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The energy as a service (EaaS) market share is expected to increase by USD 19.04 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 20.51%. This energy as a service (EaaS) market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. The energy as a service (EaaS) market report also offers information on several market vendors, including Ameresco Inc., Enel Spa, ENGIE SA, Honeywell International Inc., Johnson Controls International Plc, Panasonic Corp., Schneider Electric SE, Siemens AG, Telefonaktiebolaget LM Ericsson, and VEOLIA ENVIRONNEMENT SA among others. Furthermore, this report extensively covers energy as a service (EaaS) market segmentation by end-user (industrial and commercial), service (procurement, storage, and management and optimization), and geography (North America, Europe, APAC, South America, and MEA).
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Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The increase in adoption of renewable energy is notably driving the energy as a service (EaaS) market growth, although factors such as implementation and deployment challenges may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the energy as a service (EaaS) industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Energy As A Service (EaaS) Market Driver
The increase in adoption of renewable energy is a major factor driving the global energy-as-a-service (EaaS) market share growth. Continuous growth in global energy demand, clean energy initiatives, and subsidies for power generation using sustainable sources are promoting the use of renewable energy sources such as solar and wind. Goverments are shifting their focus from conventional sources of fuel to renewables to reduce the emission of hazardous gases that have an adverse impact on the environment. As part of clean energy initiatives, several countries are using fuels such as electricity and hydrogen fuels in the transportation sector. The EaaS model helps companies to procure electricity from different suppliers so that total energy costs can be reduced. Furthermore, companies can procure renewable energy that they want without having the associated capital expense of equipment purchases, and this enables them to make significant savings in terms of capital expenditures. Therefore, the growing dependence on renewable energy sources will have a positive impact on the adoption of the EaaS model and is likely to drive the growth of the global Energy as a Service (EaaS) market during the forecast period.
Key Energy As A Service (EaaS) Market Trend
The increasing adoption of microgrids is another factor supporting the global energy-as-a-service (EaaS) market share growth. Microgrids have emerged as a solution to resolve inconsistencies in grid infrastructure and performance. Moreover, microgrids use solar and wind energy sources to generate power, which is one of the major factors driving their adoption amid rising environmental concerns. Microgrids play a critical role in protecting consumers from power outages and ensuring energy security. The two traditional mechanisms for microgrid development are self-financed construction and operation of microgrid and appointing a third-party to construct and operate the microgrid. Both models will incur development and operational burden on the institutions, businesses, or organizations that are hosting the microgrid. To minimize the burden on the host of microgrids, a third model called EaaS was created. Through this model, customers can obtain the benefits of microgrids by contracting services instead of purchasing an entire power plant. The adoption of microgrids is increasing owing to their benefits such as reliable and continuous power supply. Due to such reasons, a rise in the installation of microgrids is expected to drive the global Energy as a Service (EaaS) market during the forecast period.
Key Energy As A Service (EaaS) Market Challenge
The implementation and deployment challenges will be a major challenge for the global energy-as-a-service (EaaS) market share growth during the forecast period. EaaS solution requires the deployment of advanced IoT devices and equipment for tracking energy consumption and usage patterns. This data is later used by service providers for setting energy tariffs and suggesting energy management techniques. However, the installation of these devices can be a cumbersome process, especially in the case of existing large commercial or industrial environments. Moreover, IoT data collection requires a high-performance analytics platform, which is capable of handling data cleansing, processing, and representation. A major challenge in the implementation of the EaaS model is the installation of renewable energy systems and battery storage systems at the end-user premises. These systems are installed to minimize the dependence on power grids and reduce electricity bills. Although the deployment of these systems will result in savings for users in the long run, the initial cost of their deployment can be considerably high and may discourage customers from opting for an EaaS solution. This is likely to impede the growth of the market during the forecast period.
This energy as a service (EaaS) market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global Energy as a Service (EaaS) market as part of the global utilities market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the energy as a service (EaaS) market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the energy as a service (EaaS) market encompasses successful business strategies deployed by the key vendors. The energy as a service (EaaS) market is fragmented and the vendors are deploying growth strategies such as organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The energy as a service (EaaS) market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the energy as a service (EaaS) market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of global utilities market includes the following core components:
The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by End-user
6 Customer landscape
7 Market Segmentation by Service
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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