The Energy as a service market 2020 was valued at USD 10.6 billion and is estimated to reach USD 51.8 billion by 2023, with a CAGR of 31.2% in the forecast period. The factors responsible for driving the growth are an increase in Distributed Energy Resources (DER), reduction in the cost of renewable power generation, storage solutions, tax benefits for energy efficiency projects, and new revenue generation streams for utilities. The market is impelled by the increasing capability of renewable energy, the volatility of price, and the perpetual increase in energy consumption are some of the other factors driving the growth and development.
The increase in demand for energy has resulted in the shift towards the generation of renewable energy. Energy as a service helps in a lot of ways, such as optimization of energy systems, improvement of working environments. Moreover, the volatility of the prices of energy has led to the expansion of the market. The Energy as a Service (EaaS) concept has yet not flourished throughout the world, especially in developing countries. Developed countries like U.S and Canada have defined their policies and standards to promote the usage and adoption of EaaS.
Some of the major key players of global EaaS market are Duke Energy (US), Engie (France), Southern Company (US), EDF Energy (UK), Edison International (US), SmartWatt (US), Bernhard Energy (US),Orsted (Denmark), Siemens AG (Germany), General Electric (US), WGL Energy (US. There are few other organizations who recently entered into the market and have claimed a considerable place in the EaaS market . Enel X (Italy), Schneider Electric SE (France), Solarus (Netherlands), and Contemporary Energy Solutions (US), Enertika (Spain), are some of those companies.
Vestas, a Danish wind turbines manufacturer, has signed an agreement with Nexif Energy, a Singapore-based company, which operates wind farms and other renewable projects. As per the deal states Vestas would offer maintenance solution to Lincoln Gap wind farm in South Australia.
The Energy as a Service (EaaS) market size has been categorised into end and component user. The end-user is categorised into government, residential, and industrial. The industrial segment has further been segmented into large, small and medium enterprises. Component-based, the energy as a service market is classified into services and solutions. The services consist of technical services, maintenance services, infrastructure services, and other support services. The solution service has been further sub-categorised into building optimization solutions, energy portfolio advisory solution,off-site energy supply, on-site energy supply, , load management and optimization solution. Regional Analysis The geographical analysis of Global Energy as a Service market has been analysed for Europe, North America, Asia-Pacific and rest of the world. It has been estimated that Europe region will be the fastest growing EaaS market.
Energy service providers such as EDF Energy (UK), Schneider Electric SE (France), and rising adoption of renewable source of energy consumption are the major factors for the market growth. America is expected to maintain the second largest market during the forecast period. Speedy development such as data analytics artificial intelligence, and improving demand energy solution among the industrial and residential areas in the US and Canada are expected to have played a key role in expansion of the market. Asia Pacific is expected to accumulate significant amount of revenue in the coming years. The rapid change in population, the fast-paced urbanization, industrialization and increasing renewable energy projects are most likely to advance the revenue generation for the market participants.