A lot can be learned about changes in the energy sector by looking at the various markets that serve it. For example, demand for energy service companies mirrors building energy efficiency and renewable-power expansion. Market research firm Navigant confirmed this dynamic in its study, “The U.S. Energy Service Company Market,” which projects a robust phase of growth.


The relationship hasn’t always been a guarantee for positive returns. The report explains that expectations have been high for the last 30 years, as companies championed innovative forms of financing to pay for energy-efficiency upgrades in buildings. Energy performance contracting (EPC), which relies on future energy savings to finance improvements, is one of these financing models.


However, since 2011, the market has contracted, and many supporting federal policies were exhausted.


According to Navigant, all of that is about to change. Improvements in the economy’s overall health and increasing demand for renewable-energy systems and distributed energy infrastructure should combine to create a more favorable marketplace.


“Over the next seven years, growth is expected to resume as energy-efficiency measures take effect across a broad swath of the economy,” said Eric Bloom, Navigant’s senior research analyst.


The report forecasts the energy service company market to almost double, from $4.9 billion in 2013 to $8.3 billion by 2020.