The U.S. energy service company (ESCO) industry continues to demonstrate strong growth, according to the newly released U.S. ESCO Industry Report: Industry Size and Recent Market Trends, 2022-2024 from Lawrence Berkeley National Laboratory (LBNL). The report, which has tracked industry performance for more than two decades, provides a comprehensive look at the size, characteristics, and evolving priorities of the ESCO market.
The latest findings show the industry generated $10.7 billion in revenue in 2024, representing a 103% increase since 2014 and 78% growth since 2018. Looking ahead, ESCOs project annual industry revenue will reach $15 billion by 2027, reflecting continued demand for performance-based solutions that help organizations modernize facilities, improve efficiency, and address infrastructure challenges.
While inflation has tempered some of the growth, the industry’s expansion remains significant. When adjusted for inflation, ESCO revenue increased 56% since 2014 and 45% since 2018, underscoring the sustained demand for energy savings performance contracting and related services.
The report explores revenue trends across geographic regions, market segments, financing structures, and business activities. New analysis also examines customer priorities, project challenges, and the non-energy benefits driving investment decisions. These findings provide valuable insight into how building owners are increasingly looking beyond traditional energy savings to achieve broader goals such as resilience, deferred maintenance reduction, electrification, operational improvements, and occupant comfort.
Public sector and institutional customers continue to drive the majority of industry activity. Federal agencies, state and local governments, K-12 schools, universities, hospitals, and public housing organizations accounted for 78% of total ESCO industry revenue in 2024. The largest shares of revenue over the past decade came from K-12 schools and state and local government customers, highlighting the important role ESCOs play in helping public entities address aging infrastructure and limited capital budgets.
The report also provides a regional perspective on industry activity. In total revenue, the Pacific Census sub-region led the nation with approximately $1.54 billion in ESCO revenue. However, when revenue is analyzed on a per-capita basis, the Mid-Atlantic and New England regions emerged as the strongest markets, reflecting high levels of ESCO activity relative to population.
As organizations face rising energy costs, aging facilities, resilience concerns, and growing demands for building upgrades, ESCOs are helping customers implement comprehensive projects that can be financed through future savings while delivering long-term operational benefits.
The report is intended for policymakers, federal, state, and local government officials, facility owners, researchers, and energy professionals seeking a better understanding of current market conditions and emerging trends within the energy services sector.
Lawrence Berkeley National Laboratory will host a webinar on October 15, 2026, at 3:00 p.m. ET to review key findings from the report and discuss implications for the industry.
The report was authored by Kathryn Chelminski, Johnny Wong, and Dana Robson and supported by the U.S. Department of Energy’s Office of Critical Minerals and Energy Innovation through the Federal Energy Management Program (FEMP) and the Office of State and Community Energy Programs (SCEP).
