by Brianna Crandall — March 3, 2014—Rebounding from a tough two years of slowing growth, the energy service company (ESCO) market in the United States is expected to resume its expansion in the coming years, according to a recent report from market research and consulting firm Navigant Research. The primary markets for ESCOs include K-12 schools, state and local governments, universities and colleges, and hospitals. According to the report, educational facilities—combining K-12 and universities/colleges—will be the largest market segment for ESCOs, representing more than $22 billion in cumulative revenue from 2013 through 2020.
“The ESCO market continues to be concentrated in municipalities, universities, schools, and hospitals, known as the ‘MUSH’ market,” says Eric Bloom, senior research analyst with Navigant Research. “K-12 schools, which present the largest opportunity for ESCOs, are designed to last for many decades, and many public school buildings in operation today are characterized by out-of-date HVAC, lighting, and control systems that could benefit considerably from system upgrades.”
For facilities managers, school boards, mayors’ offices, and other K-12 stakeholders, energy is rarely the chief concern, notes the report. Other priorities, such as teacher salaries and curriculum development, tend to command more attention than energy-related matters. As a result, many ESCOs find that success in the K-12 sector involves the ability to address a wide range of concerns that go beyond energy in facilities, such as replacing roofs and façades, and upgrading interior furnishings, concludes the report.
The report, The U.S. Energy Service Company Market, examines the ESCO market in the United States, detailing drivers and barriers to the deeper penetration of energy efficiency in the U.S. economy. The report covers all ESCO sectors, including municipalities, universities, schools, and hospitals, federal, commercial and industrial, and public housing. Market forecasts for ESCO revenue in the United States, segmented by sector and technology, extend through 2020. The report also analyzes various ESCO financing models and energy efficiency technologies, and profiles key industry players.
An Executive Summary of the report is available for free download on the Navigant Research Web site.
