Energy As A Service Category Intelligence
Report Coverage
- Market Potential
- Global Investments on RE
- Contractual Best Practices
- Performance Measures
Production Size
Global Production Size/ Capacity
$81 Billion (2019)
Expected Global Production Size
$88 Billion by 2020
EE Investment
$250 Billion (2019)
RE Investment
$311 Billion (2019)
Energy As A Service Market Trends
Category Intelligence on Energy As A Service covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
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Industry Outlook & Drivers
EaaS Global Market Outlook:
EE Investment
Global investment: $250 Billion (2019)
Expected to decline by 11 percent to reach $225 Billion in 2020, due to increased RoI, amid lockdowns and low production across industrial sectors.
MARKET OVERVIEW
Global market size: $81 Billion (2019)
Expected to grow at a rate of 8 percent to reach $88 Billion by 2020
Porter's Analysis on EaaS
Supplier Power
- The companies offering RE services and conventional EE solutions (LED, Building controls, etc.) will have low bargaining power, due to the existence of very high number of suppliers
- The companies offering alternative technology products, which are unique, will have medium bargaining power
Barriers to New Entrants
- The threat of new entrants for traditional equipment manufacturing companies is low, as the market is already fragmented
- With the IT giants looking to invest in this line of business, the threat of new entrants is high
- The push for Internet of Things, Industry 4.0 or digitalization of energy is paving way for the IT giants into energy sector
Intensity of Rivalry
- Intensity of rivalry is high, as most of the companies offer energy-efficient technologies, which do not differ much from their rival companies
- This forces the suppliers to have a strong focus on emerging technologies and unique solutions
Threat of Substitutes
- The obvious substitution for RE would be electricity generated from fossil-fuel or nuclear power stations
- Despite economic benefits from fossil fuel generated power, the push from governments to reduce GHG emissions through renewable and EE keep the threat of substitutes as low
Buyers power
- Buyers power is medium, due to the large number of small-sized buyers and small number of energy supplier
- Buyers have medium power, as they have the option to shift to different generators, due to the low cost offered by energy supplier
- For low-risk energy saving solutions, customer has medium to high bargaining power. due to market maturity with more number of suppliers
