Energy as a Service Market

Energy as a Service Market Size (2023 -2028):

The Global Energy as a Service Market is valued at US$ 62.22 billion in 2022 and it is expected to reach a valuation of US$ 110.3 billion by 2028, During this forecast period, it is anticipated to grow with a healthy CAGR of 10.36% over 2023-2028.

Market Overview:

With rising energy rates, customers are seeking a reliable energy source to confirm that they'll run without looking forward to the grid. With growing specialization in various energy supply sources like renewable, fossil fuels, nuclear, biomass, and biofuels, the energy as a service model primarily supports renewable energy because it is environmentally friendly and also decreases carbon emissions. It provides customers with more options in terms of ownership, pricing, and financing. It also assists operators in customizing energy generation solutions that are current and resilient and support customer requirements. It makes the combination of distributed generating and energy storage assets simple and quick.

Energy, technology, analytics, grid access, and tailored services are all a part of the EaaS. The growing use of EaaS has been primarily for lowering building energy expenditures and lowering carbon emissions so as to preserve the ecological balance. The adoption of renewables, which has resulted in a rise in decentralized energy delivery, has helped to deal with the matter of carbon emissions.

Market Drivers:

Various factors are driving the growth of the global energy as a service market, including an increase in building owners' efforts to reduce energy costs, an increase in renewable energy generation, an increase in energy efficiency activities, an increase in renewable energy adoption, and an increase in smart grid installations. On the other hand, prominent companies' move from conventional energy models to EaaS models is expected to give attractive development prospects and retain market position during the projection period.

Rapid urbanization and industrialization raise energy consumption and contribute to the worldwide depletion of fossil resources. The growing need to reduce reliance on fossil fuels and reduce carbon emissions has raised the demand for renewable energy sources, which is projected to propel the market forward throughout the forecast period. Furthermore, the government's rising initiative in the use of renewable energy sources is a crucial element driving the expansion of the energy as a service industry.

Market Restraints:

The energy industry is being driven by a number of main causes, including rising energy usage and fluctuating power prices. This market is seeing a significant decline as a result of various production units. Growing energy consumption, aged assets, and new power production projects, particularly intermittent renewable resources, will necessitate this infrastructure investment. As a result, throughout the forecast period, the rising requirement for changing grid infrastructure, which is predominantly driven by considerable investment, will stifle market expansion.

ENERGY AS A SERVICE MARKET REPORT COVERAGE:

Market Segmentation:

Energy as a Service Market - By Service Type:

• Energy Supply.
• Operation & Maintenance.
• Optimization & Efficiency.

Energy is expected to hold the Dominant share in the Global Energy as a Service Market during the forecast period. as a result of increased demand for renewable energy sources and decentralized energy delivery across industrial verticals. Due to the growing desire to improve operational efficiency, decrease downtime, manage risks, and maximize profitability, the operation, and maintenance segment has a considerable market share. The optimization & efficiency category is driven by the increased demand for energy sustainability, new energy solutions, energy resources, and improvements in building efficiency, which assist to cut costs and maximize efficiency. As a result, rising renewable energy output and the growing need to improve efficiency will drive EaaS demand throughout the projection period.

Energy as a Service Market - By End-User:

• Industrial.
• Commercial.

The commercial segment is expected to hold the Dominant share in the Global Energy as a Service Market during the forecast period. Educational institutions, the healthcare industry, data centres, airports, banks, and other businesses make up the commercial sector. According to the American Council for an Energy-Efficient Economy (ACEEE), the commercial sector uses more than 18% of the energy consumed by various sectors in the United States. Buildings account for more than 30% of total consumption in the business sector. Commercial buildings with greater energy usage have energy applications such as district energy systems and commerce and service. Due to the increased need for energy efficiency and economic growth, the industrial category is expected to occupy the second-largest market share. As a result, throughout the forecasted period, the commercial segment is expected to dominate the EaaS market share.

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

North America is expected to hold the Dominant share in the Global Energy as a Service Market during the forecast period. As the need for intelligent buildings and building automation grows. The market is developing due to rising demand for services such as offering demand-energy response solutions and performing energy efficiency projects as a result of the growing commercial industry. Furthermore, the market in this area is expected to be driven by a rising percentage of renewable energy generation and energy efficiency efforts. In North America, the industry is being boosted by expanding government standards and efforts, as well as an increase in the number of smart cities, smart communities, and electric cars.

Europe is expected to hold the next Dominant share in the Global Energy as a Service Market during the forecast period. as a result of increased renewable energy output and industrial expansion As a result, increasing investments in the industrial sector and the development of renewable energy provide attractive growth potential for the European market.

Asia-Pacific is expected to see rapid growth in the Global Energy as a Service Market during the forecast period. Due to increased investments in big industrial and commercial projects in Asia-Pacific. In India, for example, more than 300 smart city initiatives worth USD 2 billion are in the works for 2019. Furthermore, the market's rise is attributable to the adoption of green construction styles, increased investment in renewable energy, and increased government backing.

Middle-East and Africa are expected to see significant growth in the Global Energy as a Service Market during the forecast period. Oil and gas firms, as well as considerable commercial sector investments, dominate the Middle East and African countries. The emergence of an integrated distributed energy resource (IDER), increased data analytics, and Artificial Intelligence sectors are all emerging as important potential opportunities, bolstering the market's optimistic prognosis for growth throughout the forecast period.

Impact of COVID-19 On Energy as a Service Market:

The COVID-19 epidemic has had a big impact on the energy industry. The market saw a decrease in price and demand all around the world. thanks to COVID-19, large manufacturing industries are concentrating on critical tasks, causing the installation of electronic components to return to a standstill. The energy industry is being driven by a variety of main causes, including rising energy usage and fluctuating power prices. This market is seeing a major decline as a result of various production units. The pandemic had a major influence on the availability of powerhouse equipment. Since coronavirus has impacted the worldwide supply chain of renewable sources, which has affected renewable energy companies that can't meet the deadline for equipment installation, China has been the foremost plagued by the virus and is the global producer of unpolluted energy technologies like solar panels and batteries.

Market Key Players:

1. ABB
2. Schneider Electric
3. Siemens
4. Engie
5. Honeywell
6. Veolia
7. Enel X
8. Ameresco
9. EDF
10. WGL Energy

Market Recent Developments:

• BCCK Engineering and Kaizen Clean Energy (KCE), a future fuels firm, have partnered together to build hydrogen-fueling generators.
• Schneider Electric has announced the formation of GREEN ext., a joint venture that will deliver Energy as a Service to commercial and industrial clients using solar and battery hybrid microgrid technologies, assisting them in becoming more sustainable and resilient.