ID: MRFR/ICT/5146-HCR | February 2021 | Region: Global | 100 pages
The Energy as a Service (EAAS) market share valuation is expected to grow from USD 27.86 Billion in 2020 to USD 80.80 Billion in 2028, with a compound annual growth rate of 31.2% during the period of assessment.
Energy as a Service (EAAS) is an emerging concept, which is currently at its budding stage in the developing economies which involve management of different energy portfolios, supply of energy, use of energy, program management, asset management, and others. The energy as a service market has the potential to span itself across a broad consumer base and fuel and power its adoption in every sector. Most of the energy and service providers are collaborating with third-party vendors and potential business disruptors intending to attract more customers. Government of many developing as well as developed countries and are forming and implementing regulatory policies to enhance the adoption rate of EAAS.
The coronavirus pandemic has given a very hard time to most of the manufacturing, developing, production, and logistic units of the market. Due to this pandemic situation, restrictions were imposed by the government of different countries. The outbreak of covid-19 has impacted the energy industry negatively. The energy as a service market witnessed a decline in demand and price of energy across the globe. Due to this pandemic, most of the industries are just focusing on the essential work due to which the installation of electric components has been paused for a long time. The increasing energy consumption and the changing prices are some of the major driving factors of the energy industry and due to the shutting down of various industries and manufacturing units, there has been a steep downfall in the energy demand. But it is anticipated that once all these restrictions are lifted, the energy market will make a powerful comeback with its profits enhanced by 60%.
First of all the increasing adoption of distributed energy sources (DER) is one of the major factors that will boost the growth of the energy as a service market. Secondly, decarbonization of the global economy is another factor that will propel the growth of the energy as a service market to large extent during the forecast period. Also with the increasing use of energy as a service (EAAS), there has been a drastic transformation in the transportation sector through the electrification of vehicles and the introduction of electric vehicles which have to be charged at regular intervals for use. So this is another crucial element that will enhance the growth of this industry. Lastly, the manufacturers are shifting their focus on the use of sustainable energy which is one more element that will be responsible for the magnification of the energy as a service market.
Firstly for efficient use of energy as a service, smart grid systems have to be established. And where there is already a traditional grid system present then it has to be transformed to an advanced grid system, but the cost of this transformation is very high which is one of the major factors that may hamper the growth of the energy as a service (EaaS) market. Also for setting up smart grid systems a person with special knowledge and skill is required and lack of this expertise among technicians or electricians is another factor that may act as a barrier in the expansion of this industry during the assessment period.
The key players of the energy as a service market are mainly focusing on simplifying the complex smart grid system which is to be established be replaced with an already existing grid system for making efficient use of energy as a service (EAAS). Also, the use of fossil fuels for energy production emits a lot of carbon dioxide which is not right in terms of various government regulations on environmental preservation. So to overcome this problem many attempts and studies are being conducted to make use of a renewable source of energy instead of fossil fuels.
Energy as a Service (EAAS) market share is anticipated to witness significant growth owing to the performance of different market segments. Among these, the energy supply segment will be the fastest-growing and also contribute towards this market growth more than any other segment. With the rising prices, the users are looking for alternative energy sources to make sure that they can operate without a grid. Also, the key players are focusing on renewable sources for the supply of energy due to cost-effectiveness, reduced carbon dioxide emission, environment friendly, and efficient energy is produced by them. For an amplifying use the market has been segmented into the following on different bases.
Based on components, it has solutions and services.
Based on the end-user, it has residential, government, and industrial.
The industrial segment is further divided into small & medium scale enterprises and large scale enterprises.
Also, the solution segment is further sub-segmented into energy portfolio advisory solutions, on-site energy supply, off-site energy supply, building optimization solutions, load management & optimization solution.
Lastly, the service segment is segregated into infrastructure services, technical and maintenance services, and other support services
The Energy as a Service (EAAS) industry movement is remarkably working in 4 major regions of the world that is North America, Asia Pacific, Europe, and the rest of the world. Among all these regions, the European region will dominate this market, and the reason attributed to it is the rising adoption of renewables sources for the consumption of energy. Also, most of the prime players of this market such as EDF energy (United Kingdom), Schneider electric se (France), etc. are established in this region which is another factor responsible for the growth of this market. North America will be the second-largest market during the assessment period due to robust development in the field of artificial intelligence (AI) and data analytics. In addition to this, the increasing demand for energy among industrial as well as the residential area is another factor that will propel the expansion of the market in this region. The growth of this region will be led by its developed economies such as Canada and the US. Asia Pacific region will also experience average growth during the forecast period due to the presence of efficient grid infrastructure.
To get a detailed and profound idea about the Energy as a Service (EAAS) market insights, it is very important to create a competitive environment amongst the different key players at different market locations all around the world. All the market players are competing with each other globally in the international markets by implementing various types of strategies such as product launches and upgrades, mergers and acquisitions, partnerships, etc. The prime players of this market include:-
In August 2020, to deliver clean energy as a service to an industrial and commercial building, a partnership agreement was entered into between HUCK capital and SCHNEIDER ELECTRIC. The integration of expertise of SCHNEIDER ELECTRIC in combining energy management and microgrid system with sustainable investments and operational focus of HUCK capital was the main objective behind this partnership. This agreement is implemented and worked upon properly would allow the building owners and operators to shift towards renewable energy and smart microgrid systems.
In May 2019, to improve the energy efficiency by 18%, saving electricity costs, and reducing the carbon dioxide emission by 520 tons per year, and energy-efficient performance contract was signed between ENGIE and UAC BERHAD (a Malaysia based manufacturing company). Along with the improvement in energy efficiency, this agreement will also strengthen the potential of ENGIE for energy as a service.
Solar PV project developers and technology manufacturers
Consulting companies in the power sector
Distributed energy resources (der) technology manufacturers
Energy as a Service (EAAS) companies
Energy as a Service (EAAS) companies
Research institutes and organizations
Market research and consulting firms
Managed service providers (MSPs)
Value-added resellers (VARs)
The Energy as a Service (EAAS) industry report presents a shift analysis that includes market drivers, opportunities, and restraints that are available in the global market. The report discusses the impact of covid-19 on the key players of this market. The report also tells about the market segmentation on a different basis and how a competitive environment is developed among the key players around the globe. At last, the report presents some recent developments in this industry.
Frequently Asked Questions (FAQ) :
Increasing investments by power utility companies in clean energy are poised to boost growth rate of the Energy as a Service (EaaS) market.
The Energy as a Service (EaaS) market is projected to expand at 31.2% CAGR.
The Energy as a Service (EaaS) market is anticipated to earn USD 51.8 Bn by 2023.
The key players of the Energy as a Service (EaaS) market are Duke Energy (US), Edison International (US), EDF Energy (UK), Engie (France), Schneider Electric SE (France), Southern Company (US), General Electric (US), WGL Energy (US), Siemens AG (Germany), and Orsted (Denmark).
The end-user segments of the Energy as a Service (EaaS) market are residential, government, and industrial