Energy as a Service (EaaS) Market – Trends Forecast Till 2031

Market Snapshot

Market Overview

The global Energy as a Service (EaaS) Market size was estimated at USD 51,880 million in 2024 and is projected to reach USD 113,264.18 million in 2031 at a CAGR of 11.8 % during the forecast period 2025-2031.

Energy as a Service (EaaS) is a growing model that shifts the focus of energy consumption from ownership to service-based access. It allows businesses, industries, and consumers to access energy solutions without having to manage the infrastructure, equipment, or operations themselves. EaaS integrates various energy solutions such as renewable energy, storage, and energy management, offering a comprehensive package that is tailored to the specific needs of the customer. By outsourcing energy services, companies can focus on their core operations while enjoying reliable, cost-effective, and sustainable energy solutions.

The scope of the EaaS market is expansive, covering industries ranging from residential to commercial and industrial sectors. It encompasses energy production, distribution, storage, and management services, often leveraging Internet of Things (IoT) technology, smart grids, and artificial intelligence (AI) to optimize energy use. EaaS models can include power purchase agreements (PPAs), energy-as-a-service contracts, and performance-based contracts that offer customized solutions for a wide array of energy needs, from reducing energy costs to improving sustainability. With the increasing adoption of renewable energy sources and the drive for energy efficiency, the market is experiencing significant expansion globally.

Several trends are driving the growth of the EaaS market. One key trend is the shift towards decarbonization and sustainability, with businesses and governments increasingly committing to net-zero targets. This trend has boosted demand for clean and renewable energy solutions, which EaaS providers are well-positioned to deliver. Another important trend is the increasing digitization of energy systems, where smart technologies such as sensors, meters, and AI-powered analytics play a crucial role in optimizing energy consumption and improving grid management. Furthermore, energy storage solutions, including battery technologies, are becoming more prevalent, enabling efficient energy management even in decentralized and renewable-heavy systems.

The primary drivers of the EaaS market include regulatory policies and incentives aimed at reducing carbon emissions and promoting energy efficiency. These include government subsidies for renewable energy adoption, tax credits for energy storage, and laws mandating emissions reductions. Technological advancements, particularly in the areas of renewable energy generation, storage, and smart grid technologies, are also accelerating the market. Additionally, the increasing need for cost control and operational efficiency in energy-intensive industries is propelling businesses to adopt EaaS solutions to reduce their overall energy expenditure and ensure more reliable energy systems.

Delvens Industry Expert's Standpoint

Experts in the Energy as a Service (EaaS) Market highlight several key trends driving growth and innovation. Energy as a Service (EaaS) is a model that offers businesses and consumers access to energy solutions without the need for ownership or infrastructure management. It integrates renewable energy, storage, and energy management into customized packages, utilizing technologies like IoT and AI to optimize energy use. The EaaS market is driven by trends such as sustainability, decarbonization, digitalization, and the rise of energy storage solutions. Regulatory policies, technological advancements, and the demand for cost control and efficiency are key drivers fueling its growth. This model is gaining traction across various sectors, offering a flexible, cost-effective, and sustainable approach to energy consumption.

Market Portfolio

Key Findings

• Maximizing performance and ensuring long-term sustainability will drive the operational and maintenance services sector. The EaaS market relies on effective O&M services to maintain the efficiency and reliability of energy systems over time. As demand for Distributed Energy Resources (DERs) such as solar panels, battery storage, and microgrids rises, the need for comprehensive O&M solutions grows. For instance, global DER capacity is projected to surpass 500 GW by 2030, necessitating continuous monitoring, diagnostics, and maintenance for peak performance. EaaS O&M services are evolving with digital innovations like AI, IoT-enabled sensors, and predictive maintenance tools, which have reduced downtime by 40% and lowered operational costs by 20-30%. One key trend is the shift toward performance-based service agreements, aligning O&M provider services with energy savings and system uptime, creating value for end users.

• Rising commercial energy prices and increasing energy consumption are expected to drive growth in the commercial segment. This sector includes industries such as healthcare, education, airports, data centers, leisure centers, warehouses, hotels, and more. In the U.S., energy is categorized into primary, secondary, renewable, and non-renewable sources, including fossil fuels (petroleum, natural gas, coal), nuclear, and renewables. Electricity, produced from primary energy sources, is a secondary form of energy, with electricity prices for the commercial sector being higher than those for the industrial sector. Global energy consumption in buildings has now diverged from growth in floor space and economic output, indicating that businesses and consumers are using energy services more efficiently and effectively. For instance, Edison was awarded an energy performance contract by Putnam Valley Central School District to significantly enhance the energy efficiency of its buildings and infrastructure, helping to curb rising energy costs.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America region is projected to hold the largest market share. Factors such as Increasing Demand for Renewable Energy, Cost Efficiency, Technological Advancements, Government Regulations and Incentives, Rising Environmental Concerns, Energy Security and Reliability, Decentralization of Energy Systems, Growth in Distributed Energy Resources, Consumer Awareness and Sustainability, Investment in Smart Grid Infrastructure have triggered the Energy as a Service (EaaS) Market in the region.

Regional Analysis

North America to Dominate the Market

• North America, particularly the United States and Canada, leads the EaaS market due to strong technological advancements and a commitment to sustainability. With government policies incentivizing renewable energy adoption and smart grid developments, the region is well-positioned to embrace EaaS. However, the market is fragmented due to varying regulations across states, and high initial costs for advanced energy systems can be a barrier. Despite this, corporate sustainability initiatives and energy management needs continue to drive market growth.

• Europe is rapidly expanding the EaaS market, driven by strict sustainability mandates, such as the EU's carbon neutrality goals by 2050. The transition to renewable energy sources like wind and solar has increased the demand for integrated energy solutions, which EaaS can provide. However, diverse national regulations and outdated infrastructure in some regions pose challenges. Countries like Germany, France, and the UK are expected to remain key players as the region continues to push for decarbonization and smart energy solutions.

• The EaaS market in Asia-Pacific is expanding rapidly, fueled by industrial growth, urbanization, and a shift toward renewable energy sources. Countries like China, Japan, and India are investing heavily in energy transition and smart city initiatives, which create substantial opportunities for EaaS. However, the region faces challenges like outdated energy infrastructure in some parts, regulatory complexity, and regional disparities in technology adoption. Despite this, the region's rapid development ensures that the demand for EaaS will continue to rise, especially in urbanized areas.

• In Latin America, the EaaS market is gaining momentum as countries with rich renewable resources, such as Brazil and Chile, explore decentralized energy solutions. Rising energy costs and increasing demand for energy access make EaaS a compelling choice for businesses and underserved populations. However, economic instability, political challenges, and limited technological infrastructure in certain areas could slow adoption. Still, the region’s potential for renewable energy growth positions EaaS as a key solution for both efficiency and sustainability.

• The EaaS market in the Middle East and Africa is driven by energy diversification initiatives, particularly in the Gulf countries, which are heavily investing in smart cities and renewable energy. The region’s energy consumption patterns and the need for greater efficiency make EaaS attractive, but the market is somewhat constrained by a continued reliance on oil and gas in many areas. In Africa, while energy infrastructure remains underdeveloped, opportunities for off-grid and decentralized solutions are emerging, particularly in rural and underserved areas.

Competitive Landscape

• ENGIE
• Enel X S.r.l
• Schneider Electric
• Ameresco
• Siemens
• Johnson Controls
• EDF Energy
• Edison International
• GE Vernova
• Veolia
• Honeywell International Inc.
• Centrica plc
• Alpiq Holding AG
• Duke Energy Corporation
• WGL Energy Services, Inc
• Ørsted A/S
• Iberdrola, S.A
• Southern Company
• NextEra Energy Services
• Bernhard
• Entegrity Energy Partners, LLC
• Enertika
• Norseco
• Wendel
• Adven

Recent Developments

• In October 2024, ENGIE and OCP Group formed a partnership to accelerate the energy transition in Morocco. As part of this collaboration, an integrated energy ecosystem will be established through OCP Group, focusing on renewable energy production, consumption, and storage.

• In December 2021, Schneider Electric acquired 85.85% of Qmerit and fully integrated it into its Energy Management division. Qmerit is dedicated to helping transition from traditional fossil fuel-based systems to more sustainable, resilient electric technologies.

• In May 2023, Enel X S.r.l. and Ferrari launched Italy’s first Industrial Renewable Energy Community in Fiorano, powered by a 1 MW photovoltaic system. The project will generate 1,500 MWh of energy annually, reducing CO2 emissions by approximately 650 kg per year. This initiative focuses on local renewable energy optimization and is designed to be scalable for future growth. It is part of Enel X’s ongoing commitment to Italy's energy transition, complementing other sustainable projects with Ferrari.

• In June 2022, Schneider Electric joined forces with Hitachi Energy to accelerate the energy transition for medium and large-scale partners. By combining their solutions, they aim to provide more intelligent and efficient methods for managing sustainability and decarbonization across industries, including renewable energy operations and data centers.

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