Attracted by high growth and profity, a flood of new companies are entering the industry.
San Francisco, CA (PRWEB) September 18, 2013
The Energy-Efficiency Consulting industry in China is estimated to generate $49.4 billion in 2013, representing annualized growth of 46.7% over the past five years, says IBISWorld. Boosted by an array of energy-saving and emission reduction regulations implemented in 2006, the industry has been showing rapid growth.
Issued in 2010, the Interim Measures for Management of Financial Incentive Funds of Energy Management Contracting Projects allocated generous subsidies for contract energy management (CEM) projects. This marked the beginning of the standardization of the industry in China. According to the National Development and Reform Commission, there are in total 3,210 recorded (i.e. registered) energy service establishments in China in 2013, over half of which had conducted CEM projects. Most of these companies are located in east China such as Jiangsu, Guangdong and Beijing.
Many new enterprises have entered the Energy-Efficiency Consulting industry over the past five years, attracted by its high growth and profitability. The top four enterprises – Beijing Shenwu Environment & Energy Technology, China Energy Conservation and Environmental Protection, Schneider Electrics (China) Investment Corporation, and Beijing PowerU Technology – account for an estimated 19.4% of industry revenue in 2013, indicating a low market share concentration. The industry has become slightly more fragmented over the past five years with the influx of a number of new entrants.
According to China’s Twelfth Five-Year-Plan (2011 to 2015), energy service companies will continue to receive strong government support for energy-saving and emission-reduction activities. As technologies advance and new regulations promote the development of the industry, firms will expand to cover more client industries over the next five years, says IBISWorld.
For more information, visit the Energy-Efficiency Consulting in China industry report page.
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IBISWorld Industry Report Key Topics
Energy-efficiency consultants help their clients, most of which are manufacturers, to reduce energy consumption and pollutant emission. A range of energy-saving services, from technical consulting to project construction and management, are included in this industry, but the manufacturing of energy-saving appliances is excluded.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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