Study: Global energy as a service market projected to reach $86.9B by 2024
The global energy as a service market is projected to reach $86.9 billion by 2024, up from an estimated $52 billion in 2019, at a CAGR of 10.8%.
The global energy as a service market is projected to grow at a CAGR of 10.8% from 2019-2024, according to a study released by Report Linker, New York.
The global energy as a service market is projected to reach $86.9 billion by 2024, up from an estimated $52 billion in 2019, at a CAGR of 10.8%. This growth can be attributed to factors such as new revenue-generating streams for utilities, increased distributed energy resources, decreasing cost of renewable power generation and storage solutions and availability of federal and state tax benefits for energy efficiency projects. However, integration and deployment challenges and dominance of the existing centralized utility models are hindering the growth of the energy as a service market.
The energy supply services segment is expected to be the fastest growing market from 201-2024.
Due to the increase in pressure on consumers to meet sustainability and regulatory goals, increase in complexity to procure electricity and complex tariff structures, consumers are now in need of customized energy generation designs based on their requirements with modern and robust technology.
The energy supply services segment of energy as a service aids in offering on-site energy supply, including common distributed energy generation solutions such as solar PV, combined heat and power, diesel and natural gas gensets, microturbines and fuel cells to improve energy supply.
The commercial segment is expected to be the largest market and the fastest growing segment during the forecast period. The commercial sector, including offices, warehouses, retail outlets and more, is responsible for about 30% of the global energy use.
This growth was driven mainly by factors such as increase in floor area, occupancy and access to services along with increase in activity, including changes in population and climate. Different commercial building activities have unique energy needs, and energy as a service helps commercial owners with limited capital and technical expertise to implement energy efficiency projects.
North America is the largest market for energy as a service.