Enjoy complimentary customisation on priority with our Enterprise License!
The industrial energy efficiency services market size is estimated to grow at a CAGR of 4.47% between 2023 and 2028. The market size is forecast to increase by USD 2,802.24 million. The growth of the market depends on several factors such as growing awareness about environmental impact and sustainability, increasing number of regulations to use energy-efficient equipment, and technological innovation driving the EPC model. Our report examines historic data from 2018 - 2022, besides analyzing the current market scenario.
This report extensively covers market segmentation by service (energy auditing and consulting, monitoring and verification, and product and system optimization), end-user (oil and gas, power, petrochemicals and chemicals, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Industrial Energy Efficiency Services Market Forecast 2024-2028
To learn more about this report, Request Free Sample
Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The rising need for power and the shortage of electricity are continuously compelling the governments of various countries to focus on the efficient utilization of electricity to achieve sustainable economic growth. The governments of different countries are issuing clear directives for utility companies and industrial operators to utilize power in an efficient manner. Thus, the focus on the efficient use of energy has increased in the industrial premises. Additionally, the regulations on industrial energy consumption have compelled industrial operators to adopt energy efficiency services to comply with the energy efficiency standards and mandates.
In addition, the increasing focus on energy audits and the use of energy management systems in industrial premises have provided high growth opportunities for ESCOs. This trend is expected to have a positive impact on the global industrial energy efficiency services market during the forecast period. Therefore, such factors will significantly contribute to the growth of the global industrial energy efficiency services market during the forecast period.
In the global energy efficiency services market, the industrial segment witnessed substantial growth in 2020. The increasing government regulations and the focus on optimizing energy efficiency have increased the demand for energy efficiency solutions in the industrial sector. ESCOs are trying to acquire other EPC players in different regions to increase their geographical reach. Since energy efficiency services act as a major element in promoting new automated and energy-efficient equipment, most of the ESCOs are trying to expand their product portfolio by acquiring peer companies with a wide range of product offerings.
Moreover, such trends are expected to have a high impact on the market consolidation ratio during the forecast period. Therefore, factors such as increasing market consolidation activities will foster the growth of the global industrial energy efficiency services market during the forecast period.
One of the key challenges faced by the global industrial energy efficiency services market is the difficulty in implementing the energy-efficient services model across end-user industries. For instance, evaluating the total energy savings often demands the deployment of advanced IoT devices and equipment for tracking energy consumption and utilization patterns. This data is further used by the service providers for setting the energy tariff and suggesting energy management techniques. The installation of energy-efficient systems can be a cumbersome process, especially in the case of the existing large commercial or industrial environments.
However, the energy consumption in large industries is not limited to lighting and HVAC functions such as in commercial or residential buildings, and it can include various machinery and process equipment with varied energy consumption profiles. This makes the evaluation of the total energy savings from different machinery very challenging for ESCOs, thereby affecting the overall estimation and energy savings derived from energy-efficient equipment.
The market share growth of the energy auditing and consulting segment will be significant during the forecast period. The energy audits and consulting segment holds a significant share of the global industrial energy efficiency services market. The data from major energy-consuming devices are closely monitored and analyzed by the energy management contractors, and they plan strategies accordingly to reduce the overall energy consumption from the manufacturing setups.
Get a Customised Report as per your requirements for FREE!
The energy auditing and consulting segment was valued at USD 4,205.17 million in 2018. Energy audits and consulting are considered important instruments in recognizing the existing energy efficiency potential by adopting systematic procedures to develop a strategy to achieve energy efficiency targets. New industrial facilities will have to install sub-meters to measure the use of heat, gas, and electricity. The European Commission has plans to roll out approximately 200 million smart meters for electricity and 45 million smart meters for gas by the end of 2020. Additionally, the European Commission has published guidelines on good practices in energy efficiency. The increasing government regulations on the industrial premises to follow energy audits have provided high growth opportunities for ESCOs, and this trend is expected to gain traction during the forecast period. Therefore, the EA and C segment is expected to witness growth in the global industrial and services market during the forecast period.
Based on end user, the market has been segmented into oil and gas, power, petrochemicals and chemicals, and others. The oil and gas segment will account for the largest share of this segment.? The oil and gas industry holds the dominant share in the global industrial energy efficiency services market. The digital transformation in the oil and gas industry continues to modernize and update its equipment in order to improve operational efficiency in the oil and gas industry. Industrial energy efficiency services enable oil and gas companies to improve operational efficiency by collecting, analyzing, communicating, and acting on data. These factors, in turn, help to improve operational efficiency by offering better insights into company performance, optimizing the existing production process, raising discovery rates, and reducing costs. Therefore, such factors will increase the growth of the oil and gas segment in the global industrial energy efficiency services market during the forecast period.
For more insights on the market share of various regions View PDF Sample now!
APAC is estimated to contribute 34% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Another region offering significant growth opportunities to market players is North America. The industrial energy efficiency market in North America is dominated by the US and Canada. The presence of large manufacturing facilities that have a high installed capacity makes it easier for ESCOs to enter and grow in the market in North America. The energy services market in the US includes both ESCOs as well as energy efficiency equipment providers. Additionally, the American Council for an Energy-Efficient Economy (ACEEE) acts as a catalyst for the growth of energy efficiency policies, investments, and opportunities in the US. The US Department of Energy Industrial Assessment Center (IAC) program provides small and medium-sized manufacturing firms with energy efficiency-related technical assistance in their facilities.
In addition, with the growing availability of cheaper renewable power and the rising awareness of energy efficiency services in the region, many industrial-sector entities are expected to adopt the energy performance contracting model to analyze their energy consumption and achieve energy savings, which will fuel the growth of the market in North America during the forecast period.
The outbreak of COVID-19 in the region in 2020 led to a decline in energy consumption. However, the initiation of large-scale vaccination drives conducted by the government across the region in the first half of 2021 helped to remove the lockdown restrictions. Owing to the relaxation in lockdowns across the region, there has been a rise in production activities in various industries, such as manufacturing and automobile. Moreover, the adoption of sustainable development practices and opting for eco-friendly energy sources in the region drives demand for industrial energy efficiency services in the region. Therefore, all such factors will drive the growth of the industrial energy efficiency services market in North America during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ameresco Inc. - The company offers industrial energy efficiency services such as deep energy retrofits.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Ameresco Inc., CoolPlanet Ltd., DNV Group AS, DuPont de Nemours Inc., Econoler Inc., Electricite de France SA, Enel Spa, ENGIE SA, GE GETEC Holding GmbH, General Electric Co., Honeywell International Inc., John Wood Group PLC, Johnson Controls International Plc, Ramboll Group AS, Rockwell Automation Inc., Schneider Electric SE, SGS SA, Siemens AG, TotalEnergies SE, and Veolia Environnement SA
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The industrial energy efficiency services market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
|
Industrial Energy Efficiency Services Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
185 |
|
Base year |
2023 |
|
Historic period |
2018 - 2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 4.47% |
|
Market Growth 2024-2028 |
USD 2,802.24 million |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
4.35 |
|
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
|
Performing market contribution |
APAC at 34% |
|
Key countries |
US, Canada, China, Germany, and UK |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Ameresco Inc., CoolPlanet Ltd., DNV Group AS, DuPont de Nemours Inc., Econoler Inc., Electricite de France SA, Enel Spa, ENGIE SA, GE GETEC Holding GmbH, General Electric Co., Honeywell International Inc., John Wood Group PLC, Johnson Controls International Plc, Ramboll Group AS, Rockwell Automation Inc., Schneider Electric SE, SGS SA, Siemens AG, TotalEnergies SE, and Veolia Environnement SA |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
