June 16, 2024
Energy ESO Market

The Energy ESO Market Set for Stupendous Growth due to Increasing Outsourcing of Non-Core Engineering Operations

The energy ESO (Engineering Service Outsourcing) market offers engineering services, design & development, and product testing & certification services for businesses across the energy industry. It provides specialized expertise along with advanced technologies like Internet of Things (IoT), artificial intelligence (AI), and cloud computing to help energy companies focus on their core activities.

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 of 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.

The rising adoption of advanced technologies across the energy industry and need to optimize operational costs present significant growth opportunities for market players. Several Energy ESO Market Size providers are expanding their global footprint to tap the growing demand from international markets for their diversified service offerings.

Market Drivers

One of the major drivers for the energy ESO market is the increasing outsourcing of non-core engineering operations by energy companies. This allows them to focus on their core competencies and reap the benefits of specialty expertise, advanced technology solutions, and reduced costs offered by ESO vendors. The outsourcing of engineering activities leads to improved operational efficiency, cost savings, accelerated time-to-market, and better management of risks and resources.

PEST Analysis

Political: The energy ESO market is influenced by government regulations and policies associated with energy efficiency and renewable sources. Strict norms related to carbon emissions can boost demand.

Economic: Factors such as rising energy costs and focus on reducing operating expenses are encouraging end-users to adopt energy ESO services to optimize consumption. Investments toward modernizing energy infrastructures also support market growth.

Social: Increasing awareness about environment protection and sustainable development drives the adoption of clean technologies. This raises the requirement for expert guidance in planning and implementing renewable energy projects.

Technological: Advancements in areas such as IoT, AI, and digital twins help ESO providers evaluate real-time performance and devise strategies to enhance efficiency. Cloud-based platforms and analytics tools allow remote monitoring and management of energy systems.

The Energy ESO Market Size sees maximum concentration of value in the Asia Pacific region due to rapid industrialization and growing investments in renewable resources across China, India, and other developing nations. The North American region is also a major revenue contributor given the focus on reducing dependence on fossil fuels in the US and Canada. Among emerging areas, the Middle East and Africa region is expanding at the fastest pace on account of extensive ongoing infrastructure development projects and efforts to diversify energy sources away from oil in the Gulf nations.

The energy ESO market witnesses highest growth in the Asia Pacific region, especially in China and India. This is attributable to increasing investments in renewable energy to meet rising electricity demand from industrial, commercial, and residential sectors. Massive targets for solar and wind energy adoption coupled with government-led initiatives to modernize transmission systems and boost energy efficiency also drive strong demand within Asia Pacific.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it