PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1530840
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1530840
According to Stratistics MRC, the Global Energy Consulting Market is accounted for $18.05 billion in 2024 and is expected to reach $28.17 billion by 2030 growing at a CAGR of 7.7% during the forecast period. Energy consulting is a specialized service that offers knowledgeable counsel and solutions to businesses aiming to maximize energy efficiency, cut expenses, and adopt sustainable practices. Experts in this domain examine patterns of energy usage, spot inefficiencies, and suggest enhancements that span from basic behavioural adjustments to cutting-edge technology advancements. They might also help with long-term energy planning, integrating renewable energy sources, and complying with regulations.
According to the International Energy Agency (IEA), global energy demand is expected to grow by 4.6% in 2024, driven by economic recovery and increased industrial activity.
Rising energy expenses
Energy costs now account for a large percentage of operating expenses for many organizations due to price volatility and an upward trend. Companies are increasingly looking for ways to optimize their energy usage in order to lower costs as prices continue to rise. The knowledge required to examine consumption trends, spot inefficiencies, and suggest tactics that can save a significant amount of money is provided by energy consultants. Additionally, this could involve the organization adopting energy-efficient technology, streamlining processes, and altering employee behavior.
High starting prices
The idea that energy consulting services will be expensive up front is one of the main obstacles to their adoption. The upfront cost of energy efficiency projects, technology upgrades, and consulting services may put off a lot of organizations. Even though there may be long-term savings, the substantial upfront cost may be prohibitive, especially for smaller companies with tighter budgets. Furthermore, this constraint frequently requires consultants to provide a convincing case for the expenditure through a cost-benefit analysis and return on investment demonstration.
Advancements in smart grid technologies development
New prospects for energy consultants are presented by the development of smart grid technology. Using cutting-edge technologies like data analytics, automated control systems, and real-time monitoring, smart grids improve the sustainability, dependability, and efficiency of energy distribution. Integration of smart grid solutions, distribution optimization, and grid resilience can all be enhanced by energy consultants working with organizations. Moreover, consulting firms can help clients navigate the challenges of smart grid deployment and guarantee they take advantage of the most recent developments in grid technology by utilizing their experience.
Uncertainty and regulatory shifts
The energy use and sustainability regulatory landscape is dynamic and multifaceted. Uncertainty can be introduced by changes to rules, standards, and policies, which can affect the market for energy consulting services. New rules might necessitate more compliance procedures or present unanticipated difficulties for consultants and their clients. Moreover, regulatory frameworks that vary or are inconsistent between different regions can make consulting more difficult. In order to manage these uncertainties, energy consultants need to be aware of changes in regulations and ready to modify their strategies and recommendations as necessary.
The COVID-19 pandemic affected the market for energy consulting in a number of ways. In the beginning, it caused a brief drop in the demand for consulting services because of budget cuts and economic uncertainty, which made businesses prioritize short-term over long-term goals. The pandemic hastened the adoption of digital technologies and remote work, though, and this has created new prospects for digital energy management solutions and virtual consultations. Furthermore, the pandemic also brought resilience and sustainability to light, which sparked a rise in interest in energy-saving and renewable energy initiatives as companies looked to secure their operations for the future.
The Reducing Energy Costs segment is expected to be the largest during the forecast period
The Reducing Energy Costs segment usually holds the largest share in the energy consulting market. This market appeals to a wide range of organizations looking to reduce their energy costs using a variety of tactics, such as strategic procurement, cost-effective technology, and energy efficiency upgrades. Services that aim to reduce energy costs are in high demand as organizations and businesses search for ways to meet sustainability goals while lowering operating expenses. Additionally, experts in this field offer clients insightful advice and practical solutions that improve overall energy management and result in substantial cost savings.
The Cloud segment is expected to have the highest CAGR during the forecast period
The cloud segment of the energy consulting market is growing at the highest CAGR. The growing popularity of cloud-based solutions, which provide scalable, adaptable, and affordable options for energy management and analysis, is the main driver of this growth. Cloud-based platforms improve decision-making and operational efficiency by providing real-time data access, sophisticated analytics, and integration across diverse energy systems. Moreover, the demand for cloud-based consulting services is rising as more businesses switch from conventional on-premise systems to cloud solutions, which is driving this market's notable expansion.
The market for energy consulting is dominated by North America. This dominance can be attributed to the region's highly developed energy infrastructure, substantial investments in renewable energy, and a strong focus on regulatory compliance and sustainability. Major energy companies are present, and this, along with the strong demand for creative energy solutions and efficiency gains, reinforces North America's dominant position. Additionally, its significant market share is also a result of ongoing technological developments and helpful legislative measures.
In the energy consulting market, Asia-Pacific region is growing at the highest CAGR. The primary reasons for this rapid growth are the region's expanding energy needs, which are being driven by rapid industrialization, urbanization, and economic development. The demand for consulting services that can support their ambitious energy goals and regulatory requirements is rising as a result of countries like China and India making significant investments in energy infrastructure and renewable energy projects. Furthermore, Asia Pacific's energy consulting industry is expanding at a faster rate due to the region's growing emphasis on energy efficiency, sustainability, and modernizing energy systems.
Key players in the market
Some of the key players in Energy Consulting market include Conservice LLC, E&C Energy Consulting, Antea Group, Energy Management Consulting Group (EMCG), NV5 Global Inc., 360 Energy Group, Enel X, Verde Solutions LLC, Schneider Electric SE, Ramboll Group, ISG Enterprise Energy Solutions, Accenture plc, Energy Edge Consulting LLC, Arthur D. Little Inc. and RPS Group PLC.
In March 2024, Ramboll Partners with Tata Consultancy Services for IT improvement. Tata Consultancy Services (TCS) has entered into a seven-year contract with Ramboll, a Danish global architecture, engineering, and consultancy company, to overhaul its IT infrastructure with modernisation and cost reduction.
In February 2024, Schneider Electric, a digital energy and automation Manager Company recently announced its investment in a portfolio of Texas-based clean energy projects. Through this, it utilized a Tax Credit Transfer Agreement (TCTA) for solar and battery storage systems developed, built, and operated by ENGIE North America (ENGIE).
In April 2023, Enel X Way, the Enel Group's global e-mobility business, has been awarded a cooperative contract with the Purchasing Cooperative of America (PCA) to streamline and accelerate the procurement and deployment of electric vehicle (EV) charging infrastructure across the North America.