Energy-Efficient Building Market - Global Industry Research Analysis

According to Market Research Store, the global energy-efficient building market size was valued at around USD 28.16 billion in 2023 and is estimated to reach USD 74.89 billion by 2032, to register a CAGR of approximately 11.48% in terms of revenue during the forecast period 2024-2032.

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The energy-efficient building report provides a comprehensive analysis of the market, including its size, share, growth trends, revenue details, and other crucial information regarding the target market. It also covers the drivers, restraints, opportunities, and challenges till 2032.

Global Energy-Efficient Building Market: Overview

The Energy-Efficient Building Market is centered around constructing and retrofitting buildings to minimize energy consumption through advanced design, materials, and technologies. These buildings incorporate solutions such as high-performance insulation, energy-efficient lighting, HVAC systems, smart sensors, renewable energy integration, and optimized building management systems (BMS). The objective is to reduce energy usage while maintaining or enhancing comfort and functionality, thereby aligning with sustainability goals and lowering operational costs.

The market's growth is primarily driven by rising global awareness of environmental sustainability, stringent government regulations promoting energy conservation, and increasing demand for cost-effective energy solutions in residential, commercial, and industrial sectors. The growing adoption of smart building technologies and renewable energy sources, such as solar panels, further accelerates the market expansion. Green building certifications like LEED and BREEAM also encourage investment in energy-efficient infrastructure.

Key Highlights

• The energy-efficient building market is anticipated to grow at a CAGR of 11.48% during the forecast period.
• The global energy-efficient building market was estimated to be worth approximately USD 28.16 billion in 2023 and is projected to reach a value of USD 74.89 billion by 2032.
• The growth of the energy-efficient building market is being driven by a combination of factors, including increasing energy costs, stricter energy efficiency regulations, rising environmental concerns, and the growing awareness of the benefits of sustainable buildings.
• Based on the product, the HVAC segment is growing at a high rate and is projected to dominate the market.
• On the basis of application, the healthcare segment is projected to swipe the largest market share.
• By region, North America is expected to dominate the global market during the forecast period.

Energy-Efficient Building Market: Dynamics

Key Growth Drivers

• Rising Energy Costs: The increasing cost of energy is driving the demand for energy-efficient buildings to reduce operational costs.
• Stricter Energy Regulations: Governments worldwide are imposing stricter energy efficiency standards, making energy-efficient buildings mandatory.
• Environmental Concerns: Growing concerns about climate change and sustainability are motivating the adoption of energy-efficient building practices.
• Technological Advancements: Advances in building technologies, such as smart building systems and energy-efficient materials, are enabling the construction of highly efficient buildings.

Restraints

• High Initial Cost: Implementing energy-efficient measures, such as high-performance building envelopes and energy-efficient HVAC systems, can be costly.
• Complex Design and Construction: Designing and constructing energy-efficient buildings requires specialized knowledge and expertise.
• Technical Challenges: Integrating various energy-saving technologies and ensuring their optimal performance can be complex.
• Lack of Awareness and Education: A lack of awareness about the benefits of energy-efficient buildings can hinder adoption.

Opportunities

• Green Building Certification: Obtaining green building certifications, such as LEED or BREEAM, can enhance the value and marketability of buildings.
• Energy Performance Contracting: Utilizing energy performance contracting models can reduce upfront costs and share the risks and rewards of energy-saving projects.
• Smart Building Technologies: Integrating smart building technologies, such as IoT and AI, to optimize energy usage and improve occupant comfort.
• Renewable Energy Integration: Incorporating renewable energy sources, such as solar and wind power, into building designs.

Challenges

• Regulatory Complexity: Navigating complex and evolving energy regulations can be challenging.
• Supply Chain Issues: Ensuring a reliable supply chain for energy-efficient materials and technologies can be difficult.
• Skill Gap: A shortage of skilled workers with expertise in energy-efficient building design and construction can limit adoption.
• Economic Factors: Economic downturns can impact investment in energy-efficient building projects.

Energy-Efficient Building Market: Report Scope

Energy-Efficient Building Market: Segmentation Insights

The global energy-efficient building market is divided by product, application, and region.

Segmentation Insights by Product

Based on Product, the global energy-efficient building market is divided into HVAC, lighting, building controls, water efficiency, water heating, building envelope, and others.

The HVAC segment is the dominant product category in the energy-efficient building market. HVAC systems are among the most energy-intensive components of a building, and upgrading to energy-efficient alternatives offers significant cost savings and emissions reductions. HVAC systems in energy-efficient buildings focus on reducing energy consumption while maintaining optimal indoor air quality and thermal comfort.

Lighting is a major segment due to the widespread adoption of LEDs and smart lighting solutions. Energy-efficient lighting is often the first step in retrofitting buildings to reduce energy consumption. Energy-efficient lighting includes LED, CFL, and other advanced lighting technologies designed to reduce energy consumption.

Building Controls include automation systems that monitor and manage energy use within buildings. The building controls segment holds a significant market share due to the rising trend of smart buildings and the adoption of Internet of Things (IoT)-enabled systems.

Water Efficiency solutions are gaining traction due to rising water scarcity concerns and increasing awareness of sustainable water management practices. This segment includes water-saving technologies such as low-flow fixtures, water recycling systems, and smart water management solutions that optimize water usage while reducing wastage.

Water Heating is a growing segment as consumers and businesses adopt sustainable solutions for reducing energy costs associated with water heating. Energy-efficient water heating systems include solar water heaters, tankless water heaters, and heat pump water heaters. These systems reduce energy consumption compared to traditional water heating methods.

The Building Envelope includes components such as insulation, roofing, windows, and doors that enhance the thermal performance of buildings and reduce energy loss. This segment is crucial for energy-efficient buildings as it directly impacts heating and cooling needs. High-performance building envelopes significantly reduce energy demand.

Segmentation Insights by Application

On the basis of Application, the global energy-efficient building market is bifurcated into healthcare, office, retail, education, hotels & restaurants, institutional/association, warehouse, transport, and others.

The Healthcare segment is the dominant application in the elderly clothing market, due to the high volume of elderly individuals requiring specialized clothing for hospitals, nursing homes, and assisted living facilities. The healthcare segment is one of the largest in the elderly clothing market due to the high demand for specialized clothing in hospitals and care facilities.

The Office segment is smaller but growing, driven by the rise of older individuals staying in the workforce longer due to extended life expectancy and changes in retirement age. Many seniors continue to work part-time or in consultancy roles, leading to a demand for office-appropriate clothing. The office segment refers to elderly clothing designed for professional or semi-formal settings.

The Retail segment is a significant portion of the elderly clothing market, as many seniors continue to participate in social activities, including shopping, which requires clothing that balances comfort and style. The retail segment includes clothing designed for elderly individuals shopping or engaging in retail activities.

The Education segment is relatively niche but growing, especially with the increasing number of lifelong learners. Many elderly individuals are enrolling in classes or attending educational programs, contributing to the demand for comfortable, adaptive clothing. The education segment focuses on clothing for elderly individuals engaged in educational settings, such as seniors participating in courses, lectures, or social clubs.

The Hotels and Restaurants segment focuses on clothing for elderly individuals who may work in, or visit, these establishments. These clothes are designed to be comfortable and stylish, appropriate for social gatherings, meals, and public spaces. This segment has a moderate share, as many elderly individuals are customers in hotels and restaurants, while some may continue to work or volunteer in these industries.

The Institutional/Association segment is niche but growing, as more elderly individuals participate in social and recreational activities through these organizations. This segment includes clothing for elderly individuals involved in institutional settings such as senior citizen associations, social clubs, or non-profit organizations. The focus here is on comfortable, easy-to-wear garments suitable for social events, meetings, or recreational activities.

The Warehouse segment is smaller but essential, as it caters to elderly individuals working in environments that may require specific clothing types for comfort and safety. The warehouse segment focuses on clothing for elderly individuals who may work in or visit warehouses. This may include elderly individuals working in retail settings or other logistics environments.

The Transport segment pertains to elderly clothing designed for individuals who use public transport or engage in travel. This segment is smaller but growing, as more elderly people travel for leisure or necessity, leading to an increasing demand for functional and comfortable clothing.

Energy-Efficient Building Market: Regional Insights

• North America currently leads the global energy-efficient building market

North America is one of the leading regions in the energy-efficient building market, particularly in the United States and Canada. This is driven by government initiatives such as tax incentives, rebates, and regulations like LEED (Leadership in Energy and Environmental Design) certification, which encourage the construction of energy-efficient buildings. High energy consumption in commercial and residential sectors, coupled with growing concerns over energy conservation, has led to the increasing adoption of energy-efficient technologies. Urban areas, in particular, are witnessing a rise in green building construction, with a focus on sustainable materials, smart building systems, and energy-saving technologies.

Europe has been at the forefront of energy-efficient building practices, largely due to strict environmental regulations and government policies aimed at reducing carbon emissions. The European Union’s Energy Efficiency Directive and the European Green Deal set ambitious goals for reducing energy consumption in buildings. Countries such as Germany, France, the UK, and Sweden are leaders in the energy-efficient building market, driven by the increasing demand for low-energy homes, eco-friendly commercial properties, and building retrofits. The use of renewable energy technologies like solar panels and geothermal systems is prevalent in many European countries.

The Asia Pacific region is expected to experience significant growth in the energy-efficient building market due to rapid urbanization, rising disposable incomes, and a growing awareness of sustainability. Countries like China, Japan, and India are investing heavily in energy-efficient construction, with China leading the way due to its large-scale infrastructure projects. India’s government is promoting energy efficiency through initiatives such as the Perform, Achieve, and Trade (PAT) scheme. South Korea is also focusing on energy-efficient building technologies as part of its green building initiatives. As the region continues to urbanize and develop, demand for energy-efficient buildings is expected to rise substantially.

The Latin American market is gradually growing as more countries in the region, such as Brazil, Mexico, and Argentina, begin to adopt energy-efficient building practices. Brazil, in particular, has made strides in energy-efficient construction, with an increasing number of residential and commercial buildings being designed with sustainable practices. The rising demand for green buildings in major cities, coupled with government incentives for sustainable construction, is driving market growth in Latin America.

The Middle East and Africa (MEA) region is in the early stages of adopting energy-efficient building technologies, but growth is accelerating, particularly in the Gulf Cooperation Council (GCC) countries such as the UAE, Saudi Arabia, and Qatar. The region faces extreme temperatures and high energy consumption, particularly for cooling. As a result, energy-efficient buildings, especially in commercial real estate, are gaining traction. The demand for green building certifications such as Estidama in the UAE and LEED certification is growing, with energy efficiency being a key focus of many new developments. However, the pace of adoption is slower in parts of sub-Saharan Africa due to economic challenges.

Energy-Efficient Building Market: Competitive Landscape

The report provides an in-depth analysis of companies operating in the energy-efficient building market, including their geographic presence, business strategies, product offerings, market share, and recent developments. This analysis helps to understand market competition.

Some of the major players in the global energy-efficient building market include:

• ABB
• Building IQ
• EnerNOC
• GridPoint
• Honeywell
• Johnson Controls
• Pacific Controls
• Schneider
• Siemens

The global energy-efficient building market is segmented as follows:

By Product

• HVAC
• Lighting
• Building Controls
• Water Efficiency
• Water Heating
• Building Envelope
• Others

By Application

• Healthcare
• Office
• Retail
• Education
• Hotels & Restaurants
• Institutional/Association
• Warehouse
• Transport

By Region

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • France
  • Germany
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• The Middle East and Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East Africa

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