Europe Residential Energy as a Service (EaaS) Market - By Type (Energy supply service, Operational and maintenance services, Energy efficiency and optimization services) & Forecast, 2024 – 2032

Europe Residential Energy as a Service Market Size

Europe Residential Energy as a Service Market Size was valued USD 2.3 billion in 2023 and is anticipated to grow at a CAGR of 9.7% between 2024 and 2032. These are energy services provided to residential customers on a subscription or pay per use basis, rather than through traditional ownership of energy assets. The service offers homeowners or tenants access to energy efficient technologies, without the need for upfront investment or ownership of the equipment.
 

Escalating energy prices in Europe and ambitious energy transition targets and sustainability goals including the reduction of greenhouse gas emissions and the promotion of renewable energy is creating growth prospects for advanced solutions. Rising advancements in energy technologies, including solar PV, battery storage, smart meters, and energy management systems, are making solutions more accessible, reliable, and cost-effective for residential customers, thereby accelerating the product penetration. Shifting focus of homeowners towards energy solutions that offer greater control over energy consumption, real time monitoring, and personalized energy management options will create a positive business outlook.
 

Growing emphasis on promoting energy efficiency and sustainability in residential applications to reduce carbon emissions, enhance environmental conditions, and align with regulatory mandates and climate goals is augmenting the industry outlook. The shift towards decentralized energy systems, driven by increasing consumer demand for energy independence, resilience, and grid flexibility is anticipated to boost the product adoption in the forecast period.
 

Europe Residential Energy as a Service Market Trends

Rising strategic alliances among key players to enable access to complementary expertise, technologies, and financing mechanisms, facilitating the development and deployment of integrated solutions to address customer needs effectively will lead to market expansion. Additionally, growing investments in enhancing the customer experience and engagement throughout the entire lifecycle, thereby expanding the target audience, will stimulate the product penetration.
 

Europe Residential Energy as a Service Market Analysis

Based on type, the Europe Residential Energy as a Service Industry is segmented into energy supply services, operational and maintenance services and energy efficiency and optimization services. Operational and maintenance services are anticipated to grow by over USD 2.4 billion by 2032. Stringent energy efficiency regulations, building codes, and climate targets set by governments and regulatory bodies will drive the demand for these services, encouraging homeowners to invest in these solutions to meet compliance requirements and reduce carbon emissions. Furthermore, rising energy prices and volatile utility tariffs motivate homeowners to adopt energy efficiency measures and optimize usage to mitigate the impact of rising power costs and achieve long term cost savings, thereby fueling the service demand.
 

France Energy as a service (EaaS) market is anticipated to grow by over USD 400 million by 2032. Government proactive promotion of renewable solutions and energy efficiency initiatives through various support schemes, incentives, and subsidies is fostering the market trend. Rising ambitious energy transition goals including the Green Growth Act of 2020, the roadmap for achieving these objectives is anticipated to drive the industry scenario.
 

In the U.S., growing implementation of Renewable Portfolio Standards (RPS) and clean energy mandates, requiring utilities to procure a certain percentage of their electricity from renewable sources, will create growth opportunities. Furthermore, homeowners in regions prone to extreme weather events are creating lucrative opportunities for energy solutions that incorporate energy storage, backup generators, and grid-independent capabilities to ensure reliable power supply during emergencies.
 

Europe Residential Energy as a Service Market Share

Eminent players are focusing on diversifying their service offerings to cater to the evolving needs and preferences of residential customers. Companies are offering a comprehensive suite of energy solutions, including solar PV installations, energy storage systems, smart home automation, energy management software, and energy efficiency upgrades, tailored to meet the unique requirements of homeowners. Key players also investing in technology innovation and research and development (R&D) initiatives to develop cutting-edge solutions, enhance product performance, and differentiate themselves in the market.
 

Europe Residential Energy as a Service Market Companies

Eminent players operating in the industry are:

• Ameresco
• Adven
• Budderfly
• Bernhard Energy Solutions
• Capstone Green Energy Corporation
• Enel X
• E.On Energy
• Edison Energy
• ENGIE Impact
• GridX.Inc
• Honeywell International Inc
• Johnson Controls
• Schneider Electric
• Siemens AG
• WGL Energy
   

Europe Residential Energy as a Service Industry News:

• In May 2023, E.ON, Energy Systems Catapult and Heatio Ltd are teaming up to pioneer new green finance models, Heat as a Service and Energy as a Service, to bolster the UK's green finance market. The consortium aims to innovate and expand these models nationally for long term impact.
   
• In September 2020, Eliq, a Swedish software firm, secured USD 5.3 million in Series A funding round, co led by Inven Capital and Contrarian Ventures, with existing investors also participating. The funding will help the company boost its SaaS for EaaS solutions serving as a connection between energy companies and customers as well as enable the company to bring more solutions to the market.
   

Europe residential energy as a service (EaaS) market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “USD Billion” from 2021 to 2032, for the following segments:

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Market, By Type

• Energy supply service
• Operational and maintenance services
• Energy Efficiency and optimization services

The above information has been provided for the following countries:

• Germany
• Italy
• UK
• France
• Denmark