Analysis of the Energy-as-a-Service Market: Assessment of Market Size, Trends, Statistics, and Competitors
Global Energy-as-a-Service Market by Type (Energy Supply Services, Operational and Maintenance Services, and Energy Efficiency & Optimization Services), by End User (Commercial and Industrial), and by Region (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa) – Market Size, Share, COVID-19 Impact, Regional Analysis & Forecast Till 2030
Category - Energy & Power
Report Code - OMR-EP-137
Format: PDF, PPT, and Excel
Energy-as-a-Service Market Overview
The supply of energy and management services to a client under a contract with no up-front expenses is an example of "energy as a service" (EaaS). These services are customized to meet the needs of each client to achieve their desired outcomes, which may include lowering energy costs, increasing sustainability, or boosting profits. Some of the causes driving this expansion are the decline in the price of renewable power production and storage solutions, the rising prevalence of Distributed Energy Resources (DER), tax incentives for energy efficiency initiatives, and the emergence of new income streams for utilities. Rising renewable energy potential, price volatility, and increasing demand propel the industry forward. Businesses' increasing interest in green energy is expected to have a favorable impact on economic development. The EaaS market is divided into submarkets focusing on certain service types and buyer personas. Usage, supply, and evaluation management are all part of the service. More and more utilities are turning to strategic alliances and joint ventures to grow their customer bases and meet rising demand. Producing electricity from renewable sources requires significant capital expenditures. As a result, most initiatives require involvement from government agencies. The widespread COVID-19 has severely hampered all economic sectors. Since 2020, the number of reported cases in most nations has skyrocketed. Unrest erupted in the economy of several rapidly emerging nations due to the pandemic's aftermath.
Energy-as-a-Service Market Growth Factors
Introduction of Distributed Energy Generation to Augment Extended Market Growth
Renewable energy sources have become increasingly important in light of rising energy demand and efforts to mitigate the negative impact of carbon emissions on the environment. The new decentralized energy distribution systems have been gaining traction in the market alongside the increasing use of renewable energy sources. DEG technology utilizes all available energy sources to lessen the production load and includes new energy sources into the power mix. Low carbon emissions, connection to remote sites, improved power security, peak load shaving, improved overall system efficiency, and economic savings to consumers and utilities are just some advantages of distributed systems. Another related concept is the virtual power plant, which uses sophisticated software to control the integrated systems efficiently. The marketplaces in North America and Europe are where you'll most likely encounter this technology. The market is expected to rise as a result of an increased emphasis on both renewable and non-renewable energy sources, with the former providing the most of the support due to cost savings, a smaller carbon footprint, friendliness to the environment, and efficiency in terms of both energy production and consumption. The expansion of the industry is predicted to be fueled by the government's rising spending on renewable energy subsidies.
Rising Installation of Renewable Energy to Fuel EaaS Revenue
Governments worldwide have set reductions in greenhouse gas (GHG) emissions and increases in energy consumption as their top priorities. As a result, renewable energy installations are expected to increase dramatically over the next decade, driving the market growth. The increasing popularity of green energy has been positively impacted by new energy objectives announced by various governments. At least 42.5% of Brazil's primary energy supply must come from renewable sources by 2023. The brief carbon study also reports that the United Kingdom plans to have around 50% of its power from renewable sources by 2025. By 2030, Germany plans to have 65 percent of its energy come from renewable sources. By 2030, China wants 16% of its energy to come from renewable sources. As a result of the country's investment and expansion, renewable energy is projected to account for 26% of the total, exceeding the goal. Peak energy demand results from rising population and growth activities to increase rural electrification. In the EaaS concept, the service provider takes over the customer's role of financing, installing, owning, and controlling the efficiency of an energy-generating device. The development of the market was aided by the introduction of supportive regulatory measures by various agencies to encourage low-carbon technology. The power supply demand from utilities has grown as a result of both the introduction of new, highly valuable infrastructure projects and the growing pace of urbanization.
Energy-as-a-Service Industry Segmentation
Type
• Energy Supply Services
• Operational and Maintenance Services
• Energy Efficiency & Optimization Services
End User
• Commercial
• Industrial
Energy-as-a-Service Market Regional Segmentation
North America
o U.S.
o Canada
o Mexico
Europe
o Germany
o U.K.
o France
o Spain
o Italy
o Rest of Europe (RoE)
Asia Pacific (APAC)
o Japan
o China
o India
o South Korea
o Rest of APAC
Latin America
o Argentina
o Brazil
o Rest of Latin America
Middle East & Africa
o South Africa
o UAE
o Saudi Arabia
o Rest of MEA
Type Insights
Energy Supply Services to Accommodate Largest Revenue Foothold Owing to Widening Consumers
The market can be differentiated into energy supply services, operational and maintenance services, and energy efficiency & optimization services based on type.
In 2022, the energy supply services industry will have the largest proportion of the overall market. The increasing number of consumers in each area is responsible for the market segment's expansion. Customers may undertake energy and water efficiency projects with no initial capital outlay using a pay-for-performance, off-balance sheet financing option like energy optimization & efficiency-as-a-service. Since the client pays for the service depending on the amount of energy saved or other performance parameters of the equipment, implementing these services is cost-effective in the long term.
Energy as a service, which optimizes the use of electrical appliances in light of their features and the user's availability, is poised to benefit from operational and maintenance services significantly. Additionally, the system improves electrical grid dependability and reduces customer power costs by transferring some demand from peak to off-peak demand periods. As a result, more factories are starting to use on-demand service models.
Regional Insights
North America to Produce Largest Market Hold Owing to Supportive Infrastructure
By regional segmentation, the market can be split across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.
During the projection period, the demand for energy as a service is anticipated to be highest in North America, specifically the United States. The country is notable for its widespread use of EaaS. The region has implemented several initiatives to improve energy storage efficiency and reduce operational costs, particularly in the business sector. Demand for energy as a service model is expected to increase in the area due to increased investment in the refining, production, and exploration sectors. Utilities in the United States, Canada, and Mexico are investing in energy efficiency initiatives to reduce the price of energy generation. New approaches, such as pay-for-performance, are being used in the United States to increase the overall energy efficiency of commercial buildings. Growth in the proportion of renewable power generation and energy efficiency initiatives are both factors that are expected to boost the energy as a service industry in this area.
The European area is expected to expand rapidly throughout the forecast time frame. The European market benefits from the widespread installation of power generation technologies and the backing of governmental and organizational policy frameworks to deploy green energy solutions. Currently, major contributors to the regional market for energy as a service include the United Kingdom, Germany, and Italy. Investments and plans to improve and extend grid infrastructure networks to accommodate the increasing installation of renewable energy sources are also expected to boost the industry.
The rising popularity of renewable energy, government-backed financial assistance, and the pressing need to address the region's demand/supply gap all bode well for Asia Pacific's energy sector. New residential and commercial construction and the installation of new industrial gas facilities have all contributed to a rise in the area's need for these designs.
Energy-as-a-Service Industry Analysis
The sector appears to have potential as both large and small businesses search for convenient access to energy supplies from trading hubs. Therefore, the authorities must make significant changes to the system to ensure quality and safety. The major companies are also helping to expand by taking up contracts for energy efficiency audits and solutions, including distributed energy resources (DER). However, centralized utility model governance and deployment/integration difficulties may slow progress.
As more people switch to using renewable energy, businesses focusing on providing these services stand to gain a sizable chunk of the market in the future. Key global and regional firms and various small and medium-scale system integrators have been actively participating in the sector for some time now.
Energy-as-a-Service Market Recent Developments
• In June 2022, to further Northwestern University's sustainability and academic aims, it and Ameresco entered into a long-term energy as a service (EaaS) arrangement to handle energy-related difficulties without requiring any initial financial investment.
• In January 2022, to facilitate the energy transition and guarantee the reliability, availability, and safety of the grid, GE Digital has purchased Opus One solutions and created a product called Opus One DERMS.
Global Energy-as-a-Service Market Prominent Players
• Veolia (France)
• General Electric Company (U.S.)
• Honeywell (U.S.)
• EDF Renewables North America (U.S.)
• SmartWatt, Inc (U.S.)
• Centrica (U.K.)
• Schneider Electric (France)
• Enel X (U.S.)
• ENGIE (France)
• WGL Energy (U.S.)
• SmartWatt, Inc (U.S.)
• Siemens (Germany)
Frequently Asked Questions (FAQs)
At what rate will the Energy-as-a-Service Market Expand?
Objective Market Research notes that the Energy-as-a-Service market will grow at a CAGR of 10.9% during the projected period.
What are the factors driving the global Energy-as-a-Service Market?
The global Energy-as-a-Service market will grow during the forecast period owing to rapid industrialization, increased focus on reducing carbon emissions, and rising installation of smart grids.
Which segment accounted for the largest Energy-as-a-Service Market share by the end user?
The industrial segment will account for the largest market share during the forecast period. Businesses can utilize an EaaS provider's power or energy conservation services. With the assistance of EaaS providers' suite of technical and software solutions, businesses can learn about their power consumption patterns.
What region holds the major share in the global market scape?
The region of North America will exert its dominion over the global market scape during the forecast period. Due to increased investment in the refining, production, and exploration sectors, the demand for energy as a service is anticipated to rise in the region.
Which are the dominating players in the market during the forecast period?
Some prominent players in the global Energy-as-a-Service market are Veolia (France), General Electric Company (U.S.), Honeywell (U.S.), EDF Renewables North America (U.S.), and SmartWatt, Inc (U.S.), among others.
*Our reports are available on a region/wise and chapter/wise basis as well. For any additional personalization contact our sales representative directly at sales@objectivemarketresearch.com
Table of Content
1. Introduction
1.1 Market Definition
1.2 Objective of the Study
1.3 Market Scope
1.4 Years Considered in the Study
1.4.1 Historic Year: 2019-2021
1.4.2 Base Year: 2022
1.4.3 Forecast Period: 2023-2030
1.5 Currency Used in the Study
1.6 Boundaries for the Study
1.7 Collaborators/Stakeholders/Benefactors
2. Research Methodology
2.1 Research Outline
2.2 Data Collection Methods
2.3 Data Sources
2.3.1 Secondary Sources
2.3.1.1 Paid Sources
2.3.1.2 Unpaid Sources
2.3.2 Primary Sources
2.4 Market Estimation Methodology
2.4.1 Top-Down Approach
2.4.2 Bottom-Up Approach
2.5 Data Triangulation
2.6 Assumptions of the Study
2.7 Limitations of the Study
3. Executive Summary
3.1 Market Outlook
3.2 Analysts Perspective
4. Market Overview
4.1 Market Dynamics
4.1.1 Drivers
4.1.1.1. Rising Focus of Government Organizations
4.1.1.2. Expansion of Renewable Energy Resources
4.1.2. Restrain
4.1.2.1. Significant Capital Investment
4.1.3. Opportunities
4.1.3.1. Introduction of Distributed Energy Generation
4.1.4. Impact of Market Dynamics
4.2. Impact of COVID-19 pandemic
4.3. Value Chain Analysis
4.4. Porter’s Five Forces Analysis
4.4.1. Bargaining Power of Buyers
4.4.2. Bargaining Power of Suppliers
4.4.3. Threat of Substitution
4.4.4. Threat of New Entrants
4.4.5. Competitive Rivalry
5. Global Energy-as-a-Service Market Analysis & Forecast, by Type from 2019-2030 (in USD million)
5.1. Energy Supply Services
5.2. Operational and Maintenance Services
5.3. Energy Efficiency & Optimization Services
6. Global Energy-as-a-Service Market Analysis & Forecast, by End User from 2019-2030 (in USD million)
6.1. Commercial
6.2. Industrial
7. Global Energy-as-a-Service Market Analysis & Forecast, by Region from 2019-2030 (in USD million)
7.1. North America
7.1.1. North America Energy-as-a-Service Market Analysis & Forecast, By Country
7.1.1.1. U.S.
7.1.1.2. Canada
7.1.1.3. Mexico
7.1.2. North America Energy-as-a-Service Market Analysis & Forecast, By Type
7.1.3. North America Energy-as-a-Service Market Analysis & Forecast, By End User
7.2. Europe
7.2.1. Europe Energy-as-a-Service Market Analysis & Forecast, By Country
7.2.1.1. Germany
7.2.1.2. UK
7.2.1.3. France
7.2.1.4. Spain
7.2.1.5. Italy
7.2.1.6. Rest of Europe (RoE)
7.2.2. Europe Energy-as-a-Service Market Analysis & Forecast, By Type
7.2.3. Europe Energy-as-a-Service Market Analysis & Forecast, By End User
7.3. Asia-Pacific (APAC)
7.3.1. Asia-Pacific Energy-as-a-Service Market Analysis & Forecast, By Country
7.3.1.1. Japan
7.3.1.2. China
7.3.1.3. India
7.3.1.4. South Korea
7.3.1.5. Rest of the APAC
7.3.2. Asia-Pacific Energy-as-a-Service Market Analysis & Forecast, By Type
7.3.3. Asia-Pacific Energy-as-a-Service Market Analysis & Forecast, By End User
7.4. Latin America
7.4.1. Latin America Energy-as-a-Service Market Analysis & Forecast, By Country/Region
7.4.1.1. Argentina
7.4.1.2. Brazil
7.4.1.3. Rest of Latin America
7.4.2. Latin America Energy-as-a-Service Market Analysis & Forecast, By Type
7.4.3. Latin America Energy-as-a-Service Market Analysis & Forecast, By End User
7.5. Middle East & Africa
7.5.1. Middle East & Africa Energy-as-a-Service Market Analysis & Forecast, By Country/Region
7.5.1.1. South Africa
7.5.1.2. UAE
7.5.1.3. Saudi Arabia
7.5.1.4. Rest of Middle East & Africa
7.5.2. Middle East & Africa Energy-as-a-Service Market Analysis & Forecast, By Type
7.5.3. Middle East & Africa Energy-as-a-Service Market Analysis & Forecast, By End User
8. Competitive Landscape
8.1. Market Share Analysis (2022)
8.2. Market Positioning of Top Players (2022)
8.3. Key Developments & Growth Strategies (2020-2022)
8.3.1. Product Launches
8.3.2. Merges, Collaborations & Agreements
8.3.3. Expansion
8.4. SWOT Analysis
9. Company Profiles (Business Overview, Products Offered, Financial Details*, Recent Developments)
9.1. Veolia (France)
9.1.1. Company Snapshot
9.1.2. Business Overview
9.1.3. Financial Data
9.1.4. Key Products Offered
9.1.5. Recent Developments
9.2. General Electric Company (U.S.)
9.3. Honeywell (U.S.)
9.4. EDF Renewables North America (U.S.)
9.5. SmartWatt, Inc (U.S.)
9.6. Centrica (U.K.)
9.7. Schneider Electric (France)
9.8. Enel X (U.S.)
9.9. ENGIE (France)
9.10. WGL Energy (U.S.)
9.11. SmartWatt, Inc (U.S.)
9.12. Siemens (Germany)
9.13. Others
10. Appendix
10.1. Currency Exchange Rate to USD
10.2. Abbreviations
* Financial details captured might be subjected to information available and not be given for privately-held companies or for companies that do not report it in the public domain