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CEO’s 360 Degree Perspectives

Competition in energy management (EM) will continue to intensify as facility management (FM) and utility companies compete with energy service companies (ESCOs) and building automation (BA) vendors to offer a turnkey service business.
Building owners’ rising energy consciousness and end-user behavioral patterns will play a key role in value propositions and creation of EM service companies in the market.
Convergence of technology manufacturers and purely service-oriented EM companies will disrupt the market foothold of co-existing EM service participants.
Technology supporting real-time, uninterrupted, and future-proof service business models for critical infrastructure will be new opportunities for EM service market participants.
Technology supporting real-time, uninterrupted, and future-proof service business models for critical infrastructure will be new opportunities for EM service market participants.

Three Big Predictions

The past 5 years have seen huge levels of technology innovation in the energy and environment industry, with smart technology re-defining the landscape. The next 5 years will be the era of service business model innovation as suppliers compete to maximise the real benefits for customers through strategic partnerships and/or acquisitions.
Performance contracting will become the preferred business model for customers; suppliers will need to develop service capabilities or partner with FM companies or energy service providers in order to play in the most dynamic part of the market to maximise value co-creation.
Demand response and supply chain management solutions, along with building energy management (BEM) solutions on the cloud will enable dynamic real-time energy management across the globe. The business model rendering such a turnkey solution to customers will entail convergence of services- and solutions-based industries.

Table Of Contents

Service Business Models and Changing Competitive Landscape for Energy Management
Executive Summary 3
Service Business Models for Energy Management 7
Changing Competitive Landscape in Energy Management 22
Appendix 32
The Frost and Sullivan Story 34

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