ESCO Market to Reach $8.3 Billion in 2020
The US energy service company market will grow from $4.9 billion in 2013 to almost $8.3 billion in 2020, representing a compound annual growth rate of 7.7 percent, according to a study by Navigant Research.
Although the long term outlook for the market is positive, it will not show strong year-on-year growth until 2014, according to The US Energy Service Company Market. The market peaked at $5.6 billion in 2011, supported in large part by the short-term effects of the American Recovery and Reinvestment Act. However, the exhaustion of those resources contributed to the sharp decline in energy service company revenue in 2012, when total revenue fell to $4.8 billion, a figure that is below 2010 levels.
Furthermore, customers have grown concerned about the impact of energy performance contracts on their financial positions, and many of the resources, including policy measures, that drove growth prior to 2011 have been exhausted. As a result, the energy service company market activity slowed considerably, the report says.
However, the federal sector, which has long been an important part of the energy service company market, will undergo significant growth and be a key player in the market’s future growth, Navigant says. This will be thanks to a number of supportive measures including the 2011 Better Buildings initiative, which aims to provide $2 billion of energy performance contracts in the federal sector by the end of 2013. Other sectors, such as commercial and industrial firms and public housing, will also start to expand once broader economic conditions improve, according to the report.
The municipalities, universities, schools, and hospitals market will remain a large part of the market overall, but will slip in market share as the federal and commercial and industrial sectors post strong growth in 2014 and beyond, the report says.
The energy service company market in the United States has gone through a difficult period in recent years, according to Navigant.
According to a report by Navigant released in April, worldwide spending on industrial energy management systems and services, including software components, will grow from $11.3 billion in 2013 to $22.4 billion in 2020. That amounts to a compound annual growth rate of 10.3 percent.
The US energy service company energy service company industry could more than double in size from $6 billion in 2013 to $11-$15 billion by 2020, according to a Lawrence Berkeley National Laboratory report that was released in September
- 2015 Environmental Leader Product & Project Awards
- Enterprise Internet Of Things: What Is It, and How Will It Improve Energy Management?
- 10 Tactics of Successful Energy Managers
- Improve Your Company's Environment and Energy Performance
- 2015 Insider Knowledge
- Addressing Regulatory Trends with UVC LED-based Sensors
- Energy Manager Today Awards Top Products and Top Projects of the Year
- Beyond Compliance: Applying a Risk Lens to Your EHS Practice
- There’s Money in the Trash
- Just the Facts: 8 Popular Misconceptions about LEDs & Controls