Energy Efficient Building Market Share

Global Energy-Efficient Building Market Overview

Energy-Efficient Building Market Size was valued at USD 123.9 Billion in 2022. The Energy-Efficient Building industry is projected to grow from USD 131.24 Billion in 2023 to USD 208.08 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.93% during the forecast period (2024 - 2032). Environmental Concerns, Energy Cost Savings, Government Regulations and Incentives, and technological advancements, are the key market drivers enhancing market growth.Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Energy-Efficient Building Market Trends

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  Environmental Concerns, Energy Cost Savings is driving the market growth

  
  

Energy-efficient buildings are designed to minimize energy consumption and optimize resource utilization throughout their lifecycle. They employ various strategies and technologies to reduce energy demand for heating, cooling, lighting, and other building operations. These strategies include efficient insulation, high-performance windows, energy-efficient HVAC (heating, ventilation, and air conditioning) systems, smart controls, renewable energy integration, and advanced building automation systems. The market for energy-efficient buildings is expanding as a result of rising environmental concerns and the demand for sustainable solutions. Governments, regulatory agencies, and international organizations have put laws and rules in place to encourage energy efficiency because they understand how important it is to lower energy use in buildings. These measures include building codes, energy efficiency standards, and certifications like LEED and ENERGY STAR, which have become widely adopted benchmarks for sustainable building design and operation. Other significant driver is the potential for cost savings. Energy-efficient buildings offer substantial financial benefits over their lifespan. By reducing energy consumption, building owners and occupants can save on utility bills and operational costs.

Additionally, government incentives, tax rebates, and grants for energy-efficient upgrades and renovations further incentivize the adoption of energy-efficient practices. Technological advancements have played a crucial role in the growth of the energy-efficient building market. Innovations in building materials, construction techniques, energy-efficient appliances, and smart building systems have made it easier and more cost-effective to design, construct, and retrofit energy-efficient buildings. These advancements have expanded the range of available options and increased the market feasibility of energy-efficient solutions.

Furthermore, market demand and consumer preferences have shifted towards energy-efficient buildings. Homebuyers, tenants, and businesses are increasingly prioritizing sustainability and energy savings when making decisions about where to live, work, and invest. Energy-efficient buildings not only provide environmental benefits but also offer improved indoor air quality, thermal comfort, and daylighting, which can enhance occupant health, well-being, and productivity. Thus, driving the Energy-Efficient Building market revenue.

Take the International Energy Agency (IEA) as an example. They are located in France and have stated that $134 trillion has been given by governments to promote investment in clean energy from 2020 till now. In consequence, clean energy investment rose by a quarter between 2021 and 2023. This is why there’s so much money going into energy-efficient buildings right now.In May 2023, Bosch Building Technologies acquired Paladin Technologies for an unknown amount of money. By doing this, Paladin Technologies is helping Bosch strengthen their knowledge base and competitiveness in North America, where commercial building services are driven by energy efficiency and security demands. What they do is provide complex systems integration for building technology solutions with IP security specialization in audiovisual low voltage and integrated technology systems, among other things.

Energy-Efficient Building Market Segment Insights

Energy-Efficient Building Type Insights

The Energy-Efficient Building market segmentation, based on Building Type includes 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.

Figure 1: Energy-Efficient Building Market, by Building Type, 2022 & 2032 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Energy-Efficient Building Component Type Insights

The Energy-Efficient Building market segmentation, based on Component Type, includes 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.

Energy-Efficient Building Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Energy-Efficient Building Market dominated this market in 2022 (45.80%). The U.S. has implemented rigorous building energy codes at both federal and state levels, encouraging the adoption of energy-efficient practices and technologies. Further, the U.S. Energy-Efficient Building market held the largest market share, and the Canada Armor Materials market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.The Kuwait EET program focuses on power station efficiency enhancement through power demand reduction via the implementation of energy-efficient technologies within buildings and the industrial sector. Its main objectives are the optimization of these sectors’ energy usage while emphasizing efficiency improvements as well as reduced power consumption.

Figure 2: ENERGY-EFFICIENT BUILDING MARKET SHARE BY REGION 2022 (USD Billion) Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Energy-Efficient Building market accounts for the second-largest market share. European Union member states have established ambitious targets for energy efficiency and renewable energy adoption, driving the demand for energy-efficient buildings. Further, the German Energy-Efficient Building market held the largest market share, and the UK Energy-Efficient Building market was the fastest growing market in the European region

The Asia-Pacific Energy-Efficient Building Market is expected to grow at the fastest CAGR from 2023 to 2032. The region's booming population and urbanization have increased the demand for new construction, providing opportunities to incorporate energy-efficient design and technologies. Moreover, China’s Energy-Efficient Building market held the largest market share, and the Indian Energy-Efficient Building market was the fastest growing market in the Asia-Pacific region.Colombia is experiencing economic growth supported by government incentives aimed at promoting energy-efficient design as well as sustainable construction, such as minimum new building energy codes, among others, which require all houses built within certain timeframes to meet specific standards related not only to efficiency but also environmental friendliness hence the establishment of a certification system for green projects more so affordable housing where demand currently outweighs supply greatly due increasing awareness people about environment conservation efforts made globally over the years leading higher number those seeking live greener lives thus contributing towards realization sustainable development goals set out United Nations Agenda Twenty-Five Hundredth Year – Sustainable Cities And Communities.

Energy-Efficient Building Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Energy-Efficient Building market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Energy-Efficient Building industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Energy-Efficient Building industry to benefit clients and increase the market sector. In recent years, the Energy-Efficient Building industry has offered some of the most significant advantages to medicine. Major players in the Energy-Efficient Building market, including Honey well, Johnson controls, Schneider, Siemens, ABB, Building IQ, EnerNOC, Gridpoint, Pacific controls, and others, are attempting to increase market demand by investing in research and development operations.

Honeywell's expertise in the energy-efficient building market is demonstrated through its comprehensive offerings. The company specializes in building automation systems that integrate and control various building systems, including heating, ventilation, air conditioning (HVAC), lighting, security, and energy management. These advanced systems enable centralized monitoring, precise control, and optimization of energy consumption, resulting in significant energy savings and improved operational efficiency. In addition to building automation, Honeywell provides energy management systems and controls that offer real-time data analytics and automation capabilities. These solutions empower building owners and operators to identify energy-saving opportunities, monitor energy usage, and implement efficient control strategies. Honeywell's energy management solutions are designed to maximize energy efficiency, reduce wastage, and achieve sustainability goals.

Honeywell is also a leading provider of HVAC systems and controls, offering a wide range of energy-efficient products and technologies. These include smart thermostats, variable refrigerant flow systems, and advanced HVAC controls that optimize heating and cooling operations, resulting in reduced energy consumption and enhanced occupant comfort. Furthermore, Honeywell offers lighting technologies that contribute to energy efficiency in buildings. Its portfolio includes energy-efficient LED lighting products, lighting controls, and sensors that enable precise control and intelligent lighting management, minimizing energy waste and enhancing lighting quality.

Schneider Electric's portfolio includes advanced building management systems and solutions that enable seamless integration and control of various building systems. These systems, encompassing HVAC, lighting, energy management, and security, optimize energy consumption, improve operational efficiency, and enhance occupant comfort. The company is renowned for its EcoStruxure platform, a digital architecture that connects and manages diverse building systems. EcoStruxure provides real-time data analytics, automation, and intelligent control capabilities, empowering building owners and operators to make informed decisions for energy efficiency improvements.Siemens AG, an energy technology and manufacturing company based in Germany, released Connect Box in March 2023. It’s an IoT solution for small to medium-sized buildings that allows wired or wireless devices to be connected seamlessly. In addition to optimizing energy usage, monitoring performance, and enhancing indoor air quality through real-time analysis, it also provides a plug-and-play setup with diverse licensing options catering to different needs while ensuring compliance with sustainability regulations that can save up to thirty percent on electricity consumption.

Key Companies in the Energy-Efficient Building market include

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  Honey well

  
  


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  Johnson controls

  
  


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  Schneider

  
  


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  Siemens

  
  


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  ABB

  
  


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  Building IQ

  
  


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  EnerNOC

  
  


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  Gridpoint

  
  


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  Pacific controls

  
  

Energy-Efficient Building Industry Developments

2021: Johnson Controls announced the launch of OpenBlue net-zero construction as a service. OpenBlue's net-zero building-as-a-service product portfolio includes a full range of sustainable products designed for schools, campuses, data centers, healthcare facilities, and business and industry participants.

2021: Johnson Controls has introduced OpenBlue net-zero construction as a service, a new offering that focuses on creating sustainable buildings. The product portfolio of OpenBlue's net-zero building-as-a-service encompasses a comprehensive selection of environmentally-friendly products specifically tailored for schools, campuses, data centers, healthcare facilities, and businesses across various industries.

Energy-Efficient Building Market Segmentation

Energy-Efficient Building Type Outlook

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  Residential

  
  


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  Commercial

  
  


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  Industrial

  
  

Energy-Efficient Building Component Type Outlook

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  Ventilation Systems

  
  


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  Lighting Technologies

  
  


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  Energy Management Systems

  
  


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  Controls

  
  

Energy-Efficient Building Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  

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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

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  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America