Energy-as-a-Service Procurement Insights 2030 - Trends, Strategies, and Opportunities

Energy-as-a-Service (EaaS) represents a transformative approach wherein customers gain seamless access to energy management solutions devoid of any initial investments. These customizable services encompass a spectrum of offerings ranging from asset management to optimized energy consumption strategies, all meticulously designed to align with each customer's unique energy objectives. Underpinned by contractual agreements with specialized service providers, EaaS operates akin to the software-as-a-service model, liberating clients from capital-intensive outlays such as equipment procurement and maintenance costs. Instead, clients simply pay for the uninterrupted delivery of services, fostering a sustainable and cost-effective energy management paradigm.

Energy-as-a-Service Category Overview

The energy-as-a-service sector is poised for significant expansion, projected to achieve a robust Compound Annual Growth Rate (CAGR) of 9.20% from 2023 to 2030. North America emerges as the primary market leader, closely trailed by Europe, driven by the surge in automation within manufacturing plants, escalating demand for renewable energy, and the burgeoning growth of the commercial industry.

Order your copy of the Energy-as-a-Service Procurement Intelligence Report, 2023 - 2030 , published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

At the core of this category's growth lies a constellation of key drivers, including cost efficiency, scalability, flexibility, simplified IT management, access to advanced technologies, and a culture of innovation, all of which are paramount for organizations navigating today's dynamic business landscape. These factors, coupled with several prevailing trends, are steering the trajectory of growth within the sector. Notable trends include the escalating energy demand spurred by expanding industries, favorable regulatory frameworks propelling the adoption of EaaS, the increasing integration of renewable energy sources to fulfill sustainability objectives, a growing appetite for flexibility to navigate market dynamics, and a heightened focus on energy efficiency to optimize resource utilization.

Despite its burgeoning growth prospects, the energy-as-a-service domain remains highly fragmented, characterized by a plethora of providers offering an array of services. To assert dominance within this competitive landscape, major enterprises employ diverse tactics, such as offering a comprehensive suite of services, investing substantially in research and development initiatives, and strategically acquiring smaller rivals. Through these strategic maneuvers, market leaders not only fortify their global presence but also effectively cater to the burgeoning market demand, thus solidifying their position as industry frontrunners.

• On February 28, 2023, Intertrust and EIPGRID made waves by unveiling a groundbreaking Energy-as-a-Service (EaaS) system tailored specifically for telecommunications operators. This innovative system promises to revolutionize the industry by empowering operators to not only slash energy bills but also significantly reduce carbon emissions while bolstering sustainability efforts. Leveraging a secure Virtual Power Plant (VPP) infrastructure, the system efficiently delivers sustainable, green electrons to power-hungry network equipment, marking a pivotal step towards a more eco-friendly and efficient telecommunications landscape. 

• In a strategic move on December 26, 2022, Inox Green Energy Services made its mark by acquiring an Operation and Maintenance (O&M) wind service provider boasting a substantial 230-MW fleet in India. This landmark acquisition marks Inox Green Energy Services' foray into the realm of independent O&M service provision, paving the way for the company's entry into the multi-brand Original Equipment Manufacturer (OEM) wind turbine O&M business. Beyond expanding its operational footprint, this acquisition is poised to enhance customer service capabilities by synergizing resources, streamlining supply chain operations, and harnessing combined technical expertise to deliver unparalleled service excellence.

Recent technological strides have further propelled the evolution of the energy landscape, with the advent of smart meters, microgrids, and energy storage systems heralding a new era of comprehensive and flexible energy solutions for businesses and consumers alike. These cutting-edge technologies empower category providers to offer tailored solutions, enabling real-time energy usage monitoring with smart meters, ensuring uninterrupted power supply through microgrids during outages, and optimizing energy utilization via energy storage systems. Moreover, the rising adoption of Distributed Energy Resources (DER) in emerging economies underscores the pivotal role played by cost-effective and energy-efficient solutions in propelling market growth and sustainability efforts.

Energy-as-a-Service Procurement Intelligence Report Scope

The Energy-as-a-Service category is expected to have pricing growth outlook of 3% - 4% (Annually) from 2023 to 2030, with below pricing models.

• Subscription-based pricing model
• pay-per-use pricing model.

Supplier Selection Scope of Report

• Technical capabilities,
• experience,
• pricing,
• support to customers.

Supplier Selection Criteria of Report

• Capabilities and reliability,
• track record and pricing,
• performance guarantees,
• flexible pricing structures,
• diversifying sourcing strategies,
• leveraging technology

Energy-as-a-Service Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape
• Market estimates and forecasts from 2023 to 2030
• Growth opportunities, trends, and driver analysis
• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
• Porter’s 5 forces
• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
• Engagement and operating models, KPI, and SLA elements
• LCC/BCC analysis and negotiation strategies
• Peer benchmarking and product analysis
• Market report in PDF, Excel, and PPT and online dashboard versions 

Energy-as-a-Service Procurement Cost and Supplier Intelligence

Delving into the intricate cost dynamics of the EaaS category unveils a multifaceted landscape encompassing energy generation and distribution costs, maintenance and operations expenses, procurement and installation fees, financing charges, and additional bundled services. A deep understanding of these cost components is imperative for both service providers and customers alike, enabling informed decision-making and assessment of the financial implications associated with EaaS adoption. Pricing strategies within this category typically adhere to a pay-per-use model, factoring in variables such as energy demand, efficiency enhancements, and realized operational savings to deliver optimal value to customers while ensuring a profitable and sustainable business model for service providers.

Employing best sourcing practices is paramount for maximizing operational efficiency and achieving cost savings within the EaaS category. Service providers must prioritize strategic supplier selection, conducting rigorous evaluations of vendors' capabilities, reliability, and track records. Cultivating long-term partnerships with trusted suppliers fosters consistency and quality in energy service delivery, while adept negotiation of contract terms, including performance guarantees and flexible pricing structures, mitigates risks and enhances overall value. Additionally, diversifying sourcing strategies, exploring renewable energy alternatives, and harnessing technology to monitor and optimize energy consumption are foundational elements of a robust and sustainable EaaS procurement strategy.

What are the defining characteristics of the energy-as-a-service sector, and which companies stand out as the industry leaders within this domain?

The energy-as-a-service category is highly fragmented due to a large number of providers offering a variety of services. The top global leaders are Schneider Electric, Siemens, Engie, Honeywell International Inc., Veolia, EDF, Johnson Controls, Bernhard, General Electric, Entegrity, Enel SpA, NORESCO, LLC, Centrica plc, Wendel.

Browse through Grand View Research’s collection of procurement intelligence studies:

Nylon Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Mannequins Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape) 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions