Energy ESO Market Size, Share, and Trends 2024 to 2034

Energy ESO Market Size and Growth 2023 to 2032

The global energy ESO market size was estimated at US$ 230 billion in 2022 and is expected to hit US$ 1261.05 billion by 2032, poised to grow at a CAGR of 18.60% during the forecast period 2023 to 2032.

Key Takeaway:

• The North America market is expected to grow at a registered CAGR of 21.2% from 2023 to 2032.
• The R&D and designing service segment is growing at a CAGR of 20.3% between 2023 to 2032.
• The implementation and maintenance service segment has held revenue share of around 23% in 2022.
• The renewable energy segment is poised to grow at a CAGR of 21.6% during the forecast period.
• The onshore location segment is expected to reach at a CAGR of 20.6% vetween 2023 to 2032.

Energy ESO Market Size in Asia Pacific 2023 To 2032

The Asia Pacific energy ESO market size was valued at US$ 230 billion in 2022 and is predicted to reach US$ 1261.05 billion by 2032, at a CAGR of 18.60% between 2023 to 2032.

Asia Pacific accounted for over 38% of the market share in 2022 and was the leading energy ESO market across the globe. The huge presence of skilled and talented engineers and the favorable government regulations has fostered the growth of the Asia Pacific energy ESO market. The availability of cheap labor is the major factor behind the market growth. Moreover, the rising investments in the green and clean energy are expected to further augment the market growth in the forthcoming years.

North America is estimated to witness the fastest-growth rate during the forecast period. The rising government and corporate investments towards the adoption of the renewable energy sources is significantly driving the market growth in North America. As per the data released by the US Energy Information Administration, the electricity generation using the renewable sources has increased to 20% in 2020 from 17% in 2019. The higher adoption rate of the sustainable and advanced technologies in the region is expected to drive the growth of the North America energy ESO market during the forecast period.

Growth Factors

The global energy ESO market is primarily driven by the growing digitization in the energy sector across the globe. Numerous Engineering Service Providers facilitated the development of various technologies pertaining to the virtual prototyping, smart grid management, digitization of plant, and embedded product engineering. These technologies play a crucial role in augmenting the growth of the digitization of the energy sector. The original equipment manufacturers (OEMs) can potentially reduce its labor costs by outsourcing service activities to the engineering service providers. The engineering service providers are well-equipped with a team of skilled and experienced engineers that can quickly and efficiently complete the service tasks, and this is expected to attract attention from the various end use industries across the globe. The growing demand for the efficient and uninterrupted supply of power across the various applications is significantly boosting the growth of the energy ESO market. The rising urbanization and growing industrialization across the globe is expected to have a significant impact on the growth of the global energy ESO market during the forecast period.

The availability of technologically advanced engineering tools and trained labors with the engineering service providers is further boosting the demand for the energy ESO across the energy units. The rising investments in the research & development by partnering with the engineering service providers are expected to provide new growth aspects to the market players in the forthcoming future. Furthermore, the growing adoption of the renewable energy sources across the globe is estimated to boost the energy ESO market growth across the globe. The surging demand for the energy ESO and the presence of several engineering service providers is resulting in cutting edge competition. The engineering service providers mainly compete on the ground of pricing and their expertise on the domain. This factor is benefiting the energy providers across the globe as they gets the ESO services at a low cost along with the efficient services.

Report Scope of the Energy ESO Market

Source Insights

The non-renewable segment dominated the global energy ESO market, garnering a market share of around 56% in 2022. The increased consumption of non-renewable energy sources such as fossil fuels, coal, petroleum, and natural gas for the generation of energy across the globe has resulted in the dominance of this segment. The rising production of natural gas owing to the presence of abundant resources of natural gas such as coalbed methane, shale gas, and tight gas, is expected to fuel the growth of this segment in the nearby future.

On the other hand, the renewable is estimated to be the most opportunistic segment during the forecast period. The growing concerns regarding the deteriorating environmental condition, rising initiatives to reduces carbon footprint, and increasing investments towards shifting to the renewable energy sources is fueling the growth of this segment across the globe. The strong economic growth owing to rising industrialization and growing volume of economic activities is fueling the demand for the uninterrupted energy supply. The rising demand for efficient energy supply coupled with rising efforts to reduce greenhouse gases emission is driving the growth of the renewable segment.

Service Insights

Depending on the service, the structuring & layout segment accounted for a market share of around 36% and dominated the global energy ESO market in 2022. The engineering service providers provide structuring and layout services for various large infrastructure projects such as solar plants, wind plants, oil & gas, and mining plants. The increased adoption of the structuring and layout services from the engineering service providers has fostered the growth of this segment.

The R&D and designing is expected to be the fastest-growing segment during the forecast period.  The growing demand for the real-time analytics across the energy sector is fueling the growth of this segment. Moreover, the rising needs for analyzing the large volumes of generated data in the energy generation and the real-time feedback from the smart grids is expected to fuel the growth. Furthermore, the rising government investments on the research & development activities relating to the energy are fostering the growth. For instance, as per the International Energy Agency, around 26 billion was spent by the governments all over the globe in 2018 on the energy R&D.

Location Insights

The onshore segment garnered a market share of around 57% and dominated the global energy ESO market in 2023. The privacy and the security are the major reason that forces the OEMs to outsource the onshore activities. The presence of the several local engineering service providers has resulted in the dominance of the onshore segment as the presence of the service providers in the home region is essential for the onshore related service activities. The increased concerns regarding the data privacy and data security is fueling the demand for the onshore services and hence this segment is expected to be the fastest-growing segment during the forecast period.

Key Market Developments

The energy ESO market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.

• In 2017, Altran Engineering completed the acquisition of an US-based engineering service provider named Aricent. This development aimed at leveraging new opportunities and growing demand in US.

Some of the prominent players in the global energy ESO market include:

• Alten Group
• Cyient
• LUXOFT
• Altair Engineering, Inc.
• Altran
• ESI Group
• Semcom
• Quest Global Services Pte. Ltd.
• Stas Engineering
• Mott Macdonald
• Total Outsource Incorporation
• Assystem

Segments Covered in the Report

By Source

• Renewable
• Non-Renewable
• Chemical Processing

By Service

• Structuring & Layout
• Digitization
• R&D and Design
• Implementation & Maintenance

By Location

• Onshore
• Offshore

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa