U.S. Energy Efficiency Market Expands in Slow Economy

U.S. Energy Efficiency Market Expands in Slow Economy

News Release -- San Diego, Calif. -- With U.S. sales of $59 billion and estimated growth of 6-7% in 2011, the commercial & industrial energy efficiency and demand response industry is looking healthy despite the slow economic recovery, according to updated analysis by Climate Change Business Journal (CCBJ).

Purchase CCBJ edition on "Energy Efficiency: Commercial & Industrial Markets" (23,000 words, 13 charts) for $150

Key Market Drivers
"The opportunity to cut energy costs as a means to improve margins and profitability has become more compelling during the recession," observed Jim Hight, CCBJ senior editor. "Another key factor in the market is that utility-funded incentive programs to conserve energy have continued to receive funding in the recession." Emerging drivers include air emissions and water quality regulations that will lead some electricity generators to shut down coal and natural gas plants, heightening the need for demand-side efficiency improvements.

Shift to Services
While hardware (appliances, devices and equipment) accounts for about three quarters of total sales, the focus has shifted from investments in equipment to services and software, according to CCBJ, which estimated that the services segment of the U.S. energy efficiency & demand response market grew 10.5% in 2011.

"There are still lots of lighting systems to retrofit, HVAC systems to swap out, windows to reglaze, waste heat to capture and so forth, but the energy efficiency segment is increasingly becoming an energy management business in which audits and capital projects are replaced by operations and partnership agreements," said Hight.

Market Prospects
Respondents to CCBJ's Commercial & Industrial Energy Efficiency Survey 2011 forecast the total energy efficiency industry would average growth of 14-15% annually for the next three years. Suppliers face challenges, however. "With no single end-user market dominating, commercial & industrial clients in all sectors still typically need to be convinced about payback and non-financial benefits: Marketing the value of broader based energy management services remains a challenge for vendors," said Grant Ferrier, president of EBI Inc., publisher of CCBJ.

Charts and graphs include

  •     The U.S. Energy Efficiency & Demand Response Industry
  •     U.S. Energy Efficiency & Demand Response Services Market
  •     Revenue Breakdowns in Energy Efficiency Companies
  •     Mean Growth Rates Forecast by CCBJ Survey Group: 2011-2015
  •     Customer Breakdown of Energy Efficiency Revenues in 2011
  •     Ranking of Client Sectors for Growth Prospects in Energy Efficiency
  •     CCBJ Survey: Largest Obstacles to Selling Energy Efficiency to Commercial &     Industrial Customers
  •     State Scoring on Energy Efficiency
  •     Policies to Stimulate Energy Efficiency Investment

Included in this edition:

  •     FSTC (food service industry)
  •     Environ (consulting & engineering perspective)
  •     DOE's Better Buildings Challenge
  •     SourceOne (energy management)
  •     EnerNOC and Comverge (demand response & EE)
  •     ICF International (focus on lighting)
  •     Michaels Engineering (banks and convenience stores)
  •     Graphet (utility programs and industrial sector)
  •     EEFG (selling energy efficiency)
  •     Schneider Electric (energy management)

Purchase CCBJ edition on "Energy Efficiency: Commercial & Industrial Markets" (23,000 words, 13 charts) for $150

For comment and access to research, contact:
Grant Ferrier, President, EBI Inc.
619-295-7685 ext 15
Contact info@ebimailbox.com for details and assistance
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