Energy as a Service Market Overview

Energy as a service (EaaS) refers to the business model where energy providers offer end-to-end services and energy management solutions on a subscription basis rather than just commoditized electricity or fuel supply. EaaS enables organizations to achieve energy efficiency, cost savings, and meet sustainability goals through data-driven insights. The energy as a service market industry is projected to grow from USD 74.03 Billion in 2023 to USD 125.54 billion by 2030.

The key factors driving the adoption of EaaS include rising energy costs, aging grid infrastructure, sustainability targets, and advancements in IoT, cloud, data analytics, and AI. EaaS offerings like smart metering, data analytics, and energy management platforms help organizations optimize energy usage.

Key EaaS Market Segments

The EaaS market is segmented based on services, end-user, and regions.

Services: The key services offered in the EaaS model include energy supply, efficiency project financing, onsite energy generation, analytics & reporting, maintenance & operation services. These services are provided through energy performance contracts over medium to long-term periods.

End-Users: The major end-user segments adopting EaaS solutions include commercial buildings, industrial sites, and public sector organizations. EaaS delivers significant energy and emission reductions across office spaces, manufacturing facilities, and government buildings.

Regions: North America held the largest revenue share in the EaaS market. Supportive regulations, rising distributed energy resources, and increasing financing for energy-efficiency projects are key growth factors in this region. Europe and Asia Pacific are expected to exhibit high growth rates in the coming years.

Key EaaS Companies

Schneider Electric, Engie, Veolia, Enel X, EDF Renewable Energy, General Electric, Siemens, WGL Energy, Edison Energy, SmartWatt, Ameresco, and Carbon Lighthouse are the leading EaaS providers. These companies offer customized subscription services for energy optimization, procurement, supply, and management.

Strategic partnerships, mergers & acquisitions, and new service launches are major growth strategies adopted by EaaS companies to enhance technical capabilities and expand customer base. In Nov 2021, Schneider Electric acquired Operation Technology, Inc. to boost software and services for energy management and sustainability.

Regional Market Insights

North America will continue its dominance in the EaaS market share owing to early adoption of innovation energy solutions, presence of key market players, and favorable regulatory impetus. The U.S. accounts for the major share supported by state efficiency policies and rebate programs.

Europe is expected to hold the second largest market position driven by rising distributed energy adoption and countries aiming for carbon neutrality by 2050. Germany, France, and Italy are key growth pockets in this region.

The Asia Pacific will exhibit the fastest growth throughout the forecast period attributed to rapid industrialization in China, India, and developing nations. Government smart city and solar power initiatives will further boost EaaS adoption.

Browse In-depth Market Research Report (100 Pages, Charts, Tables, Figures) on Energy as a Service Market

Latest Industry Developments

Some notable recent developments in the EaaS market include:

• Sept 2022: Schneider Electric acquired Power Control Systems to expand energy management offerings for critical power infrastructure.
• Jan 2022: Engie acquired Equans to become a global leader in multi-technical services including energy optimization.
• Sept 2021: General Electric and Noble Capital announced a partnership to provide renewable energy to commercial entities through EaaS model.
• July 2021: Veolia launched a digital platform - Novax - for companies to manage, optimize and reduce their energy spending.
• April 2021: Enel X partnered with Merck to provide renewable energy advisory and supply services in North America.

In summary, the evolving EaaS model has huge potential for growth as organizations aim for smarter energy consumption, distributed generation, and net-zero emissions. Leading energy services companies are innovating solutions for optimizing energy usage across commercial and industrial facilities through performance-based contracts.