BOULDER, Col., January 25, 2022 /PRNewswire/ — A new report from Guidehouse Insights examines the market size and projection of energy service companies (ESCOs) as annual revenue from long-term contract models and provides insights into regional markets, customer segments and technology types.
ESCO markets have undergone significant changes over the past few years as the definition broadens to include more solutions. Although Energy Savings Performance Contracts (ESPCs) continue to dominate the market, other types of performance contracts are becoming a larger part of ESCO business. These include EaaS, sustainability and decarbonization consulting, offsite renewable energy supply and resilience through onsite distributed energy resources (DER). According to a new report from Guidehouse Insights, the global market for ESCO performance contracts – including guaranteed savings performance contracts, shared savings performance contracts and EaaS – is expected to grow from $18.9 billion in 2021 for $43.2 billion in 2030.
“ESCO’s business model and ESPC’s funding structure maintains its reputation as a valuable means for global organizations to achieve sustainability mandates while meeting operational, financial and human capital goals,” says Sasha Wedekind, senior research analyst at Guidehouse Insights. “However, most of the market growth is expected to come from EaaS solutions rather than traditional ESPC models.”
Despite changes in the ESCO market and positive forecasts, multiple barriers to growth exist. The complexity and duration of contracts, as well as the volatility of energy prices, continue to be a challenge. Additionally, lack of customer awareness of EaaS solutions is holding back growth. Finally, the limited capabilities of ESCOs in DER, sustainability consulting, renewable energy sourcing and other emerging solutions act as barriers in the market, according to the report.
The report, Market data: ESCO performance contract, analyzes the ESCO market size and projection as the total revenue generated annually from long-term contract models with performance guarantees. The report primarily focuses on the North American market, but also provides information on how ESCO’s business model is developing in Europe and Asia Pacific. The ESCO revenue forecasts in this report are divided into two segments: guaranteed savings performance contracts and other financing mechanisms (which include shared savings, EaaS and other contractual tools with performance guarantees ). The estimate is further segmented into six customer segments and seven technology types. An executive summary of the report is available for free download from the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data and benchmarking services for today’s rapidly changing and highly regulated industries. Our knowledge is based on an in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, primary end-user research, and demand assessment, coupled with an in-depth review of technology trends, to provide a comprehensive view emerging resilient infrastructure systems. Additional information about Guidehouse Insights is available at www.guidehouseinsights.com.
About Guidehouse
Guidehouse is a leading global provider of advisory services to the public sector and commercial markets, with extensive risk management, technology and advisory capabilities. By combining our public and private sector expertise, we help our clients address their most complex challenges and overcome significant regulatory pressures focused on transformational change, business resilience and technology-driven innovation. Through a range of consulting, advisory, outsourcing and digital services, we create scalable and innovative solutions that help our clients navigate complexity and position them for future growth and success. The company has more than 12,000 professionals in more than 50 locations worldwide. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets and agenda issues that drive national and global economies. For more information, visit www.guidehouse.com.
* The information contained in this press release regarding the report, Market data: ESCO performance contract, is a summary and reflects current expectations of Guidehouse Insights based on market data and trend analysis. Forecasts and market expectations are inherently uncertain and actual results may differ materially from those contained in this press release or report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s findings and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes to update the information contained in this press release or the report.
For more information contact:
Jennifer Peacock
+1.404.575.3859
[email protected]
SOURCE Guidehouse Insights
