Energy as a Service Market Size worth USD 147.56 Billion by 2029 | Fortune Business Insights
Fortune Business Insights
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Fortune Business Insights
According to Fortune Business Insights, the global energy as a service market size is projected to reach USD 147.56 billion by 2029 from its value USD 64.34 billion in 2021, at CAGR of 11.1% during forecast period.
Pune, India, April 21, 2023 (GLOBE NEWSWIRE) -- The global energy as a service market size is expected to experience substantial growth during the forecast period, with the global market size increasing from USD 70.46 billion in 2022 to USD 147.56 billion by 2029, reflecting a CAGR of 11.1%. In 2021, the global market size was valued at USD 64.34 billion, with the North America Energy as a Service Market accounting for USD 28.49 billion. The industry's progress is expected to be driven by factors such as reduced energy costs, decreased carbon emissions, and a strong demand for renewable energy resources. This information is presented by Fortune Business Insights™ in its report titled "Energy as a Service Market, 2022-2029."
Key Industry Developments:
December 2021: Johnson Controls launched OpenBlue Net Zero Buildings as a Service. This launch may allow Johnson Controls to offer companies a one-stop shop to help them achieve renewable energy goals and net-zero carbon.
Strong Energy Demand in Several Sectors to Foster Market Progress
Energy Supply Service to Dominate the Market Owing to Rising Population and Increasing Consumers
COVID-19 Impact
Halt on Industrial Operations Negatively Affected Market Growth
This market was negatively affected during the COVID-19 pandemic due to halt on industrial operations. The alarming spike in COVID-19 patients led to the immediate shutdown of industries and commercial spaces. However, the rising investments in the development of renewable energy resources are likely to enhance the adoption of Energy as a Service (EaaS). Moreover, the introduction of favorable policies and service models is expected to enhance the industry’s growth.
For example, Centrica Business Solutions (CBS) announced a novel EaaS bundle in June 2020. The bundle is designed especially for investors looking forward to investing in energy-saving technologies. These factors propelled the industry's growth during the pandemic.
Strong Energy Demand in Several Sectors to Foster Market Progress
Energy as a service includes analytics, energy, and technology sales. The product comprises analytics, energy, technology sales, and other personalized services. The strong demand for energy in several sectors is expected to enhance the service adoption. Furthermore, the rapid growth of charging stations and rising production rates are likely to enhance the service adoption. Moreover, the expansion of working rates in the automotive sector is expected to enhance the industry's progress. These factors may drive the energy as a service market growth.
However, heavy capital investments for the establishment and the switch to advanced grids are expected to impede industry growth.
The Energy as a Service Market can be segmented based on the service model, service type, end-user, and region.
By Service Model:
Pay-As-You-Go
Energy Trading
Utility
Others
By Service Type:
Energy Supply Services
Operation & Maintenance Services
Energy Efficiency & Optimization Services
By End-User:
Commercial
Industrial
Residential
By Region:
North America
Europe
Asia-Pacific
Rest of the World
These segments provide a comprehensive understanding of the market and help in identifying growth opportunities in specific segments.
Report Coverage
The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market's key players.
Strong Demand for the Service from the U.S. to Propel Market Growth in North America
North America is expected to dominate the energy as a service market share due to the rising demand for the service from the U.S. The market in North America stood at USD 28.49 billion in 2021 and is expected to witness major growth during the coming years. Furthermore, rising renewable energy installations may enhance industry growth.
In Europe, significant power generation technologies installations and favorable organizational and governmental policies are expected to elevate the service adoption. Furthermore, developing plans for fortifying and expanding grid infrastructure are likely to enhance EaaS adoption.
In Asia Pacific, rising financial backing by governments, increasing clean energy awareness, and the fulfillment of demand & supply are expected to foster EaaS adoption. Moreover, rapid commercial and domestic space constructions are likely to enhance EaaS adoption.
Competitive Landscape
Companies Enter into Agreements to Improve Service Portfolio
Prominent companies operating in the market enter into agreements to improve their service portfolio. For example, Rolls-Royce decided to partner with Sustainable Development Capital (SDCL) to offer EaaS solutions capable of accelerating sustainable power uptake in November 2021. The agreement between both companies was signed at the 26th annual submission of the “Conference of the Parties” (COP26). This development may allow the company to improve its product portfolio and enhance its brand image. Furthermore, companies devise mergers, expansions, partnerships, and acquisitions to enhance their overall market position.
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