Energy as a service (EaaS) is a business model under which consumers pay for an energy service without having to form any direct capital investment. The EaaS model is highly cost-effective as it addresses the energy efficiency gap and eventually reduces energy consumption. The EaaS model has significantly changed the approach and strategies followed by companies to reduce energy spending.
The significant factors propelling the growth of the Global Energy as a Service market include the increasing distributed energy resources and the declining cost of renewable power generation and storage solution and tax benefits for energy efficiency projects. The growing renewable energy potential, increasing energy consumption, and price volatility are also attributing towards the growth of the market. The rising focus on renewable energy sources owing to its less cost, minimize carbon footprint, energy-efficient, and environment friendly, will have a positive impact on the growing demand of the market. Moreover, the increasing usage of energy-efficient technologies for operational and maintenance saving is further encouraging the end-users to opt for EaaS. On the other hand, well established existing centralized utility models and integration and deployment challenges associated with the EaaS are likely to hamper the growth of the market.
Based on the service, the energy supply services segment is expected to grow at a higher CAGR over the forecast period owing to rise in offerings of energy supply including distributed energy generation solutions such as diesel and natural gas gensets, solar PV, combined heat and power, microturbines, and fuel cells to improve energy supply. It provides the consumers with the flexibility of choice on ownership, pricing, and financing and provides the operators with a customized energy generation design option as per the consumer’s requirement.
Based on the end-user, the commercial segment is projected to grow at a higher CAGR during the forecast period owing to the rising emphasis on energy efficiency across the globe. In addition to this, the energy service implementations are being mandated across the globe in the commercial sector will further propel the demand for Global Energy as a service market over the coming years.
Based on the region, North America is anticipated to lead the market during the forecast period owing to the increasing implementation of energy efficiency projects in the U.S. and Canada. New approaches such as pay-for-performance are being launched in the U.S. to enhance energy efficiency at a larger scale in the commercial sector. An increase in the share of renewable power generation and energy efficiency activities is further expected to drive the market in this region.
The major key players in the market include WGL Energy, Engie, Schneider Electric SE, Siemens AG, Johnson Controls International plc, General Electric, EDF Renewable Energy, Edison Energy, Enel X S.r., and Bernhard, LLC among others.
- In May 2019, Engie entered into contract with a Malaysian Manufacturing company, UAC Barhad to enhance the energy efficiency of the compressed air system at UAC.
The Global Energy as a Service market has been segmented based on the service type, end-user, and aregion. Based on service, the market is segmented into Energy Supply Services, Operational and Maintenance Services, and Energy Efficiency and Optimization Services. Based on end-user, the market is segmented into Commercial, and Industrial.
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