Navigant: Market for energy service companies to grow to $30B in 2026

Tuesday November 14, 2017 0 comments Tags: Boulder, Navigant Research, ESCOs, Tom Machinchick

BOULDER -- The global market for energy service companies (ESCOs) is expected to grow from $15 billion in 2017 to $30.8 billion in 2026, according to a new report from Navigant Research.

The report examines the market for ESCOs across North America, Western Europe, and Asia Pacific, providing forecasts, segmented by region, country, and customer and equipment type, through 2026.NavigantNEWlogoUSE

ESCOs, which execute a variety of building energy efficiency services, have been instrumental in providing access to energy efficiency technologies and services in market segments that would not normally be able to consider or afford these types of capital-intensive projects.

The energy savings performance contract financing structure, which requires little to no upfront capital and moves the financial risk of the project from the end-use customer to the ESCO, is driving the market forward in mature and maturing regions, particularly for public sector customers, as well as for municipalities, universities, schools, and hospitals.

“Globally, the ESCO business model and the energy performance contract financing structure are emerging as a valuable way for public and private organizations to realize sustainability mandates while meeting operational, financial, and human capital goals,” said Tom Machinchick, Navigant principal research analyst.

“Some ESCOs also leverage intelligent digital tools that can tune into new and unique sources of information and add value before, during, and after a performance contracting project is complete.”

According to the report, data captured from existing and new projects has allowed ESCOs to develop sophisticated statistical models to help stakeholders understand building performance and end-use customer operational, maintenance, and comfort issues.

The reportESCO Market Overview, analyzes the global ESCO market, with a focus on three key regions: North America, Western Europe, and Asia Pacific.

The study provides an analysis of market dynamics for the main ESCO customer segments, including market barriers and drivers, regional opportunities and challenges, and the competitive landscape.

Global market forecasts, segmented by region, country, and customer and equipment type, extend through 2026. The report also examines the ESCO value chain and financing models.

An Executive Summary of the report is available for free download on the Navigant website.