A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled “Energy-as-a-Service – Global Market Trajectory & Analytics”. The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
It is informed by GIA, amid the COVID-19 crisis, the global market for Energy-as-a-Service estimated at US$63.8 Billion in the year 2022, is projected to reach a revised size of US$92.8 Billion by 2026, growing at a CAGR of 8.7% over the analysis period. Energy Supply, one of the segments analysed in the report, is projected to grow at a 7.5% CAGR, while growth in the Operation & Maintenance segment is readjusted to a revised 9.3%.
The concept of X-as-a-Service had already arrived in the energy sector. EaaS or Energy-as-a-Service is a new business model that provides bundled energy services helped by financial and technological developments. It constitutes a delivery model of diverse solutions, combining services, software and hardware.
Value for such a service is generated when all these elements are bundled into a single offering. In the usual delivery model, all these elements are sold separately. EaaS on the other hand is sold on subscription basis where customers pay for a package that is all-inclusive and not on the basis of per-unit consumed.
For corporate customers the benefit comes from the predictable subscription payments. It also enables customers to pay for the output of asset and not for asset itself. EaaS uses conventional arrangements like EPCs (Energy Performance Contracts), ESCs (Energy Supply Contracts) and PPAs (Power Purchase Agreements).
It also uses alternative new models which eliminate or lower the upfront costs associated with owning, funding and operating energy generation as well as storage systems that are capital-intensive.
Solutions range from gird level management and aggregation to campus or home energy management, and from P2P energy trading to EV charging packages.
The EaaS market will continue to be driven by many factors including rise in DER (distributed energy resources), attractive tax benefits from governments for energy efficiency projects, new streams of revenue generation for utilities and generation, and renewable power and storage solutions becoming more affordable among others. Across the world, focus is increasing on developing renewable energy faster because of the many benefits it offers including lower generation costs, reduced footprint and increased energy efficiency.
To read the full Report and key factors – https://www.strategyr.com/market-report-energy-as-a-service-forecasts-global-industry-analysts-inc.asp click on this link.