Energy-as-a-Service has historically been used primarily to describe business models related to energy efficiency, it also covers other business models used in the energy sector that are unrelated to energy efficiency, such as Solar Energy Subscriptions. According to the Energy Information Administration (EIA), renewable energy will account for more than half of the world's electricity generation by 2050. Global energy consumption is expected to increase as the world's population and urbanization rate increase. EaaS has historically created value not just for customers but for society as well.

Market Drivers

Extensive research into renewables is lowering the cost of installing climate-neutral systems. Photovoltaic, wind, and marine energy sources are becoming reliable sources, and their energy share is gaining significant importance. The combination of large batteries allows energy to be stored during lower demand periods and released during peak demand.

The Internet of Things and Cloud Computing are some of the innovations that make it possible to integrate renewable and traditional energy, collect and measure large amounts of data, and automate complicated supply processes. With numerous data sets, IoT for surveillance, and continuous logging, the energy sector can only achieve efficiencies by embracing digitization. Regulating energy consumption using demand response algorithms or subscription models for EV chargers are all stepping stones into the world of energy as a service, thus propelling the market to grow during the forecast period.

The adoption of microgrid technology in various industries is boosting market growth due to its ability to generate electricity using solar and wind energy. Increasing adoption of distributed energy resources (DER) in emerging markets is also a major driver of market growth due to their energy efficiency and cost efficiency. In addition, DER reduces emissions intensity and power system expansion costs, improves reliability, and supports revenue growth. Additionally, there are significant applications in rooftop solar power systems, biomass generators, electric vehicles, and microturbines, which are expected to drive the market.

Latest Developments in Europe Energy as a Service Market

DIF Capital Partners ("DIF"), the world's leading independent infrastructure investment fund manager, through its fund DIF Infrastructure VI, acquired Bernhard, LLC ("Bernhard"), the largest privately owned Energy-as-a-Service ) ("EaaS") is a US solutions company, a subsidiary of Bernhard Capital Partners in the year 2021.

ENGIE signed a 3-year agreement with GOOGLE for a 24*7 carbon-free energy supply agreement in Germany. This 3-year deal is a part of Google's 2030 Carbon-Free Energy initiative for its data centers, cloud regions, and offices all over the globe. This will ensure that Google's German operations are nearly 80% carbon-free by 2030.

Lack of Skilled Labors & Investment Restraining the Market Growth

Replacing conventional energy sources with renewable energy sources requires huge investments to install smart grids and devices, which may hinder market growth. Moreover, the installation of such smart grids requires appropriate skills and knowledge. Lack of skilled labor is also one of the major factors restraining the growth of the market. In addition, the transportation of raw materials required to manufacture electronic components has caused supply chain disruptions due to strict government regulations. Additionally, many industrial and commercial sectors have closed, leading to a collapse in energy demand.

Market Segmentation

Europe Energy as a Service market is segmented into service type and end user. Based on Service Type, the market is bifurcated into Power Generation Services, Energy Efficiency & Optimization Services, and Operational & Maintenance Services. On the basis of End Users, the market is bifurcated into Commercial and Industrial.

Market Players

Major market players in the Europe Energy as a Service market are Schneider Electric SE, Engie SA, Siemens AG, Veolia Environment SA, Enel X, Alpiq AG, Enertika Ltd., Orsted AS, Blackstone Energy Services Inc., Carbon Lighthouse Inc.

Report Scope

In this report, Europe Energy as a Service Market has been segmented into the following categories, in addition to the industry trends, which have also been detailed below:

Europe Energy as a Service Market, By Service Type:

• Power Generation Services
• Energy Efficiency & Optimization Services
• Operational & Maintenance Services

Europe Energy as a Service Market, By End User:

• Commercial
• Industrial

Europe Energy as a Service Market, By Country:

• United Kingdom
• France
• Germany
• Italy
• Spain
• Russia
• Finland
• Ireland
• Sweden
• Netherlands

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Europe Energy as a Service market.

Available Customizations

Europe Energy as a Service With the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players.