Energy Efficient Building Market Analysis and Global Forecast 2023-2033

Energy Efficient Building Market Overview

The Energy Efficient Building Market Size is expected to reach USD 132.30 Billion by 2033. The Energy Efficient Building Market industry size accounted for USD 124.65 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 6.01% from 2023 to 2033. The Energy Efficient Building Market refers to the segment of the construction industry focused on designing, constructing, and retrofitting buildings to reduce energy consumption and improve efficiency. This market encompasses a range of technologies, practices, and materials aimed at minimizing energy use while maintaining or enhancing comfort, functionality, and sustainability within buildings. Key aspects often include efficient HVAC (Heating, Ventilation, and Air Conditioning) systems, advanced insulation, smart lighting and controls, renewable energy integration (such as solar panels), and innovative building designs that optimize natural light and ventilation.

This market is expected to grow significantly due to rising Energy Costs, sustainability concern and increasing government regulations promoting energy efficiency in buildings.

Global Energy Efficient Building Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic had significant impacts on the Energy Efficient Building Market. The energy-efficient building sector experienced disruptions in the supply chain due to factory closures, transportation delays, and labor shortages during lockdowns and restricted operations. Many construction projects were delayed or halted altogether during the pandemic, affecting the implementation of energy-efficient building technologies and practices. The shift to remote work led to increased energy use in residential buildings, prompting greater interest in home energy efficiency solutions. Conversely, office buildings faced reduced occupancy, altering demand for energy-efficient systems. The pandemic highlighted the importance of resilient buildings capable of supporting health and well-being, potentially increasing demand for energy-efficient solutions that also enhance indoor air quality and overall building health.

Energy Efficient Building Market Dynamics

The major factors that have impacted the growth of Energy Efficient Building Market are as follows:

Drivers:

Ø  Technological Advancements

Ongoing advancements in building materials, technologies (such as smart building systems and IoT integration), and construction techniques improve the feasibility and effectiveness of energy-efficient building solutions. Growing awareness among consumers and businesses about environmental impact and energy savings drives demand for buildings that offer improved energy performance and sustainability credentials. Energy-efficient buildings often incorporate features that enhance indoor air quality, thermal comfort, and natural lighting, contributing to occupant health and productivity.

Restraint:

• Perception of High Initial Costs and Perceived Risk

Upfront costs for implementing energy-efficient technologies and building practices can be higher compared to conventional construction, deterring some developers and property owners, especially in markets where short-term financial returns are prioritized. Uncertainty about the performance and return on investment of new technologies and building methods can deter adoption, especially among conservative investors and developers.

Opportunity:

⮚     Rising Energy Costs

Escalating energy prices incentivize property owners and developers to invest in energy-efficient building solutions to mitigate operational costs over the long term. Rapid urbanization and infrastructure development in emerging economies create opportunities for integrating energy-efficient building practices from the ground up, minimizing future retrofitting costs. The development of smart cities and intelligent infrastructure presents opportunities for integrating energy-efficient building technologies with urban planning and management systems.

Energy Efficient Building Market Segment Overview

By Building Type

Based on Building Type, the market is segmented based on Residential, Commercial and Industrial. The commercial segment dominated the market, accounting for 47% of market revenue. Energy-efficient technologies and strategies offer substantial cost savings for commercial building owners and operators.

By Application

Based on Application, the market segment has been divided into the Ventilation Systems, Lighting Technologies, Energy Management Systems and Controls. The energy management systems dominated the market, accounting for 43% of market revenue. This segment provides real-time data, analytics, and automated control strategies to optimize energy consumption, identify energy-saving opportunities, and reduce wastage.

Global Energy Efficient Building Market Regional Analysis

Based on region, the global Energy Efficient Building Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Energy Efficient Building Market followed by the Asia-Pacific and Europe regions.

Energy Efficient Building North America Market

North America holds a dominant position in the Energy Efficient Building Market. This region leads in energy-efficient building practices, driven by stringent environmental regulations, incentives for green buildings, and a strong corporate focus on sustainability. The market is characterized by advanced technologies in HVAC systems, smart building solutions, and energy management systems.

Energy Efficient Building Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Energy Efficient Building Market industry. Rapid urbanization and industrialization drive demand for energy-efficient buildings in countries like China, Japan, and India. Government initiatives promoting green building certifications, coupled with rising energy costs and environmental concerns, spur growth in this region.

Competitive Landscape

The global Energy Efficient Building Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• Architectural Energy Corporation
• Knauf Insulation
• Cleantech Group
• Johnson Controls
• Ameresco Inc
• Serious Energy Inc
• Solar Impulse Foundation
• SSAB group
• Eaton Corporation
• KMC Controls

Scope of the Report

Global Energy Efficient Building Market, by Building Type

• Residential
• Commercial
• Industrial

Global Energy Efficient Building Market, by Application

• Ventilation Systems
• Lighting Technologies
• Energy Management Systems
• Controls

Global Energy Efficient Building Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: USD 132.30 Billion
CAGR (2023-2033)	6.01%
Base year	2022
Forecast Period	2023-2033
Historical Data	2021 (2017 to 2020 On Demand)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Building Type, Application
Geographies Covered	North America, Europe, Asia-Pacific, South America, Middle East, Africa
Key Vendors	Architectural Energy Corporation Knauf Insulation, Cleantech Group, Johnson Controls, Ameresco Inc, Serious Energy Inc, Solar Impulse Foundation, SSAB group, Eaton Corporation and KMC Controls.
Key Market Opportunities	·       Rising Energy Costs ·       Urbanization and Infrastructure Development
Key Market Drivers	·       Technological Advancements ·       Consumer Awareness and Demand

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Energy Efficient Building Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Energy Efficient Building Market historical market size for the year 2021, and forecast from 2023 to 2033
• Energy Efficient Building Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Energy Efficient Building Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.