ESCO Market to Double by 2024

Europe is expected to be the first key international market for the largest U.S. energy service companies.

The U.S. Energy Service Company Market (ESCO) Is Expected to Reach $11.5 Billion a Year by 2024, According to Navigant Research

A new report from Navigant Research examines the market opportunity for energy service companies (ESCOs) and energy performance contracting (EPC), including market forecasts for the United States and Europe, segmented by customer type and technology, through 2024.

As potential ESCO customers continue to grapple with emerging climate change policies, risks associated with grid reliability, and a growing awareness of energy as an influence on the bottom line, the demand for energy efficiency retrofits and building improvements is expected to grow. Particularly in the United States  the private sector is emerging as a source of untapped market potential expected to further strengthen the market. According to a recent report from Navigant Research, the U.S. ESCO market is expected increase from $6.3 billion in 2015 to $11.5 billion in 2024.

“In facing long-term business planning, ESCOs are challenged to grow their business in this mature marketplace, which has been dominated by business in the public and institutional segments,” says Casey Talon, senior research analyst with Navigant Research. “The evolution of this market is contingent on the continued support and development of the traditional customer base, but also the repositioning of offerings to appeal to a broader audience, namely in the private sector and Europe.”

Europe is expected to be the first key international market for the largest U.S. ESCOs, according to the report. Although ESCOs have faced significant obstacles in developing markets outside the United States, based on the successes of some vendors to date, important developments on the regulatory and policy front, and lessons learned from early market failures, a tipping point is nearing, and mid- and long-term momentum in the European market is expected.

The report, Energy Service Company Market Overview, assesses the ESCO market for energy EPCs. These projects include retrofits for lighting, heating, ventilation, and air conditioning (HVAC) and mechanical systems, renewables, water conservation, commercial building automation systems (CBASs), and building energy management systems (BEMSs). The report details the current state of the ESCO market and provides insight into its future direction based on customer demand, government policies, and other market dynamics. Forecasts for the U.S. ESCO market, segmented by customer type and technology, extend through 2024. The report also provides a top-line forecast through 2024 for ESCO revenue in Europe, with a focus on Germany, France, and the United Kingdom. An Executive Summary of the report is available for free download on the Navigant Research website.


About Navigant Research

Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. The team’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, Smart Utilities, Smart Transportation, and Smart Buildings sectors.  Additional information about Navigant Research can be found at


About Navigant 

Navigant is a specialized, global professional services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals deliver expert and advisory work through implementation and business process management services. The firm combines deep technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism to address clients’ needs in highly regulated industries, including Construction, Energy, Financial Services and Healthcare. More information about Navigant can be found at