Energy-as-a-Service Market Appears to Be Promising for Both Large and Small Businesses in Coming Future
Global Energy-as-a-Service market was valued at approximately USD 57.6 Billion in 2020 and is predicted to create revenue of around USD 106.6 Billion by the end of 2026, with a CAGR of roughly 10.8% between 2021 and 2026.
Energy as a service (EaaS) is a business model that allows clients in the commercial, medical, and higher education sectors to execute energy projects with no upfront costs. The service provider creates the project scope, funds the material and construction expenses, maintains the project equipment, and record and keep a check on the results to verify energy savings. The project expenditures are repaid by the client through a monthly, quarterly, or yearly charge for the services obtained.
According to Facts and Factors, the global Energy-as-a-Service market was valued at approximately USD 57.6 Billion in 2020 and is predicted to create revenue of around USD 106.6 Billion by the end of 2026, with a CAGR of roughly 10.8% between 2021 and 2026.
Advances in data collecting, analysis, and energy management, as well as technologies like IoT, automatic meter reading, improved metering infrastructure, and big data, have all aided the EaaS model's development and expansion. These technologies aid in the analysis of client energy consumption patterns and the implementation of energy conservation and optimization strategies that result in energy savings. The incorporation of IoT technology into energy-consuming equipment allows these devices to provide information to other systems about their condition and operating status. For instance, Clear Blue Technologies International Inc., for example, released the Energy-as-a-Service (EaaS) for wireless power in May 2019. Off-grid street lighting, telecommunications networks, and Internet of Things (IoT) devices all benefit from this new subscription-based service, which offers clean, wireless electricity. Municipalities, telecom companies, and other organizations using off-grid powered systems were previously obliged to own, manage, and maintain these power systems. Clear Blue's Energy-as-a-Service satisfies this need. The expansion of the energy as a service market will be fueled by the development and acceptance of such technologies, which will substantially drive market growth during the forecast period. Microgrids aid in the resolution of grid infrastructure and performance issues. The growing need for power in places where grid-supplied electricity is unavailable or inconsistent is driving up demand for microgrids, which is one of the major energy as a service industry trends. Microgrids are gaining traction in the commercial and industrial sectors, where even a minute of the outage may result in considerable financial loss. The EaaS concept was designed to alleviate the strain on a variety of microgrids by allowing consumers to receive the benefits of microgrids by contracting services rather than acquiring a full power plant.
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The market is divided into two types of end-users: commercial and industrial. Healthcare, recreational centers, educational institutions, hotels, data centers, and other commercial entities make up the commercial component. According to the American Council for an Energy-Efficient Economy, these businesses utilize around 19% of the energy consumed in the United States. Heating and lighting use more than half of the energy consumed by commercial buildings. With energy service implementations being required throughout worldwide regions in the business sector, the commercial segment is projected to have the highest market share and the fastest expanding market.
Top Market Players
Some main participants of the global Energy-as-a-Service market are Schneider Electric, General Electric, Engie, Edison, Siemens, Wendel Energy Services, Alpiq, Honeywell, Bernhard Energy Solutions, Veolia, Entegrity, Enel X, Smartwatt, EDF Renewable Energy, Enertika, WGL Energy, Noresco, Johnson Controls, Orsted, and Centrica amongst others. Enel X and Infracapital announced cooperation in December 2018 to create an energy services platform for Italian commercial and industrial (C&I) clients.
Owing to its competence in the cogeneration and trigeneration sectors, as well as Italy's energy efficiency market, Enel X would continue to completely run the (Combined Heat and Power (CHP) facilities under the conditions of the deal. End customers would also benefit from Enel X's integrated services, which would include everything from analyzing energy needs to installing and monitoring high-efficiency technological solutions to reduce energy usage.
Nelnet Renewable Energy, a new business line that provides community solar developers with complete and scalable subscriber acquisition, administration, and support services, was launched in June 2020. The company would assist solar developers in finding subscribers for their community solar projects, which would include homeowners, renters, and businesses interested in solar energy that is both accessible and cheap.
Report Source: Facts & Factors