A new report from Guidehouse Insights examines the market for energy as a service (EaaS) financing, providing regional forecasts for building efficiency, onsite energy supply, and energy flexibility solutions, through 2029.
While EaaS definitions continue to evolve, the financing element—focused on OPEX-based payments—is increasingly recognized as the central distinguishing feature of these agreements. EaaS contracts allow customers to outsource parts or the entirety of their energy operation while avoiding CAPEX or debt and paying out of the OPEX budget instead. The EaaS vendor owns and controls the installed technologies and guarantees an output, such as heating, cooling, or electricity. According to a new report from @WeAreGHInsights, the as a service financing market is expected to grow from $1.6 billion in 2020 to $27.2 billion in 2029 at a compound annual growth rate of 36.8%.
“Customers are attracted to EaaS financing as it allows them to address sustainability and deferred maintenance while upgrading facilities with OPEX-only payments and immediate ROI,” says Sasha Wedekind, research analyst with Guidehouse Insights. “Multiple market trends support rapid adoption of the EaaS financing model, including growing complexity of available energy technologies, expanding sustainability commitments, and constraints on CAPEX across different sectors.”
According to the report, the market is expected to scale as common definitions evolve and vendors converge around a couple of repeatable models that are known by customers. North America is estimated to be the largest market for as a service financing for energy solutions in 2020, representing 42% of the total market value.
The report, Market Data: As a Service Financing for Energy Solutions, forecasts the EaaS financing market size between 2020 and 2029. The forecast is segmented by five regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Revenue is also segmented by three technology categories: building efficiency, onsite energy supply, and energy flexibility solutions. The forecast also provides revenue splits between commercial and institutional customers. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.