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

Energy-as-a-Service Category Overview

The energy-as-a-service category is anticipated to grow at a CAGR of 9.20% from 2023 to 2030. North America is the leading market followed by Europe due to the rise in automation in manufacturing plants, renewable energy demand, and commercial industry growth.

This category is driven by key drivers such as cost efficiency, scalability, flexibility, simplified IT management, access to advanced technologies, and innovation for organizations in today's dynamic business landscape. The key trends that are shaping its growth trajectory include the escalating energy demand driven by expanding industries, favorable energy regulations promoting EaaS adoption, the increasing integration of renewable energy sources to meet sustainability goals, the growing demand for flexibility to adapt to market changes, and the emphasis on energy efficiency to optimize resource utilization.

This category is highly fragmented, with a large number of providers offering a variety of services. To dominate the category, major businesses use various tactics including providing a wide range of services, making investments in R&D, and purchasing smaller rivals. By doing this, they can develop their global footprint while also satisfying the market's growing need.

• On Feb 28, 2023, Intertrust and EIPGRID announced a new EaaS system for telecommunications operators. This system will help operators to reduce energy bills, cut carbon emissions, and increase sustainability. It uses a secure VPP system to deliver sustainable, efficient, green electrons to power-hungry network equipment.

• On Dec 26, 2022, Inox Green Energy Services acquired an O&M wind service provider with a 230-MW fleet in India. This is the company's first acquisition of an independent O&M service provider, and it will enable them to enter the multi-brand OEM wind turbine O&M business. The acquisition will also help them to serve customers better by leveraging synergies and efficiencies across the combined teams, supply chain capabilities, and technical expertise.

Recent technological advancements include the development of smart meters, microgrids, and energy storage systems. These technologies have made it possible for category providers to offer more comprehensive and flexible energy solutions to businesses and consumers. For example, smart meters can help businesses and consumers track their energy usage in real-time, and microgrids can provide businesses with backup power during outages. Energy storage systems can also help businesses to store excess energy for use during peak demand periods. It is also important to note that the rising adoption of distributed energy resources (DER) in emerging nations is a significant contributor to the market's growth since they are both cost-effective and energy efficient.

The key cost components include energy generation and distribution costs, maintenance and operations expenses, procurement and installation fees, financing charges, and additional services provided within this service package. Understanding these components is crucial for both service providers and customers in assessing the financial implications of adopting EaaS. Pricing in this category typically follows a pay-per-use model, considering factors such as energy demand, efficiency improvements, and operational savings achieved. The price section includes service pricing, base fee, usage costs, add-ons/upgrades, support and maintenance, implementation/onboarding costs, and contract terms. Achieving an optimal pricing and cost strategy is essential to provide value to customers while ensuring a profitable and sustainable business model for EaaS service providers.

Implementing best sourcing practices is essential in this category to optimize operational efficiency and achieve cost savings. Service providers should focus on strategic supplier selection, conducting thorough evaluations of the vendor’s capabilities, reliability, and track record. Establishing long-term partnerships with reliable suppliers can ensure consistent and high-quality energy services. Negotiating favorable contract terms, including performance guarantees and flexible pricing structures, is crucial to mitigate risks and maximize value. Additionally, diversifying sourcing strategies, exploring renewable energy options, and leveraging technology to monitor and optimize energy usage are key practices for a robust and sustainable EaaS procurement strategy. 

Energy-as-a-Service Procurement Intelligence Report scope