Definitions of energy as a service (EaaS) have been in flux for the past 3 years. Much flexibility remains in EaaS definitions and scope among different vendors that consider themselves players in the market. However, the financing element of EaaS focused on OPEX-based payments has been increasingly recognized as the central distinguishing feature of EaaS agreements. EaaS contracts allow customers to outsource parts or the entirety of their energy operation while avoiding CAPEX or debt and paying out of the OPEX budget instead. The EaaS vendor owns and controls the installed technologies and guarantees an output, such as heating, cooling, or electricity.
Multiple market trends support rapid adoption of the EaaS financing model, including growing complexity of available energy technologies, expanding sustainability commitments, and constraints on CAPEX across different sectors. Customers are attracted to EaaS financing as it allows them to address sustainability and deferred maintenance while upgrading facilities with OPEX-only payments and immediate ROI. However, the market remains nascent, with little awareness among prospective customers. The market is expected to scale as common definitions evolve and vendors converge around a couple of repeatable models that are known by customers.
This Guidehouse Insights report forecasts the EaaS financing market size between 2020 and 2029. The forecast is segmented by five regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Revenue is also segmented by three technology categories: building efficiency, onsite energy supply, and energy flexibility solutions. The forecast also provides revenue splits between commercial and institutional customers.
KEY QUESTIONS ADDRESSED
- How have definitions of EaaS evolved?
- How does EaaS differ from other contracting mechanisms such as energy savings performance contracting?
- What are the drivers and barriers in the EaaS financing market?
- What is the market size for EaaS financing globally?
- What is the impact of the COVID-19 pandemic on anticipated market size and growth?
- How does anticipated market size and growth differ by technology and customer segment?
WHO NEEDS THIS REPORT
- EaaS vendors
- Investment firms
- Original equipment manufacturers
- Investor community
Table of Contents
1. Executive Summary
- 1.1. Market Definition
- 1.2. Market Drivers and Barriers
- 1.3. Market Forecast
2. Market Trends
- 2.1. EaaS Market Definition
- 2.2. EaaS Project Scope Trends
- 2.3. Market Drivers
- 2.4. Market Barriers
3. Data Assumptions
- 3.1. Forecast Scope and Differences from Prior Reports
- 3.2. Forecast Segments
- 3.3. Forecast Methodology
- 3.3.1. Upfront Revenue
- 3.3.2. Recurring Revenue
- 3.4. COVID-19 Pandemic Assumptions
4. Market Forecasts
- 4.1. Global Overview
- 4.2. Regional Forecasts
- 4.3. Conclusions and Recommendations
5. Acronym and Abbreviation List
6. Table of Charts and Figures
7. Scope of Study, Sources and Methodology, Notes