Energy Service Company Market Expected to Reach $14.7 Billion Annually by 2024
Historically a U.S.-based market, energy service companies are now generating increased interest abroad
BOULDER, Colo. — Energy service company (ESCO) work in the United States already has a solid foundation in the public sector, backed by policy and economic drivers. However, in order to achieve more aggressive growth, the industry is expected to seek new opportunities in the private sector with business models that help address the hurdle of high upfront capital investments. According to a report from Navigant Research, the global ESCO market is expected to reach $14.7 billion in annual revenue by 2024.
“ESCOs have been a major channel for energy efficiency upgrades in the United States for a long time now,” said Casey Talon, senior research analyst with Navigant Research. “These companies have, for the most part, stuck to a specific business case that has led to a sizable market in the public sector, but they now face the challenge of branching out into new customer bases to spur revenue growth.”
According to the report, while most ESCOs have had limited success outside of the U.S. market, recent policy changes, economic conditions, and specific success stories are generating increasing interest abroad. Europe in particular seems to be approaching a tipping point, with market momentum expected to pick up in the mid- to long-term.
An executive summary of the report is available here.
Publication date: 11/3/2015