Education Will Be the Largest Market for Energy Service Companies in
the United States Through 2020
Location: Boulder
Date: 2014-01-31
Rebounding from a tough two years of slowing growth, the
energy service company (ESCO) market in the United States is
expected to resume its expansion in the coming years. The primary
markets for ESCOs include K-12 schools, state and local governments,
universities and colleges, and hospitals. According to a recent
report from Navigant Research, education – combining K-12 and
universities/colleges – will be the largest market segment for
ESCOs, representing more than $22 billion in cumulative revenue from
2013 through 2020.
“The ESCO market continues to be concentrated in municipalities,
universities, schools, and hospitals, known as the ‘MUSH’ market”
“The ESCO market continues to be concentrated in municipalities,
universities, schools, and hospitals, known as the ‘MUSH’ market,”
says Eric Bloom, senior research analyst with Navigant Research.
“K-12 schools, which present the largest opportunity for ESCOs, are
designed to last for many decades, and many public school buildings
in operation today are characterized by out-of-date HVAC, lighting,
and control systems that could benefit considerably from system
upgrades.”
For facility managers, school boards, mayors’ offices, and other
K-12 stakeholders, energy is rarely the chief concern. Other
priorities, such as teacher salaries and curriculum development,
tend to command more attention than energy-related matters.
As a result, many ESCOs find that success in the K-12 sector
involves the ability to address a wide range of concerns that go
beyond energy in facilities, such as replacing roofs and facades and
upgrading interior furnishings, according to the report.
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