March 12, 2012: Revenues for U.S. Energy Service Companies to Reach $13 Billion by 2020
BOULDER, Colo. — The market for energy efficiency projects delivered by energy service companies (ESCOs) in the United States exceeded $5.1 billion in 2011, according to a new report from Pike Research. Driven by public policies that encourage a greater emphasis on energy efficiency to reduce costs and improve operations, this market is expected to continue to grow faster than the domestic economy and reach at least $13 billion in sales by 2020. Under a more aggressive scenario, the ESCO market could reach $16 billion by 2020.
While the ESCO industry has been active for approximately 30 years, it continues to evolve in response to business opportunities and economic trends, notes Pike Research. Today, newer service offerings, such as demand response and energy management software, enabled by intelligent metering and control systems that afford customers greater flexibility and control over their energy usage, are opening new opportunities for ESCOs.