Feb. 24, 2014: Education Will Be Largest Market for Energy Service Companies Through 2020
K-12 Schools Will Be Largest Single Market, While Universities and Colleges Will Be Fastest Growing Segment
BOULDER, Colo. — Rebounding from a tough two years of slowing growth, the energy service company (ESCO) market in the United States is expected to resume its expansion in the coming years. The primary markets for ESCOs include K-12 schools, state and local governments, universities and colleges, and hospitals. According to a report from Navigant Research, education — combining K-12 and universities/colleges — will be the largest market segment for ESCOs, representing more than $22 billion in cumulative revenue from 2013 through 2020.
“The ESCO market continues to be concentrated in municipalities, universities, schools, and hospitals, known as the ‘MUSH’ market,” said Eric Bloom, senior research analyst with Navigant Research. “K-12 schools, which present the largest opportunity for ESCOs, are designed to last for many decades, and many public school buildings in operation today are characterized by out-of-date HVAC, lighting, and control systems that could benefit considerably from system upgrades.”