Energy as a Service Market

Global Energy as a Service (EaaS) Market Report: By Type (Energy Supply Services, Operational & Maintenance Services and Energy Efficiency & Optimization Services); By End-Use (Commercial, Industrial), and Region (North America, Europe, Asia-Pacific, Latin America, Middle-East and Africa) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2024-2032.

Energy & Power | February 2024 | Report ID: EMR00627 | Pages: 250

Global Energy as a Service (EaaS) market is predicted to reach approximately USD 153.04 billion by 2032, at a CAGR of 8.65% from 2024 to 2032.

EaaS providers deliver a range of services including energy procurement, infrastructure development, energy efficiency improvements, and renewable energy integration on a subscription or pay-per-use basis. This model allows organizations to outsource their energy needs to specialized firms, thereby reducing operational complexity and capital expenses while enhancing sustainability efforts. The EaaS market is driven by factors such as increasing awareness of environmental sustainability, stringent government regulations on carbon emissions, and the growing demand for reliable and cost-effective energy solutions across various industries. With the rise of digitalization and IoT technologies, EaaS providers leverage advanced analytics and monitoring tools to optimize energy consumption, minimize wastage, and maximize efficiency for their clients. As the energy landscape continues to evolve, the EaaS market is poised for significant growth, offering a flexible and scalable approach to energy management that aligns with the evolving needs of businesses and communities worldwide.

 

 

Global Energy as a Service (EaaS) report scope and segmentation.

Report Attribute

Details

Estimated Market Value (2023)

USD 72.52 billion

Projected Market Value (2032)

USD 153.04 billion

Base Year

2023

Forecast Years

2024 – 2032

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- Based on By Type, By End-Use, & Region.

Segments Covered

By Type, By End-Use, & By Region.

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2024 to 2032.

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others.

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global Energy as a Service (EaaS) dynamics

One key dynamic is the increasing emphasis on sustainability and carbon reduction goals, prompting organizations to seek more efficient and environmentally friendly energy solutions. This drive towards sustainability is fueled by regulatory pressures, consumer preferences, and corporate sustainability initiatives, which are accelerating the adoption of EaaS models that offer renewable energy integration, energy efficiency improvements, and emissions reduction strategies.

Moreover, the dynamics of the EaaS market are significantly shaped by technological advancements. The emergence of digitalization, Internet of Things (IoT) technologies, and data analytics allows EaaS providers to provide their customers with more advanced and customised solutions. By enabling real-time monitoring, predictive maintenance, and energy system optimisation, these technologies help businesses optimise their energy use, cut expenses, and raise overall operational effectiveness.

Furthermore, the competitive landscape of the EaaS market is characterized by a diverse ecosystem of traditional energy service companies, technology firms, startups, and renewable energy developers vying for market share. This competition fosters innovation and drives continuous improvement in EaaS offerings, leading to greater customization, scalability, and affordability for customers. As the market matures and evolves, partnerships and collaborations between EaaS providers and other stakeholders such as utilities, financial institutions, and government agencies are expected to deepen, further shaping the dynamics of the EaaS market and driving its expansion into new regions and sectors.

 

Global Energy as a Service (EaaS) drivers

  • Rising Demand for Sustainable Energy Solutions:

The global shift towards sustainability and the urgent need to mitigate climate change are significant drivers for the Energy as a Service (EaaS) market. Governments worldwide are implementing stringent regulations to reduce carbon emissions, incentivizing businesses to adopt renewable energy sources and energy-efficient practices. EaaS provides an accessible avenue for organizations to transition to sustainable energy solutions without the upfront capital investment required for infrastructure development. This demand is further propelled by consumer preferences for environmentally responsible products and services, creating a conducive environment for the growth of the EaaS market.

  • Advancements in Digital Technologies:

The EaaS market is growing as a result of technological advancements like big data analytics, artificial intelligence (AI), and the Internet of Things (IoT). These technologies allow EaaS providers to provide their clients with more advanced and effective solutions by enabling real-time monitoring, predictive maintenance, and energy system optimisation. IoT sensors gather information on equipment performance, environmental factors, and patterns of energy consumption, enabling businesses to find areas for operational and energy-saving improvements. The incorporation of cutting-edge technologies into EaaS offerings will improve the scalability, dependability, and affordability of energy management solutions, spurring additional adoption and market expansion as digitalization continues to permeate various industries.

 

Restraints:

  • Initial Investment Costs:

Despite the long-term benefits, the initial investment required to implement Energy as a Service solutions can act as a significant barrier for some organizations, particularly small and medium-sized enterprises (SMEs). The installation of renewable energy systems, energy-efficient infrastructure, and digital monitoring technologies often entails substantial upfront costs, which may deter potential clients from adopting EaaS models. Moreover, uncertainty surrounding the return on investment and financial constraints may hinder decision-making and slow the pace of adoption, especially in industries with tight profit margins or limited access to capital.

  • Data Privacy and Security Concerns:

Due to the heavy reliance of EaaS solutions on data collection, analysis, and connectivity, worries about cybersecurity and data privacy significantly impede market expansion. Businesses entrust EaaS providers with sensitive data about their infrastructure, operational procedures, and energy usage, which raises concerns about data breaches, unauthorised access, and possible disruptions to business operations. Strong security measures and compliance frameworks are also required by regulatory compliance requirements, such as the General Data Protection Regulation (GDPR) in the European Union, which impose strict standards for data protection and privacy. In order to address these issues, EaaS providers hoping to win over their clients' trust and confidence may find it difficult to invest in cybersecurity infrastructure, train their staff, and follow industry best practices.

 

Opportunities:

  • Integration of Distributed Energy Resources:

The proliferation of distributed energy resources (DERs), including solar photovoltaic (PV) systems, battery storage, microgrids, and demand response technologies, presents a compelling opportunity for the Energy as a Service market. DERs enable organizations to generate, store, and manage energy locally, reducing reliance on centralized power grids and enhancing energy resilience and reliability. EaaS providers can capitalize on the trend towards decentralization and grid modernization by offering integrated solutions that optimize the deployment and operation of DERs, maximize energy efficiency, and enable seamless integration with existing infrastructure. By harnessing the potential of DERs, EaaS providers can unlock new revenue streams, improve energy affordability, and foster greater energy independence for their clients, driving continued growth and innovation in the market.

 

Segment Overview

  • By Type

In the Energy as a Service (EaaS) market, the type segments encompass Energy Supply Services, Operational & Maintenance Services, and Energy Efficiency & Optimization Services. Energy Supply Services facilitate access to renewable energy sources such as solar, wind, and hydroelectric power, enabling organizations to reduce carbon emissions and dependency on fossil fuels. Operational & Maintenance Services involve the management, monitoring, and upkeep of energy infrastructure, including preventive maintenance, repair, and asset management, to ensure reliable operation and optimize performance. Energy Efficiency & Optimization Services focus on improving energy performance through audits, retro-commissioning, and demand-side management solutions, helping organizations minimize waste and lower operational costs.

  • By End-Use

The end-use segments of the EaaS market target Commercial and Industrial sectors. Commercial establishments such as office buildings, retail spaces, and hotels benefit from tailored EaaS solutions designed to address fluctuating energy demand, occupancy patterns, and regulatory compliance requirements, enhancing operational efficiency and occupant satisfaction. In contrast, the Industrial sector, which includes manufacturing plants and warehouses, relies on EaaS offerings to optimize production processes, mitigate risks, and improve competitiveness by streamlining energy management, reducing waste, and increasing resource efficiency. These segments collectively represent the diverse applications and opportunities within the EaaS market, catering to the distinct needs and challenges of various industries and end-users.

 

Global Energy as a Service (EaaS) Overview by Region

North America dominates the EaaS market, driven by stringent environmental regulations, favorable government incentives, and a robust ecosystem of technology providers and energy service companies. The region's focus on sustainability and energy efficiency, coupled with the widespread adoption of renewable energy technologies, positions North America as a key market for EaaS solutions, particularly in commercial and industrial sectors. Europe follows closely, propelled by ambitious renewable energy targets, supportive policies, and growing investments in clean energy infrastructure. Countries such as Germany, the United Kingdom, and France lead the adoption of EaaS models, leveraging advanced technologies and innovative financing mechanisms to accelerate the transition towards a low-carbon economy.

In the Asia-Pacific region, rapid urbanization, industrialization, and increasing energy demand drive the demand for EaaS solutions, particularly in emerging economies such as China, India, and Southeast Asian countries. These markets present immense growth opportunities for EaaS providers, fueled by government initiatives, energy market liberalization, and the rising awareness of sustainability among businesses and consumers. Meanwhile, Latin America and the Middle East & Africa regions exhibit nascent but promising developments in the EaaS market, driven by growing investments in renewable energy, infrastructure modernization, and efforts to diversify energy sources. Despite challenges related to regulatory uncertainty and economic instability, these regions hold significant potential for EaaS adoption, driven by the need to enhance energy access, reliability, and affordability while addressing environmental concerns.

 

 

Global Energy as a Service (EaaS) market competitive landscape

Key players in the market include multinational corporations such as Siemens AG, Schneider Electric SE, and Johnson Controls International plc, which offer comprehensive EaaS solutions encompassing energy supply, operational services, and energy efficiency optimization. These companies leverage their extensive industry expertise, global presence, and technological capabilities to deliver integrated solutions tailored to the needs of commercial, industrial, and institutional clients.

In addition to established players, the EaaS market is witnessing a proliferation of innovative startups and niche players specializing in renewable energy, energy management software, and smart grid technologies. Companies like ENGIE Impact, Ameresco, and SmartWatt are at the forefront of delivering cutting-edge EaaS offerings focused on sustainability, cost-effectiveness, and operational excellence. These agile players leverage disruptive technologies such as artificial intelligence, Internet of Things (IoT), and blockchain to drive innovation and differentiate their solutions in a highly competitive market landscape.

Moreover, partnerships, collaborations, and strategic alliances are reshaping the competitive dynamics of the EaaS market, as players seek to expand their market reach, enhance service offerings, and capitalize on emerging opportunities. Utilities, financial institutions, and technology providers are increasingly forging partnerships with EaaS companies to accelerate the adoption of sustainable energy solutions, unlock new revenue streams, and address evolving customer demands.

 

Global Energy as a Service (EaaS) Recent Developments

  • Aug 2023, Hitachi Energy, a prominent force in advancing sustainable energy solutions worldwide, has forged a strategic partnership with Google Cloud. Together, they aim to develop and innovate various cloud-based software products and services to drive the global energy transition forward. As an initial testament to this collaboration, Hitachi Energy's Velocity Suite Power Prices is now accessible on the Google Cloud Marketplace, showcasing the collective value derived from their alliance.
  • In May 2022, GE Digital completed the acquisition of Opus One Solutions with the aim of bolstering the energy transition. Opus One DERMS, an end-to-end modular Distributed Energy Resource Management System (DERMS), is tailored to assist utilities in navigating their Distributed Energy Resources (DERs) journey, ensuring grid safety, security, and resilience. It also facilitates energy affordability and encourages customer participation in power generation.
  • In August 2021, ENGIE and Google inked a carbon-free energy supply agreement in Germany, spanning 24/7 operations. This three-year commitment aligns with Google's 2030 Carbon-Free Energy (CFE) objective for its global data centers, cloud regions, and offices. ENGIE will curate and manage a renewable energy portfolio, primarily sourced from solar and wind, to propel Google's German operations toward nearly 80% carbon-free status by 2022.

 

Scope of global Energy as a Service (EaaS) report

Global Energy as a Service (EaaS) report segmentation

ATTRIBUTE

DETAILS

By Type

  • Energy Supply Services
  • Operational & Maintenance Services
  • Energy Efficiency & Optimization Services

By End-Use

  • Commercial
  • Industrial

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Energy as a Service (EaaS) size and forecast: To identify and estimate the market size for global Energy as a Service (EaaS) market segmented by Type, By End-Use, and by region. Also, to understand the consumption/ demand created by consumers between 2024 and 2032.
  • Market Landscape and Trends: To identify and infer the drivers, restraints, opportunities, and challenges for global Energy as a Service (EaaS)
  • Market Influencing Factors: To find out the factors which are affecting the market of global Energy as a Service (EaaS) among consumers.
  • Company Profiling: To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

Global Energy as a Service (EaaS) forecast period is 2024 - 2032
According to global Energy as a Service (EaaS) research, the market is expected to grow at a CAGR of ~ 8.65% over the next eight years.
The possible segments in global Energy as a Service (EaaS) are based on by Type, By End-Use, & by region.
The expected market size for Global Energy as a Service (EaaS) is USD 72.52 billion in 2023.
The major players in the market are Centrica Plc, Duke Energy, EDF Energy, Enel Spa, General Electric Company, Johnson Controls, Schneider Electric, Siemens AG, Southern Company, Veolia, Edison International, Enel X, Entegrity, Honeywell International Inc., NORESCO, LLC, Orsted A/S, SmartWatt, Solarus, Wendel, Bernhard Energy, Contemporary Energy Solutions, EDF Renewable, Edison Energy, Enertika, ENGIE, and WGL Energy.