Energy and Power

Energy as a Service Market is Expected to Reach USD 135.22 Billion by 2030

Mar 2024

Energy and Power

As per the report published by Kings Research, the global Energy as a Service Market was valued at USD 63.62 billion in 2022 and is projected to reach USD 135.22 billion by 2030, growing at a CAGR of 10.12% from 2023 to 2030.

The Internet of Things (IoT) and smart technologies are being integrated extensively into EaaS solutions to enhance monitoring and control capabilities. This enables real-time data collection, predictive maintenance, and more efficient energy consumption. As a result, EaaS providers can offer customized energy management solutions that optimize energy usage and reduce costs for both businesses and consumers. With IoT devices and sensors embedded in various systems and appliances, EaaS platforms can gather and analyze data on energy consumption patterns, equipment performance, and environmental conditions. This data is then used to identify areas of improvement, detect anomalies, and provide actionable insights to enhance energy efficiency. Additionally, the integration of smart technologies allows for remote monitoring and control of energy systems, enabling real-time adjustments and troubleshooting to minimize downtime and maximize productivity.

Additionally, the growing trend toward decentralized energy systems is fostering innovation in EaaS. It allows for localized energy generation and distribution, reducing the reliance on centralized grids. This shift toward decentralized energy systems has created opportunities for various renewable energy sources, such as solar panels and wind turbines, to be integrated into the EaaS framework. These localized energy generation methods not only help reduce carbon emissions but also increase energy independence for communities. Moreover, the reduced reliance on centralized grids decreases the vulnerability to power outages and disruptions, making the overall energy supply more resilient and reliable.

Key Insights

  • By service type, the energy supply service segment registered a significant revenue share of 41.25% in 2022
  • By end-user, the commercial segment accounted for a substantial revenue share of 61.25% in 2022
  • Based on region, North America dominated the market with a revenue share of 36.65% in 2022

Centrica Announces Hydrogen-ready Combined Heat and Power Partnership with 2G

January 2023: Centrica Business Solutions collaborated with 2G Energy AG to provide clients with Combined Heat and Power (CHP) systems that run on 100% hydrogen. This partnership was formed in response to the increasing demand for comprehensive hydrogen solutions, which play a crucial role in the process of decentralized energy decarbonization.

Growing Sustainability & Environmental Concerns to Support Market Expansion

The growing concern over climate change and the aim to reduce greenhouse gas emissions are driving the adoption of renewable energy sources and cleaner technologies. EaaS providers often offer renewable energy solutions and help customers meet their sustainability goals. By partnering with EaaS providers, both businesses and individuals can easily access renewable energy sources, such as solar and wind, without the need for significant upfront investments. This helps reduce their carbon footprint and allows them to contribute toward a greener and more sustainable future. Additionally, EaaS providers offer expertise and guidance in implementing cleaner technologies, making it easier for customers to transition toward an eco-friendly lifestyle.

Technological Advancements to Drive Energy as a Service Market Growth

Advancements in energy-related technologies, such as smart meters, IoT devices, and energy management software, are enabling more granular control and monitoring of energy usage. EaaS providers leverage these technologies to offer innovative solutions. These solutions can include real-time energy monitoring, predictive analytics for energy consumption, and demand response capabilities. By leveraging smart meters and IoT devices, EaaS providers can gather accurate and detailed data on energy usage in real time. This data can subsequently be used to identify energy-saving opportunities, optimize energy usage patterns, and provide valuable insights to help businesses and individuals make informed decisions about their energy consumption. Additionally, energy management software offered by EaaS providers allows for centralized control and management of energy usage across multiple devices and locations, providing users with a comprehensive and convenient solution for energy management.

North America to Dominate the Market with a CAGR of 7.26% Over the Forecast Period

Based on regional analysis, the global energy as a service market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. North America dominated the market, accounting for a significant revenue of USD 23.32 billion in 2022.  

This growth can be attributed to the increasing adoption of renewable energy sources and the implementation of favorable government policies in countries such as the United States and Canada. Additionally, the growing demand for energy efficiency solutions and the presence of key market players in the region contributed to North America's dominance in the energy as a service market. With ongoing advancements in technology and a high emphasis on sustainable energy, North America is expected to continue to maintain its leading position in the coming years.

Companies Focus On Product Launches and Collaborations to Meet Rising Demand

The global energy as a service is consolidated with key players such as Schneider Electric, Siemens, Engie, Honeywell International Inc., Veolia, Johnson Controls, Bernhard, General Electric, Entegrity, and Centrica plc. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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