NEW YORK--(BUSINESS WIRE)--Global spending on energy management by large corporations will increase or remain flat in 2014 with just 6% of corporations expected to spend less, according to a new global survey from independent analyst firm Verdantix. The annual survey of 250 heads of energy in 13 countries and 20 industries identifies new directions in corporate spending on renewable energy, lighting, HVAC, building technologies, energy software and energy services.
“On a worldwide basis, 45% of corporations will spend more on energy management in 2014 than they did in 2013,” states Janet Lin, Verdantix Energy Practice Research Director. “Reflecting the downward pressure on natural gas and electricity prices and subdued economic growth, 50% of corporations will keep energy management spend flat. Prominent suppliers such as DNV KEMA, Ecova, Rockwell Automation and Siemens Building Technologies will benefit from increased customer spend if major economies gather momentum through the year.”
The Verdantix report, “The State Of Global Corporate Energy Management” provides detailed insights into corporate budgets for energy management, ownership of buying processes and focus areas for investment in 2014. Key findings from the Verdantix survey:
- 46% of corporations have implemented a global energy management strategy with centralized governance whilst 54% manage decisions at a division or facility level
- Utility bill management is the most outsourced activity with 25% of corporations using this service; while 21% outsource risk management and 19% energy data analytics
- Spend on energy management is on average 10% of total spend on energy procurement with significant variations by industry
- 33% identify compliance with legislation as the most important factor and 32% of respondents rank cost savings as the primary driver for spending
- Energy leaders rate CFO hurdle rates, a lack of quantifiable benefits and insufficient cost savings as the primary barriers to investing in energy management
“Our data show that energy leaders in Brazil, Germany, South Africa and the US face different risks and opportunities depending on price trends, market deregulation and investment incentives,” adds Janet Lin. “Installation of on-site power generation varies enormously by country and industry. By contrast better energy data management is a the most entrenched spending theme. Ninety-six per cent of 250 corporations believe they need to enhance the volume, quality and frequency of energy data collection and reporting. This is a shot in the arm for a diverse group of energy software innovators such as DEXMA, Envizi, IMServ, Joulex, Panoramic Power and Urjanet. ”
To find out more join the Verdantix webinar ‘Coping With The Energy Challenge: Energy Management Strategies In 2014’ on Thursday October 3, 2013.