Energy as a Service Market To Generate $149.45 Billion Revenue by 2030

The energy as a service market size is expected to advance at a CAGR of 10.26% during 2022–2030, to reach USD 149.45 billion by 2030.

The growth of the industry is fueled by a variety of factors, including an increase in the utilization of distributed energy resources (DERs), availability of tax incentives, implementation of efficiency initiatives, opportunities for utilities to leverage new sources for revenue generation, and decrease in the costs of renewable power generation and storage options. The industry is primarily driven by the increasing potential of renewable energy, price volatility with conventionally produced power, and the booming energy consumption.

The commercial category will experience the faster growth over the projection period due to the presence of a huge number of commercial spaces and their high power consumption.

Moreover, developing nations with high energy consumption rates, such as India, Vietnam, and Indonesia, will generate a lot of opportunities for the market growth. Similarly, with the majority of the requirement for these services coming from the U.S., North America will experience considerable growth throughout the forecast period.

The use of renewable energy sources continues to soar due to their economic and environmental benefits. Governing authorities around the world are seeking ways to decrease greenhouse gas emissions and yet met the increasing energy demand.

Encouraged by the related initiatives, the utilization of renewable energy sources would surge dramatically over the next decade. The new energy targets agreed upon by numerous governments to promote the trend of sustainable electricity have had a favorable effect on the market.

EaaS Offers Opportunities across All Spectra of Power Sector

Companies investing in emerging technologies, including distributed energy generation, virtual power plants, and offshore wind power, such as EDF Renewables, Centrica, and Veolia, are expected to grow significantly in the EaaS industry.

Due to the growing use of renewable energy sources, businesses that specialize in providing this service will gain a considerable share in the years to come. Along with several small and medium-sized system integrators, there is a considerable presence of important regional and global players as well.

Moreover, other significant market players, including GE, Siemens, ABB, and Schneider Electric, are leaders in offering the essential electricity transmission and generation equipment.

Numerous players in the energy services sector who offer the hardware and software to support the EaaS model will also be among the significant gainers. This is because numerous new technologies have emerged in the fragmented market in an effort to keep up with the leading firms.

U.S. and China Dominate North American and APAC Markets, Respectively

Due to the presence of a huge number of smart building construction firms and building automation solution suppliers, North America is the largest regional sector. The key players in the region are focused on lowering service costs and enhancing client satisfaction. Moreover, a green construction model will emerge with industry expansion, aided by the government support for consumption -based energy measures. The U.S. is expected to hold the larger share in the North America region.

Due to the emergence of large organizations in the commercial and industrial sectors, the APAC region will observe significant market growth. For instance, India had more than 300 smart city initiatives, totaling USD 2 billion in proposed funding, in 2019. Although the market for energy as a service is still in its infancy in the country, the depletion of fossil fuels will open up a huge growth potential for it in the years to come. Additionally, the adoption of green building techniques and increase in government assistance would contribute to the growth of the regional market.

China held the largest share in 2022 in APAC, and during the forecast period, it will have a considerable CAGR. The Chinese government has made significant investments for the production of clean electricity and created a pathway for foreign investments in the renewables field.

The biggest energy as a service market players are Schneider Electric SE, Siemens AG, Veolia North America LLC, Honeywell International Inc., Enel X S.r.l., EDF Renewables, General Electric Company, ENGIE SA, WGL Energy, and Edison Energy LLC.