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Escalating Energy Prices Power European Energy Savings Contract and Performance Contracting Market Finds Frost & Sullivan - Building awareness on energy-performance-contracting business models is crucial for sustained market growth - BuildingTechnologies.Frost.com
Escalating Energy Prices Power European Energy Savings Contract and Performance Contracting Market Finds Frost & Sullivan

 

NewswireToday - /newswire/ - London, United Kingdom, 2013/09/03 - Building awareness on energy-performance-contracting business models is crucial for sustained market growth - BuildingTechnologies.Frost.com.

   
 
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The European energy savings contract and performance contracting market is highly resilient to economic downturns and will continue to exhibit healthy growth levels. Demand will continue to increase as constantly rising energy prices compel organisations to look for ways to optimise the performance of their buildings and reduce costs.

New analysis from Frost & Sullivan (buildingtechnologies.frost.com), European Energy Savings Contract and Performance Contracting Market, finds that the market earned revenues of $4.25 billion in 2012 and estimates this to reach $7.37 billion in 2018. The public sector, in particular, is a popular target for energy savings service providers. However, as competition intensifies and winning projects in the public sector becomes harder, companies will turn their focus to the private sector.

The growth pattern of the energy savings and performance contracting service market in Europe varies according to country and industry due to the differences in energy requirements and regulations. Germany is the most established market. The United Kingdom, Denmark and Sweden show greatest short-term potential while the Netherlands and France have great mid-term potential. Poland and the Czech Republic also have scope for market expansion.

"The EU has a strong commitment to energy efficiency and climate change issues and has passed a number of directives that are driving the need for energy savings and performance contracting,” said Frost & Sullivan Energy and Environmental Partner John Raspin. "With the energy efficiency target set to be reviewed by the end of 2013, new measures will encourage the modernisation of buildings and further widen the scope for energy savings and performance contracting service providers in the region.”

To capitalise on these opportunities, service providers in Europe must devise a tailored approach to appeal to the requirements of specific customer sectors, especially as a majority of them currently offer one-size-fits-all solutions.

Moreover, regulators as well as market participants should collaborate to educate consumers on the energy-performance-contracting business model, since the lack of awareness is a major market challenge. Financial institutions too are not fully familiar with the concept, and they offer conventional finance packages unsuitable for energy savings and performance contracting projects.

"It is important for service providers to facilitate the process of financing by partnering with banks and financial service providers in Europe and, more importantly, enlighten them on energy-performance-contracting business models,” recommended Raspin.

In the next five years, new participants from various industry backgrounds entering the European energy savings contract and performance contracting market will shape the competitive landscape.

If you are interested in more information on this research, please send an email to Chiara Carella, Corporate Communications, at chiara.carella[.]frost.com, with your full contact details, company name and website, city and country.

European Energy Savings Contract and Performance Contracting Market is part of the Building Management Technologies Growth Partnership Service program. Frost & Sullivan's related research services include: European Building Automation Systems Market, North American Geothermal Heating and Cooling Market, and Indoor Air Quality Market in China, among others. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
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European Energy Savings Contract and Performance Contracting Market / M90C-19

 
 
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Publisher Contact: Chiara Carella - Frost.com 
+44(0)20 7343 8314 / +44(0)75 3301 7689 (mobile) chiara.carella[.]frost.com
 
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