A new report from Guidehouse Insights analyzes the global market for energy as a service (EaaS).

A notable area of growth in the last couple of years for EaaS has been in small and medium-sized buildings (SMBs). Large commercial building owners and tenants usually have dedicated facility managers as well as dedicated building management budgets that enable them to invest in and manage energy efficient technologies. According to a new report from Guidehouse Insights, the value of EaaS for SMBs is expected to increase from $468.5 million in 2022 to $2.4 billion by 2031, growing at a compound annual growth rate (CAGR) of 19.8% during the period.

“The global market for EaaS has been growing throughout 2022 despite the global economic slowdown and is rapidly evolving to meet the changing needs of customers,” says David Gonzalez, research analyst with Guidehouse Insights. “Expanding capabilities in onsite energy generation and storage, sustainability commitments, extreme weather events, and other factors are contributing to the EaaS evolution in the market landscape.”

Multiple market drivers have supported the adoption of the EaaS financing model for SMBs, including energy savings and strong sustainability commitments. Customers are attracted to EaaS financing because it allows them to address sustainability, resiliency, and deferred maintenance while upgrading facilities with OPEX-only payments and immediate ROI, according to the report.