Energy As A Service (Eaas) Market, By Type (Energy Supply Services, Energy Efficiency & Optimization, Maintenance & Operation and Others), By End User (Industrial and Commercial), By Region – Global Analysis Forecast Till 2030

Energy As A Service (Eaas) Market size accounted for USD 54.4 Billion in 2021 and is expected to hit around USD 112.7 Bn at a CAGR of 7.4% by 2030

An emerging business model known as "energy as a service" offers energy-related services and energy-optimization solutions to small, medium-sized, and big companies. Additionally, it raises awareness of improved management and increased deployment of dispersed power sources. The energy as a service (eaas) market report thoroughly reviews the many service types that employ energy as a service. The end-use segment, which includes commercial and industrial uses, is covered in detail by the energy as a service (eaas) market.

The rise in building owners' efforts to lower energy costs, the production of renewable energy, energy efficiency initiatives, the adoption of renewable energy, and the growth of smart grid installations are some of the drivers that are fueling the global energy as a service (eaas) market. Contrarily, it is projected that due to significant players switching from the traditional energy model to the EaaS model, they will offer lucrative growth prospects and hold onto their market share during the forecast period.

Renewable energy solutions offer a sustainable approach to meet the ever-increasing demand for power. With energy management services and energy optimization techniques, businesses and individuals can achieve enhanced efficiency and reduced consumption. Energy efficiency as a service provides comprehensive solutions to optimize energy usage and minimize waste. Distributed energy resources, such as solar panels and wind turbines, contribute to a decentralized energy system, promoting self-sufficiency and resilience.

Energy storage solutions ensure reliable power supply during peak demand periods or intermittent renewable energy generation. Demand response programs incentivize consumers to adjust their energy usage during high-demand periods, reducing strain on the grid. Microgrid services enable localized power generation and distribution, fostering energy independence in communities. Energy monitoring and control systems facilitate real-time analysis and adjustment of energy consumption, further enhancing efficiency. Power purchase agreements (PPAs) allow organizations to procure renewable energy directly, promoting a transition towards cleaner power sources. Energy infrastructure financing supports the development of modern and sustainable energy systems, including grid modernization initiatives that enhance reliability, resilience, and integration of renewable energy sources.

Market Dynamics

Drivers:

Large power plants are the main sources of electricity. Utilities or other independent power producers are the owners and operators of these facilities. Then, this centrally produced power is dispersed throughout the national or state grids of transmission and distribution lines and substations. The grid changes as DER technologies become more affordable and efficient. The distribution system for electricity consists of a variety of small, decentralized microgrids that provide consumers more control over their electricity source and boost reliability.

The use of Distributed Energy Resources (DER), such as on-site solar panels, combined heat and power, fuel cells, and batteries, has increased as a result of the electric power industry's transition away from traditional methods. The need to employ distributed energy resources more frequently is being fueled by the growing need to minimize carbon emissions from the electricity grid, the development of low-cost technologies, falling DER costs, and the need to respond to consumer demands and expectations more quickly.

Restraints:

There are specific technical and practical considerations for implementing different renewable energy sources. Additionally, they are subject to capacity limitations because to a lack of fundamental raw material inputs, restrictions on manufacturing capacity, competition for more extensive construction project management and equipment, and a shortage of skilled labor. For instance, the effective deployment of solar PV depends on variables like the amount of sunlight and solar radiation; this presents a risk to the energy industry.

Even though big companies have excellent operational capabilities, they have encountered difficulties when implementing energy-as-a-service projects. As an illustration, just 21,180 MW of the anticipated 41,110 MW of capacity augmentation was completed, or just 51.5% of the target. To achieve energy cost savings through ongoing monitoring and automation, various and growing technologies—such as connected devices and monitoring platforms—must interact without any communication barriers. Environmental approvals and land acquisition are the main causes of the project's implementation delay.

Opportunity:

Energy efficiency is using energy in the most economical way possible, with the least amount of energy wasted and the least amount of primary energy resources consumed overall. Increased energy efficiency is a result of technological advancements in renewable resources. The fact that energy service providers combine smaller project opportunities into a single contract makes the energy as a service model appealing to building owners. Multiple buildings can use the same refit, saving the suppliers time and manpower.

Key players:

• Schneider Electric

• Honeywell International Inc.

• Entegrity

• Enel SpA

• Siemens

• Engie

• NORESCO, LLC

• Centrica plc

• Veolia

• Johnson Controls

• Bernhard

• General Electric

• Wendel

Market Segmentation:

Energy As A Service (Eaas) Market, By service type    

• Energy supply services

• Maintenance & operation

• Energy efficiency & optimization

Energy As A Service (Eaas) Market, By end user

• Industrial

• Commercial

Energy As A Service (Eaas) Market, By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa (MEA)

Regional Analysis:

In terms of energy as a service (eaas) Market share, Asia-Pacific is leading in 2020 and is predicted to continue to do so for the duration of the forecast period. This is attributable to the region's substantial consumer base and presence of important players. Energy as a service is also becoming more popular due to the energy industry's increased transformation, including digitization, decarbonization, and the quick expansion of distribution and generation services. These factors are anticipated to fuel the growth of energy as a service (eaas) market over the course of the forecast period.

Scope of the Report:

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