June 16, 2024
Energy ESO market

Energy ESO Market is Estimated to Witness High Growth Owing to Growing Demand for Renewable Energy Projects

The energy ESO (engineering, procurement, and construction management outsourcing) market involves third-party engineering support for design, engineering, and project management activities related to energy generation, transmission, and distribution projects. It offers various advantages like reduced capital expenditure and operational costs, access to technical expertise, and scalability. The increasing renewable energy projects globally is driving the need for specialized engineering services to efficiently design, develop and implement such projects. The growing emphasis on cleaner sources of energy is also propelling the energy ESO market.

The Global energy ESO Market is estimated to be valued at US$ 1,549.7 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), and Alten Group. They provide a range of engineering and technical services for various energy projects.

The Energy ESO Market Size offers significant opportunities in renewable energy such as solar and wind farms, where outsourcing engineering work helps optimize costs and resources. Adoption of advanced technologies like IoT, AI, and digital twins is also opening up new business prospects.

Globally, the market is witnessing high demand from regions like Europe, North America, Asia Pacific owing to growing energy needs, policy push for clean energy, and focus on achieving sustainability goals. Many countries have come up with large renewable projects which is driving the requirement of specialized ESO services.

Market drivers

The growing demand for renewable energy projects across the world due to climate change concerns is a key driver for the energy ESO market. As more countries formulate stringent emission reduction targets and emphasize clean resources, the outsourcing of engineering work for solar, wind, and other green projects is witnessing strong momentum. This helps boost service providers’ revenue streams.

PEST Analysis

Political: The renewable energy mandates and targets set by governments across regions drive growth opportunities in the energy ESO market. Countries aim to reduce dependence on fossil fuels and curb carbon emissions to meet climate goals.

Economic: Global GDP growth and industrialization fuel the demand for power and heat generation, necessitating newer energy infrastructure projects. This increases outsourcing of engineering services to maximize cost efficiencies.

Social: Rising environmental awareness among public and private organizations boosts investments in cleaner energy technologies. Social acceptability of renewable energy projects facilitates their speedy implementation with ESO assistance.

Technological: Emerging technologies in the fields of solar, wind, hydropower, and energy storage enable diversification of energy mix. However, they require specialized engineering expertise for design, testing and integration into existing grids. ESOs help utilities smoothly adopt newer solutions.

The North American region accounts for a major share of the global energy ESO market value currently due to large-scale investments underway to modernize aging power infrastructure and expand renewable energy capacity.

The Asia Pacific region is identified as the fastest growing regional market for energy ESOs over the forecast period. This growth can be attributed to increasing investments to meet rising electricity demand from a burgeoning middle class in developing economies like China and India. Rapid urbanization and industrialization drive the need for modernizing transmission and distribution systems through ESO partnerships in Asia Pacific.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it