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Global Energy Saving and Performance Contracting Market: Overview

The concept of energy saving and performance contracting (ESPC) involves several processes in order to achieve greater energy efficiency. Increasing population across the world and consequent rapid urbanization, the demand for energy is touching new peaks. Smart cities and smart buildings are now being built in budget-neutral approach to reduce energy and water consumption. Frequently, renewable energy projects are installed and technology enables wastage of the same. By working in accordance to an energy service company (ESCO), the owners of a facility can significantly curtail their energy demand on a daily basis and gain greater return of investment (ROI). Consequently, the demand in the global energy saving and performance contracting market is expected to expand at a rapid rate during the forecast period of 2016 to 2024.

This report on the global market for energy saving and performance contracting aspires to serve as a credible business document for audiences such as national and state governments, municipal authorities, real estate developers, IT solution providers, system integrators, networking solution providers, and utilities companies. All important factors that may influence the demand in ESPC market have been analyzed for their eventual impact and future revenue estimations are included in the report. The report also profiles a number of key players currently participating in the global energy saving and performance contracting market and evaluates their share of the pie as well as recent strategic decisions.

The global market for energy saving and performance contracting can be segmented on the basis of technology into heating, ventilation, and air conditioning (HVAC), combined heat and power (CHP), district heating (DH) refurbishment, and fuel switch, indoor and outdoor lighting, renewable energy sources (RES) utilization, and others including gas distribution, reactive power, process unit, combustion improvement, and compressed air. By business contract model, the market can be segmented into guaranteed savings model, shared saving model, and others. By end-use sectors, the market for energy saving and performance contracting can be segmented into industry, tertiary, public, and residential. Geographically, the report studies the potential of energy saving and performance contracting market in several regions such as Asia Pacific, North America, Latin America, the Middle East and Africa, and Europe.

Global Energy Saving and Performance Contracting Market: Trends and Opportunities

Among the key factors driving the global ESPC market is the liberalization and restructuring of the electricity and gas markets. In addition to that, initiatives taken by public and private sectors in accordance with climate change is another factors augmenting the demand in the global energy saving and performance contracting market. Increasing awareness pertaining to the need of every conservation, higher return of investment in a longer run, government support and legislations for performance contracting, and increased investment for renewable sources of energy such as solar power are some of the other factors favoring the global market for energy saving performance contracting. On the other hand, the lack of commercially sustainable projects is hindering the market from attaining its true potential.

Global Energy Saving and Performance Contracting Market: Regional Outlook

Currently, North America serves the maximum demand in ESPC market, which is a reflection of greater adoption of new technology, government support, and the presence of several key companies in the country of the U.S. However, Asia Pacific resides a number of emerging economies such as India, China, Japan, South Korea, and Singapore and is expected to expand the demand at the most prominent rate during the forecast period. The Middle East countries also have a flourishing construction industry, and are incrementing the demand for energy saving performance contracting.

Companies mentioned in the research report

LUTRON, Crowley Carbon Ltd., OSRAM, Veolia, Candelas Ltd., and Dalkia are some of the key vendors operating in the global energy saving performance contracting market.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Energy Saving Performance Contracting Market

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