- What is the state of the ESCO market?
- How are customer needs changing?
- What is the impact of EaaS on ESCO markets?
- What are the drivers and barriers in ESCO markets?
- What is the size of the EaaS market opportunity?
- How is the ESCO market expected to grow in the next 10 years?
- How is revenue expected to differ by region, financing instrument type, by customer segment, and by technology type?
- What roles are sustainability and resiliency playing in the ESCO market?
2Q 2023
ESCO Performance Contracting
Global ESCO Market Analysis, Size, and Forecasts: ESPC, EaaS, and Other Contracting Mechanisms
In a rapidly evolving energy landscape, energy service companies (ESCOs) have witnessed rapid advances over the past five years, and are now expanding their scope beyond their traditional energy efficiency solutions and guaranteed savings performance contracts. To succeed in today’s energy management landscape, ESCOs need diverse contracting and financial mechanisms to facilitate seamless installations and solutions for their clients. One notable trend driving this transformation is the increasing demand for onsite distributed energy resources (DER) for enhanced resilience. ESCOs recognize the importance of being prepared in the face of unpredictable grid conditions and are actively recommending and incorporating onsite energy generation and storage for their clients. Moreover, ESCOs now provide expert guidance on sustainability practices to assist their clients in achieving their sustainability goals and align with sustainable framework requirements. The concept of energy as a service (EaaS) has gained significant traction in the commercial and industrial (C&I) sector, and has allowed C&I clients to focus on their core business activities while outsourcing their energy needs. In the coming decade, the demand for ESCO services is expected to increase globally, driving market expansion, but the ESCO market continues to be confined by issues such as the current shortage of skilled laborers.
This Guidehouse Insights report provides a comprehensive analysis of the ESCO market, covering the trends, drivers, and barriers that have shaped its evolution in recent years. It includes a 10-year forecast, offering insights into the ESCO market trajectory over the forecast period.
This report’s forecast methodology is based on extensive primary and secondary research. Interviews with a range of market stakeholders were conducted to collect information on market trends and inform assumptions on forecast market revenues. A bottom-up and top-down approach was used for the forecasts.
Pages
34
Tables | Charts | Figures
29
Key Questions Addressed
Who Needs This Report
- Building technologies vendors
- EaaS companies
- Energy service companies (ESCOs)
- Energy services and solutions providers
- Environmental NGOs
- Investor community
- Local and federal governments
- OEMs
- Organizations developing ESG commitments and goal setting
- Regulators and policymakers
- Sustainability advisory firms
- Utilities
Table Of Contents
1. Executive Summary
1.1 Market Overview
1.2 Market Drivers
1.3 Market Barriers
1.4 Market Forecast
2. Market Issues
2.1 ESCO Defined
2.2 ESCO Performance Contracting Mechanisms
2.2.1 Guaranteed Savings
2.2.2 Other Contracting Mechanisms
2.2.2.1 EaaS
2.3 Market Trends
2.3.1 Sustainability Advisory Solutions
2.3.2 EaaS in C&I
2.3.3 Retrofits and Lifecycle Replacement
2.3.4 Renewable Energy Access and Energy Efficiency
2.3.5 SEC Climate Disclosure Proposal
2.3.6 Corporate Sustainability Reporting Directive
2.3.7 Clean Energy Microgrid Growth in Demand
2.3.8 The Inflation Reduction Act
2.4 Market Drivers
2.5 Barriers
3. Industry Value Chain
3.1 Pictorial Representation of the ESCO Performance Value Chain
3.2 Competitive Landscape
3.2.1 Merger and Acquisition Activities
3.2.2 ESCO Business Model Evolution
4. Market Forecasts
4.1 Global Overview
4.2 North America
4.3 Europe
4.4 Asia Pacific
5. Conclusions and Recommendations
5.1 Summary
5.2 Three Big Takeaways
5.3 Recommendations
6. Acronym and Abbreviation List
7. Table of Contents
8. Table of Charts and Figures
9. Scope of Study, Sources and Methodology, Notes
List of Charts and Figures
- ESCO Revenue by Region, World Markets: 2023-2032
- ESCO Revenue by Contract Type, World Markets: 2023-2032
- ESCO Revenue by Customer Type, World Markets: 2023-2032
- ESCO Revenue by Equipment Type, World Markets: 2023-2032
- ESCO Revenue by Contract Type, North America: 2023-2032
- ESCO Revenue by Customer Type, North America: 2023-2032
- ESCO Revenue by Contract Type, Europe: 2023-2032
- ESCO Revenue by Customer Type, Europe: 2023-2032
- ESCO Revenue by Contract Type, Asia Pacific: 2023-2032
- ESCO Revenue by Customer Type, Asia Pacific: 2023-2032
- ESCO Performance Contracting Value Chain
- Sample PG&E Energy Efficiency Financing Project
- Evolution of Energy Services Solution Offerings
List of Tables
- ESCO Revenue by Region, World Markets: 2023-2032
- ESCO Revenue by Contract Type, World Markets: 2023-2032
- ESCO Revenue by Customer Type, World Markets: 2023-2032
- ESCO Revenue by Equipment Type, World Markets: 2023-2032
- ESCO Revenue by Contract Type, North America: 2023-2032
- ESCO Revenue by Customer Type, North America: 2023-2032
- ESCO Revenue by Equipment Type, North America: 2023-2032
- ESCO Revenue by Country, North America: 2023-2032
- ESCO Revenue by Contract Type, Europe: 2023-2032
- ESCO Revenue by Customer Type, Europe: 2023-2032
- ESCO Revenue by Equipment Type, Europe: 2023-2032
- ESCO Revenue by Country, Europe: 2023-2032
- ESCO Revenue by Contract Type, Asia Pacific: 2023-2032
- ESCO Revenue by Customer Type, Asia Pacific: 2023-2032
- ESCO Revenue by Equipment Type, Asia Pacific: 2023-2032
- ESCO Revenue by Country, Asia Pacific: 2023-2032
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