Energy as a Service (EaaS) — will this be an effective business model?
Original article appearing on Medium
Since 2004, IIIIMPACT has helped companies launch and improve the design and usability of their software products, specifically several in the energy industry — but more from a business-to-business (B2B) perspective.
We’ve also helped many B2C companies, especially those with SaaS products, make their products easier to use. So there are good experiences we can draw from that apply to the topic of Energy-as-a-service (EaaS) and if there is a future with this type of application.
The oil and gas industry has been slowly becoming more digital over the past ten years, but most software is still an enterprise-level product that only experts use.
As the need for clean, sustainable energy grows, the Energy-as-a-Service (EaaS) business model is becoming increasingly popular. EaaS is a new business model that lets companies offer energy services to customers on a pay-per-use basis, similar to how software is sold as a service. As more and more companies try to reduce their carbon footprint and use less energy, this model is becoming more popular.
The growing need for clean and sustainable energy is one of the main drivers of the EaaS market. As worries about climate change continue to grow, more and more companies are looking to reduce their carbon footprint by investing in renewable energy sources like solar and wind power. This is making more people want solutions and technologies that use less energy, which is driving the growth of the EaaS market.
As more and more devices in homes and businesses are connected to the internet, the power market is changing. There is more distributed energy, like power walls and solar cells, and more technology that lets people manage and control how much energy they use. There is a demand for solutions to energy management that can help track and control how much energy is used. This makes more people want EaaS solutions to help them use less energy and save money.
Ensuring the software has a great user experience (UX) is an important part of a good digital transformation process. The consumer is a different end user than the typical business user. For software to be widely used, it has to be easy to understand and use. Making software for many people is never easy because there are so many different kinds of people who own homes. Each is at a different level of ease when using online applications.
As the need for clean and sustainable energy continues to grow, the EaaS market will have much room to grow. According to a recent report by MarketsandMarkets, the global EaaS market is expected to grow at a compound annual growth rate (CAGR) of 22.3% from $5.5 billion in 2019 to $18.5 billion in 2025. This is a big jump, and it shows that the market for EaaS solutions is likely to keep growing in the years to come.
Electric vehicles are becoming more popular, one of the key trends that are likely to help the EaaS market grow in the future. With more and more electric cars on the road, there will likely be more demand for charging stations and other ways to manage energy. This should help the EaaS market grow as more companies look to invest in these solutions to meet the growing demand for charging electric vehicles.
The growing use of microgrids is another trend likely to help the EaaS market grow in the coming years. Microgrids are small-scale power systems that make, distribute, and manage electricity in a specific area. They are becoming increasingly popular for remote or off-grid areas to get clean, long-lasting power. As microgrids become more popular, there will likely be more demand for EaaS solutions to help manage and control how much energy is used in these areas.
The future scope will be in some industries such as robotics, electric vehicles (EVs), and microgrids, as technology allows for these to increasingly be integrated into direct-to-consumer systems that can be collected, distributed, and controlled locally. Through the continued integration of IoT (internet of things) to make homes smarter and more connected to power walls and solar roofing, the ability for consumers to control and manage these will be a future opportunity for EaaS.
Energy-as-a-Service (EaaS) is a business model becoming increasingly popular as the need for clean and sustainable energy grows. EaaS is a new business model that lets companies offer energy services to customers on a pay-per-use basis, similar to how software is sold as a service. As the need for clean and sustainable energy continues to grow, it looks like the EaaS market will have a bright future.
IIIMPACT has successfully collaborated with hundreds of companies worldwide helping them create the best user experience, strategy, and product innovation and improving their DevOps and DesignOps processes for a coachable and scalable team.
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