Navigant Research Looks for More Growth in Energy Services

A new report from Navigant Research says U.S. energy service companies (ESCOs) face a challenge in finding new ways to grow and must look beyond U.S. markets.

“The energy service company (ESCO) industry in the United States follows a modest revenue growth trajectory generated by the business of implementing comprehensive facility upgrades. There is a foundation of ESCO work in the public sector supported by policy and economic drivers. The challenge for industry, however, is to attain more aggressive growth in this mature marketplace.”

Navigants says ESCOs need to get new business in the private sector and to develop sales outside of the United States. The researchers expect Europe to be the first key international market for the largest U.S. ESCOs. Although ESCOs have faced obstacles in developing markets outside the United States, the report says, “a tipping point is nearing and momentum is expected in the mid- and long-term.” According to Navigant Research, the U.S. ESCO market is expected grow from $6.3 billion in 2015 to $11.5 billion in 2024, while ESCO revenue in Europe is projected to grow from $2.7 billion to $3.1 billion.