Building Retrofitting Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Building Type (Residential, Non-Residential), By Type (Retrofitting of Reinforced Concrete Structure, Retrofitting of Masonry Structure, Others), By Method (New Shear Wall, Wall Thickening, Jacketing Method, Epoxy Injection, Others), By Region, By Competition, 2020-2030F

Market Overview

Global Building Retrofitting Market was valued at USD 123.89 billion in 2024 and is expected to reach USD 196.39 billion by 2030 with a CAGR of 7.82% during the forecast period. The Building Retrofitting Market refers to the industry focused on upgrading existing buildings to enhance their structural integrity, energy efficiency, safety, and overall performance without requiring complete reconstruction. Retrofitting involves modifications to a building’s structural, mechanical, electrical, and plumbing systems to meet modern regulatory standards, improve occupant comfort, and extend the building’s lifespan.

Key Market Drivers

Increasing Focus on Energy Efficiency and Sustainability

The growing emphasis on energy efficiency and sustainability is a key driver of the Building Retrofitting Market, as governments, businesses, and property owners seek to enhance building performance while reducing environmental impact. Aging infrastructure in developed and developing regions is leading to increased demand for retrofitting solutions that improve energy efficiency through better insulation, upgraded HVAC systems, and energy-efficient windows and lighting. Rising concerns about climate change and carbon emissions have accelerated the adoption of retrofitting measures, particularly in commercial and residential buildings, to comply with stringent energy regulations and sustainability standards. Many countries are implementing green building codes and energy efficiency mandates, such as the Leadership in Energy and Environmental Design (LEED) and Building Research Establishment Environmental Assessment Method (BREEAM) certifications, driving demand for energy-efficient retrofitting. Furthermore, incentives such as tax benefits, subsidies, and grants for energy-efficient building upgrades are further fueling market growth. Property owners are recognizing that retrofitting enhances energy savings and significantly reduces operational costs over time, making it a cost-effective investment. Additionally, corporate sustainability initiatives and Environmental, Social, and Governance (ESG) goals are pushing businesses to retrofit commercial buildings to improve energy performance and reduce their carbon footprint. Smart technologies, such as Building Energy Management Systems (BEMS) and IoT-enabled sensors, are also playing a crucial role in retrofitting projects by optimizing energy usage and minimizing waste. The increasing adoption of renewable energy solutions, such as solar panels and heat pumps, in retrofitting projects is further propelling market expansion. As the global push for net-zero emissions intensifies, the demand for building retrofitting will continue to rise, positioning it as a vital component in achieving energy efficiency and sustainability goals. The global market for energy-efficient building technologies is projected to reach USD 500 billion by 2027, with energy-efficient buildings alone accounting for 30-40% of the total energy consumption globally.

Aging Infrastructure and the Need for Structural Upgrades

The increasing need to upgrade aging infrastructure is another critical factor driving the Building Retrofitting Market. Many buildings, particularly in developed regions such as North America and Europe, were constructed decades ago and require significant structural improvements to meet modern safety, functionality, and energy standards. In older buildings, deteriorating materials, outdated electrical and plumbing systems, and inefficient designs necessitate extensive retrofitting to ensure safety and compliance with evolving building codes. Governments and regulatory authorities are implementing stricter safety regulations, particularly in seismic-prone areas, where buildings must be reinforced to withstand earthquakes. The growing risk of climate-related disasters, including hurricanes and floods, is also prompting investments in retrofitting solutions that enhance the structural resilience of buildings. Furthermore, urbanization and population growth are increasing pressure on existing infrastructure, necessitating modernization to accommodate evolving residential and commercial demands. Retrofitting offers a cost-effective alternative to demolition and reconstruction, enabling property owners to extend the lifespan of their buildings while improving functionality and energy efficiency. Advances in construction technologies, such as 3D modeling, advanced materials, and prefabrication techniques, are making retrofitting projects more efficient and economically viable. With the rising emphasis on sustainable urban development and smart cities, structural retrofitting is becoming an essential strategy for revitalizing aging buildings while minimizing resource consumption and environmental impact. The global issue of aging infrastructure is becoming more pressing, with estimates showing that over 50% of the world’s infrastructure is already considered outdated and in need of significant repair or upgrade.

Government Policies and Financial Incentives for Retrofitting

Supportive government policies and financial incentives are playing a significant role in accelerating the Building Retrofitting Market. Many governments worldwide are prioritizing retrofitting initiatives as part of their broader efforts to reduce energy consumption, lower greenhouse gas emissions, and improve building safety. Policies such as carbon reduction mandates, building energy performance standards, and retrofit funding programs are creating a favorable environment for market growth. In regions like Europe and North America, governments are offering financial incentives, such as low-interest loans, tax credits, and rebates, to encourage property owners to invest in energy-efficient and structural retrofitting projects. Programs like the European Green Deal and the U.S. Inflation Reduction Act provide substantial funding for retrofitting initiatives, promoting energy savings and climate resilience. Additionally, cities worldwide are introducing performance-based regulations, requiring buildings to meet specific energy efficiency targets, which is further driving demand for retrofitting services. Emerging economies in Asia-Pacific and Latin America are also witnessing increased government support for retrofitting, particularly in response to rapid urbanization and the need for sustainable infrastructure development. Public-private partnerships (PPPs) are playing a crucial role in funding large-scale retrofitting projects, enabling governments to collaborate with private investors and construction firms to modernize aging infrastructure. With increasing global focus on sustainable urbanization, decarbonization, and resilience-building, government initiatives will continue to fuel demand for retrofitting solutions, making it a critical driver of market expansion.

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Key Market Challenges

High Initial Costs and Financial Barriers

One of the most significant challenges in the Building Retrofitting Market is the high initial investment required for retrofitting projects. Retrofitting older buildings to improve energy efficiency, structural integrity, or compliance with modern safety regulations often involves extensive modifications, including upgrading insulation, replacing outdated HVAC systems, reinforcing structural components, and integrating smart building technologies. These upgrades can be expensive, especially in large commercial or industrial properties, where retrofitting costs can escalate due to the complexity of required changes. The financial burden is further exacerbated by the cost of skilled labor, specialized equipment, and compliance with evolving regulatory standards. Many property owners and developers hesitate to invest in retrofitting due to concerns about long payback periods and uncertain return on investment (ROI). Unlike new construction projects, where financing is more straightforward, retrofitting projects often face difficulties in securing funding from financial institutions, as the perceived risks associated with retrofitting older buildings can deter lenders and investors. Additionally, small and medium-sized businesses, as well as individual homeowners, may lack the capital required for large-scale retrofitting initiatives, limiting market growth. Government incentives and subsidies for retrofitting projects exist in some regions, but they are often insufficient or inconsistently applied, making it difficult for property owners to justify the upfront expenses. Moreover, retrofitting older buildings can uncover unforeseen structural deficiencies or outdated infrastructure, leading to additional costs that were not initially accounted for in the budget. The challenge of high costs is particularly pronounced in emerging economies, where affordability remains a key concern and where many older buildings require substantial upgrades to meet current standards. The market's growth potential is further hindered by economic downturns, which can lead to reduced investments in construction and renovation projects, as businesses and individuals prioritize essential expenditures over retrofitting initiatives. Addressing this challenge requires innovative financing models, such as energy performance contracts (EPCs) that allow building owners to pay for retrofits through future energy savings, as well as increased government incentives to offset initial costs. Without financial support and viable investment strategies, many property owners may continue to delay or forgo retrofitting projects, slowing the adoption of energy-efficient and resilient building practices.

Technical and Logistical Complexities

Another major challenge in the Building Retrofitting Market is the technical and logistical complexities associated with retrofitting aging structures. Unlike new construction, where projects begin with a blank slate, retrofitting requires working within the constraints of existing buildings, which often involve outdated designs, incompatible materials, and structural limitations. Many older buildings were not designed with modern energy efficiency standards or smart technologies in mind, making retrofitting a highly specialized and labor-intensive process. Integrating advanced systems such as smart lighting, energy-efficient HVAC systems, and renewable energy solutions into existing infrastructure often requires extensive modifications that can disrupt normal building operations. For commercial buildings, this can result in temporary business closures, loss of revenue, and inconvenience to tenants. In densely populated urban areas, logistical challenges such as limited space for construction activities, transportation restrictions, and stringent building codes further complicate retrofitting efforts. Additionally, retrofitting projects must comply with various local, national, and international building regulations, which may differ significantly depending on the region. Ensuring compliance with energy efficiency standards, fire safety regulations, and structural reinforcement codes requires thorough planning and coordination with multiple stakeholders, including architects, engineers, and regulatory authorities. The presence of hazardous materials such as asbestos, lead paint, or outdated electrical wiring in older buildings presents further complications, as safe removal and disposal require additional time, expertise, and costs. Moreover, the lack of standardized retrofitting procedures and technologies creates inconsistencies in project execution and outcomes. Unlike new construction projects that benefit from advanced digital modeling and simulation tools, many retrofitting projects still rely on manual assessments and outdated methodologies, leading to inefficiencies and increased project timelines. Skilled labor shortages further exacerbate these challenges, as retrofitting requires specialized expertise that is not always readily available in all markets. The complexity of retrofitting projects also makes it difficult to accurately estimate costs and timelines, increasing the risk of budget overruns and project delays. This uncertainty often discourages property owners from undertaking retrofitting initiatives, especially when the potential benefits may take years to materialize. To address these technical and logistical hurdles, industry stakeholders must invest in innovative solutions such as Building Information Modeling (BIM) to enhance planning accuracy, as well as prefabricated retrofitting components that can streamline installation processes. Additionally, greater collaboration between government agencies, construction firms, and technology providers is essential to developing standardized retrofitting guidelines that ensure efficiency, compliance, and cost-effectiveness. Without improvements in planning, execution, and regulatory alignment, the complexity of retrofitting projects will continue to pose a significant barrier to market growth, limiting the widespread adoption of sustainable and resilient building solutions.

Key Market Trends

Rising Demand for Energy-Efficient Retrofitting

The global push toward energy efficiency and sustainability is driving significant growth in the Building Retrofitting Market. With increasing concerns over climate change and carbon emissions, governments and organizations worldwide are implementing stringent energy regulations and incentives to encourage retrofitting projects. Older buildings, constructed before modern energy efficiency standards, consume a disproportionate amount of energy, leading to higher operational costs and increased environmental impact. Retrofitting these buildings with energy-efficient solutions, such as upgraded insulation, advanced HVAC systems, and smart lighting, is becoming a top priority. Additionally, the adoption of renewable energy technologies, such as solar panels and geothermal heating, in retrofitting projects is gaining traction as businesses and homeowners seek to reduce their reliance on fossil fuels. Many countries are offering tax incentives, rebates, and low-interest financing to encourage building owners to invest in retrofitting initiatives. Technological advancements in materials and construction techniques have further fueled the trend, making retrofitting projects more cost-effective and efficient. The rise of digital tools, such as Building Information Modeling (BIM) and energy management software, is also playing a crucial role in optimizing retrofitting projects, ensuring maximum energy savings and compliance with regulatory standards. As energy costs continue to rise, the demand for energy-efficient building retrofitting is expected to accelerate, creating significant opportunities for market players in the coming years.

Increasing Focus on Climate Resilience and Seismic Retrofitting

The growing frequency of extreme weather events, natural disasters, and seismic activities has heightened the need for climate-resilient and seismic retrofitting solutions in the building industry. Governments and regulatory bodies worldwide are implementing stricter building codes and retrofitting mandates to ensure that existing structures can withstand earthquakes, hurricanes, floods, and other environmental hazards. Seismic retrofitting, in particular, has gained prominence in regions prone to earthquakes, such as Japan, California, and parts of Europe, where older buildings are being reinforced with advanced materials and engineering techniques to improve structural integrity. Similarly, coastal areas facing rising sea levels and increased storm intensity are prioritizing flood-resistant retrofitting measures, including elevated foundations, water-resistant materials, and improved drainage systems. Climate resilience retrofitting also includes the use of heat-reflective coatings, storm-resistant windows, and green roofing solutions to enhance a building’s ability to withstand changing environmental conditions. Additionally, urban areas experiencing rapid temperature fluctuations are increasingly adopting passive design retrofitting strategies, such as improved ventilation and shading systems, to enhance indoor comfort and reduce reliance on artificial cooling. With climate change posing long-term risks to infrastructure, the demand for climate-resilient and seismic retrofitting solutions is expected to rise, presenting substantial growth opportunities for market stakeholders.

Segmental Insights

Building Type Insights

The Residential segment held the largest Market share in 2024.  The growth of the Building Retrofitting Market in the residential segment is primarily driven by the increasing need for energy efficiency, structural safety, and modernization of aging buildings. With a significant portion of the global housing stock being decades old, many residential buildings require upgrades to meet evolving safety codes, environmental standards, and energy efficiency regulations. Governments worldwide are implementing stringent policies and offering incentives to encourage retrofitting as part of their efforts to reduce carbon footprints and enhance sustainability. Rising energy costs and the need to improve thermal insulation, ventilation, and renewable energy integration are pushing homeowners to invest in retrofitting solutions. Additionally, increasing awareness about the benefits of smart home technologies, such as automated lighting, energy-efficient HVAC systems, and advanced security solutions, is further driving demand. The growing focus on disaster resilience, particularly in regions prone to earthquakes, hurricanes, and other extreme weather events, is making structural reinforcement a priority for residential retrofitting. Furthermore, urbanization and changing consumer preferences are accelerating the demand for modern, aesthetically appealing, and functional living spaces, prompting homeowners to upgrade their properties rather than invest in new construction. Financial support from government programs, tax credits, and green financing options are also making retrofitting more accessible and cost-effective. Technological advancements in materials and construction techniques, such as high-performance insulation, smart glazing, and energy-efficient roofing systems, are enhancing the feasibility and efficiency of retrofitting projects. The integration of IoT-based solutions for real-time energy monitoring and automated building management is adding another layer of appeal to residential retrofitting. Moreover, as property values continue to rise, homeowners recognize retrofitting as a viable strategy to increase asset value and long-term cost savings. The shift toward net-zero buildings and stricter energy codes are also prompting property owners to upgrade their homes to comply with sustainability standards. Additionally, retrofitting enables improved indoor air quality, enhanced comfort, and reduced maintenance costs, making it a highly attractive solution for homeowners looking to extend the lifespan of their properties. The increasing prevalence of energy performance certifications and the growing emphasis on green building initiatives are further strengthening the market outlook. As urban centers become more congested, the retrofitting of existing buildings presents a more sustainable and cost-effective alternative to demolition and reconstruction. Additionally, with the rise of remote work and changing lifestyle preferences, there is a growing need for home modifications that support flexible, energy-efficient, and technology-integrated living spaces. The rise of modular and prefabricated retrofit solutions is further streamlining the retrofitting process, reducing installation time and disruption for homeowners. In emerging economies, rapid urbanization and an increasing middle-class population are fueling demand for residential retrofitting, as people seek to enhance living conditions without relocating. As a result, the residential segment of the Building Retrofitting Market is expected to experience robust growth, driven by sustainability mandates, technological innovations, financial incentives, and shifting consumer preferences toward energy-efficient and modernized living spaces.

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Regional Insights

North America region held the largest market share in 2024. The growth of the Building Retrofitting Market in North America is driven by increasing regulatory mandates, rising energy efficiency concerns, and the need to modernize aging infrastructure. With a significant portion of the region’s commercial and residential buildings constructed decades ago, retrofitting has become essential to enhance structural integrity, improve energy performance, and meet evolving building codes. Government initiatives and incentives, such as tax credits, grants, and funding programs, are further accelerating the adoption of retrofitting solutions. Policies like the U.S. Inflation Reduction Act and Canada’s Net Zero Building initiatives are pushing property owners to invest in energy-efficient upgrades, including HVAC systems, insulation, and smart building technologies. Additionally, the growing emphasis on sustainability and carbon footprint reduction is driving demand for green retrofitting, including the installation of solar panels, energy-efficient lighting, and advanced climate control systems. The increasing frequency of extreme weather events, such as hurricanes and wildfires, is also prompting the need for structural reinforcements to enhance building resilience. In the commercial sector, businesses are investing in retrofitting to improve operational efficiency, reduce maintenance costs, and comply with stringent environmental regulations. The rising adoption of smart building technologies, including IoT-enabled monitoring systems and AI-driven energy management, is transforming retrofitting strategies, making buildings more adaptive and cost-effective. Moreover, North America's growing urbanization and expanding real estate sector are creating further opportunities for retrofitting older structures to meet modern safety and comfort standards. The shift toward healthier indoor environments, particularly after the COVID-19 pandemic, has also increased demand for retrofits that enhance air quality, ventilation, and sanitation. Financial institutions and investors are increasingly prioritizing energy-efficient and sustainable buildings, further driving the market as retrofitted properties often have higher asset values and attract eco-conscious tenants. The rise of public-private partnerships in North America is also fostering market growth, with governments collaborating with industry players to promote large-scale retrofitting projects. Technological advancements, such as the development of innovative insulation materials, advanced glazing systems, and high-performance building envelopes, are enhancing retrofitting solutions, making them more efficient and cost-effective. Additionally, the growing adoption of prefabrication and modular retrofitting techniques is reducing project timelines and costs, further boosting market expansion. The commercial real estate sector, particularly office buildings, hotels, and retail spaces, is increasingly investing in retrofitting to align with sustainability goals, reduce operational expenses, and enhance tenant satisfaction. Meanwhile, residential property owners are also opting for retrofits to improve energy efficiency and lower utility bills. As North America continues to focus on climate change mitigation and energy conservation, the demand for building retrofitting is expected to surge, supported by strong policy frameworks, financial incentives, and advancements in retrofitting technologies. The convergence of regulatory compliance, sustainability goals, and economic benefits positions North America as a key growth region for the Building Retrofitting Market, ensuring long-term opportunities for industry players specializing in energy-efficient and resilient building upgrades.

Recent Developments

• In March 2023, Siemens Smart Infrastructure launched the Connect Box, an intuitive IoT solution designed for small to medium-sized buildings. Part of the Siemens Xcelerator portfolio, the Connect Box provides a streamlined approach for monitoring and optimizing building performance, with the potential to improve energy efficiency by up to 30% and significantly enhance indoor air quality in spaces such as schools, retail stores, apartments, and small offices.
• In May 2023, Delta, a global leader in power and thermal management solutions, introduced its "Intelligent Sustainable Connecting Hub," an IoT-based smart community platform. This hub incorporates an advanced operation center with a multifunctional management platform that enables companies to oversee critical operations, including carbon emissions tracking and renewable energy integration. Additionally, Delta's VORTEX, a cloud-based video surveillance-as-a-service (VSaaS), along with its smart microgrid-supported electric vehicle (EV) charging infrastructure and energy-efficient data center solutions, exemplify how Delta’s integrated solutions contribute to the sustainable development of various industries. 
• In October 2024, IES is thrilled to introduce a comprehensive new guide that outlines a best practice approach for decarbonizing existing buildings as part of the journey toward achieving net-zero emissions. This guide aims to provide a structured and actionable roadmap for building owners, operators, and stakeholders seeking to reduce their carbon footprint and align with global sustainability targets.

Key Market Players

• Siemens AG
• Johnson Controls International PLC
• Schneider Electric SE
• Honeywell International Inc.
• Kingspan Group
• Saint-Gobain S.A.
• Owens Corning
• Rockwool International A/S
• 3M Company
• BASF SE

Report Scope:

In this report, the Global Building Retrofitting Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Building Retrofitting Market, By Building Type:

o   Residential

o   Non-Residential  

• Building Retrofitting Market, By Type:

o   Retrofitting of Reinforced Concrete Structure

o   Retrofitting of Masonry Structure

o   Others  

• Building Retrofitting Market, By Method:

o   New Shear Wall

o   Wall Thickening

o   Jacketing Method

o   Epoxy Injection

o   Others  

• Building Retrofitting Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Building Retrofitting Market.

Available Customizations:

Global Building Retrofitting Market report with the given Market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional Market players (up to five).

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