SAN FRANCISCO, March 2, 2020 /PRNewswire/ -- The global energy as a service market size is expected to reach USD 172.9 billion by 2027, registering a 14.6% CAGR during the forecast period, according to a new report published by Grand View Research, Inc. Upsurge in energy supply along with rising awareness regarding the adoption of green energy sources has transformed the energy and power industry.
Key suggestions from the report:
Asia Pacific is projected to grow at a substantial rate throughout the forecast period. China is expected to account for the maximum share in the region
North America is a noteworthy regional market, with U.S. being the most important regional growth contributor
The commercial sector was valued at over USD 30 billion in 2019
Commercial building activities have distinctive energy requirements and energy as a servicemarkethelps owners by providing them a limited principal amount with some technical skillsets to that can be applied on various energy efficient projects
Some of the significant market participants are General Electric (GE); Siemens; Engie; Honeywell International Inc.; Veolia; Johnson Controls; and EDF
Rising volatility of crude oil prices is likely to positively influence the growth of the market for Energy as a Service (EaaS). Relaxation in the privatization and Foreign Direct Investment (FDI) norms is another significant factor enabling the market growth. Governments across the world are increasingly financing various energy projects, which in turn is projected to fuel the demand for energy and power plants in the forthcoming years.
Collective use of smart metering and smart grids are likely to aid for the superior management of energy and power services. Improved infrastructural amenities are also estimated to fuel the market expansion in the forthcoming years. Increasing expenditure on oil and gas is an additional factor likely to motivate the market growth over the forecast period.
Increasing investments in energy efficient projects sponsored by governing bodies will also encourage the market expansion. The diffusion of renewable energy sources is on the rise and will, fuel up the demand for energy. Rise in the adoption of Distributed Energy Resources (DER), various transformation in the transportation sector by electrification such as electric vehicles and sustainably improved emphasis on energy.
Asia Pacific is projected to witness a CAGR of over 17.2% from 2020 to 2027. The presence of a large enterprises customer base in the region is projected to bode well for the regional growth. Even if the energy as a service is a novel concept in Asia Pacific, energy is projected to be a notable element for the purpose of electricity generation with the exhaustion of fossil fuels.
The key market players include Schneider Electric; Engie; Siemens; Honeywell International Inc.; Veolia; Enel X S.r.l.; and EDF. Schneider Electric is a major player in automation and energy management. The company is inclined toward providing microgrids as services to commercial and governmental institutions. The company has signed several agreements in order to enhance the EaaS business model which is disturbing the space and thus aiding the consumers to accept the microgrids.
Grand View Research has segmented the energy as a service market on the basis of service, end user, and region:
Energy as a Service Services Outlook (Revenue, USD Billion, 2016 - 2027)
Energy as a Service End-user Outlook (Revenue, USD Billion, 2016 - 2027)
Energy as a Service Regional Outlook (Revenue, USD Billion, 2016 - 2027)
Flywheel Energy Storage Market – Global flywheel energy storage market size accounted for USD 263.7 million in 2018 and is estimated to expand at a CAGR of 8.9% by 2025 owing to the growing demand for Uninterruptible Power Supply (UPS).
Energy Storage Systems Market – Global energy storage systems market recorded a demand of 176,897.6 MW in 2017. It is projected to register a CAGR of 2.3% during the forecast period.
Advanced Energy Storage Systems Market – Global advanced energy storage systems market size was worth USD 1.91 billion in 2014. The steady growth in electricity consumption along with expansion of the energy demand-supply gap is expected to propel the utilization of the product over the coming year.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.