July 23, 2012: Consolidation Among U.S. Energy Service Companies to Continue
BOULDER, Colo. — Consolidation in the energy service company (ESCO) market is expected to continue through the remainder of this decade, as highly competitive players aim to increase market share, resulting in an industry structure concentrated to a large extent in a group of very large companies focused on serving the federal government, according to a new report from Pike Research.
The ESCO market, which is comprised of companies that provide end-to-end efficiency measures through the use of performance contracts, exceeded $5 billion in revenues in 2011, noted Pike Research. Driven by public policies that encourage greater emphasis on energy efficiency, this market is forecast to grow faster than the domestic economy and reach at least $13 billion in sales by 2020.