The Rising Demand for Energy as a Service: A Sustainable Solution for the Increasing Energy Needs

The increasing demand for sustainable energy along with the rising population is driving the demand for energy as a service market. The demand for energy is experiencing a major gain owing to increasing disposable income and surging industrialization. Renewable energy is also gaining momentum on account of the unavailability of sufficient fossil fuels to meet the increasing power demand. Increasing construction activities coupled with rising urbanization is one of the major factors propelling the growth of the market. The innovative model is gaining traction as it allows customers to finance energy-efficient building technologies.

What is Energy As a Service? 

Energy as a service is a kind of business model that allows various customers to outsource their energy needs instead of buying and maintaining the energy infrastructure. Energy as service providers offer a range of services including energy supply, distribution, and management, as well as energy efficiency and sustainability solutions. These services allow customers to focus on their core business operations, while the EaaS provider handles all aspects of energy supply and management. 

EaaS can be particularly attractive to businesses that require a reliable and consistent energy supply but do not want to invest in expensive infrastructure or deal with the complexities of energy management. It can also help businesses reduce their carbon footprint and meet their sustainability goals by providing access to renewable energy sources.

Market Overview 

The global energy as a service market size was estimated at USD 65.4 billion in 2021 and is expected to hit around USD 157.87 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 10.29% from 2022 to 2030. 

The energy as a Service Market is anticipated to grow during the upcoming years on account of increasing penetration to reduce carbon footprints. Rising benefits associated with the adoption of energy as a service such as reduction in cost. Surging efforts by building owners along with surging penetration towards renewable source of power is expected to proliferate the growth of the market.  

By outsourcing energy management to a third-party provider, businesses can save on capital costs, maintenance expenses, and operational costs associated with energy infrastructure. EaaS providers can offer customized solutions that are tailored to the specific needs of each client, resulting in lower overall costs and greater energy efficiency. The rising advancement of technology in energy storage is also one of the crucial factors propelling the growth of the industry.  

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SWOT Analysis of Energy as a service market 


Customization and Flexibility: Energy as a Service offers flexible energy solutions that can be customized to meet the specific needs of each customer. 

Predictable Costs: Energy as a Service provides customers with a predictable, fixed cost for their energy needs, making budgeting and forecasting easier. 

Scalability: Energy as a Service can be scaled up or down based on the changing energy demands of a business. 

Reduced Capital Expenditures: Energy as a Service eliminates the need for businesses to invest in expensive energy infrastructure, freeing up capital for other investments. 


Limited Market Awareness: The Energy as a Service market is still relatively new, and many businesses may not be aware of the benefits it can offer. 

Dependence on Third-Party Providers: Energy as a Service relies on third-party providers to deliver energy services, which can introduce additional risks and challenges. 


Increased Demand for Clean Energy: As the demand for clean energy continues to grow, there is an opportunity for Energy as a Service provider to offer renewable energy solutions to businesses. 

Expansion into New Markets: Energy as a Service provider can expand into new markets by offering its services to different industries, such as healthcare or education. 

Integration with Smart Grid Technology: Energy as a Service can be integrated with smart grid technology, providing businesses with even more control over their energy usage. 


Competition from Traditional Energy Providers: Traditional energy providers may offer similar services, putting pressure on Energy as a Service providers to differentiate themselves. 

Regulatory Changes: Changes in government regulations or policies can impact the Energy as a Service market, introducing uncertainty and potential challenges. 

Cybersecurity Risks: Energy as a Service provider must ensure the security of its systems and data, as cyber-attacks can disrupt energy services and compromise sensitive information. 

Regional Analysis of Energy as a service market  

Based on regions, the market is segmented into North America, Latin America, Middle East, Europe, Asia Pacific, and Africa. North America is expected to witness significant growth during the upcoming years. The growth of the industry is attributed to the adoption of various projects also expected to propel the growth of the industry.  

In order to increase energy efficiency, the United States has implemented a pay-for-performance strategy. The method is thought to be capable of reducing energy use by over 15%. This strategy has given several utility or energy firms the chance to expand a service line that may offer services to conserve electricity. 

For instance, California's energy efficiency regulations require that at least 60% of the cost reductions obtained through obligation programs be provided by outside service providers. As a result, the market is projected to increase throughout the forecast period thanks to such measurements in the area. 

Additionally, energy service providers in the US and Canada are spending money on the smart grid and smart metering systems because they employ cutting-edge data analytics to help customers optimize their energy use. The Institute of Energy Efficiency estimates that in 2021, 115 million smart meters will have been installed in the United States, a rise of 27.7% from 2018. Thus, growing investments in smart meters in the area would encourage the development of a more digitalized and decentralized grid network, which might support the expansion of the EaaS market there. 

The market for energy as a service is expected to develop significantly in North America in the future because of the aforementioned factors. 

The Middle East and Africa region are expected to witness moderate growth in the EaaS market due to the increasing adoption of renewable energy sources and the growing energy demand. The United Arab Emirates and South Africa are the leading markets for EaaS in the Middle East and Africa. 

Impact of COVID-19 on Energy as a service market 

The outburst of the pandemic has significantly impacted the growth of the market. The restrictions imposed by the government of various economies have slowdown development projects. Many businesses and organizations have had to delay or cancel planned projects due to financial uncertainty or reduced demand for their products or services. 

Segments Covered in the Report 

By Service Type 

  • Energy Supply Services 

  • Operational and Maintenance Services 

  • Energy Efficiency and Optimization Services 

By End User 

  • Commercial 

  • Industrial 

By Geography 

  • North America 

  • Europe 

  • Asia-Pacific 

  • Latin America 

  • Middle East & Africa (MEA) 

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