July 15, 2010
Demand for energy in the Asia Pacific region is rising quickly, driven in large part by rapid economic growth in Southeast Asia, India, and China. Simultaneously, Asian governments and industry leaders are highly focused on creating a more sustainable and energy-efficient economy, and these goals have intensified their attention on the building sector, which is one of the primary sources of energy consumption. Driven by these macro trends, energy efficiency solutions for commercial buildings have become an increasingly larger priority for companies within the region.
Energy service companies (ESCOs) in Asia Pacific are meeting demand by providing energy-saving systems and comprehensive services adapted to their customers’ building facilities and building spaces. Over the past several years, performance contracting has become a more and more common business model to assist building owners and managers in optimizing energy use in existing buildings. According to a new report from Pike Research, the ESCO industry in Asia Pacific is poised for dynamic growth over the next several years, rising from $3.0 billion in annual revenue in 2009 to $18.5 billion by 2016.
“Energy service companies in Asia are focused on an increasingly diverse mix of business-wide solutions including engineering, construction, maintenance, design, and consulting,” says industry analyst Andy Bae. “They aim to assist customers in guaranteeing long-term reductions in energy use through energy-saving modifications. Recently, ESCOs have also started to help customers gain access to subsidy programs through energy savings performance contracts.”
Bae adds that China will the primary growth engine for the Asia Pacific ESCO market over the next several years, increasing from just 5% of the regional market in 2009 to more than 90% by 2015. During that period, the Indian ESCO industry will also experience rapid expansion on a smaller scale, but Pike Research forecasts that mature, established markets such as Japan and South Korea will be quite flat by comparison.
Pike Research’s report, “Energy Efficient Buildings: Asia Pacific” analyzes market issues and opportunities related to energy efficiency solutions for commercial buildings in the Asia Pacific region. The report examines the role of energy service companies, performance contracting business models , the economics and financing structures behind energy efficiency retrofits, and key green building trends. Market forecasts are provided through 2015, and key industry players are profiled in depth. An Executive Summary of the report is available for free download on the firm’s website.
Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’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, Clean Transportation, Clean Industry, Corporate Sustainability, and Building Efficiency sectors. For more information, visit www.pikeresearch.com or call +1.303.953.9765.