Energy as a Service Financing Market Is Expected to Achieve a Compound Annual Growth Rate of 32% by 2030
While the need to reduce energy costs is propelling global adoption, strong market barriers present challenges
A new report from Guidehouse Insights forecasts the energy as a service (EaaS) financing market size through 2030 by region and examines revenue growth in three technology categories: building efficiency, onsite energy supply, and energy flexibility solutions.
Aggressive sustainability targets and budget constraints have forced companies to reevaluate how they spend their CAPEX, increasing the appeal of the EaaS model. Through joint ventures and capital partnerships, energy service companies (ESCOs) have been able to expand EaaS offerings while advancements in onsite energy supply and energy flexibility technologies have provided greater opportunity for vendors to serve broader client segments with sustainability and resiliency goals. According to a new report from Guidehouse Insights, the EaaS financing market is expected to achieve a compound annual growth rate (CAGR) of 32.1% by 2030.
“The EaaS market is rapidly evolving to meet the changing needs of customers,” says David Gonzalez, research analyst with Guidehouse Insights. “Joint ventures, expanding capabilities in sustainability advisory and cybersecurity, extreme weather events, and other factors are contributing to the evolution in the market landscape.”
However, market growth is dependent on vendors’ ability to address key market barriers. This involves increasing customer awareness, standardizing EaaS, reducing transaction costs, and facilitating organizational alignment while accessing the right decision makers.
The report, Market Data: Energy as a Service, forecasts the EaaS financing market size between 2021 and 2030 by five regions: North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. For the purposes of this report, the definition of EaaS is as a service OPEX financing of energy projects. Revenue is also segmented by three technology categories: building efficiency; onsite energy supply; and energy flexibility solutions, which include microgrids and energy storage. The forecast also includes revenue splits between commercial and industrial (C&I) customers. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Market Data: Energy as a Service, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.