Energy ESO Market Size, Share and Trends 2025 to 2034

Energy ESO Market Size and Forecast 2025 to 2034

The global energy ESO market size was worth around USD 321.07 billion in 2024 and is anticipated to reach around USD 1,625.37 billion by 2034, growing at a CAGR of 17.61% from 2025 to 2034. The global environmental sanctions and the adoption of smart grids, and forecasting tools are leading to high demand in the energy ESO market.

Energy ESO Market Key Takeaways

• Asia Pacific dominated the global market with the largest market share of 38% in 2024.
• North America is projected to expand at the notable CAGR during the forecast period.
• By source, the non-renewable segment contributed the highest market share in 2024.
• By source, the renewable segments is estimated to be the fastest-growing segment during the forecast period.
• By service, the structuring and layout segment captured the biggest market share in 2024.
• By service, the R&D and designing segment is expected to grow at a significant CAGR from 2025 to 2034.
• By location, the onshore segment has held the largest market share in 2024.

How is AI changing Energy ESO?

Artificial intelligence (AI) algorithms help to generate increasingly accurate forecasts and also coordinate many participants in the virtual power plant. AI in energy power systems is better equipped to predict and identify system faults, improve real-time monitoring, improve power flow, and stabilize the grid. AI is helpful to improve the efficiency and reliability of reliability of electricity distribution. AI improves the decision-making process in the production. These factors help the growth of the energy ESO market.

Asia Pacific Energy ESO Market Size and Growth 2025 to 2034

The Asia Pacific energy ESO market size was exhibited at USD 122.01 billion in 2024 and is projected to be worth around USD 625.77 billion by 2034, growing at a CAGR of 17.76% from 2025 to 2034.

Asia Pacific region dominated the growth of the energy ESO market. 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. 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 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 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 who 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 various applications is significantly boosting the growth of the energy ESO market.

Market Scope

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.

Energy ESO Market Companies

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

Latest Announcement by Industry Leaders

• In April 2024, the Future Energy Scenarios (FES) report for 2024, was launched by the UK’s grid operator.

Market Developments

• In April 2024, Pod Point and British Gas launched a groundbreaking EV charging trial. This helps to reduce costs and to balance the energy system. Vineet Nargolwala, CEO of Allegro MicroSystems, said, "India's rapidly growing automotive market presents a tremendous opportunity for Allegro MicroSystems. This CoE established with Cyient's partnership, will enable us to accelerate innovation in magnetic sensors and power semiconductors, delivering cutting-edge solutions that address the evolving needs of the automotive industry. This investment reinforces Allegro MicroSystems's commitment to driving e-mobility, clean energy and automation forward, aligning perfectly with our vision for a safer, more sustainable and autonomous future."
• In November 2024, to drive innovation in magnetic sensors and power semiconductors for the automotive industry, Cyient, and Allegro MicroSystems collaborated.

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