All Reports
1Q 2023

Global Energy Efficiency Markets

Government and Utility Electricity Program Spending and Capacity Savings

Energy efficiency is the least expensive and one of the most effective resources for reducing greenhouse gas emissions. It can lead to lower energy bills for consumers and reduced operational costs for energy providers. As a result, governments and utilities invest millions of dollars each year in energy efficiency initiatives. Meanwhile, consumers in the residential, commercial, and industrial segments may invest their own money on energy efficiency improvements to their homes or other facilities in pursuit of broader sustainability goals.

As electrification in the buildings and transportation sectors continues, existing grid infrastructure becomes increasingly strained, driving a need for energy efficiency investment. Government policy around energy and emissions remains one of the strongest drivers for market spending. Advances in energy efficient technology and digitalization have also expanded the opportunity for investment beyond traditional building retrofits and enabled new use cases for the resource. Among the barriers to more rapid energy efficiency investment are inherent utility disincentives, lack of available energy usage information for consumers, and difficulties with measurement and verification.

This Guidehouse Insights report examines the global energy efficiency market including relevant market drivers and barriers to program spending along with an industry value chain and business model analysis. Regional level forecasts for annual government and utility program spending and associated capacity savings are presented across five major geographic regions from 2023-2032 with each segmented by customer sector. While Europe is projected to spend the most on energy efficiency programs throughout the forecast period, spending is forecast to grow most quickly in Latin America.

Pages 43
Tables | Charts | Figures 25
  • What are the main drivers for investment in energy efficiency?
  • What are the barriers inhibiting more rapid investment in energy efficiency?
  • What are the business models used to implement energy efficiency solutions?
  • How has the growth of digitalization impacted energy efficiency?
  • What can be done to enhance utility energy efficiency program effectiveness?
  • What can energy efficiency solution providers do to improve their offerings for consumers?
  • Utilities
  • Regulators
  • Large energy consumers
  • IoT device vendors
  • Energy service companies
  • Home or building energy management system software providers
  • Demand response aggregators

1. Executive Summary

1.1    Introduction

1.2    Market Issues

1.3    Industry Value Chain

1.4    Market Forecasts

2. Market Issues

2.1    Introduction

2.2    Drivers

2.2.1   Energy Efficiency Policy

2.2.1.1    Energy Savings Goals and Mandates

      2.2.1.1.1   United States

      2.2.1.1.2   Europe

      2.2.1.1.3   Other Regions

2.2.1.2    Energy Standards

2.2.1.3    Reducing GHG Emissions

2.2.2   Desire to Manage Consumer Energy Usage and Utility Operational Costs

2.2.2.1    Utility Energy Efficiency Programs

2.2.3   Energy Efficiency Technology Advances

2.3    Barriers

2.3.1   Subsidized Energy Prices and Utility Disincentives

2.3.2   Difficulty in Measurement and Verification

2.3.3   Costs and Replacement Cycles

2.4    Other Business Issues

2.4.1   Split Incentives

2.4.2   Availability of Information

3. Industry Value Chain

3.1    Energy Efficiency Value Chain

3.2    Pricing

3.3    Competitive Landscape

3.3.1   Business Model Evolution

4. Market Forecasts

4.1    Forecast Introduction

4.2    Assumptions and Methodology

4.3    Global Energy Efficiency Market

4.4    Energy Efficiency Market Forecasts by Customer Segment

4.4.1   Residential Energy Efficiency Market

4.4.2   Commercial and Industrial Energy Efficiency Market

5. Conclusions and Recommendations

5.1    Three Big Predictions

5.2    Recommendations

5.2.1   Utilities

5.2.2   Large Energy Users

5.2.3   Energy Efficiency Solution Providers

6. Acronym and Abbreviation List

7. Table of Contents

8. Table of Charts and Figures

9. Scope of Study

10. Sources, Methodology & Notes

  • Annual Government and Utility Energy Efficiency Spending by Region, World Markets: 2023-2032
  • Share of Annual Government and Utility Energy Efficiency Program Spending by Region, World Markets: 2023
  • Share of Annual Government and Utility Energy Efficiency Program Spending by Region, World Markets: 2032
  • Incremental Peak Demand Capacity Savings from Energy Efficiency by Region, World Markets: 2023-2032
  • Annual Government and Utility Energy Efficiency Spending by Customer Segment, World Markets: 2023-2032
  • Annual Residential Government and Utility Energy Efficiency Program Spending by Region, World Markets: 2023-2032
  • Residential Incremental Peak Demand Capacity Savings from Energy Efficiency by Region, World Markets: 2023-2032
  • Annual C&I Government and Utility Energy Efficiency Program Spending by Region, World Markets: 2023-2032
  • C&I Incremental Peak Demand Capacity Savings from Energy Efficiency by Region, World Markets: 2023-2032
  • Annual Government and Utility Energy Efficiency Spending by Region, World Markets: 2023-2032
  • Annual Government and Utility Energy Efficiency Program Spending by Region, World Markets: 2023-2032
  • Annual Residential Government and Utility Energy Efficiency Program Spending by Region, World Markets: 2023-2032
  • Annual C&I Government and Utility Energy Efficiency Program Spending by Region, World Markets: 2023-2032
  • Typical Activities Across the Energy Efficiency Value Chain
  • Incremental Peak Demand Savings from Energy Efficiency by Region, World Markets: 2023-3032
  • C&I Incremental Peak Demand Capacity Savings from Energy Efficiency by Region, World Markets: 2023-3032
  • Residential Incremental Peak Demand Capacity Savings from Energy Efficiency by Region, World Markets: 2023-3032
  • Annual Government and Utility Energy Efficiency Program Spending by Region, World Markets: 2023-2032
  • Annual C&I Government and Utility Energy Efficiency Program Spending by Region, World Markets: 2023-2032
  • Annual Residential Government and Utility Energy Efficiency Program Spending by Region, World Markets: 2023-2032
  • Share of Annual Government and Utility Energy Efficiency Program Spending by Region, World Markets: 2023
  • Share of Annual Government and Utility Energy Efficiency Program Spending by Region, World Markets: 2032
  • Case Studies: Using Energy Efficiency to Manage Consumer Energy Usage and Utility Operational Costs
  • Case Studies: How Digitalization Enhances Energy Efficiency Projects
  • Total Market: Competitive Structure
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