Energy as a Service Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Name: Energy as a Service Market Size, Share & Trends Analysis, 2032
Creator: P&S Intelligence
License: https://www.psmarketresearch.com/privacy-policy

This Report Provides In-Depth Analysis of the Energy as a Service Market Report Prepared by P&S Intelligence, Segmented by Type (Energy Supply Services, Operational & Maintenance Services, Energy Efficiency and Optimization Services), End User (Commercial, Industrial), and Geographical Outlook for the Period of 2019 to 2032

Report Code: 12515
Pages: 320

Key Highlights

Study Period	2019 - 2032
Market Size in 2024	USD 76.9 billion
Market Size in 2025	USD 85.4 billion
Market Size by 2032	USD 189.7 billion
Projected CAGR	12.1%
Largest Region	North America
Fastest Growing Region	APAC
Market Structure	Fragmented

Market Size

Energy as a Service Market Growth Forecast

Major Companies

Energy as a Service Market Companies

Important Takeaways

Market Size and Forecast
Industry Trend
Regulatory Landscape
Demand Trend Analysis
Companies Recent Strategical Developments
Key Stakeholders
Voice of Industry Experts/KOLs
Future Opportunity

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Energy as a Service Market Overview

The Energy as a Service Market (EaaS)revenue was USD 76.9 billion in 2024, and it is expected to witness a CAGR of 12.1% from 2025 to 2032, reaching USD 189.7 billion in 2032.

The rising power consumption, increasing potential of renewable sources, and price fluctuations are the key factors driving the industry. The preference for sustainable sources is rising among enterprises as well, which is expected to have a favorable impact on the industry growth.

Additionally, EaaS offers customers a range of options for the ownership and pricing of the distribution infrastructure and helps in the customization of electricity generation projects, based on the specific power requirements of clients. Additionally, the service makes it simple and quick to integrate power storage assets into a distributed generation system.

Moreover, an increase in the tax benefits for energy efficiency initiatives and distributed energy resources (DERs) and a decline in the cost of renewable power generation and storage solutions are driving the market’s expansion. Additionally, the Residential Clean Energy Credit provides up to 30% credit cost of the new, qualified clean energy.

Utilization, supply, and assessment management are all included in these services. To gain an edge in the market and target a larger customer base, the majority of the service providers are involved in joint ventures and business alliances. This is owed to the fact that developed nations, such as the U.S. and Canada, have laid down regulations and policies to encourage the use of EaaS.

The market is essentially expected to grow as a result of the rising emphasis on renewable sources, mostly because of their high efficiency, lower costs, environment-friendliness, and smaller carbon footprint. Hence, over the forecast period, the increasing investments by government authorities for producing renewable energy are predicted to fuel the market expansion.

Energy as a Service Market Growth Factors

Shift toward Renewable Energy Integration Is Key Market Trend

The shift toward renewable energy sources, such as solar, wind, and hydropower, is a key market trend.
This is due to the global trend of sustainable development, for the reduction of the carbon footprint.
In March 2025, Apple Inc. announced a total investment of USD 99.22 million in a clean energy fund in China, to produce 100% renewable energy and expand the country’s clean energy capacity.
Governments across the world are implementing stringent environmental regulations and setting targets for carbon neutrality.
Governments are prioritizing renewable energy sources, such as solar, wind, hydropower, and biomass, as a cleaner alternative.
In March 2025, the U.K. government allocated GBP 200 million for the installation of rooftop solar panels at around 200 schools.
In January 2025, the U.S. Department of Energy invested USD 230 billion for clean energy manufacturing with the development of 920 new expanded energy manufacturing plants.
Additionally, businesses across the globe are adopting green energy solutions for meeting sustainability goals and reducing energy spending.
Furthermore, the adoption of smart grids and digital technologies is facilitating the smooth integration of renewable energy into the existing infrastructure.

Rising Energy Costs Are Driving Market Growth

The rise in energy prices across the globe is driving the demand of the cost-effective solutions for managing energy consumption.
The main factor behind the surging electricity prices is the rising cost of fossil fuels, including coal, natural oil, and gas, due to the geopolitical instability and supply chain disruptions.
The high cost of the energy infrastructure, most of which also demands updates and maintenance, is another factor driving the growth of the market.
Further, aging infrastructure demands technological upgrades to meet the growing demand for energy.
Furthermore, climate change is impacting the cost of energy in the global aspects.
Natural disasters, such as hurricanes, floods, and wildfires, frequently disrupt energy transmission and distribution, which is leading to increasing energy costs.
Moreover, the rising demand for electric vehicles and electricity itself is contributing to the rising energy costs, as supply has not been able to match the demand in most countries.
The EaaS model provides consumer with a variety of payment methods, such as subscription-based payment models, pay-per-use (pay-as-you-go) models, power purchase agreements, and leasing.

High Initial Investment Is Key Market Challenge

The initial investment and capital expenditures in the integration of renewable energy and energy management solutions is extremely high, which is hampering the adoption of the EaaS model.
The high upfront cost of the EaaS model acts as a challenge for small businesses and residential consumers.
For eliminating these challenges, some countries are providing incentives and subsidies for the integration of the EaaS model.
Essential components, such as smart meters, IoT devices, advanced data analytics, and cloud-based energy management platforms, are costly, further increasing the overall operational cost of the system and making it unviable for businesses and consumers.

Energy as a Service Market Analysis

Type Insights

The energy supply services category held the largest share, of 70%, in 2024, with the increasing number of government initiatives to promote renewable power and the surging necessity for cost control and energy conservation. Consumers are searching for reliable methods to get electricity without a grid, due to the increasing rates of this commodity.

Demand response management is essential in EaaS as it schedules the operation of appliances to save expenditure, by considering both client convenience and the characteristics of electrical equipment. By transferring some demand from the peak to off-peak periods, the approach also improves the stability of electrical networks and lowers customers' utility spending.

The optimization services category would expand at a significant rate throughout the forecast period. This is due to the rising number of government initiatives to promote renewable energy and resource conservation and the burgeoning need for controlling utility costs. The energy industry is changing at pace, in part, due to the adoption of the EaaS business model, which helps accelerate the adoption of low-carbon solutions. The climate catastrophe is driving energy companies to look for new and advanced approaches to supplying sustainable power in cities.

Based on type, the market has the following categories:

Energy Supply Services (Largest Category)
Operational & Maintenance Services
Energy Efficiency and Optimization Services (Fastest-Growing Category)

End User Insights

The commercial category held the largest market share of 65%, and it will have the highest CAGE, of XXT^, over this decade. This is because it includes hospitals, educational institutions, information hubs, airports, and various other kinds of facilities that consume massive amounts of electricity. The rising population and changing climate drive the expansion of the sector. Different commercial buildings have different power requirements, and the EaaS model supports owners with technical knowledge and limits their expenses on implementing green initiatives.

Additionally, to reduce operational cost due to the rising electricity prices, the commercial sector is demanding reliable options for energy management, including EaaS. Furthermore, EaaS solutions offer businesses scalability and flexibility by providing multi-site operations. Moreover, the commercial sector is integrating smart grid technologies, IoT devices, and AI for monitoring and control energy usage. This is driving the demand for the clod-based EaaS solutions.

Energy as a Service Market Segmentation Analysis

Based on end user, the market has the following categories:

Commercial (Largest and Fastest-Growing Category)
Industrial
Others

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Energy as a Service Market Regional Outlook

North America is the largest regional market with 40% share in 2024. North American utilities are using digital technologies to comply with the new regulations, meet customers’ expectations, and achieve decarbonization. Electricity generation decentralization and digitization have been the key focus areas for utilities, in a bid to operationally and financially transform themselves.

Energy as a Service Market Geographical Analysis

The capacity to incorporate DERs and analytics and offer personalized services to end users is one of the key factors supporting the EaaS business model. The building management technology advancements and the need of commercial and industrial consumers to lower their electricity spending and carbon emissions are the main drivers of this trend. EaaS also gives utility and service providers the chance to support, create, and offer solutions that help reduce the use of power, without compromising on productivity.

The APAC region will grow at the highest CAGR during the forecast period. This rapid growth is due to the energy infrastructure development in India, China, and Japan, which are focusing on renewable energy integration. The energy demand of industrial, commercial, and residential sectors is also increasing.

Europe's market benefits from the supportive government frameworks that encourage the implementation of green solutions and drive the setup of low-emission power generation systems. Currently, Germany, the U.K., and Italy are making significant contributions to the region's EaaS industry. Additionally, the rising investments to upgrade and expand the grid infrastructure, to support the rising production of renewable energy, will propel the industry. The necessity to address the demand and supply gap, as well as the region's growing interest in clean energy, will boost the industry.

Based on geography, the market has the following categories:

North America (Largest Regional Market)
- U.S. (Larger Country Market)
- Canada (Faster-Growing Country Market)
Europe
- Germany (Largest-Country Market)
- U.K. (Fastest-Growing Country Market)
- France
- Italy
- Spain
- Rest of Europe
Asia-Pacific (Fastest-Growing Market)
- Japan
- China (Largest Country Market)
- India (Fastest-Growing Country Market)
- South Korea
- Australia
- Rest of APAC
Latin America
- Brazil (Largest Country Market)
- Mexico (Fastest-Growing Country Market)
- Rest of LATAM
Middle East and Africa
- Saudi Arabia (Largest Regional Market)
- South Africa (Fastest-Growing Regional Market)
- U.A.E.
- Rest of MEA

Energy as a Service Market Share

The market is fragmented due to the presence of the large number of market players across different sectors, providing energy supply, energy management, renewable energy services, and energy storage solutions. Another reason for the market fragmentation is the variety of services provided in the energy as a service model. The wide array of technologies used in the EaaS model enables the entry of energy management companies, energy storage providers, smart grid solutions, and renewable energy companies through collaborations and partnerships.

Key Energy as a Service Companies:

Schneider Electric SE
Siemens AG
General Electric Company
Engie S.A.
Honeywell International Inc.
Tesla, Inc.
Centrica plc
Iberdrola S.A.
NextEra Energy, Inc.
E.ON SE
Enel X S.r.l.
Brookfield Renewable Partners L.P.

Energy as a Service Market News & Updates

In January 2025, U.S.-based renewable power producer NextEra Energy announced plans to expand gas-fired generation by collaborating with GE Vernova.
In October 2024, OCP Group and ENGIE S.A. collaborated to quicken up OCP Group’s energy transition and Morocco's energy transformation. The joint development agreement outlines various projects in renewable energy, energy storage, green hydrogen and ammonia, power infrastructure, and sustainable desalination. Additionally, the partnership will focus on a research & innovation (R&I) agenda in these areas.
In December 2024, Japan’s Kansai Electrics acquired a 49% stake in Iberdrola’s Windanker offshore wind project in Germany, worth EUR 1.3 billion.
In February 2024, Schnider Electric SE announced a tax credit transfer agreement with ENGIE S.A. to accelerate the company’s progress to 100% renewable energy goals in North America.