The Energy Storage as a Service Market accounted for US$ 1,230Million in 2020 with a considerable CAGR of 9.8% throughout the forecast period from 2021 to 2028.
Energy storage as a service enables a facility to take use of the benefits of an energy storage system by signing a service agreement rather than acquiring the system.As energy storage becomes a more important part of the modern grid, a variety of economic models are becoming accessible. Energy storage as a service (ESaaS) is gaining popularity among service providers in particular. Energy and sustainability managers in corporate commercial and industrial (C&I) organizations are increasingly looking for cost-effective, tailored, and comprehensive energy solutions that ensure energy consumption reduction and cost savings without CAPEX or disruption to day-to-day operations.ESaaS is a promising concept that has the ability to attract financing and further grow the industry, as energy storage transactions were previously avoided by investors due to the complexity of cash flow.
Rising energy consumption and increased need for power management in the industrial and residential sectors are driving the global ESaaSmarket. Furthermore, the simplicity and cost-effectiveness of energy storage services are enticing customers all over the world.
Growing industrialization in developing economies like India, Brazil, and China are generating enormous energy demand, which is likely to propel the industry forward. The ESaaS model provides a variety of services, such as ancillary services and energy management services, that assist ensure consistent electricity supply, prevent blackouts, and lower electricity prices.
Due to the onset of the Coronavirus pandemic in 2020, the market has witnessedrelatively sluggish growth. The market was impacted by national lockdowns and travel restrictions. Various industry and commercial complexes were shuttered, resulting in the loss of jobs.
|Market||Energy Storage as a Service Market|
|Market Size 2020||US $1,230 Mn|
|Market Forecast 2028||US $2.62 Bn|
|CAGR||9.8 % During 2021 - 2028|
|Analysis Period||2017 - 2028|
|Forecast Data||2021 - 2028|
|Segments Covered||By Service Type, By End-User and By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||Veolia, NRStor Inc., Siemens, ENGIE Storage Services NA LLC., Honeywell International Inc., Suntuity Solar LLC, Customized Energy Solutions Ltd., Enel X, ABB, WGL Holdings, Inc., Johnson Controls, Centrica, Orsted and among others.|
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
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Aging infrastructure to transmit and generate power has forced utilities to upgrade and invest in the policies used for distributed energy resources (DER), which involve demand-response capabilities, renewable energy, and other energy-saving technologies to reduce and control energy use and better manage bills. However, rising investment in energy distribution systems would create demand for distributed energy resources (DER), which will be fueling the growth of energy storage as a service market. Moreover, growing energy utilization and rising popularity for power management in the residential, as well as industrial sectors, the convenience and cost-effectiveness accessible through the energy storage services, are attracting users globally.
Growing investment in renewable energy storage and sources solutions to propel growth of the market
Growing focus on integrating renewable energy, thermally activated technologies, energy storage, distributed generation, and demand reaction into the electricity distribution and transmission system has allowed further assets in renewable energy. However, the demand for energy storage systems is driven by the rising necessity to reduce the confidence in oil, gas, and coal for electricity generation. Moreover, renewable-energy power plants use storage technologies to deal with the changeable outputs provided by such energy sources, as these technologies smoothen out the electricity supply and ensure that it meets the demand.Furthermore, the immediate discharge of power to the grid enables storage technologies as well as supports the growth of the market. On the other-hand, fossil-fuel-based energy generation systems take longer to ramp up and distribute full power, as these technologies are helping in saving significant time and the quick response is crucial for ensuring the stability of the grid over times of unpredicted electricity demand. Thus, increasing investment in renewable energy storage and sources solutions will boost the growth of energy as a service market during the forecast period.
The Energy Storage as a Service Market is segmented based on service, end-user, and region. Based on the service segment, the market is bifurcated intocustomer energy management services, ancillary services, bulk energy services, distribution infrastructure services, transmission infrastructure services and others. Among the service segment, customer energy management service dominated the market share in 2020. Based on end-user, the segmentation fragmentedinto utility, industrial, residential and commercial. Utility end-user segment registered majority of the share in 2020 and isexpected to continue its trend duringthe forecast period 2021 – 2028.
Asia Pacific region expected to grow at fast pace during the forecast period
Asia Pacific is anticipated to expand at the significant CAGR in the energy storage as a service market over the forthcoming years, owing to the increasing rate of presence of various untapped markets, coupled with the rising energy utilization. However, in the Asia Pacific region, China is expected to exhibit a significant market for energy storage as a service. This is due to improving industrialization in the region, high consumption of energy, and growing awareness of renewable energy.
Moreover, the growth in North American Energy Storage as a Service market is owing to the rise in demand for intelligent buildings and building automation.Growing demand for services such as offering demand-energy response solutions because of enhancing commercial industry and implementing energy efficiency projects is driving the growth of the market. Additionally, escalating share of renewable power generation and energy efficiency activities is projected to boost the market in this region. Furthermore, Europe will dominate the market owing to the rise demand for renewable power generation and growth in the industrial sector. The growth in Middle East & African countries is driven by oil and gas companies and the largest investment in the commercial sector.Advancement of an integrated distributed energy resource (iDER), augmented data analytics, and Artificial Intelligence market is emerging as strong growth opportunities, which showcases lucrative growth of Energy Storage as a Service market throughout the forecast period.
The prominent players in the energy storage as a service market involve Veolia, NRStor Inc., Siemens, ENGIE Storage Services NA LLC., Honeywell International Inc., Suntuity Solar LLC, Customized Energy Solutions Ltd., Enel X, ABB, WGL Holdings, Inc., Johnson Controls, Centrica, Orsted and among others.
Market by Service
Market by End-user
Market by Geography
Middle East & Africa
The estimated value of Energy Storage as a Service Market in 2020 was accounted to be US$ 1.2 Bn.
The projected CAGR of Energy Storage as a Service during the analysis period of 2021 to 2028 is 9.8%.
The prominent players of the Energy Storage As A Service market involveVeolia, NRStor Inc., Siemens, ENGIE Storage Services NA LLC., Honeywell International Inc., Suntuity Solar LLC, Customized Energy Solutions Ltd., Enel X, ABB, WGL Holdings, Inc., Johnson Controls, Centrica, Orsted and among others.
North America held the dominating share for Energy Storage as a Service during the analysis period of 2021 to 2028
Asia Pacific region exhibited fastest growing CAGR for Energy Storage as a Service during the analysis period of 2021 to 2028
Growing investment in renewable energy storage and sources solutions, and rising investment in energy distribution systems would create demand for distributed energy resources (DER)which will be fueling the growth of energy storage as a service market.
Based on service, customer energy management service segment held the maximum share for Energy Storage as a Service market in 2020.