According to Pike Research, the market for energy-efficiency services and equipment is on the rise as national governments look to reduce energy consumption by improving the efficiency of the building stock. With buildings being one of the largest sources of energy consumption, the opportunity to improve efficiency is significant, ranging from high-efficiency heating, ventilation, and air conditioning (HVAC) systems to the utilization of energy-efficient lighting technologies to business models such as energy performance contracting (EPC) as employed by energy service companies (ESCOs) around the world. According to a new report from Pike Research, the total market for energy efficiency in buildings will reach $103.5 billion by 2017, an increase of more than 50% from the 2011 market value of $67.9 billion.
ESCOs are leading the energy efficiency charge for commercial buildings in many countries, using EPC and other financing mechanisms to install energy efficient equipment and kick-start ongoing energy efficiency services. The market for energy efficient equipment, including efficient HVAC and lighting systems, is also in a period of transformation, as green building trends drive increase interest in efficient systems and as efficient lighting technologies, such as LEDs, continue to decline in cost.
Pike Research’s forecasts indicate that the ESCO market will represent the largest segment of the energy efficient buildings industry in the coming years, with revenues more than doubling from $30.1 billion in 2011 to $66.0 worldwide by 2017, a compound annual growth rate (CAGR) of 14%. Significant growth will also occur in the market for high-efficiency HVAC systems, which will expand from $3.1 billion to $6.4 billion during the same period.