June 14, 2024
Energy ESO Market

Energy ESO Market: Renewables Integration Trends by 2024

The energy ESO (engineering, procurement, and construction) market provides engineering consulting, technical support services, and project management services to aid in renewable energy integration and optimize asset performance of energy infrastructure. Energy ESOs help clients comply with regulatory standards and reduce costs through automation and digitalization solutions across oil & gas, power generation, utilities, and renewable energy projects.

The Global Energy ESO Market is estimated to be valued at US$ 455.9 Mn in 2024 and is expected to exhibit a CAGR of 19.% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the energy ESO market are Altair Engineering Inc., Assystem, Semcon, STATS, Total OutSource, Inc., Cubic Corporation, Segula Technologies, QUEST GLOBAL, Rilco Engineering Services, Mott MacDonald, LUXOFT, A DXC TECHNOLOGY COMPANY, ESI Group, Cyient, Capgemini Engineering (Altran), Alten Group, Assystem.

Rising investments in renewable energy integration and modernization of aging energy infrastructure are fueling demand for Energy ESO Market Size services. Additionally, energy ESO companies are expanding globally to capitalize on the growing demand for energy transition and optimization services across international markets.

Market Key Trends

A major trend in the energy ESO market is the focus on integrating renewable energy resources into national grids. Energy ESOs help clients address technical challenges related to renewable energy intermittency and develop strategies to attain renewable energy generation targets through grid modernization, energy storage, and renewable portfolio management initiatives. They also assist utilities in grid planning to incorporate higher levels of distributed energy resources from solar and wind power. This trend is expected to significantly drive the demand for energy ESO services over the forecast period.

Porter’s Analysis

Threat of new entrants: New players need to spend heavily on IT infrastructure setup and skilled manpower recruitment.
Bargaining power of buyers: Buyers have low bargaining power as there are many sellers in the market providing similar services.
Bargaining power of suppliers: Suppliers have medium bargaining power as they are differentiated and buyers dependent on them for key support.
Threat of new substitutes: Threat of substitutes is medium as players provide customized integrated solutions.
Competitive rivalry: intense competition between existing players to gain market share.

Geographical Regions

North America region holds the major market share currently due to large presence of Energy ESO Market Size vendors and clients. Growing renewable energy sector in USA and Canada is driving the demand.
The Asia Pacific region is expected to witness the highest growth during the forecast period owing to the rising investments in renewable energy projects across major countries like China and India. Governments in the region are promoting cleaner sources to meet the increasing energy needs in a sustainable way.

The Asia Pacific region currently presents the largest opportunities for growth in the Energy ESO market in terms of value. Countries like China, India and Japan have high energy demands due to their large populations and industrial bases. At the same time, these nations are actively investing in renewable energy development and upgrading conventional infrastructure to more efficient technologies. This has led to substantial requirements for energy planning, asset management and sustainability services. Energy ESO companies focused on delivering customized solutions while establishing local talent centers stand to gain substantially in this dynamic and rapidly growing Asia Pacific market.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it