Energy efficiency program spending will exceed $56 billion in 2026

Buildings stand shrouded in smog in Mexico City, Mexico, April 5, 2016. REUTERS/Edgard Garrido, Energy Efficiency Program

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New report from Navigant Research analyzes global government and utility energy efficiency program spending and capacity, examining the related market issues and providing market forecasts for capacity and revenue, broken out by region and segment, through 2026.

Each year, governments and utilities allocate billions of dollars toward energy efficiency initiatives, while businesses and residential consumers also spend on energy efficiency improvements to their homes and facilities.

Data trends indicate that energy efficiency spending is expected to increase, and an uptick in mergers and acquisitions of energy efficiency services firms signals that utilities, technology providers, and energy equipment manufacturers are all stepping into the market.

“The largest region of spending is expected to be Europe, reaching $21.4 billion in 2026 due to an increased emphasis on reducing energy consumption and related emissions. Globally, as energy efficiency spending and savings expand, utilities and solution providers will have to adjust their business models to find new ways to profit and create value for consumers, or they will risk losing revenue and market share,” said Brett Feldman, principal research analyst with Navigant Research.

In some markets, low energy demand outlooks have prompted traditional energy utilities to offer energy services as a way to expand their revenue, according to the report.

In addition, growth in the use of remote monitoring, control, and data analytics is enabling new business models and service solutions, further encouraging growth in energy efficiency program spending.