Energy As A Service Market- Global Forecast To 2024
The energy supply services segment is expected to be the largest contributor in the energy as a service market, by service type, during the forecast period.
The report segments the energy as a service market, by service type, into energy supply services, operational and maintenance services, energy efficiency, and optimization service. The energy supply services segment is expected to hold the largest market share by 2024. 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 gives the consumers the flexibility of choice on ownership, pricing, and financing. 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.
The commercial segment is expected to be the largest contributor during the forecast period.
The energy as a service market by end-user is
segmented into commercial and industrial users. The commercial segment
includes establishments such as healthcare, educational institution,
airports, 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. More than half the energy used by commercial buildings goes toward
heating and lighting. 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. This is mainly because of significant structural impacts,
namely, economic growth. 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.
North America is expected to account for the largest market size during the forecast period.
In this report, the energy as a service market has
been analyzed with respect to 4 regions, namely, North America, Europe,
Asia Pacific, and the Rest of the World. The market in 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.
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. Also, an increase in the
share of renewable power generation and energy efficiency activities is
expected to drive the market in this region.
The major players in the global energy as a service market are Schneider Electric (France), Engie (France), Siemens (Germany), Honeywell (US), Veolia (France), Enel X (Italy), and EDF Renewable Energy (California).
Schneider Electric (France) was established in 1988 with its headquarters in France. It is a global energy specialist in energy management and automation. The company has been focusing on governmental and commercial institutions to offer energy as a service and microgrids as a service. The company has entered into various contracts for enhancing energy as a service as a business model that is disrupting the space and empowering consumers to embrace microgrids. Schneider has the vision to provide the energy as a service business model to enable consumers and communities to solve for energy resilience, sustainability, and energy cost. This would help the company attain its unique objectives without requiring the customers to operate a utility or increase their budget.
Engie (France) established in 2008 with its headquarters in France is one of the key players in the energy as a service market. The company observes energy services to be new and innovative market opportunity as the demand for customized and sustainable energy solutions is rising. Engie MEP, which is the related subsidiary of Engie for energy as a service, has plans to provide advanced contracts and services through state-of-the-art technical and financial solutions. The company performs such contracts through energy audits, energy efficiency solutions, and distributed energy resources. The industrial and commercial facilities in North American countries, including the US, Mexico, and Canada involve more in B2B contracts for energy solution. This creates scope for energy as a service companies such as Engie to target the energy saving performance contracts and power purchase agreements to optimize and operate the energy demand for the end-users.
- 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 costs 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.
- In December 2018, Honeywell was awarded a contract by Ethiopian Airports as the sole provider of low-voltage terminal-side solutions for Addis Ababa Bole International Airport. The contract award is part of a major airport expansion project that aims to bring new levels of comfort, efficiency, and security to the growing number of passengers traveling through the East African region each year.
- In July 2018, Schneider Electric Energy & Sustainability Services (ESS) worked closely with BlueScope Steel to identify a longer-term renewable PPA as a strategy to reduce cost in the short term and decrease volatility over a longer term. Schneider Electric ESS has been long committed to helping businesses benefit from adopting low-cost renewable energy sources through PPAs and other projects.
- In December 2017, The City of Newark and Honeywell partnered on an energy savings improvement project. Honeywell, selected as the City’s energy services company, led the program to upgrade building infrastructure in 17 facilities and helped reduce the city’s annual energy operating costs by an estimated 36% with potential savings of approximately USD 1 million a year.
2 Research Methodologies
3 Executive Summaries
4 Premium Insights
4.1 Global Energy as a Service Market, 2019–2024
4.2 Energy as a Service Market, By Service Type
4.3 Energy as a Service Market, By End-User
4.4 Energy as a Service Market, By Region
5 Market Overview
5.2 Market Dynamics
6 Energy as a Service Market, By Service Type
6.2 Energy Supply Services
6.3 Operational and Maintenance Services
6.4 Energy-Efficiency and Optimization Services
7 Energy as a Service Market, By End-User
8 Energy as a Service Market, By Region
8.2 North America
8.3 Asia Pacific
8.5 Middle East Africa
8.6 Latin America
9 Competitive Landscape
10 Company Profile
(Overview, Financials, Products & Services, Recent Developments)*
10.1 WGL Energy
10.3 Schneider Electric
10.7 EDF Renewable Energy
10.10 Enel X
10.11 Bernhard Energy Solutions
10.20 Wendel Energy Services
*Details Might Not Be Captured in Case of Unlisted Companies.