By 2015, large firms in the U.S. market will spend $2.5 billion annually on technology consulting and systems integration relating to their energy, environment and sustainability initiatives, according to a new report from independent analyst firm Verdantix. This compares with a total U.S. market size for all energy, environment and sustainability spending of $39.8 billion in 2012, making technology services 4 percent of the total market
“Power utilities will account for a whopping 47 percent of U.S. private sector spend on energy and environment technology services in 2012″ says Verdantix senior manager Stuart Neumann, author of the report. This reflecting growth in the smart grid market and $4 billion in U.S. stimulus funds targeted at smart meters. Verdantix also reports a big push by oil and gas firms to strengthen their environmental management systems, as well as an ongoing focus on energy and carbon data management and data-driven facilities energy efficiency. The roll out of large solar parks and utility-scale wind farms is also creating new IT systems requirements.
“The size and growth rate of the U.S. market for energy, environment and sustainability technology services is sufficient to generate interest from all major technology services firms,” says David Metcalfe, Verdantix CEO.
In a recent webinar detailing the report, Verdantix cites 11 main technology services:
- Enterprise energy and carbon management—across whole operation or several buildings.
- Facility energy and carbon management
- Sustainable data centers
- Environmental compliance
- Sustainability performance management
- Renewable energy—on site renewables
- Low-carbon transport—such as electric vehicle (EV) operations
- Climate change risk management
- Smart meters
- Smart grid
- Water management
Neumann says that from 2008 to 2011, the focus for using technology in sustainability was on data centers and sustainable technology advisory services. Sustainability criteria was included in most RFPs, and executive targets were linked to sustainability in particular industries.
From 2012 to 2015, he says we’ll see an implementation of integrated suites of sustainable products. Global sustainability practices will be universally established. We’ll see more P&L for sustainability within business units, and the CSO (chief sustainability officer) will be a key executive with CEO/Board sponsorship.
Neumann sees a majority of spending in smart grid ventures, while spending on smart meters will go in reverse.
Areas of best growth will include:
- Enterprise energy and carbon management—28 percent CAGR (compound annual growth rate)
- Facility management – 24 percent
- Smart grid – 15 percent
- Renewable energy – 13 percent. Neumann says companies are looking at renewables, but for now still dominated by consulting phase. They are still exploring rather than implementing.
In other areas of interest, personal and household tech will grow at 15 percent CAGR, while water stewardship, which should be needed due to extended drought-stricken areas, will only grow at 10 percent CAGR
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