Press Release

Energy as a Service Market to Surge Amidst Increasing Government Initiative to Lower Electricity Consumption

The Global Energy as a Service Market is projected to grow at a CAGR of around 10.30% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. Rapid industrialization across the globe has led to a surge in electricity demand & consumption. Thus, to minimize electricity consumption & limit carbon emissions, industries have been adopting EaaS, including distributed energy resources. Amid growing requirements for EaaS models, various companies, such as Infosys, Oracle, etc., have been developing advanced EaaS solutions to assist consumers in minimizing electricity consumption.

Moreover, the governments of countries across the globe have been implementing such disruptive initiatives for the modernization of the power sector to minimize the consumption of fossil fuels & promote renewable energy. To achieve the target, the governments have been focusing on technological upgradation in the energy sector, along with the adoption of Distributed Energy Resources models. In 2022, the Department of Energy (DOE), the US, launched the Building a Better Grid Initiative. The initiative is a part of the Government’s Bipartisan Infrastructure Law (BIL), which includes the Transmission Facilitation Program, Grid Resilience & Innovation Partnerships Program, and Transmission Siting & Economic Development Grants Program.

Furthermore, the expansion of the commercial & residential sectors has also provided a major boost to the Global Energy-as-a-Service Market. With the growing urbanization as well as the rapid expansion of cities, the real estate sector has accentuated the need to expand commercial & residential spaces. Many of the government policies & measures that have been taken by some leading economies, such as the US, India, Brazil, China, etc., have raised mortgage limits/ceilings to promote easy loans to house buyers.

Additionally, tourism activities have also spurred globally after the COVID-19 pandemic. As per the UN World Tourism Organization (UNWTO), tourist arrivals across the globe increased from nearly 406.89 million to around 962.80 million between 2020 & 2022, exhibiting a massive revival in the global tourism sector. With the growing support from the government to improve homeownership among the citizens & prompt tourism activities in various economies, it is expected that the demand for new residential & commercial construction would thrive.

Hence, it is projected that the expansion of commercial & residential buildings across the globe would strongly contribute to the growth of market size in the forecast period, further states the research report, “Global Energy as a Service Market Analysis, 2023.”

Global Energy-as-a-Service Market Segmentation Analysis

Commercial Segment to Hold a Significant Share in the Market

Based on the end-user, the market is bifurcated into Residential, Commercial, Industrial, and Public Infrastructure. The expansion of service-based industries, such as Information Communication & Technology (ICT), etc., has widely supported the growth of Commercial spaces during 2018-21, which has further led to the demand for EaaS.

The key factors attributed to the rising service expansion are the growth initiatives of the global economies such as India, China, the UAE, Saudi Arabia, etc., to launch flexible FDI policies, taxation relations, and minimum barriers on entry & exit, with an intent to boost their gross domestic product (GDP) growth. According to the UNCTAD, the total green field investments in service sectors across the globe have increased from 2,962 in 2020 to 3,743 in 2021. Therefore, global economies are witnessing an accumulation of assets to expand new office spaces & warehouses across numerous regions.

Furthermore, the government of various countries, like Saudi Arabia, India, Egypt, etc., have implemented different policies, including Saudi Vision 2030, National Digital Communication Policy, and others, which aims to increase the overall output of ICT & services industries. Hence, the expansion of these industries in the coming years would ignite the demand for EaaS in the forecast period.

North America to Dominate the Global Energy-as-a-Service Market

North America is expected to dominate the Global Energy as a Service Market in the forecast period, owing to the surge in greenfield investment. According to the UNCTAD, the North American region has received more than USD 124 billion in greenfield investment in 2022, growing from around USD 98 billion in 2020.

Hence, the rise in these investments has led to the setting up of new production facilities or distribution centers in the region, driving the demand for EaaS. Moreover, the country is also witnessing continuous growth in hospitality as well as public infrastructure projects, which have subsequently generated the need for energy-as-a-service.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Engie, Enel X, Schneider Electric, Ameresco, Siemens, General Electric, Honeywell, Johnson Controls, EDF Renewable Energy, Edison, Alpiq, Veolia, Orsted, Centrica, WGL Energy, and others are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the European region?
4. How has the industry been evolving in terms of geography & and product adoption?
5. How has the competition been shaping across various countries?
6. How have the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2018-28?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?