Energy Efficiency Market Size, Share, and Industry Analysis By Offering (Equipment and Services), By End-User (Oil & Gas, Power, Mining, Chemical, and Others), and Regional Forecast till 2032

The global energy efficiency market is one of the prominent industries in the energy sector. Energy efficiency solutions involve the use of technologies, systems, and methods to reduce the amount of energy required for industrial processes and operations. Adopting cost-effective practices can help businesses optimize reduce costs, energy consumption, and reduce greenhouse gas emissions.

• The European Commission launched a European Energy Funding Forum to find ways to finance the implementation of EU rules designed to reduce energy consumption by connecting member states to the industry. The merger aims to help finance regulations such as the Energy Efficiency Directive (EED) adopted last July and the European Building Performance Directive (EPBD).

Energy Efficiency Market Driver

Rising Need to Reduce Carbon Footprint to Drive Product Demand

Amid growing environmental concerns, businesses are seeking to become emission-free and reduce their carbon footprint through energy efficiency. The International Energy Agency estimated that the industry will account for 35% of the world's final energy ingestion and 40% of energy-related CO2 emissions by 2023. Using equipment and energy systems, industries can reduce greenhouse gas emissions goals.

• For example, according to data from the United Nations Environment Program, the global investment in energy efficiency in the industry increased by 12% annually between 2018 and 2020.

Energy Efficiency Market Restraint

High Upfront Cost for Installation of Energy Efficiency Systems May Hamper the Market Growth

The high initial costs of installing new energy-efficient equipment and systems prevent many businesses, especially small and medium-sized enterprises, from adopting them. Payback periods are longer than other investments. However, governments are trying to solve this through financial incentives. Companies are also increasingly using life cycle cost analysis to assess long-term cost savings from return on investment investments.

• For instance, according to the U.S. Department of Energy's 2021 report, many industrial installations may take 3 to 5 years or more to recoup the cost of new energy equipment through energy savings.

Energy Efficiency Market Opportunity

Integration of IIoT and Big Data Analytics to Provide New Growth Prospects

The Industrial Internet of Things (IIoT) drives connected sensors, meters, devices, and other devices that generate energy consumption and performance data. Big data analysis allows us to derive actionable insights from large amounts of collected data. This makes it easier to identify inefficiencies and implement automation to optimize energy use.

• According to a 2021 report from the U.S. Department of Energy, industrial assessment centers across the country saw an average savings of 13% in energy consumption in consumer food, paper and chemical plants by implementing energy management recommendations derived from the data analysis of production systems.

Segmentation

By Offering	By End-User	By Geography
Equipment CHP Compressors Pumps Others Services	Oil & Gas Power Mining Chemical Others	North America (U.S. and Canada) Europe (U.K., Germany, France, Spain, Italy, Russia, and the Rest of Europe) Asia Pacific (Japan, China, India, Australia, Southeast Asia, and the Rest of Asia Pacific) Latin America (Brazil, Mexico, and the Rest of Latin America) Middle East & Africa (South Africa, GCC, and Rest of the Middle East & Africa)

Key Insights

The report covers the following key insights:

• Key Emerging Trends – For Major Countries


• Latest Technological Advancement


• Insight on Regulatory Landscape


• Porters Five Forces Analysis


• Impact of COVID-19 on the market 

Analysis by Offering

Based on offering, the market is divided into equipment and services.

Energy efficiency equipment is designed to reduce energy consumption while maintaining or improving performance. As compressors are used to utilize variable speed drives and efficient compressors to reduce energy consumption, CHP includes tankless or heat pump water heaters that use less energy to heat the water heaters. Services include energy audits, software, consulting services, and project management.

Analysis by End-User

On the basis of end-user, the market is fragmented into oil & gas, power, mining, chemical, and others.

In the oil & gas industry, energy efficiency services focus on optimizing operations, reducing waste, and minimizing environmental impact. The operational audits for evaluating energy use across production, refining, and transportation processes to identify inefficiencies. Energy efficiency is also used in technology implementation such as automation and control systems.

Regional Analysis

Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The North America market is driven by government regulations on energy efficiency, increasing use of smart home technologies, and surging demand for products with good services from industrial companies.

• The Indian Energy Minister and the U.S. held the Strategic Clean Energy Partnership (SCEP). The parties reviewed the projects carried out in the technical pillars under the SCEP, including energy efficiency and productivity, oil and gas load, renewable energy, fossil fuels and new technologies, and sustainable growth. The ministers called for progress under the partnership to encourage energy innovation, strengthen energy security, and accelerate the transition to clean energy, including efforts to generate clean energy and build strong, responsible, sustainable, safe, and diverse supply chains.

The Europe market is growing owing to improved focus on renewable energy sources, growing awareness of the reimbursements of energy efficiency, and increasing demand for products and services from industrial companies.

In Asia Pacific, the market is determined by the rapid industrialization in the region, soaring demand for profitable products and services from industrial companies, and policies of the government.

• Vietnam completed its first LNG terminal in 2023. The country's first LNG plant is yet to complete the required offloading contract and it may take until 2027.

The Middle East & Africa and Latin America markets are at the initial stages of development due to the lack of capital expenditure and technological advancements.

Key Players Covered

The global energy efficiency market is fragmented with the presence of a large number of group and standalone providers.

The report includes the profiles of the following key players:

• Hitachi (Japan)


• Rockwell Automation (U.S.)


• Honeywell (U.S.)


• Schneider Electric (France)


• Osram (Germany)


• Legrand (France)


• Samsung Electronics (South Korea)


• General Electric (U.S.)


• ABB (U.S.)


• Johnson Controls (U.S.)


• Eaton Corporation (U.S.)


• Emerson Electric (U.S.)


• Veolia Environnement (France)


• Wärtsilä (Finland)


• Danfoss (U.S.)

Key Industry Developments

• In September 2024, ABB led the strategic investment in partnership with lead investor Lumin, the Carbon Drawdown Collective, and other existing investors. The Lumin platform provides the opportunity to improve energy efficiency without changing the existing electrical system in the building. Insights into metered consumption data and dynamic load shifting to support energy transitions for communities.


• In February 2024, Siemens AG initiated carbon reduction and cleaning projects that are increasingly focused on various sectors around the world.