Industrial Energy Efficient Services Market Will See Strong Expansion Through 2024
With the vast rise in stringent regulations pertaining to energy security, decarbonization, and air pollution, the industrial sector has started to feel the pressing need to adopt measures that can improve the energy efficiency of internal processes and operations. Countries across the globe are setting up advisory, disciplinary, and investigatory panels to ensure that energy efficiency measures are being put in place, especially in energy-intensive industries such as metal processing, chemicals, mining, and petroleum refining, to name a few. These factors are contributing to the increased demand for energy efficient services globally.
It is estimated that the overall scope of the energy efficient services market is vast but only a small percentage of the market has been tapped, especially across emerging economies with massive and thriving industrial sectors. In regions such as Latin America and Asia Pacific, industrial boom in emerging economies in the past few decades has resulted in the vast expansion of the energy sector, ramping up the uptake of power to a massive extent. This trend has also produced ample growth opportunities for companies operating in the energy efficiency sectors as governments have started realizing the need to reduce impact of emissions led by the majorly fossil fuel-powered electricity plants.
From practices such as setting up energy audit programs mandating industrial facilities to evaluate, identify, and report opportunities related to energy efficiency in their organizations from time to time to offering tax incentives to companies with energy efficient plants, governments continue to play a key role in the development of the global energy efficient services market. This report presents an overview of the present state and future scope of development of the market, covering a thorough overview of crucial aspects influencing its development.
As the world is transcending toward clean energy, it is becoming increasingly clear that efficiency can make the transition faster, cheaper, and beneficial across all the sectors. Energy efficiency is an important element in energy policies around the world. Globally, around two-third of the economic potential associated with energy saving remains untapped. Around 70% of the energy use in the world is utilized without any energy efficiency and performance measures. For instance, nearly 2/3rd of the energy consumed from buildings across the world has no standards or code applied to it. The core imperatives of an energy policy such as decarbonization, energy security, and air pollution can be made achievable and accessible with the incorporation of proper energy standards and other energy efficiency measures.
Based on service, the energy efficient market can be segmented into energy auditing & consulting, product & system optimization, and monitoring & verification. The energy auditing and consulting segment accounted for the major share of the industrial energy efficient services market in 2015. The segment is anticipated to dominate the market during the forecast period, led by the increase in governmental efforts to mandate companies to undertake energy audits and comply with energy efficient standards. In terms of region, North America held the prominent share of the industrial energy efficient services market in 2015, driven by the energy efficient initiatives in the region and rise in need to enhance energy consumption to achieve development goals. China leads the industrial energy efficient services market in Asia Pacific, driven by its 13th five year plan to achieve energy efficiency standards. The country is estimated to attract further investment in the sector considering the sheer size of its domestic energy usage. China has also developed stringent and energy efficient Monitoring and Verification (M&V). This segment is projected to witness significant growth during the forecast period.
The global industrial energy efficient services market is highly competitive due to the presence of a large number of regional and global vendors. Key players operating in the industrial energy efficient services market are Siemens, Honeywell, TERI, DuPont, Dalkia, ENGIE, Getec, Johnson Controls, Schneider Electric, SGS, and Wood.