18-Nov-2022 | Facts and Factors
According to Facts and Factors, the global Energy as a Service market size was estimated to be worth roughly USD 54.32 billion in 2021 and is predicted to grow to around USD 144.00 billion by 2028. The global Energy as a Service market is predicted to grow at a CAGR of roughly 10.24% during the forecast period.
The phrase "energy as a service" (EaaS) refers to the sale of technology, energy, analytics, grid access, and specialized services. The issue of carbon emissions gravely jeopardizes environmental conservation. Decentralized energy distribution has been seen as a result of the expanding usage of renewable energy sources to produce electricity. Global energy demand rises as a result of rapid industrialization, which also adds to the depletion of fossil fuels in developing countries. Because of the growing need to minimize our reliance on fossil fuels and the carbon emissions that come from burning them, there is a greater demand for renewable energy sources. As a result, it is anticipated that during the course of the time period under review, this will continue to fuel the expansion of the EaaS market.
Browse the full “Energy as a Service Market Size, Share, Growth Analysis Report By Service (Supply, Demand, Energy Optimization), By End User (Industrial and Commercial), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2022 – 2028" report at https://www.fnfresearch.com/energy-as-a-service-market
Reducing greenhouse gas (GHG) emissions and rising energy demand are the primary objectives of governing bodies in all countries. Following that, it is projected that the installation of renewable energy sources would increase dramatically over the next 10 years, leading to growth in the global energy as a service market. New energy targets put out by various governments to promote the trend toward sustainable electricity has had a favorable effect on market size. Brazil, for instance, intends 42.5% of its primary energy supply to come from renewable sources by the end of 2023. According to the carbon short analysis, the U.K. government also plans to have almost half of its electricity come from renewable sources by 2025.
To accommodate employees' necessary output and working hours, commercial buildings, residential structures, and industries need a constant supply of energy. Because of the rising demand for backup power systems in data centers in these industries in the event of mainline outages, the industry has seen investments. The demand for energy will increase as more and more automobiles that currently rely on fossil fuels switch entirely to electricity. For the EaaS market, new charging stations and higher manufacturing rates will present opportunities. Similar to this, it is anticipated that a variety of other industries, including manufacturing, textile, chemical, and pharmaceutical, will expand at a healthy rate.
However, heavy capital investment for establishment and switch to advanced grids is likely to impede the market growth. The energy produced by renewable energy sources requires a substantial investment. For instance, according to Bloomberg, from 2010 to 2019, investments in renewable energy sources totaled over USD 2.9 trillion. Only 8% of the world's energy is produced by solar energy, and 9% by wind energy.
The global Energy as a Service market is segmented based on service, end-user, and region.
Based on service, the demand services category is expected to grow at the quickest CAGR throughout the projected period, while the supply service sector held the greatest market share in 2021. Demand services held the largest market share in 2021, and it is projected that they will hold that position throughout the forecast period. Consumers are searching for reliable energy sources without a grid due to rising rates.
Based on end-user, the market has been segmented into commercial and industrial users. During the forecast period, the commercial segment is anticipated to increase at the fastest rate. The segment includes businesses including hospitals, educational institutions, information hubs, and airports, among others. Buildings alone account for more than 30% of total consumption in the commercial sector. According to the American Council for Energy-Efficient Economy (ACEEE), these organizations and establishments use more than 18% of the energy consumed by different American industries. Furthermore, lighting and heating consume 50% of the energy used in the commercial sector.
The global energy as a service market is expected to have the biggest market share in North America during the forecast period, with the U.S. generating the bulk of demand. The country is renowned for using EaaS in a variety of businesses. Numerous initiatives that are expected to increase energy storage efficiency and reduce operating costs have been adopted by the region, particularly in the business sector. The region has also seen significant investment in the fields of production, exploration, and refining, which is anticipated to boost demand for energy as a service model in the coming years.
Report Scope
Report Attribute |
Details |
Market Size in 2021 |
USD 54.32 Billion |
Projected Market Size in 2028 |
USD 144.00 Billion |
CAGR Growth Rate |
10.24% CAGR |
Base Year |
2021 |
Forecast Years |
2022-2028 |
Key Market Players |
Schneider Electric, Siemens, Engie, Honeywell International Inc., Veolia, EDF, Johnson Controls, Bernhard, General Electric, Entegrity, Enel SpA, Ørsted A/S, NORESCO LLC, Centrica plc, Wendel, and others. |
Key Segment |
By Service, End User, and Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
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List of prominent players in the global energy as a service market
- Schneider Electric
- Siemens
- Engie
- Honeywell International Inc.
- Veolia
- EDF
- Johnson Controls
- Bernhard
- General Electric
- Entegrity
- Enel SpA
- Ørsted A/S
- NORESCO, LLC
- Centrica plc
- Wendel
- Others
Recent Developments:
In October 2021, British Petroleum and Infosys, a provider of information and technology services, jointly announced plans to create a pilot Energy as a Service (EaaS) solution project aimed at assisting companies in increasing the effectiveness of their energy infrastructures and achieving their decarburization objectives. The businesses plan to work together to create a digital platform data center that will gather information from various energy sources and utilize artificial intelligence to balance the supply and demand for energy for things like power, heat, cooling, and EV charging. The project needs a setting that resembles a small city, where energy is produced, stored, and used at various locations. At the Infosys Pune Development Center in the Indian city of Pune, the businesses will test the digital platform there.
The global Energy as a Service market is segmented as follows:
By Service
- Supply
- Demand
- Energy Optimization
By End User
By Region
- North America
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic Countries
- Benelux Union
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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