The energy services market experienced strong growth for several years, but struggled when government aid wound down in 2012. Now, it appears to be headed back and will maintain a positive outlook, according to a new report by BSRIA.
The report says the energy services market experienced dramatic growth from 2008-2011 due to the Obama stimulus programs. In 2013 it picked up slightly from the low-point reached in 2012 but it has still not reached the peak it attained in 2011.
The total energy services market, including energy performance contracts (EPC), energy retrofit and energy procurement, was valued at $9.42 billion in 2013. BRISA estimates that the EPC and energy retrofit market will reach $9.3 billion in 2016, and the value of the energy procurement market is forecast to reach $1.4 billion.
Factors driving the market include:
Facilities managers are facing pressure to reduce energy and operational expenses. Reduced budgets may work against this, but that has also encouraged wider adoptions in the EPC arena.
On-site generation and renewables have been a focus. Government support has made them more financially viable.
Innovative financing is available. This will have a positive effect on growth and bring more players into the market.
Energy retrofit is happening in the private sector. The drive to reduce costs will keep this segment moving.
Better education and promotion of services to clients can improve understanding, which in turn can lead to faster growth.