What Fueled The Previous Growth In The Industrial Energy Efficiency Services Market?
The industrial energy efficiency services market has seen considerable growth due to a variety of factors.
• Recent years have seen a robust growth in the size of the industrial energy efficiency services market. This market is expected to expand from $11.03 billion in 2024 to $11.72 billion in 2025, with a compound annual growth rate (CAGR) of 6.3%.
Factors contributing to this growth during the historical period include governmental policies, escalating energy prices, industrial progress, increased environmental consciousness, and the rising demand for the integration of renewable energy.
What Can Be Expected from the Industrial Energy Efficiency Services Market Size?
The industrial energy efficiency services market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market for industrial energy efficiency services is predicted to experience robust growth, expected to reach a value of $14.74 billion by 2029, with a compound annual growth rate (CAGR) of 5.9%.
Factors driving growth in the forecast period include increasing energy costs, awareness about climate change, governmental energy policies, energy efficiency benchmarks, and competition in the industry. The forecast period will be marked by prevalent trends such as technological advancements, rising demand for energy management solutions, the inception of smart cities, strategic partnerships and collaborations, and the increased use of distributed energy resources (DER).
What Are the Critical Driver Fuelling The Industrial Energy Efficiency Services Market's Growth?
The increasing emphasis on decarbonization is predicted to stimulate the expansion of the industrial energy efficiency services sector in the future. Decarbonization involves the decrease or removal of carbon dioxide (CO2) emissions from various economic sectors, specifically energy production, transportation, and manufacturing. This shift is due to the immediate requirement to minimise climate change and growing regulatory demands for lesser greenhouse gas emissions. Industrial energy efficiency services are instrumental in decarbonization, as they assist industries in reducing energy usage, diminishing greenhouse gas (GHG) emissions, and moving towards less polluting, sustainable operations. For instance, in April 2024, the United States Department of Energy, a US government agency, outlined a plan to achieve decarbonization in U.S. buildings, aspiring to cut greenhouse gas emissions by 65% by 2035 and by 90% by 2050. Consequently, the increasing emphasis on decarbonization is propelling the growth of the industrial energy efficiency services market.
How Is The Industrial Energy Efficiency Services Market segmented?
The industrial energy efficiency servicesmarket covered in this report is segmented –
1) By Type: Energy Auditing Or Consulting, Product And System Optimization, Monitoring And Verification, Energy Management Software
2) By Service Type: Outsourced, In-House
3) By Application: Petrochemical, Chemical Industry, Electric Power, Textile, Building Materials, Mining, Manufacturing, Food And Beverage
4) By End-User: Commercial, Industrial
Subsegments:
1) By Energy Auditing Or Consulting: Comprehensive Energy Audits, Specialized Energy Consultations, Regulatory Compliance Audits
2) By Product And System Optimization: Equipment Upgrades And Retrofitting, Process Optimization Services, Design And Implementation Of Energy-Efficient Systems
3) By Monitoring And Verification: Energy Usage Monitoring Services, Performance Measurement And Verification Protocols, Real-time Data Analytics And Reporting
4) By Energy Management Software: Energy Management Information Systems (EMIS), Data Analysis And Visualization Tools, Automated Energy Reporting Solutions
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What Emerging Trends Are Influencing The Growth Of The Industrial Energy Efficiency Services Market?
The market for industrial energy efficiency services is being shaped by the innovation strategies of key players, who are striving to advance their solutions. Pioneering technologies that upgrade energy efficiency in industrial manufacturing are one such example, offering reduced energy expenditure and increased performance. In August 2024, a significant development came from the VTT Technical Research Centre of Finland, a local limited liability company, launching the Energy First project. This joint venture aims to create sustainable, energy-saving, and recyclable fiber-based goods for the forestry and textile sectors. The scheme is a response to the high energy and resource demands in these industries, with the main objectives being a reduction in water use by up to 90% and energy consumption by half. In doing so, the project introduces feasible replacements for products such as cardboard packaging, hygiene products, and non-woven fabrics. This initiative supports European Union sustainability policies by amplifying resource efficiency and endorsing the use of recyclable materials within the forestry and textile sectors.
Who Are the Key Players In The Industrial Energy Efficiency Services Market?
Major companies operating in the industrial energy efficiency services market are:
• Enel Spa
• Electricite de France SA
• Tata Group
• Engie SA
• Siemens AG
• Schneider Electric
• Mitsubishi Electric Corporation
• Honeywell International Inc.
• KPMG International Limited
• Johnson Controls
• Trane Technologies plc
• AECOM Technology Corporation
• Bain & Company
• DuPont de Nemours Inc.
• WSP Global Inc.
• Dalkia
• DNV Group AS
• Ameresco Inc.
• Voltas Limited
• SGS Group
• Getec
• Alien Energy Private Limited
• Smart Joules Private Limited
• Econoler Inc.
What Is The Most Dominant Region In The Industrial Energy Efficiency Services Market?
North America was the largest region in the industrial energy efficiency services market in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the industrial energy efficiency services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
