Energy As A Service
Market, Supplier, Risk and
Competitive Intelligence

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