Article - April 14, 2025
Energy management is a broad category spanning many subsectors, all aimed at helping businesses manage energy use and costs. From sustainability consulting to load management and facility optimization services, energy management providers are finding numerous opportunities to drive growth amid the energy transition, creating a wealth of investment opportunities.
Here, senior professionals in our Energy, Power & Infrastructure Group discuss the trends supporting energy management services and seven key segments attracting investor interest.
Megatrends Supporting Long-Term Demand
Economic growth, population expansion, and the proliferation of energy-intensive technologies such as data centers and electric vehicles continue to drive increasing energy demand. In the U.S., nationwide electricity demand is expected to expand by 4.7% CAGR through 2028.¹
Energy price volatility is also significant as factors such as fuel costs, supply-demand imbalances, geopolitical instability, and carbon pricing create energy cost fluctuations. At the same time, innovations in smart meters, energy storage, the Internet of Things (IoT), and artificial intelligence (AI) are transforming how energy is managed.
In addition, many utilities and industrial facilities are dependent on outdated transmission, distribution, and generation assets in need of upgrades to reduce power outages and operate more efficiently. Relatedly, interest is growing in microgrids and decentralized energy systems to enhance resilience against grid outages. Meanwhile, increasingly stringent regulations on carbon emissions, energy efficiency, and sustainability reporting at both federal and state levels are adding pressure to invest in energy management solutions.
“The long-term transition to renewable energy, coupled with emerging innovations, will continue to create growth opportunities in the energy management space,” says Luke Semple, a managing director.
Opportunities in Transition
“As energy usage continues to evolve and expand, new technologies emerge, and sustainability remains in focus, demand will remain strong for energy management providers across many areas,” summarizes Managing Director Drew Spitzer. “While growth rates, addressable market size, and levels of consolidation vary by segment, each is gaining investor interest given evolving energy market dynamics.”
To further discuss energy management M&A, please contact our senior professionals.
