Energy Service Company Market Will Reach Nearly $8.3 Billion in Annual Revenue by 2020, Forecasts Navigant Research

  Energy Service Company Market Will Reach Nearly $8.3 Billion in Annual
  Revenue by 2020, Forecasts Navigant Research

Business Wire

BOULDER, Colo. -- October 7, 2013

The energy service company (ESCO) market in the United States has gone through
a difficult period in recent years. Customers have grown concerned about the
impact of energy performance contracts on their financial positions, and many
of the resources, including policy measures, that drove growth prior to 2011
have been exhausted. As a result, ESCO market activity has slowed
considerably. According to a new report from Navigant Research, however,
growth in the U.S. ESCO market is set to resume. Annual revenue for U.S. ESCOs
will grow from $4.9 billion in 2013 to almost $8.3 billion in 2020, the study
concludes.

“Over the past two years, ESCOs have found it difficult to attract customers
and convert backlog into revenue,” says Eric Bloom, senior research analyst
with Navigant Research. “The difficulties imposed on key customer segments,
such as municipalities, by weak economic conditions across the United States
have constrained demand. Over the next 7 years, though, growth is expected to
resume as energy efficiency measures take effect across a broad swath of the
economy.”

The federal sector, for example, which has long been an important part of the
ESCO market, will undergo significant growth, thanks to a number of supportive
measures including the 2011 Better Buildings Initiative, which aims to provide
$2 billion of energy performance contracts in the federal sector by the end of
2013. Other sectors, such as commercial and industrial firms and public
housing, will also start to expand once broader economic conditions improve,
according to 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 study 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 website.

About Navigant Research

Navigant Research, the dedicated research arm of Navigant, provides market
research and benchmarking services for rapidly changing and often highly
regulated industries. In the energy sector, Navigant Research focuses on
in-depth analysis and reporting about global clean technology markets. The
team’s research methodology combines supply-side industry analysis, end-user
primary research and demand assessment, and deep examination of technology
trends to provide a comprehensive view of the Smart Energy, Smart Utilities,
Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional
information about Navigant Research can be found at www.navigantresearch.com.

About Navigant

Navigant (NYSE:NCI) is a specialized, global expert services firm dedicated to
assisting clients in creating and protecting value in the face of critical
business risks and opportunities. Through senior level engagement with
clients, Navigant professionals combine technical expertise in Disputes and
Investigations, Economics, Financial Advisory and Management Consulting, with
business pragmatism in the highly regulated Construction, Energy, Financial
Services and Healthcare industries to support clients in addressing their most
critical business needs. More information about Navigant can be found at
www.navigant.com.

* The information contained in this press release concerning the report, “The
U.S. Energy Service Company Market,” is a summary and reflects Navigant
Research’s current expectations based on market data and trend analysis.
Market predictions and expectations are inherently uncertain and actual
results may differ materially from those contained in this press release or
the report. Please refer to the full report for a complete understanding of
the assumptions underlying the report’s conclusions and the methodologies used
to create the report. Neither Navigant Research nor Navigant undertakes any
obligation to update any of the information contained in this press release or
the report.

Contact:

Navigant Research
Richard Martin, +1.303.493.5483
richard.martin@navigant.com
or
Laverne Murach, +1.202.481.7336
laverne.murach@navigant.com