The Energy Efficiency Opportunity

The Energy Efficiency Opportunity

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The Energy Efficiency Opportunity

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    The Energy Efficiency (EE) Market. We define this market as spending and investment by private households, by industry, and by the commercial sector to lower energy consumption. This definition includes both contracting and direct equipment sales; direct consumer spending is included in the last step of the value chain. To avoid double counting, we excluded transactions such as equipment sales by original equipment manufacturers (OEMs) to energy service companies.

    Market Sectors. This report distinguishes among three economic sectors: residential, commercial, and industrial. We define the residential sector as all private residences, including both rented and owned homes. We define the commercial sector, which is the main focus of the report, as all building space used for offices, commercial activities, administration, education, health care, and other types of services, including both private and public buildings. We define the industrial sector as facilities for all kinds of industrial production, such as metals, chemicals, paper, food, and engineered goods, as well as heat and power generation. We do not include transportation.

    Retrofit Versus New Construction. The report focuses on the retrofit market because it accounts for the greatest share of EE industry activity.

    Technologies and Applications. We consider efficiency investments across five key applications: heating, cooling and ventilation, lighting, refrigeration, and energy and building management systems. We do not consider insulation materials and energy-efficient windows, as these are typically supplied and installed by a different set of players that are outside our selected scope.

    Market Participants. We currently see four main types of market participants: energy service companies, OEMs, utilities, and more focused players. The report and its implications are relevant for other current and potential stakeholders as well, however, including investors, facility management companies, building technology players, metering companies, and IT and telco players.