What Fueled The Previous Growth In The Energy Efficient Building Market?
The energy efficient building market has seen considerable growth due to a variety of factors.
• The market size for energy-efficient buildings has seen a robust growth in recent years. The expansion is slated to continue from $135.6 billion in 2024 to $145.84 billion in 2025, with a compound annual growth rate (CAGR) of 7.6%.
Factors contributing to this growth in the historical period include fluctuations in energy prices, implementations of environmental regulations, advancements in technology, increasing public consciousness, and government incentives.
How Does the Forecast Look for the Energy Efficient Building Market?
The energy efficient building market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market size of energy-efficient buildings is projected to have a robust growth trajectory. It is anticipated that the market will expand to $184.19 billion in 2029, witnessing a compound annual growth rate (CAGR) of 6.0%.
The projected growth in the next few years can be ascribed to factors such as efforts towards mitigating climate change, advancements in technology, urbanization trends, the rise in demand for sustainable constructions, and concerns about energy security. The forecast period will show significant trends including buildings with net-zero energy consumption, principles of passive design, modular construction for improved energy efficiency, incorporating internet of things (IoT) into building management systems, and principles of circular economy.
What Are The Leading Drivers Of Growth In The Energy Efficient Building Market?
The anticipated surge in governmental investment is predicted to stimulate the expansion of the energy-efficient building market in the future. Such investment from government entities is directed towards various sectors, encompassing infrastructure development, social outreach programs, education, healthcare, and projects for research, development and clean energy. The government's financial involvement in energy-efficient building schemes is critical in speeding up the adoption of eco-friendly building strategies, reducing energy usage, minimizing greenhouse gas emissions, and enhancing economic growth and robustness. For example, as reported by the Office for National Statistics, a UK executive office of the UK Statistics Authority in July 2024, the total market sector investment in infrastructure hit $14.93 billion in 2023 at constant prices, marking a 3.9% increase from 2022. Thus, the upswing in government investment is propelling the energy-efficient building market.
How Are The Segments Defined Within The Global Energy Efficient Building Market?
The energy-efficient building market covered in this report is segmented –
1) By Type: Heating, Ventilation, And Air Conditioning (HVAC), Lighting, Building Controls, Water Efficiency, Water Heating, Building Envelope, Other Types
2) By Material: Roofing, Fiber Cement, Concrete Tiles, Insulation, Construction Chemicals, Sealants, Water Proofers, Other Materials
3) By End User: Residential, Commercial, Industrial Sector
Subsegments:
1) By Heating, Ventilation, And Air Conditioning (HVAC): High-Efficiency HVAC Systems, Geothermal Heating And Cooling Systems, Smart Thermostats, Variable Refrigerant Flow (VRF) Systems
2) By Lighting: LED Lighting, Smart Lighting Systems, Solar-Powered Lighting, Dimmable Lighting, Lighting Controls
3) By Building Controls: Building Management Systems (BMS), Energy Management Systems (EMS), Smart Thermostats, Occupancy Sensors, Advanced Metering Infrastructure (AMI)
4) By Water Efficiency: Low-Flow Fixtures, Water-Efficient Landscaping, Rainwater Harvesting Systems, Greywater Recycling Systems
5) By Water Heating: Solar Water Heating Systems, Heat Pump Water Heaters, Tankless Water Heaters, High-Efficiency Water Heaters
6) By Building Envelope: Insulation Materials, Energy-Efficient Windows, Roofing Solutions, Air Sealing And Draft Prevention, Reflective And Insulating Materials
7) By Other Types: Energy-Efficient Appliances, Renewable Energy Systems, Smart Home Technology For Energy Efficiency, Green Building Materials
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What Emerging Trends Are Influencing The Growth Of The Energy Efficient Building Market?
Leading firms in the energy-efficient building market, such as Siemens AG, are concentrating on the invention of new products that incorporate advanced technologies like smart IoT solutions to boost their market returns. These smart IoT solutions are pushing the boundaries of energy efficiency in various sectors, including residential properties, commercial buildings, industries, and whole cities, thus supporting sustainability and environmental protection initiatives. For example, in March 2023, Siemens AG, based in Germany and specializing in energy technology and manufacturing, introduced the Connect Box. This IoT solution, designed for small and mid-sized buildings, integrates both wired and wireless devices effortlessly, offering efficient energy utilization, performance monitoring, and improved indoor air quality by real-time analysis. Its advanced properties such as plug-and-play setup, a variety of licensing choices, and simple-to-use interfaces, offer multiple benefits while also aligning with sustainability standards and achieving energy savings of up to 30%.
Who Are the Key Players In The Energy Efficient Building Market?
Major companies operating in the energy-efficient building market are:
• Siemens AG
• Panasonic Corporation
• GE Electrical Equipment
• Veolia Environnement S.A.
• Mitsubishi Electric Corporation
• Schneider Electric SE
• Honeywell International Inc.
• ABB Ltd.
• Daikin Industries Ltd.
• Toshiba Corporation
• Johnson Controls International plc
• Eaton Corporation PLC
• Carrier Global Corporation
• Koninklijke Philips N.V.
• Trane Technologies plc
• Emerson Electric Co.
• Legrand S.A.
• Osram GmbH
• Acuity Brands Inc.
• Itron Inc.
• Zumtobel Group AG
• Cree Inc.
• GridPoint Inc.
• Pacific Controls Inc.
• BuildingIQ Inc
What Is The Most Dominant Region In The Energy Efficient Building Market?
Europe was the largest region in the energy-efficient building market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the energy-efficient building market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
