The Growing US Energy Solution Services Industry

The Growing US Energy Solution Services Industry

Buildings account for more than 40% of all energy consumption in the United States, and more than 30% of all energy consumed worldwide.  Improving energy efficiency in buildings is fundamental for reducing greenhouse gas emissions in cities, decreasing costs and improving productivity for businesses and strengthening energy security; and thus, the circular economy. In U.S., Building Energy Management Services (BEMS) is a $64 billion industry that plays an ever critical role in controlling energy consumption and CO2 emissions in cities. This fast growing sector, driven by environmental regulation and energy costs, touches all markets, especially regionally in California.  

In keeping with the sector's growth and need for consolidation, Veolia Energy North America Holdings, Inc. (Veolia) has acquired Enovity, a San Francisco-based energy services firm. Enovity is a strategic acquisition that complements Veolia’s existing SourceOne energy services business, providing a platform for expanding the company’s geographic footprint in the building energy services sector. Investing in Enovity supports Veolia’s growth strategy within the energy services sector in North America.  With the Enovity acquisition, Veolia’s energy solutions business expands to 250 professionals with offices in New York, Boston, Philadelphia, and four locations in California (San Francisco, Los Angeles, Irvine and Sacramento); combining the leading minds in the energy services business.

A recent market research on Energy Management Systems (EMS) Market in the US (October 2016) by Grand View Research highlighted that North America dominated the global demand and accounted for over 42% of the total revenue in 2015. Extensive adoption of EMS in various verticals including retail, power, and manufacturing sectors may be attributed to high penetration in the region. Industrial Energy Management System (IEMS) was the leading product segment and dominated the total revenue in 2015, followed by BEMS and HEMS (Home Energy Management Systems), in that order.

The research also forecasted the growth of the EMS industry from 2016 to 2024. The figure here shows the U.S. energy management systems (EMS) market revenue by product, 2014 - 2024 (USD Million). IEMS is expected to grow at grow at a CAGR (Compound Annual Growth Rate) of over 14.7% from 2016 to 2024. While BEMS is expected to grow at a CAGR of over 14.7% during the same forecast period, higher than that of IEMS. This growth is owing to increasing installation of these systems in shopping complexes, telecom, business parks, hospitals, and IT establishments. HEMS has seen a slow growth till 2015, however it is expected to witness the fastest growth over the forecast period.