Market drivers include fluctuating energy prices and supply instability, regulations, government incentives and cost-saving opportunities
BOULDER, Colo., July 20, 2023 /PRNewswire/ — A new report from Guidehouse Insights provides a comprehensive analysis of the energy service companies (ESCO) market globally.
In a rapidly evolving energy landscape, ESCOs have witnessed rapid advances over the past five years, and are now expanding their scope beyond their traditional energy efficiency solutions and guaranteed savings performance contracts. According to a new report from Guidehouse Insights, the global ESCO performance contracting market, including guaranteed savings, performance contracts, shared savings performance contracts, and energy as a service (EaaS), is expected to grow from $25.9 billion in 2023 to $67.5 billion in 2032 at a compound annual growth rate (CAGR) of 11.2%.
“To succeed in today’s energy management landscape, ESCOs need diverse contracting and financial mechanisms to facilitate seamless installations and solutions for their clients,” says David Gonzalez, research analyst with Guidehouse Insights. “In the coming decade, the demand for ESCO services is expected to increase globally, driving market expansion, but the ESCO market continues to be confined by issues such as the current shortage of skilled laborers.”
One notable trend driving this transformation is the increasing demand for onsite distributed energy resources (DER) for enhanced resilience. ESCOs recognize the importance of being prepared in the face of unpredictable grid conditions and are actively recommending and incorporating onsite energy generation and storage for their clients. Moreover, ESCOs now provide expert guidance on sustainability practices to assist their clients in achieving their sustainability goals and align with sustainable framework requirements. The concept of EaaS has gained significant traction in the commercial and industrial (C&I) sector and has allowed C&I clients to focus on their core business activities while outsourcing their energy needs, according to the report.
The report, ESCO Performance Contracting, provides a comprehensive analysis of the ESCO market, covering the trends, drivers, and barriers that have shaped its evolution in recent years. It includes a 10-year outlook, offering insights into the ESCO market trajectory over the analysis period. The methodology is based on extensive primary and secondary research. Interviews with a range of market stakeholders were conducted to collect information on market trends and inform assumptions on expected market revenues. A bottom-up and top-down approach was used for the analysis. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
About Guidehouse
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has over 16,500 professionals in over 55 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
* The information contained in this press release concerning the report, ESCO Performance Contracting, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
For more information, contact:
Cecile Fradkin for Guidehouse Insights
+1.646.941.9139
[email protected]
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SOURCE Guidehouse Insights
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