Energy Service Company Market Will Reach Nearly $8.3 Billion in Annual Revenue by 2020, Forecasts Navigant Research
BOULDER, Colo.--(BUSINESS WIRE)-- The energy service company (ESCO) market in the United States has gone through a difficult period in recent years. Customers have grown concerned about the impact of energy performance contracts on their financial positions, and many of the resources, including policy measures, that drove growth prior to 2011 have been exhausted. As a result, ESCO market activity has slowed considerably. According to a new report from Navigant Research, however, growth in the U.S. ESCO market is set to resume. Annual revenue for U.S. ESCOs will grow from $4.9 billion in 2013 to almost $8.3 billion in 2020, the study concludes.
"Over the past two years, ESCOs have found it difficult to attract customers and convert backlog into revenue," says Eric Bloom, senior research analyst with Navigant Research. "The difficulties imposed on key customer segments, such as municipalities, by weak economic conditions across the United States have constrained demand. Over the next 7 years, though, growth is expected to resume as energy efficiency measures take effect across a broad swath of the economy."
The federal sector, for example, which has long been an important part of the ESCO market, will undergo significant growth, thanks to a number of supportive measures including the 2011 Better Buildings Initiative, which aims to provide $2 billion of energy performance contracts in the federal sector by the end of 2013. Other sectors, such as commercial and industrial firms and public housing, will also start to expand once broader economic conditions improve, according to the report.
The report, "The U.S. Energy Service Company Market", examines the ESCO market in the United States, detailing drivers and barriers to the deeper penetration of energy efficiency in the U.S. economy. The study covers all ESCO sectors, including municipalities, universities, schools, and hospitals, federal, commercial and industrial, and public housing. Market forecasts for ESCO revenue in the United States, segmented by sector and technology, extend through 2020. The report also analyzes various ESCO financing models and energy efficiency technologies, and profiles key industry players. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant (NYS: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, "The U.S. Energy Service Company Market," is a summary and reflects Navigant Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
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