Zero-energy Buildings Market Analysis

Global Zero Energy Buildings Market Overview

Zero Energy Buildings Market Size was valued at USD 32.22 billion in 2023. The zero energy buildings industry is projected to grow from USD 41.37 Billion in 2024 to USD 238.09 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 24.45% during the forecast period (2024 - 2032). Advancements in building technologies, increasing focus on sustainability and energy efficiency, stringent regulations for green buildings, and rising awareness about environmental conservation are major market drivers enhancing the zero energy buildings market growth.

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

Zero Energy Buildings Market Trends

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  Increased government measures to minimize carbon emissions promote market growth

  
  

Zero-energy buildings use very little energy, often known as net-zero energy structures. These buildings often rely on on-site electricity and energy provided by renewable energy sources such as solar and wind power for their energy and electrical demands. Zero-energy buildings rely mainly on direct solar energy for heating and lighting in the interior rooms. The Earth's climate has been deteriorating due to massive and unmanaged greenhouse gas emissions since the beginning of the industrial revolution. The construction industry accounts for more than 35% of CO2 emissions. As a result, zero-energy buildings are built, as zero-energy buildings utilize only electricity generated by renewable resources. This is likely to have a significant role in lowering CO2 emissions in the coming years. These factors will favorably impact the zero energy buildings market CAGR throughout the forecast period.

Moreover, the population is rapidly increasing. The population is predicted to increase to more than 9.5 billion by 2050, up from roughly 7.8 billion in 2021. This significant population expansion is expected to boost the construction sector's growth in the future. Furthermore, rising public awareness of warming and environmental protection will motivate people to demand zero-energy buildings in the coming years. The market's expansion is predicted to be aided by different measures undertaken by countries worldwide to achieve carbon neutrality by the years 2050 and 2070.

Furthermore, leading players in the zero-energy building market provide various products and solutions to meet zero energy building requirements. They constantly improve their offers and collaborate with competitors to develop advanced products and solutions to remain competitive. For example, Honeywell International Inc, a leading provider of building automation services, joined Nexii Building Solutions in February 2022. Nexii is well-known for its high-performance green building products and construction methods. This collaboration is planned to bring the best of both firms together in a single package to supply energy-saving technology to small- to medium-sized commercial buildings. Also, various government initiatives to incentivize the installation of solar panels and other highly efficient building components are expected to provide lucrative opportunities for the zero energy buildings market revenue.

Zero Energy Buildings Market Segment Insights

Zero Energy Buildings Equipment Insights

Based on equipment, the zero energy buildings market segmentation includes HVAC systems, lighting, walls & roofs, and others. The HVAC systems category generated the most income (38%). HVAC systems ensure a healthy interior environment by controlling airflow, temperature, and humidity. Zero energy buildings implement HVAC systems equipped with modern air filtration, ventilation, and monitoring technologies to maintain optimal indoor air quality and occupant comfort. Besides, governments and regulatory agencies worldwide are implementing high energy efficiency criteria for buildings, including HVAC systems, to minimize greenhouse gas emissions and address climate change concerns. This promotes modern HVAC technology that meets these criteria and enables zero or near-zero energy performance in buildings.

Zero Energy Buildings Application Insights

Based on application, the zero energy buildings market segmentation includes residential and non-residential. The residential segment dominated the market, accounting for 64% of market revenue (16.1 billion). There is a growing awareness and demand for sustainable and energy-efficient residential buildings among homeowners, builders, and developers. As concerns about climate change, energy conservation, and environmental sustainability continue to rise, residential buildings increasingly adopt zero-energy building concepts to reduce energy consumption, lower utility bills, and minimize their carbon footprint. This trend drives the demand for advanced technologies and solutions in residential settings, such as high-performance insulation, energy-efficient windows, solar panels, and other renewable energy systems, to achieve zero or near-zero energy performance.

Figure 1:  Zero Energy Buildings Market by Application, 2022 & 2032 (USD billion)

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

The non-residential segment is expected to grow at the fastest CAGR in the zero energy buildings industry over the coming years. Favorable government policies, regulations, and incentives propel the non-residential segment in the zero-energy buildings market. Governments and regulatory bodies across various countries are implementing stringent energy efficiency standards and building codes for commercial and institutional buildings, promoting zero-energy building practices. Additionally, financial incentives, tax rebates, and grants are being offered to building owners and developers to encourage the adoption of zero-energy building technologies and solutions in the non-residential sector.

Zero Energy Buildings Regional Insights

By Region, the report provides market insights into Europe, North America, Asia-Pacific, and the Rest of the World. The North American zero energy buildings market accounted for USD 11.5 billion in 2022 and will likely exhibit a significant CAGR growth in the study period. In nations such as the United States and Canada, stringent energy efficiency standards and building codes push the adoption of zero-energy building plans. Energy rules like ASHRAE 90.1 in the United States and the National Energy Code of Canada for Buildings boost the region's demand for zero energy building technology and solutions. Many governments and provinces in the United and Canada provide financial incentives, tax breaks, and grants to encourage using zero-energy building technology and solutions. For example, the US Department of Energy sponsors the Zero Energy Ready Home program, which encourages builders to design zero-energy homes.

Also, the major countries studied in the market report are the U.S., German, Canada, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  ZERO ENERGY BUILDINGS MARKET SHARE BY REGION 2022 (%)

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

The European zero energy buildings market accounts for the second-largest market share. The European Union's stringent energy efficiency standards and targets promote implementing zero-energy building concepts. The EU's Energy Performance of Buildings Directive (EPBD) and Nearly Zero-Energy Buildings (NZEB) targets generate demand for zero-energy building technologies and solutions in Europe. Moreover, rising consumer awareness, demand for green buildings, and the prevalence of green building certifications such as BREEAM and LEED are boosting the development of zero-energy building concepts throughout Europe. Further, the German zero energy buildings market held the largest market share, and the U.K. zero energy buildings market was the fastest-growing market in the European region.

The Asia Pacific Zero Energy Buildings Market is expected to grow at the fastest CAGR from 2023 to 2032. Rapid urbanization and industrialization in nations such as China and India boost energy-efficient and sustainable structures demand. The necessity for sustainable urban development and growing environmental concerns drive the region's adoption of zero energy construction designs. Many regional governments have enacted stringent energy efficiency requirements and building codes, financial incentives, tax rebates, and grants to encourage using zero-energy building technologies. For example, the Green Building Council of Australia has established energy efficiency requirements for commercial buildings, increasing the demand for zero-energy building solutions in the country. Moreover, the China zero energy buildings market held the largest market share, and the Indian zero energy buildings market was the fastest-growing market in the Asia-Pacific region.

Zero Energy Buildings Key Market Players & Competitive Insights

Leading market players continuously commit to R&D activities to extend their product and solution offerings and drive market demand. Strategic activities such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaborations with other organizations are key market developments observed in recent years. These actions are intended to broaden the companies' footprint and achieve a competitive advantage in the zero energy buildings industry.

Major players in the zero energy buildings market, such as General Electric, Honeywell International Inc., Siemens, Schneider Electric, and others, are focusing on developing innovative solutions in areas such as energy management, automation, and building control systems to meet the growing demand for zero energy buildings ly. The zero energy buildings industry has seen tremendous technological and innovation breakthroughs over recent years, with key market players seeking to deliver cutting-edge solutions that line with sustainability aims and energy-efficient building practices.

General Electric (GE) is a multinational business in various industries, including energy, aviation, and healthcare. GE is headquartered in Boston, Massachusetts, and operates in over 180 countries. The company focuses on innovation and has pioneered designing and providing long-term solutions for the marketplace. General Electric announced a partnership with the National Renewable Energy Laboratory (NREL) in September 2021 to develop and test an advanced heating, ventilation, and air conditioning (HVAC) system for zero energy buildings. This collaboration intends to develop an innovative HVAC solution that saves energy, reduces greenhouse gas emissions, and enhances indoor air quality.

Honeywell International Inc. is a worldwide company in various areas, including aircraft, building technologies, performance materials and technologies, and safety and productivity solutions. Honeywell, headquartered in Charlotte, North Carolina, has a footprint with operations in over 70 countries. Honeywell announced the introduction of its new Honeywell Smart Building Solutions in January 2022 to deliver sophisticated building automation and management solutions for sustainable and energy-efficient buildings. The solutions include a variety of smart building technologies, such as intelligent HVAC systems, energy management systems, networked sensors, and analytics platforms.

Key Companies in the zero energy buildings market include

• Daikin Industries Ltd (Japan)


• General Electric (US)


• Johnson Controls International plc (Ireland)


• Honeywell International Inc (US)


• Schneider Electric (France)


• Siemens (Spain)


• SunPower Corporation (US)


• Kingspan Group (Ireland)


• Solatube International Inc (US)


• Saint-Gobain (France)

Zero Energy Buildings Industry Developments

July 2022: Siemens has introduced its new Masterguard E-Hybrid solution for zero-energy buildings. This revolutionary technology combines energy storage, solar panels, and smart building controls to allow buildings to create, store, and regulate their energy, decreasing dependency on the grid and assisting in the pursuit of zero energy use. The Masterguard E-Hybrid system is intended to optimize energy usage, reduce greenhouse gas emissions, and increase building sustainability, in line with the trend towards zero-energy buildings.

November 2021: Schneider Electric launched its new EcoStruxure for Buildings solution, a comprehensive platform that integrates building management systems, energy management systems, and digital services to optimize building performance and sustainability. The solution monitors, analyses, and optimizes building energy consumption using advanced analytics, automation, and IoT technologies, enabling effective operation and administration of zero-energy buildings.

Zero Energy Buildings Market Segmentation

Zero Energy Buildings Equipment Outlook

• HVAC System


• Lighting


• Walls & Roofs


• Others

Zero Energy Buildings Application Outlook

• Residential


• Non-residential

Zero Energy Buildings Regional Outlook

• North America
  
  
  
  • The U.S.
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • The U.K.
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America