Energy Transitions Help Energy as a Service Boom

EaaS

(Credit: Pixabay)

by | Jul 5, 2022

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EaaS

(Credit: Pixabay)

With growing opportunities for decentralized energy distribution options, the Energy as a Service market is expected to quickly expand through 2027, according to a report by UnivDatos Markets Insights.

The market was valued at nearly $82.7 billion in 2020 and is expected to grow at a CAGR of 13.44% from 2021-2027, the report finds. The analysis says the commercial segment of Energy as a Service (EaaS) is expected to hold a significant share of the market and grow at the fastest rate during the forecast period.

With carbon emissions being addressed through renewable energy, EaaS grows as an option for energy transitions, according to the report. EaaS is a delivery model that combines hardware, software, and services where a provider offers energy-related services rather than supplying electricity.

EaaS models often take the form of a subscription for electrical devices owned by a service provider to manage and deliver energy. The model has been primarily for energy efficiency platforms, and increasingly for options like subscribing to solar energy.

A 2021 report by Guidehouse found that EaaS benefits include helping businesses with energy savings, sustainability and decarbonization goals, energy reliability and resiliency, and deferred maintenance backlogs.

The UnivDatos Market Insights report breaks down EaaS types, such as energy supply services, operational and maintenance services, energy efficiency, and optimization services. The energy supply services capture a significant market share, according to the report, due to increasing electricity prices and users looking to procure resilient energy without needing the grid.

The report says the commercial sector also benefits from being able to access their energy through a service that will help them improve their consumption for multiple applications. The report also says increasing government incentives for energy-efficient projects and the cost of renewable energy are helping drive the market.

The analysis finds Asia-Pacific will hold a significant share of the EaaS market, especially as companies in the region install smart systems and invest in new technologies. North America similarly is adopting advanced technologies and increasing research and development in EaaS.

Schneider Electric, Engie, Siemens, Honeywell, Veolia, Enel, EDF Renewable Energy, WGL Energy, Johnson Controls, and General Electric are seen as key players in the EaaS market, according to the report.

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