China Ripe for Energy Efficiency Industry

THE Energy-Efficiency Consulting industry in China is expected to generate $31.4 billion in 2012, representing annualized growth of 54.2 percent over the past five years according to IBISWorld research.

Boosted by an array of energy-saving and emission reduction regulations, the industry has been enjoying rapid growth, according to the research. The investment in projects was $6.4 billion in 2011, up 50.5 percent from the previous year.

Many new firms have entered the industry over the past five years, attracted by its high growth and profitability, with the average profitability so far in 2012 estimated at 13.8 percent of revenue.

Energy service companies can expect to receive strong government support over the next five years. The influx of foreign capital, which is greatly encouraged by the Chinese government, will be another driver of growth.

Currently, the majority of Energy-Efficiency Consultant industry clients are in the high energy-consuming and high polluting manufacturing, real estate, and public transportation sectors. As technologies advance and new regulations promote the development of the industry, firms will expand to cover service industries.

Picture of Shanghai by dawvon (Pudong) [CC-BY-2.0], via Wikimedia Commons

Wednesday 29th August 2012

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