June 12, 2012
Energy service companies (ESCOs), which provide comprehensive energy contracting services primarily to governmental, commercial, and industrial customers, form the core of most energy efficient buildings markets today, engaging in long-term energy efficiency contracts with building owners. As building owners and managers aim to increase the efficiency of their building portfolios to attract increasingly savvy tenants and reduce operating costs, ESCOs are developing long-term strategies around energy efficiency to meet this demand. According to a recent report from Pike Research, the ESCO sector will represent the largest segment of the energy efficient buildings industry in the coming years, with revenues more than doubling from $30.1 billion in 2011 to $66 billion worldwide by 2017, a compound annual growth rate (CAGR) of 14%.
Overall, the global market for energy efficient buildings stands at $67.8 billion, encompassing not only ESCO revenues but also sales of energy efficient HVAC equipment as well as sales of energy efficient lighting systems. By 2017, the market will grow to $103.4 billion, the cleantech market intelligence firm forecasts.
“Around the world, ESCOs are at the forefront of energy efficiency, improving the viability of energy efficiency investments by using their own capital to pay for improvements,” said senior analyst Eric Bloom. “However, the role that ESCOs and other energy efficiency service providers play varies considerably from one country to another, and understanding the market and regulatory distinctions for the energy efficiency business worldwide is critical to developing a global energy efficiency services enterprise.”
ESCOs can be grouped into three typical profiles: equipment manufacturers, such as Johnson Controls and Siemens, which provide energy services as a vehicle for equipment sales; utility-affiliated energy service companies, such as Florida Power & Light and Constellation Energy, which provide services within their territories; and independent ESCOs, such as Ameresco, which are technology- and vendor-agnostic. While ESCOs in the United States largely focus on long-term efficiency contracts in the public sector, European firms tend to offer broader energy supply contracting. ESCOs in Asia Pacific generally find more business in the private sector and in new construction activities.
Pike Research’s report, “Energy Efficient Buildings: Global Outlook”, provides data on the size and growth of energy efficient building markets, including ESCO revenues, energy efficient HVAC equipment sales, and energy efficient lighting sales from 2011 to 2017, as well as a qualitative description of key drivers and trends in energy efficiency in key markets, focusing on the commercial building sector. Readers will benefit from a country-by-country analysis that distills the complexities of developing international business in the energy efficient building industry into concise summaries that facilitate an understanding of how key markets compare to each other. An Executive Summary of the report is available for free download on the firm’s website.
Contact: Richard Martin
+1 303 997 7609