Report categorizes the market into the following segments, auditing/consulting, product and system optimization, monitoring and verification
Global industrial energy-efficiency services market expected to grow at a compound annual growth rate (CAGR) of more than 6 per cent during the forecast period, according to a study by Technavio.
This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
One of the key drivers responsible for the growth of this market is the reduced greenhouse gas emissions through energy-efficient services.
These solutions directly reduce the volume of fossil fuels consumed, thereby reducing all related emissions.
Various global energy bodies have reported that energy-efficiency services will play a pivotal role in the movement towards making all industries eco-friendly.
Other important drivers of this market are positive brand imaging and support from regulatory bodies for energy-efficiency services. This market is forecast to be valued at USD 10.18 billion by the end of the forecast period, according to Technavio analysts.
“We expect the market for energy auditing and consulting to grow at a higher rate due to policymakers’ mandate for industries to undertake energy audits to identify opportunities for improving energy-efficiency,” said Bharath Kanniappan, a lead analyst at Technavio for automation research.
“The Energy-Efficiency Directive formulated by the EU has mandated 20 per cent reduction in energy use in power plants and large industrial facilities. The directive required all large enterprises in Europe to carry out energy audits every four years.”
The energy auditing/consulting was responsible for generating revenue worth USD 3.21 billion in 2015 and is expected to reach USD 4.51 billion by 2020.
This growth is likely to be driven by governments pushing for greener solutions. The UK has established a mandatory energy audit program, the Energy Savings Opportunity Scheme (ESOS).
It mandates all large industrial facilities to identify, evaluate, and report energy-efficiency opportunities in their organizations every four years.
Similarly, the Indian Energy Conservation Act mandates large energy-intensive industries to have energy audits and consulting by an accredited energy auditor.
Product and system optimization
Industries have realized that just the presence of energy-efficient products and equipment does not guarantee the overall energy-efficiency of the industrial process.
Any small misapplication or miscalculation can lead to a decrease in the overall efficiency of the process.
Energy efficiency companies help clients analyze, install, and streamline the workflow to achieve energy efficiency in a cost-effective manner.
Product equipment vendors generally ensure that there is no loss in energy due to mechanical and thermal limitations and equipment inefficiency.
Inefficient and inadequate pipes and installations in industrial plants which are responsible for the loss are optimized to save energy.
There will be greater opportunities for equipment vendors across many industrial sectors to improve insulation capabilities of buildings, upgrade heating and cooling networks, and enhance metering and automation for efficacious heat systems.
Monitoring and verification (M&V)
“Monitoring and verification is an integral part of any energy-efficiency services management program as they determine whether the energy-efficiency project has delivered the desired targets,” said Bharath.
“The M&V market is growing because of increased adoption of various M&V protocols by industries as mandated by policymakers. China has developed stringent, robust, and sophisticated energy-efficiency M&V protocols to ensure optimal energy-efficiency.”
Other nations are not far behind in implementing policies and guidelines.
The US DOE has developed International Performance Measurement and Verification Protocol to increase the credibility of projections for the outcome of industrial energy-efficiency investments.
This credibility can increase the confidence that investors and sponsors have in energy-efficiency projects, enhancing their chances of being financed.