Assessment of the Market for Compressed Air Efficiency Services

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EXECUTIVE SUMMARYOVERVIEWThe Assessment of the Market for Compressed Air Efficiency Services,hereafter referred to as the Compressed Air Market Assessment, wascommissioned by the U.S. Department of Energy with technical supportprovided by the Compressed Air Challenge ® (CAC). The CAC is a voluntarycollaboration of manufacturers, distributors and their associations;industrial users; facility operating personnel and their associations; consultants;state research and development agencies; energy efficiency organizations;and utilities. The mission of the CAC is to develop and provideresources that educate industry on the opportunities to increase netprofits through compressed air system optimization.The objective of this report is to provide a comprehensive and balancedview of the market for engineering and consulting services to improve theenergy efficiency of plant compressed air systems. These servicesinclude plant assessments or audits to identify opportunities to improvecompressed air system operations, preventive maintenance services,such as leak detection and repair that are aimed at reducing energy use,and redesign of controls and other system components to reduce energyuse. The report is intended for use by the CAC and other industrial energyefficiency program operators in developing strategies to encourage thegrowth of the compressed air system efficiency industry and enhancethe quality of the services it offers. Compressed air system vendorsand designers may also find it useful in charting their own approach toproviding energy efficiency services.COMPRESSED AIR SYSTEM ENERGY USE ANDTHE BENEFITS OF INCREASED EFFICIENCYCompressed Air System Electric UseCompressed air systems account for 10% of all electricity and roughly16% of all motor system energy use in U.S. manufacturing industries. 1Seventy percent of all manufacturing facilities in the United States havesome form of compressed air system. Most of these systems providecompressed air to drive a variety of equipment within a given plant,including machine tools, painting booths, materials separation, andmaterials handling.Benefits of Compressed Air System EfficiencyRecent experience in a variety of “system optimization programs,” aswell as the experience of consultants in the field, suggests that over50% of industrial plant air systems harbor opportunities for largeenergy savings with relatively low project costs. Compressed air systemmeasures identified in energy audits of small- to medium-sized industrialfacilities by the Industrial Assessment Centers had average projected1 Unless otherwise noted, information in this section is taken from XENERGY, Inc. (1998) United States Industrial Electric MotorSystems Market Opportunities Assessment. Washington, D.C.: U.S. Department of Energy, Office of Industrial Technologies,and Oak Ridge National Laboratory. The study is hereafter referred to as the Motor Market Assessment.U.S. DEPARTMENT OF ENERGY1
Compressed Air Market Assessmentsavings of 15% of compressed air system usage with simple paybacksin less than 2 years. Many case studies conducted for system optimizationprograms have identified savings in the range of 30 to 60% of initialsystem usage. The United States Industrial Electric Motor Systems MarketOpportunities Assessment (Motor Market Assessment) estimated that compressedair system energy use in the typical manufacturing facility could bereduced by 17% through measures with simple paybacks of 3 years orless. In addition to energy benefits, optimization of compressed air systemsfrequently results in corresponding improvements in system reliability,product quality, and overall productivity.OVERVIEW OF THE PROJECT AND REPORTSeventy percent ofall manufacturingfacilities in theUnited Stateshave some formof compressedair system.This market assessment was designed and carried out in consultationwith the Ad Hoc Evaluation Committee of the Compressed AirChallenge ® . The Committee reviewed the research plan, the assessmentinterviewing approaches, draft questionnaires, and drafts of thevarious sections of this report.ObjectivesThe project was designed to answer a number of key questions concerningthe demand and supply sides of the market for compressed airefficiency services. Among the key research questions to be addressedon the demand side of the market were the following:• What extent are customers in key end-use sectors aware of compressedair usage, costs, and savings opportunities?• What practices do these customers follow to monitor, maintain, andenhance the efficiency of compressed air systems?• What, if any, services do these customers purchase to maintain orenhance the efficiency of compressed air systems?• What barriers do customers experience in purchasing such services?The key research questions on the supply side of the market wereas follows:• What efficiency services do compressed air distributors, installers,and consultants currently offer?• What is the current volume of sales for these services (number ofcustomers, number of projects, dollar volumes)? How has volumechanged over the past few years? What are vendors’ expectationsregarding growth?• What role do these services play in the overall business strategy ofmanufacturers, distributors, and consultants?• What barriers do these businesses face in developing and sellingcompressed air system efficiency services?Research ActivitiesThe report is based on a combination of primary and secondary research,including:2U.S. DEPARTMENT OF ENERGY
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ABOUT THE OFFICE OF INDUSTRIAL TECH
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Assessment of the Market for Compressed Air Efficiency Services

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