Roland Berger study sees pan-European growth in the demand for energy efficiency services; market expected to double in size by 2025

Roland Berger study sees pan-European growth in the demand for energy efficiency services; market expected to double in size by 2025

(PRESS RELEASE) MUNICH, 13-Feb-2019 — /EuropaWire/ — New study by Roland Berger, released on 13 February, looks into the market for energy efficiency services across Europe. According to the research paper the key findings are 1) the market is expected to grow to EUR 50 billion in Europe by 2025, which is almost double as compared to current figures and 2) it is becoming key market in the European industrial landscape.

Growing climate change commitments and targets, green energy transition, rising energy costs are among the factors adding pressure to companies to be as efficient as possible in their resource consumption.

According to the experts from Roland Berger those factors result in pan-European growth in the demand for energy efficiency services (EES) and they estimate the volume of such services will double by 2025, producing a market worth some EUR 50 billion.

The total market for energy efficiency services in Europe is growing at around 8 percent p.a., on average, in the period through 2025. The market situation in Germany is also very positive and sits at about 7 percent p.a. Also, Germany accounts for almost 25 percent of the value of EES services sold in Europe, making it a lucrative market for all types of energy efficiency services (EES) providers.

The researchers and the authors of the study, through their systematic analysis, bring transparency into the market for industry incumbents and new market entrants alike.

Ralph Büchele, Partner at Roland Berger:

“The market for energy efficiency services is very dynamic but it is also fragmented and not very transparent. As a result, EES providers have so far found it very difficult to gauge their growth potential in this environment and to see what the risks are and where investments would pay off.”

The Roland Berger study highlights five key markets in which EES providers operate:

Energy efficiency software – it is the smallest market niche, but is growing at +14 percent per annum, which makes it the fastest growing one;

Energy efficiency audits and consulting – this market segment is growing very slowly at only +4 percent p.a.;

Engineering, procurement and construction (EPC) of energy efficiency technology – It represents the biggest subsegment making about 40 percent of the total market and is growing at 9 percent per year.

Efficient operations – expected to grow at an average of 8 percent per annum; and

Energy efficiency contracting – pretty much the same as above, set to grow at a healthy rate of 8 percent per annum.

Ralph Büchele explains further that there many influences driving and impacting this positive development. Among others are policymakers and business leaders alike are under pressure from the need to meet climate change targets, be it in terms of operating more sustainably or through continuing to push the green energy transition. He also forecasts that digitalization alone will increase the size of the market for EES services by EUR 13 billion by the year of 2025.

The market, in general, is highly fragmented and complex with most of the players being small and medium-sized companies and only few of them are entirely focused on EES.

According to the authors of the study, market players need to plan their growth strategies meticulously and rely on targeted acquisitions, digital tools, integrated business models, flexible organizational structures, among others.

Ralph Büchele adds further:

“If an EES player sees itself becoming too complex as a result of serving many different markets, they should think about moving some of the services outside the company, such as into a subsidiary. Integrated business models and flexible organizational structures are a basic prerequisite for fast business growth.”

The full report can be downloaded as a PDF at:

SOURCE: Roland Berger


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