Energy Service Market to Explode

Pike Research - Spawned by
the oil crisis of the 1970s, the Energy Service Company (ESCO)
business in the United States has proven to be a successful and
resilient model for improving the energy efficiency of commercial
and public buildings. 

According to a new report from href=””>Pike Research, the ESCO
industry is poised for strong continued growth, and the cleantech
market intelligence firm forecasts under a base case scenario that
ESCO revenues will increase by more than 250% in the coming years,
from $5.6 billion in 2009 to nearly $19.9 billion by

“The largest opportunities for ESCOs lie in
expanding their reach to new building sectors,” says research
analyst Jevan Fox.   “With 80% of the market currently in
the institutional and federal sectors, private commercial buildings
are the next frontier for ESCOs.  However, private building
owners still lack the proper financing structures and incentives to
take advantage of this opportunity.”

With such mechanisms in place, such as Property Assessed Clean
Energy (PACE) financing that is starting to gain traction around
the country, Pike Research estimates that ESCO market could
accelerate well beyond the firm’s base case scenario.  An
aggressive growth forecast scenario, which assumes greater
utilization of PACE financing as well as cap and trade legislation
and a tax on carbon emissions, could yield an annual ESCO market of
$37.6 billion by 2020, representing a more than six-fold increase
over 2009 revenues.

Pike Research’s study, href=””
target=”_blank”>”The U.S. Energy Service Company Market”,
examines the commercial buildings market by end-use, identifying
the solution opportunities for ESCOs and highlighting key industry
drivers.  The report analyzes the framework for rapid growth
in this market, with forecasts that include base case and
aggressive growth scenarios through 2020. 

An Executive Summary of the report is available for free
download on the firm’s href=””

Pike Research is a market research and consulting firm that
provides in-depth analysis of global clean technology
markets.  The company’s research methodology combines
supply-side industry analysis, end-user primary research and demand
assessment, and deep examination of technology trends to provide a
comprehensive view of the Smart Energy, Clean Transportation, Clean
Industry, Corporate Sustainability, and Building Efficiency
sectors.  For more information, visit href=””>
or call +1.303.284.9609. 


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