The global Energy as a Service Market size is expected to reach USD 124.10 billion by 2028, exhibiting a CAGR of 9.9% during the forecast period. The growing emphasis on renewable energy sources by governments will have an excellent impact on the market growth, states Fortune Business Insights™, in a report, titled “Energy as a Service Market, 2021-2028.” The market size stood at USD 59.17 billion in 2020.
EaaS is a business model wherein consumers pay for energy service and avoid upfront capital investment. Rapid urbanization and industrialization lead to the adoption of EaaS. Furthermore, concerns regarding the depletion of fossil fuels are likely to bolster the market development. In addition, increasing energy consumption is expected to boost the industry’s progress.
Rising Energy Consumption to Contribute Massive Growth
As a result of increased industry and urbanization, energy consumption is on the rise. It has become important to create renewable energy on a worldwide scale to meet rising energy demand and the depletion of fossil resources. Solar and wind power plants cover a wide geographic region. In 2018, worldwide investment in renewable capacity was almost three times that of coal and gas-fired generating capacity combined.
Renewables will account for over half of worldwide power generation by 2050, according to the Energy Information Administration (EIA). Global energy consumption is expected to rise as the world’s population and urbanization rates rise.
Major Companies Emphasize on Diminishing Maintenance Costs to Boost Market Position
This market’s competitive environment is shaped by technology developments targeted at lowering operating and maintenance costs and increasing operational efficiency. The growing use of energy as a service by utilities and commercial sectors to improve efficiency and reliability are the major drivers driving the worldwide market for ABB, Schneider Electric, and Siemens, thereby boosting their market position.
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