Energy Retrofits Systems Market Research Report By Retrofit Type (Building Envelope Retrofits, HVAC and Mechanical System Retrofits, Lighting Retrofits, Other Retrofits), By Building Type (Residential Buildings, Commercial Buildings, Industrial Buildings, Public Buildings), By Energy Source (Electric, Gas, Solar, Wind, Other), By Retrofit Depth (Shallow Retrofits, Medium Retrofits, Deep Retrofits) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Energy Retrofits Systems Market Overview:

As per MRFR analysis, the Energy Retrofits Systems Market Size was estimated at 166.0 (USD Billion) in 2022. The Energy Retrofits Systems Market Industry is expected to grow from 176.76 (USD Billion) in 2023 to 310.9 (USD Billion) by 2032. The Energy Retrofits Systems Market CAGR (growth rate) is expected to be around 6.48% during the forecast period (2024 - 2032).

Key Energy Retrofits Systems Market Trends Highlighted

The increased demand for energy efficiency and sustainability among consumers is giving rise to the Energy Retrofit Systems Market. Some of the key factors are energy efficiency policies endorsed by the government, the increasing energy prices and the changes in technologies that make the solution more cost-efficient. The market opportunity lies not only in the modernization of the currently existing building stock but also in the creation of intelligent energy systems for efficient energy consumption. There are tendencies towards the so-called energy hibernation, which combines energy-efficient lighting, HVAC systems and building control systems into a single integrated solution. In addition, the growing use of renewables like solar and wind power is complementing energy retrofit projects and thus expanding the opportunities for the growth of the Energy Retrofits Systems Market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Energy Retrofits Systems Market Drivers

Government Regulations and Incentives

Government regulations and incentives are among the key drivers of the Energy Retrofits Systems Market Industry. Governments around the world are enacting regulations that require building owners and businesses to reduce their carbon footprints and various emissions. As a result, companies and individuals are adopting energy efficiency in their buildings. To further enforce the laws, governments have provided tax deductions and rebates to the facility owners and businesses to nudge them to make the changes within the required timeframe.Therefore, the presence of these laws and incentives will catalyze the growth of the Energy Retrofits Systems Market Industry.

Rising Energy Costs

Rising energy costs are another major driver of the Energy Retrofits Systems Market Industry. The increasing cost of electricity and natural gas has made energy efficiency a top priority for businesses and homeowners. Energy retrofits can significantly reduce energy consumption and lower utility bills, making them an attractive investment for cost-conscious consumers. As energy costs continue to rise, the demand for energy retrofits is expected to grow substantially.

Technological Advancements

Innovation also affects the development of EN. Technological advances promote this as well. For example, LED lighting, smart thermostats and high-performing windows have become far more efficient and less expensive. Not only for the benefits of energy costs, but also their properties of control and programmability of individual energy use resulted in major energy savings. Thus, as technology develops further, the Energy Retrofits Systems Market Industry is bound to benefit from new, advanced solutions.

Energy Retrofits Systems Market Segment Insights:

Energy Retrofits Systems Market Retrofit Type Insights

The Energy Retrofits Systems Market is segmented by Retrofit Type into Building Envelope Retrofits, HVAC and Mechanical System Retrofits, Lighting Retrofits, and Other Retrofits. Building Envelope Retrofits accounted for the largest share of the Energy Retrofits Systems Market in 2023 and is projected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing adoption of energy-efficient building materials and technologies, as well as government regulations and incentives that promote building energy efficiency.For instance, in the United States, the Inflation Reduction Act of 2022 provides tax credits and rebates for energy-efficient home improvements, including building envelope retrofits. HVAC and Mechanical System Retrofits is another significant segment of the Energy Retrofits Systems Market, with a substantial market share. The growing demand for energy-efficient HVAC systems, such as heat pumps and variable refrigerant flow (VRF) systems, is driving the growth of this segment. Additionally, the increasing adoption of smart building technologies and the integration of renewable energy sources into HVAC systems are expected to further drive the growth of the HVAC and Mechanical System Retrofits segment.Lighting Retrofits is a rapidly growing segment of the Energy Retrofits Systems Market. The increasing adoption of LED lighting systems, which are more energy-efficient than traditional lighting systems, is a major factor contributing to the growth of this segment. Furthermore, government regulations and incentives that promote energy-efficient lighting are expected to further drive the growth of the Lighting Retrofits segment. Other Retrofits include a wide range of energy retrofits, such as water conservation systems, renewable energy systems, and energy management systems.This segment is expected to witness significant growth in the coming years due to the increasing adoption of sustainable and energy-efficient technologies.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Energy Retrofits Systems Market Building Type Insights

Residential Buildings, Commercial Buildings, Industrial Buildings, and Public Buildings are the four primary building types segmented in the Energy Retrofits Systems Market. The majority of the Energy Retrofits Systems Market revenue in 2023 was generated by commercial buildings, which is expected to continue until 2032. This is because commercial buildings consume significant amounts of energy and have a higher potential for energy savings through retrofits. For instance, replacing outdated lighting systems with energy-efficient LEDs can reduce energy consumption by up to 70%.Additionally, government regulations and incentives to promote energy efficiency in commercial buildings are driving market growth. Residential buildings, particularly in developed regions, are also witnessing increasing demand for energy retrofits, driven by rising energy costs and government initiatives to reduce carbon emissions. Industrial buildings and public buildings, such as schools and hospitals, are also expected to contribute to the growth of the Energy Retrofits Systems Market over the next decade.

Energy Retrofits Systems Market Energy Source Insights

The Energy Retrofits Systems Market is segmented by Energy Source into Electric, Gas, Solar, Wind, and Other. Among these segments, Electric is expected to hold the largest market share in 2023, accounting for 45.2% of the Energy Retrofits Systems Market revenue. This is due to the increasing adoption of electric vehicles and the growing demand for energy-efficient buildings. The Gas segment is expected to be the second-largest segment, with a market share of 28.5% in 2023. The Solar segment is expected to grow at the highest CAGR of 7.2% during the forecast period, owing to the declining cost of solar panels and the increasing government incentives for solar energy adoption.The Wind segment is also expected to grow at a healthy CAGR of 6.8% during the forecast period. The Other segment, which includes energy sources such as geothermal and biomass, is expected to account for a small market share in 2023.

Energy Retrofits Systems Market Retrofit Depth Insights

The Energy Retrofits Systems Market is segmented by Retrofit Depth into Shallow Retrofits, Medium Retrofits, and Deep Retrofits. Among these, the Shallow Retrofits segment accounted for the largest revenue share in 2023 and is projected to maintain its dominance throughout the forecast period. This is primarily due to the increasing demand for cost-effective and less disruptive energy efficiency measures. Shallow retrofits typically involve minor upgrades to building components, such as lighting, HVAC systems, and insulation, which can result in significant energy savings without requiring major capital investments.Medium Retrofits involve more comprehensive upgrades, such as window replacements, envelope improvements, and the installation of renewable energy systems. Deep Retrofits, on the other hand, are the most comprehensive type of retrofit, involving a complete overhaul of the building's energy systems and envelope. While Deep Retrofits offer the greatest potential for energy savings, they also require the highest upfront investment and can be disruptive to building operations.

Energy Retrofits Systems Market Regional Insights

The Energy Retrofits Systems Market is segmented into North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023 and is expected to continue its dominance over the forecast period. The growth in this region is attributed to the presence of stringent government regulations and increasing awareness about energy efficiency. Europe is expected to witness significant growth over the forecast period due to the rising demand for energy-efficient solutions and supportive government policies. APAC is expected to be the fastest-growing region during the forecast period, driven by rapid urbanization and industrialization.South America and MEA are expected to witness moderate growth over the forecast period, owing to increasing investments in energy infrastructure and growing awareness about energy efficiency.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Energy Retrofits Systems Market Key Players And Competitive Insights:

The Energy Retrofits Systems Market players are frequently focusing on increasing their market presence by introducing advanced technologies and acquiring other companies. The Leading Energy Retrofits Systems Market players choose to develop their product portfolio through inter-company agreements and acquiring other organizations. Moreover, Energy Retrofits Systems Market development is also strongly tied to government regulations and incentives for reduced emissions, and cleaner technologies. The Energy Retrofits Systems Market Competitive Landscape is quite dynamic and includes several significant players. One of the Leading Energy Retrofits Systems Market players conducts its operations globally and offers diversified energy retrofit solutions.

Honeywell International Inc. is one of the Leading Energy Retrofits Systems Market players. Honeywell International Inc. offers innovative and comprehensive energy retrofit solutions that include smart technologies, connected devices, and advanced analytics. The company operates in several markets and offers a variety of energy retrofit and sustainability solutions including organizations in the government, commercial properties, and industrial manufacturers. Honeywell International Inc. also signs corporate partners, such as Cisco and Intel. Thus, Honeywell International Inc. is a highly innovative energy retrofit systems provider with a credible market presence. Honeywell International Inc. is one of the Leading Energy Retrofits Systems Market players, which offers comprehensive energy retrofit solutions and develops integrated solutions for energy retrofit systems. It also implements energetic partnerships and specialist sustainable technologies for its various customers.Schneider Electric SE. is one of more Leading Energy Retrofits Systems Market players. Schneider Electric SE. is a Leading Energy Retrofits Systems Market player, which offers a variety of energy management and automation solutions that its customers can use to optimize energy use and efficiency. It realizes its presence on the market in an innovative and diversified manner, as evidenced by the Group’s sustainable and inspiring approach to the development of its integrated energy efficiency solutions. Schneider Electric SE develops its operations globally and aims to expand and improve its offerings across all regions of the world. Schneider Electric SE emphasizes the importance of global corporate and social responsibility and implements measures to be a sustainable company. Overall, Schneider Electric SE is a Leading Energy Retrofits Systems Market player with a strong global presence.

Key Companies in the Energy Retrofits Systems Market Include:

• Schneider Electric SE


• Schneider Electric


• Emerson Electric Co


• Siemens AG


• Legrand


• Eaton Corporation


• Trane Technologies


• Honeywell International


• Mitsubishi Electric


• Danfoss


• Veolia Environnement


• Carrier Global Corporation


• ABB Ltd


• Ingersoll Rand


• Johnson Controls International

Energy Retrofits Systems Market Industry Developments

The Energy Retrofits Systems Market size was valued at USD 176.76 billion in 2023 and is projected to grow at a CAGR of 6.48% to reach USD 310.9 billion by 2032. The market growth is attributed to increasing government regulations and incentives, rising energy costs, and growing awareness about energy efficiency.Recent news developments include the launch of new products and services by key players in the market. For instance, in January 2023, Schneider Electric introduced a new range of energy-efficient retrofits for commercial buildings designed to reduce energy consumption by up to 30%. Additionally, governments worldwide are implementing policies and programs to promote energy retrofits. For example, the European Union has set a target of reducing energy consumption in buildings by 40% by 2030. These factors are expected to drive the growth of the Energy Retrofits Systems Market in the coming years.

Energy Retrofits Systems Market Segmentation Insights

• Energy Retrofits Systems Market Retrofit Type Outlook


• Building Envelope Retrofits


• HVAC and Mechanical System Retrofits


• Lighting Retrofits


• Other Retrofits

• Energy Retrofits Systems Market Building Type Outlook


• Residential Buildings


• Commercial Buildings


• Industrial Buildings


• Public Buildings

• Energy Retrofits Systems Market Energy Source Outlook


• Electric


• Gas


• Solar


• Wind


• Other

• Energy Retrofits Systems Market Retrofit Depth Outlook


• Shallow Retrofits


• Medium Retrofits


• Deep Retrofits

• Energy Retrofits Systems Market Regional Outlook


• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa