BOULDER, Colo.--(BUSINESS WIRE)--A recent report from Navigant Research examines the market opportunity for energy service companies (ESCOs) and energy performance contracting (EPC), including market forecasts for the United States and Europe, segmented by customer type and technology, through 2024.
ESCO work in the United States already has a solid foundation in the public sector, backed by policy and economic drivers. However, in order to achieve more aggressive growth, the industry is expected to seek new opportunities in the private sector with business models that help address the hurdle of high upfront capital investments. Click to tweet: According to a recent report from Navigant Research, the global ESCO market is expected to reach $14.7 billion in annual revenue by 2024.
“ESCOs have been a major channel for energy efficiency upgrades in the United States for a long time now,” says Casey Talon, senior research analyst with Navigant Research. “These companies have, for the most part, stuck to a specific business case that has led to a sizable market in the public sector, but they now face the challenge of branching out into new customer bases to spur revenue growth.”
According to the report, while most ESCOs have had limited success outside of the U.S. market, recent policy changes, economic conditions, and specific success stories are generating increasing interest abroad. Europe in particular seems to be approaching a tipping point, with market momentum expected to pick up in the mid- to long-term.
The report, Energy Service Company Market Overview, assesses the ESCO market for energy performance contracts (EPCs). These projects include retrofits for lighting, heating, ventilation, and air conditioning (HVAC) and mechanical systems, renewables, water conservation, commercial building automation systems (CBASs), and building energy management systems (BEMSs). The report details the current state of the ESCO market and provides insight into its future direction based on customer demand, government policies, and other market dynamics. Forecasts for the U.S. ESCO market, segmented by customer type and technology, extend through 2024. The report also provides a top-line forecast through 2024 for ESCO revenue in Europe, with a focus on Germany, France, and the United Kingdom. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant is a specialized, global professional services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals deliver expert and advisory work through implementation and business process management services. The firm combines deep technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism to address clients’ needs in highly regulated industries, including Construction, Energy, Financial Services and Healthcare. More information about Navigant can be found at navigant.com.
* The information contained in this press release concerning the report, Energy Service Company Market Overview, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.