Global Industrial Energy Efficient Services Market: Snapshot
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.
Growth in the industrial sector has encouraged companies to seek faster ways to lower energy consumption due to the high cost and strict environmental regulations. The industrial sector has been expanding steadily since the last few years. Opportunities for energy efficiency improvements are expected to increase constantly. There exists potential to adopt energy efficient technologies and measures that reduce the energy consumption in the industrial sector by an additional 15-30% by 2025. Governments across the globe are increasingly focusing on adopting energy efficient practices. This is the primary driver of the global energy efficient services market. The European Union devised the Energy Efficiency Directive (EED) in order to lower energy consumption by 20% and maintain transparency in the overall billing process. The U.K. has set up the Energy Savings Opportunity Scheme (ESOS), an energy audit program that mandates industrial facilities to identify, evaluate, and report energy efficiency opportunities in their organizations every four years. Similarly, the Indian Energy Conservation Act also mandates energy intensive industries in the country to conduct energy audits and consulting. The Government of India offers tax incentives to companies for energy efficient plants and for keeping a tab on energy requirements diligently. Many companies are already striving to become more energy efficient. For instance, equipment manufacturers Alstom, ABB, Schneider, and Johnson Controls offer energy saving equipment and process optimization services linked to their products. Large IT companies such as SAP, IBM, Cisco, and Microsoft have devised programs to collect, monitor, and manage energy data. According to the International Energy Agency, the global energy intensity, i.e. the amount of energy utilized per unit of GDP, improved by 1.8% in 2015 and this industry is estimated to witness double digit growth in the near future; the commercial sector is expected to account for major share of the growth. Favorable support from regulatory bodies and government institutions is likely to drive the industrial energy efficient services market. However, economic & financial, regulatory, and Informational barriers may impede the implementation of energy efficient 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.
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
- 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.