Abstract

The energy savings performance contracts (ESPCs) offered by energy service companies (ESCOs) can increase cost savings, energy efficiency, and infrastructure resilience across numerous customer segments. ESPCs can directly benefit federal and municipal government buildings, hospitals, and education facilities. Other beneficiaries include private commercial and industrial (C&I) buildings, utilities, and military institutions.

Multiple market drivers support the use of ESPCs globally. Both public and private entities are attracted to the cost savings, infrastructure upgrades, and increased energy efficiency and resilience that result from ESPCs. Other key drivers of ESPC use are corporate decarbonization goals, enabling legislation, building performance standards, utility-based programs, energy market participation incentives, and companies with excess capital. Yet despite noticeable growth, the ESCO performance contracting market faces noteworthy barriers. Continued growth will depend on stakeholders addressing challenges by increasing awareness of the benefits of using ESPCs as a contracting mechanism.

This Guidehouse Insights report analyzes major trends in ESCO performance contracting across six customer segments: primary and secondary education, state and local government, federal or national government, higher education, healthcare and hospitals, and C&I. It covers six technologies utilized in ESPCs that help customers increase energy efficiency, cost savings, and infrastructure value: HVAC, lighting, building controls, water efficiency, onsite supply and renewables, and EV charging. The report provides an overview of the drivers and barriers for the ESCO performance contracting market and offers recommendations for ESPC stakeholders. Finally, it projects global revenue from ESPCs by region, customer segment, and equipment type from 2025 through 2034.

What Questions Does This Report Answer?

• How can a variety of customer segments, ranging from public to private entities, benefit from ESPCs?
• How are ESCO customer needs changing?
• How is the ESPC market expected to grow over the next 10 years?
• Why are ESPCs smart financial opportunities for public and private entities?
• What are the primary market drivers and barriers affecting the ESCO performance contracting market?

Who Would Benefit from This Report?

• ESCOs
• Public and private companies
• Utilities
• Governments
• Green financing companies

Key Market Forecasts in This Report

• Energy Savings Performance Contract Revenue by Region, World Markets: 2025–2034
• Energy Savings Performance Contract Revenue by Customer Type, World Markets: 2025–2034
• Energy Savings Performance Contract Revenue by Equipment Type, World Markets: 2025–2034
• Energy Savings Performance Contract Revenue by Customer Type, North America: 2025–2034
• Energy Savings Performance Contract Revenue by Equipment Type, North America: 2025–2034
• Energy Savings Performance Contract Revenue by Customer Type, Europe: 2025–2034
• Energy Savings Performance Contract Revenue by Equipment Type, Europe: 2025–2034
• Energy Savings Performance Contract Revenue by Customer Type, Asia-Pacific: 2025–2034
• Energy Savings Performance Contract Revenue by Equipment Type, Asia-Pacific: 2025–2034