Governments and utilities allocate billions of dollars toward energy efficiency initiatives for end-use customers and a variety of public policy purposes each year. Meanwhile, businesses and residential consumers spend their own money on energy efficiency improvements to their homes and facilities for their own reasons.
Trends in data indicate that the total energy efficiency market will grow steadily in the coming years. Mergers and acquisitions of energy efficiency services firms have also been increasing, with utilities, technology providers, and energy equipment manufacturers all stepping into the market.
At the same time, the low energy demand outlook in International Energy Agency (IEA) countries due to economic conditions and the effects of energy efficiency adoption has prompted some traditional energy utilities to offer energy services as a way to expand their revenue.
In addition, growth in the use of remote monitoring, control, and data analytics is enabling new business models and service solutions. These developments are encouraging further growth in energy efficiency program spending. According to Navigant Research, global government and utility energy efficiency spending is expected to grow from $25.6 billion in 2017 to $56.1 billion in 2026.