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energy as a service market

Energy-as-a-Service Market Share, Size, Trends, Industry Analysis Report, By Service Type (Energy Supply Services, Operational and Maintenance, Efficiency and Optimization); By Component (Solution, Service); By End-Use (Commercial, Industrial); By Region; Segment Forecast, 2022 - 2029

  • Published Date: Jan 2022
  • Pages: 112
  • Format: PDF
  • Report ID: PM2146
  • Base Year: 2021
  • Historical Data: 2017 - 2020

Report Summary

The global energy-as-a-service market was valued at USD 63.41 billion in 2021 and is expected to grow at a CAGR of 8.5% during the forecast period.

An increase in building owners' efforts to reduce power costs, an increase in renewable power generation, an increase in power efficiency activities, an upsurge in renewable power adoption, along a rise in smart grid installations are some factors expected to boost the market growth over the forecast period.

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On the other hand, key companies' move from traditional power models to power as a facility model is expected to generate lucrative growth prospects and sustain their market position over the forecast period. Furthermore, growing emphasis on renewable and non-renewable power sources, which mostly favor renewable power due to cheaper costs, lower carbon footprint, environmental friendliness, and power efficiency, is expected to contribute to market expansion.

Over the forecast period, the industry is expected to rise due to increased government investments in supporting renewable power sources. With power as a facility, customers can also choose from price and ownership options. It also assists operators in tailoring power-generating projects in terms of robustness and modernity based on consumers' diverse power requirements. The facility also makes it easy to incorporate power storage assets into a distributed generation system.

However, the modification of existing grid infrastructure improves the capacities of power delivery systems, fueling the industry growth. According to the Institute of Energy Economics and Financial Analysis, India would need to invest USD 60-80 billion in grid infrastructure over the next five years to achieve its huge rise in renewable power potential. Electric utilities expect to spend USD 3.2 trillion on new and replacement transmission and distribution infrastructure worldwide.

Growing electricity demand, aged assets, and new power generating projects, particularly intermittent renewable resources straining the grid, will necessitate this infrastructure investment. As a result, the market's growth would be hampered throughout the forecast period by the growing requirement to alter grid infrastructure, which is driven primarily by significant expenditure.

Energy-as-a-Service Market 2030

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Industry Dynamics

Growth Drivers
With increased industry and urbanization, power consumption is growing daily. It has become vital to develop renewable power worldwide to meet rising power demand and the depletion of fossil resources. Solar and wind power plants cover a vast geographic region. In 2018, the global deployment of renewable capacity was around three times that of coal and gas-fired generating capacity combined.

Renewables will account for over half of worldwide electricity supply by 2050; according to the Energy Information Administration, Global power demand is expected to rise as the world's population and urbanization rate rise. According to a United Nations report, 55% of the world's population lives in cities in 2018, which is expected to rise to 68% by 2050. As a result, increasing renewable power potential and rising power demand across various industries would drive demand for the power-as-a-service market throughout the anticipated period.

Report Segmentation

The market is primarily segmented based on service type, component, end-use, and region.

By Service Type

By Component

By End-Use

By Region

  • Energy Supply Services
  • Operational and Maintenance
  • Efficiency and Optimization
  • Solution
  • Service
  • Commercial
  • Industrial
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Spain, Netherlands, Austria)
  • ·Asia Pacific (Japan, China, India, Malaysia, Indonesia. South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Insight by Service Type

Power supply segment was the most significant revenue contributor in the global market in 2021 and is expected to retain its dominance during the anticipated period. Over the forecast period, the power supply facility category is predicted to control the most significant proportion of the energy-as-a-service market.

Growing focus on different power supplies such as renewable, nuclear, and biomass, this model primarily pledges to reduce carbon footprint, power costs and to ensure environmental friendliness. It also assists operators in customizing power generation solutions that are current and robust based on consumer requirements. It makes integrating distributed generation and power storage resources simple and quick.

Geographic Overview

In terms of geography, North America had the highest share in 2021. North America is expected to be the largest market during the forecast period. Utilities in nations such as the U.S., Canada, and Mexico are implementing power efficiency projects to reduce power generation costs. In the U.S., new initiatives such as compensation are being implemented to achieve greater power efficiency in the commercial sector.

In California, for example, power efficiency rules require that at least 60% of the savings realized through obligation schemes be provided by third-party facility providers. In addition, the market in this region is likely to be driven by an increase in the percentage of sustainable generation and power efficiency initiatives.

Asia Pacific held the highest growth rate in 2021, and this dominance is expected to continue during the projected period. This is due to the presence of major players and a large consumer base in the area. Furthermore, power as a facility is gaining traction due to increased transformation in the power industry, such as digitization, decarbonization, and rapid development in a distributed generation facility, which is likely to drive energy-as-a-service market growth throughout the forecast period.

Competitive Insight

Some of the major players operating in the global energy-as-a-service market include Alpiq, Bernhard Energy Solutions, Centrica, EDF Renewable Energy, Edison, Enel X, Enertika, Engie, Entegrity, Honeywell, Johnson Controls, Noresco, Orsted, Schneider Electric, Siemens General Electric, Smartwatt, Veolia, and WGL Energy.

Energy-as-a-Service Market Report Scope

Report Attributes


Market size value in 2021

USD 63.41 Billion

Revenue forecast in 2029

USD 120.65 Billion


8.5% from 2022 - 2029

Base year


Historical data

2017 - 2020

Forecast period

2022 - 2029

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2029

Segments covered

By Service Type, By Component, By End-Use, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Key Companies

Alpiq, Bernhard Energy Solutions, Centrica, EDF Renewable Energy, Edison, Enel X, Enertika, Engie, Entegrity, Honeywell, Johnson Controls, Noresco, Orsted, Schneider Electric, Siemens General Electric, Smartwatt, Veolia, and WGL Energy.

Key Take-Away
Polaris Market Research
Energy-as-a-Service Market Size Global Report, 2022 - 2029