Global Industrial Energy-Efficiency Services Market 2016-2020
About Industrial Energy Efficiency Services
Energy-efficiency services provide a promising opportunity to the industrial sector to achieve greenhouse gas emissions reductions. ESCOs are already operating successfully in developed countries, primarily in North America and Western Europe. Despite gaining some moderate success in countries such as South Korea and Brazil, ESCOs are yet to gain a significant share in developing countries. China has become a notable exception. The country experienced a massive growth in the ESCO industry and achieved an annual investment of approximately $3 billion in energy-efficiency services in 2014.
Technavio’s analysts forecast the global industrial energy efficiency services market to grow at a CAGR of 6.26% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global industrial energy efficiency services market for 2016-2020. To calculate the market size, the report considers the revenue generated from diagnostic consulting, auditing, product and system optimization, and measurement and verification (M&V) services for calculating the market value in the process and discrete industries.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Industrial Energy Efficiency Services Market 2016-2020
Technavio recognizes the following companies as the key players in the global industrial energy efficiency services market: Siemens, Honeywell, TERI, and DuPont.
Other Prominent Vendors in the market are: Dalkia, ENGIE, Getec, ista, Johnson Controls, Schneider Electric, SGS, and Wood.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is increased use of standards for energy-efficiency investments and documentation. The standardization and adoption of sectoral or industry best practices are adding volume to the energy-efficiency investment market and lowering its costs of finance and transaction. The development of standard models for legal contracts, underwriting processes, procurement procedures, adjudication, measurement, verification, reporting, energy audits, and energy savings insurance products are also adding to the above-mentioned benefits. Governments are working on the development of standard approaches to building energy-efficiency baselines for different industries. Government initiatives are also creating certification schemes for energy auditors; facilitating the use of standardized measurement, reporting, and verification; and enabling legal documentation for EPC providers to simplify the bundling of investments for eventual recycling to the bond market.”
According to the report, one driver in the market is positive brand image. Corporate Social Responsibility (CSR) initiatives help companies present a positive brand image to the public. Industries worldwide are adopting energy-efficiency services to project a positive image of an environmentally responsible organization, attract investors interested in sustainable business practices, and increase share value. In addition, these systems help companies obtain green energy certificates and rebates from energy-efficiency departments in their countries.
Further, the report states that one challenge in the market is narrow margin of error in critical industrial facilities. Generally, critical industrial facilities involving specialized processes where the energy price is a significant cost of operation are ready to pay the kind of fees that ESCOs demand. However, industries typically expect exceptionally good service standards and include stringent liability clauses in agreements in to avoid setbacks in the plan. In the market, there is a very small number of ESCOs that can execute a critical industrial project with the stipulated shutdown time while simultaneously satisfying quality and performance criteria. These kinds of projects are operated by sector-specific, process-focused, and highly specialized ESCOs.
Siemens, Honeywell, TERI, DuPontDalkia, ENGIE, Getec, ista, Johnson Controls, Schneider Electric, SGS, Wood.