Dublin, Oct. 06, 2022 (GLOBE NEWSWIRE) -- The "Energy as a Service Market by Type (Energy Supply Services, Operational and Maintenance Services, and Energy Efficiency and Optimization Services) End-User (Commercial and Industrial) and Region - Global Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.
The energy as a service market is projected to reach USD 105.6 billion by 2027 from an estimated USD 64.7 billion in 2022, at a CAGR of 10.3% during the forecast period. Due to the manufacturing advances and various technological improvements, the costs of various renewables and storage systems such as solar PVs, fuel cells, grid-based energy storage, especially batteries, and combined heat and power declined significantly in recent times.
The decreasing costs of solar PV are encouraging users to install these resources for generating electricity. These decreasing prices of the renewables and storage solutions have positively promoted the energy as a service approach as it is helping the utilities implement the same and helping various end-users reduce their energy costs. Also, with the price volatility found in today's fossil fuels markets, unpredictable prices are costing the government substantially more than lower-cost alternatives.
For instance, solar power can be generated and used during peak times to offset the costly high-demand electricity mentioned above. The use of solar power can not only reduce the overall electricity usage but also helps avoid demand charges. Hence, all factors are making these options more viable and affordable.
The energy supply services segment, by type, is expected to be the fastest-growing market from 2022 to 2027.
There are three types of services considered in the report energy supply services, operational and maintenance services and energy efficiency and optimization services. Energy supply services refer to the idea where a building's energy requirements are taken care of by an outside company, typically utilities or service providers. Energy supply services protect end-users from grid blackouts and weather extremes that would threaten the operations of traditional grid-connected commercial and industrial entities. In energy as a service operation, energy supply services are increasingly delivered through Energy Services Agreements (ESAs) which are performance-based contracts through which a service provider agrees to finance, develop, and deploy renewable energy projects for clients without any upfront capital expenditures. In addition to this, consumers do not have any responsibility to maintain and upgrade the equipment.
The commercial segment, by end-user, is expected to be the largest market from 2022 to 2027.
The end-user segment has two types includes commercial and industrial end-users. The commercial segment includes establishments such as healthcare, educational institutions, airports, data centers, leisure centers, warehouses, hotels, and others. Electricity prices for the commercial sector are higher than the industrial sector. Hence, customers are looking for a solution that helps them implement energy-efficiency projects with no capital expenditure and validate energy savings. Therefore, an increase in the energy consumption demand and commercial energy prices is expected to drive the segment.
North America: The largest and the fastest growing region in the energy as a service market.
North America is expected to dominate the global energy as a service market and is expected to grow at the highest CAGR between 2022-2027. One of the major drivers for the energy as a service business model in the region is the ability to incorporate technology, analytics, and personalized services for end users. North America's electrical transmission infrastructure is not upgraded for modern threats and natural hazards. Energy as a service would provide the reliability and flexibility that would enable expanded use of electricity across the region without getting affected by threats and hazards.
Market Dynamics
Drivers
- New Revenue Generation Streams for Utilities
- Increasing Distributed Energy Resources
- Decreasing Cost of Renewable Power Generation and Storage Solutions
- Availability of Federal and State Tax Benefits for Energy-Efficient Projects
Restraints
- Integration and Deployment Challenges
- Dominance of Existing Centralized Utility Models
Opportunities
- Deeper Operational and Maintenance Savings
- Increasing Use of Energy-Efficient Technologies
Challenges
- Uncertainty About Agreement Structure
- Building Ownership Constraints
Key Topics Covered:
1 Introduction
2 Research Methodology
3 Executive Summary
4 Premium Insights
5 Market Overview
6 Energy as a Service Market, by Type
7 Energy as a Service Market, by End-user
8 Energy as a Service Market, by Region
9 Competitive Landscape
10 Company Profiles
11 Appendix
Companies Mentioned
- Alpiq
- Ameresco
- Bernhard Energy Solutions
- Centrica
- EDF Renewable Energy
- Edison
- Enel X
- Enertika
- Engie
- Entegrity
- General Electric
- Honeywell
- Johnson Controls
- Norseco
- Orsted
- Schneider Electric
- Siemens
- Smartwatt
- Veolia
- Wendel Energy Service
- WGL Energy
For more information about this report visit https://www.researchandmarkets.com/r/t9k1u0
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