Economic Analysis of Emerging Integrated Energy Service Market in China: A Theoretical View

As a new “growth point” in the energy industry, Integrated Energy Service shoulders the important mission of creating the new era in the energy industry. Various energy companies have actively advanced their integrated energy service-related businesses to provide customers with comprehensive energy solutions. For the whole industry, the question of “what's the future market size of the Integrated Energy Services” is vital for making the right economic decision. Based on solid theory foundation and systematical calculation, this research aims to solve this important question. Based on the Life Cycle Theory, this research develops an analytical model which consists of three modules: the Macro Environment Analysis Module which clearly defines the external conditions affecting business development; the Market Survey Analysis Module which investigates the industry status, studies the development trend and determines the key parameters; the Simulation and Prediction Module which sets the market prediction scenarios, fits the Life Cycle curve and predicts the potential scale. Research result shows that, Integrated Energy Service Market Potential is within the interval of 0.5 trillion–0.6 trillion yuan RMB in 2020 and within the interval of 0.8 trillion–1.2 trillion yuan RMB in 2025, both stages are in a rapid growth; within the interval of 1.3 trillion–1.8 trillion yuan RMB in 2035, starting to enter the mature period.