Energy Efficiency Services Market Size, Share, and Industry Analysis By Type (Energy Auditing /Consulting, Product and System Optimization, and Monitoring and Verification), By Application (Oil & Gas, Petrochemical, Chemical Industry, Electric Power, and Others), and Regional Forecast till 2032

The global energy efficiency services market is growing with an increase in the enforcement of stringent regulatory policies for reduction of carbon emissions and to improve corporate efficiency. The services are used for the optimization of industrial energy consumption to increase production, reduce costs, and reduce environmental impact.

Some of the instances of strigent government policies comprise the U.S. Department of Energy’s Better Plants Program and the EU's Energy Efficiency Directive. Furthermore, there is an emphasis on better energy monitoring and optimization through advances in energy management systems, smart grids, and the Internet of Things (IoT).

• In February 2024, energy solutions provider and renewable energy company Enercon Asia Pte Ltd shared plans to invest USD 40 million to USD 100 million in the Philippines' clean energy sector over the next two to three years. In particular, the Singaporean company is researching solar power projects. The investment will be the first in the Philippines.

Energy Efficiency Services Market Driver

Rising Energy Costs and Demand for Sustainability act as Catalysts for Market Growth and Innovation

Rising energy costs and sustainability requirements are acting as a catalyst for market growth and innovation. With increasing energy costs and cumulative environmental concerns, corporations are under increasing pressure to reduce energy consumption and adopt sustainable strategies. Rising operating costs due to high energy costs are forcing the industry to look for better solutions.

• Reforms, policies of the Indian government and a business-friendly environment in the country have helped the growth of the renewable energy sector. These measures, along with the continued decline in costs of renewable energy technologies, helped India record a minimum solar charge of ~USD 0.03 per kilowatt hour (kWh) by 2020.

Energy Efficiency Services Market Challenge

Initial Investment Required to Implement Effective Services can be a Barrier to the Market

Lack of responsiveness to the benefits of energy efficiency and access to skilled workers can prevent the use of these services. Resisting change and focusing on short-term profits rather than long-term savings makes companies less likely to invest in complex operations. Budget competition and priorities in industrial plants make it difficult to allocate money to profitable projects.

Energy Efficiency Services Market Opportunity

Rising Preference for Energy Efficiency Services to Offer New Opportunities

Companies in the industrial sector are increasingly turning to energy efficiency solutions to improve their performance. These services range from energy audits to the implementation of energy management systems and energy technologies. Energy audits are used to identify energy-saving opportunities and plan energy efficiency programs. Energy management systems, such as manufacturing energy management systems and industrial energy management systems, are used to analyze, monitor, and control energy consumption and identify energy savings.

Segmentation

By Type	By Application	By Geography
Energy Auditing / Consulting Product and System Optimization Monitoring and Verification	Oil & Gas Petrochemical Chemical Industry Electric Power 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 Type

On the basis of type, the market is divided into energy auditing /consulting, product and system optimization, and monitoring and verification.

Based on energy audits and consulting services, it is important to help industrial companies find and use energy-saving energy. To reduce operating costs and energy consumption, energy audit services and consulting services provide a thorough assessment of the power plant's energy consumption, classify areas of inefficiency, and provide recommendations for improvement. As industries increasingly use and focus on sustainability to guide their energy efficiency programs, specialized consulting services are in demand.

Analysis by Application

Based on application, the market is fragmented into oil & gas, petrochemical, chemical industry, electric power, and others.

The nature of energy is not in the petrochemical industry, which requires large resources for production processes and structures, which is known as the best. Petrochemical companies are investing in energy optimization services due to increasing pressure to reduce operating costs and environmental impacts. These services, equipment upgrades, performance optimization, and energy audits can help petrochemical companies determine and implement strategies to reduce energy consumption, increase energy efficiency, and lower greenhouse gas emissions.

• The Minister of Petroleum Resources and Minerals of Egypt, announced in a meeting with the World Bank that the Egyptian oil sector is preparing for new investment opportunities and aims to attract partners of international and financial institutions such as the World Bank to support good and sustainable development in Egypt.

Regional Analysis

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

Several factors drive the growth of the market in North America, including expanding programs and regulations related to government energy, the expansion of the industrial sector, and increasing public awareness of the remunerations of energy-efficient products and services. To reduce energy consumption, operating costs, and carbon emissions, North American industry, particularly the manufacturing and power sectors, is increasingly using efficient services. Energy audit, renewal, monitoring, and verification companies, among other profit-related service providers, are major players in the North America market for industrial energy services.

The European industrial sector is subject to government regulations and guidelines aimed at increasing energy efficiency and reducing carbon emissions using smart solutions and advanced technologies to increase efficiency in industrial processes. Furthermore, there is an increasing focus on sustainability and rising energy costs in European industries, especially in manufacturing, chemicals, and power generation. The European Union and national governments offer financial programs and incentives to encourage profitable business projects.

• Although citizen electricity models have been on the rise over the past two years under different names in the EU and in countries around the world, the EU formally joined the movement of the energy society by adopting the Clean Energy Package for all Europeans (CEP) introduced in 2019. The Internal Energy Market Directive (IEMD) introduced the concept of Citizen Energy Communities (CECs), and the rewriting of the Renewable Energy Sources Directive (RED II) introduced the so-called Renewable Energy Communities (RECs).

The market for energy-efficient industrial services in Asia is growing rapidly due to the increasing demand for energy-efficient solutions. This is owing to population growth, rapid urbanization, and the increasing industrialization of the region. In addition, local governments are introducing policies and laws to promote energy efficiency, leading the market. The growing usage of renewable energy resources such as hydro, solar, and wind and increasing focus on energy conservation drives the market.

The Middle East market is growing rapidly due to the region's increased focus on energy efficiency and sustainability. The region is investing heavily in new energy sources such as wind and solar and executing energy efficiency policies and regulations.

The Latin America market is expanding owing to the increased focus on sustainability, availability of government incentives, and rising energy costs. The region is home to several countries with large industrial sectors, such as Brazil, Mexico, and Argentina. These countries are increasingly investing in energy services to poorer energy costs and improve environmental performance.

Key Players Covered

The global energy efficiency services 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:

• Ameresco Inc (U.S.)


• CoolPlanet Ltd (Ireland)


• DNV Group AS (Norway)


• Econoler Inc (Canada)


• Electricite de France SA (France)


• GE GETEC Holding GmbH (Germany)


• Honeywell International Inc (U.S.)


• Johnson Controls International Plc (U.S.)


• Ramboll Group AS (U.S.)


• Rockwell Automation Inc. (U.S.)


• Schneider Electric SE (U.S.)


• John Wood Group PLC (U.K.)


• Siemens AG (Germany)


• Total Energies SE (France)


• Veolia Environnement SA (France)

Key Industry Developments

• In March 2024, Veolia, announced that one of its major subsidiaries, Sidem, has been awarded a USD 320 million contract to provide engineering services and supply key technology to the Hassyan desalination plant in Dubai. Owned by Dubai Electricity and Water Authority (Dewa) and Saudi Arabia's energy supplier, Acwa Power, the Hassyan plant is the second-largest reverse osmosis (RO) plant in the world and the largest desalination plant.


• In February 2024, Veolia launched its new strategic plan to accelerate environmental change to meet global demand. In a world striving to achieve carbon neutrality and the elimination of fossil fuels, businesses and regions urgently need proven, effective, and repeatable solutions.