According to Custom Market Insights (CMI), the global energy as a service market was valued at approximately USD 61.47 billion in 2021 and is expected to surpass USD 148.63 billion during the forecast period from 2022 to 2030. This growth is projected at a compound annual growth rate (CAGR) of 12.52% during the forecast period.
Energy as a service plays a significant role in the market, addressing various issues and concerns among business competitors. It provides in-depth analysis to identify opportunities for enhancing both existing and newly developed market growth strategies.
Over the years, energy as a service has experienced rapid growth and now offers various energy-related services and energy optimization solutions tailored to businesses of different sizes. This service is particularly beneficial in raising awareness among energy sectors for better management and usage. Energy as a service finds applications across various other services, supporting the broader energy sector in its transition to more sustainable and efficient models.
For more detailed insights, you can refer to the full report titled “Energy as a Service Market Size, Trends and Insights By Service Type (Energy Supply Service, Energy Optimization and Efficiency Service, Energy Operational and Maintenance Service), By End-User (Commercial, Industrial), and By Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2022–2030.” You can view the full report at: https://www.custommarketinsights.com/report/energy-as-a-service-market/
Regional Snapshots
Based on region, the energy as a service market operates in North America, Europe, Asia-Pacific, South America, the Middle East, and Africa. North America led the global energy as a service market in 2021 and is expected to maintain its dominant position throughout the forecast period. This dominance is largely driven by the high demand for the construction of smart buildings, automation, and energy efficiency projects.
In 2021, North America’s energy as a service market was valued at USD 27.49 billion, with expectations for the market to expand significantly during the forecast period. The United States has contributed the largest market share in this region, with commercial industries across the country adopting power projects aimed at enhancing energy storage and reducing operational expenses.
Market Dynamics
Drivers
Several key drivers are contributing to the growth of the global energy as a service market:
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Adoption of Renewable Energy Resources: The increasing use of renewable energy resources has accelerated the adoption of energy as a service, along with ongoing efforts to reduce energy costs.
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Smart Grid Construction: The rapid construction and installation of smart grids, along with higher energy efficiency activities, have played a significant role in market growth.
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Government Investments: Numerous investments and initiatives by governments have also helped to bolster the expansion of energy as a service solutions across the globe.
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Sector Requirements: The demand for continuous electricity supply in commercial, industrial, and residential sectors has led to the increased adoption of alternative power sources, contributing to the rapid growth of the energy as a service market.
These factors are expected to drive sustained market expansion during the forecast period.
Restraints
Despite the positive market outlook, there are several challenges that could impede growth:
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High Capital Investment: The establishment of advanced market grids requires heavy capital investments, which could deter growth. The cost associated with wind and solar power generation remains a significant hurdle, requiring large investments for optimal energy production.
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Government Investment Challenges: While governments often fund a portion of large energy projects, the private sector or companies must shoulder a substantial share of the investment. Inadequate investment and insufficient energy production could hinder market growth.
Opportunities
There are ample opportunities for the energy as a service market’s growth, especially with the global transition from traditional energy models to more advanced energy service models. Governments and key industry players are actively driving this transition, further enhancing the market’s global expansion.
Challenges
The global pandemic has negatively impacted the energy as a service market by causing a decline in energy production, particularly in the commercial and industrial sectors. This downturn has created challenges for the market, but various schemes and policies introduced by governments are expected to support recovery.
Recent Developments in the Energy as a Service Market
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Honeywell launched a battery energy storage system platform in June 2021, enabling customers to estimate battery usage and optimize energy storage, thus contributing to the expansion of their product portfolio and business growth.
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Johnson Controls introduced a one-stop solution for companies in December 2021, offering efficient energy-related solutions with a focus on zero-carbon emission goals and increased use of renewable energy resources.
Report Highlights
By Service Type
In 2021, the energy supply and service segment dominated the market and is expected to continue leading during the forecast period. This is attributed to the growing demand for energy-intensive construction and transportation equipment. The rising population has created a large consumer base for these services.
By End-User
The commercial sector dominated the market in 2021 and is projected to remain the leading segment through the forecast period. The commercial sector benefits significantly from energy usage and optimization services provided by energy as a service solutions, helping businesses analyze their electricity consumption patterns.
Impact of COVID-19 on the Energy as a Service Market
The global pandemic severely impacted the energy as a service market, particularly the commercial and industrial sectors, resulting in a decrease in energy production. While this slowed market growth, the introduction of new government initiatives and policies is expected to help the market recover and maintain its position over time.
https://www.custommarketinsights.com/report/energy-as-a-service-market/
