|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
29.83 Billion
|
|
CAGR
(2023-2028)
|
5.30%
|
|
Fastest
Growing Segment
|
Ventilation
Systems
|
|
Largest
Market
|
North
America
|
Market Overview
Global Commercial Energy-Efficient
Building Market has
valued at USD 29.83 Billion in 2022 and is anticipated to project robust growth
in the forecast period with a CAGR of 5.30% through 2028. Commercial
Energy-Efficient Buildings use significantly less energy for heating, cooling,
lighting, and other operational needs compared to traditional buildings. This
reduction is achieved through a combination of design strategies, advanced
materials, and energy-efficient technologies. These buildings prioritize indoor air quality by
incorporating effective ventilation systems, low-emission materials, and air
filtration technologies. Improved air quality contributes to occupant health
and comfort. The building envelope, including walls, windows, roofs, and
insulation, is designed to minimize heat transfer, prevent air leaks, and
maintain a stable indoor temperature. This helps reduce the need for heating
and cooling. energy-efficient lighting systems, such as LED (Light Emitting
Diode) fixtures, are commonly used to minimize electricity consumption for
illumination. Smart lighting controls further enhance energy savings.
Key Market Drivers
Commercial
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 Commercial
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.
Another significant driver is the potential for cost savings. Commercial
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. Heating, ventilation, and air conditioning (HVAC) systems
in Commercial Energy-Efficient Buildings often incorporate advanced
technologies like heat pumps, variable-speed fans, and energy recovery systems
to optimize temperature control while minimizing energy use. Smart building
technologies and automation systems are integrated to optimize energy usage
based on factors such as occupancy, weather conditions, and time of day. This
ensures efficient operations and comfort. Water-saving fixtures and systems,
including low-flow toilets and water-efficient landscaping, are commonly
incorporated to reduce water consumption. Commercial Energy-Efficient Buildings
often utilize sustainable and eco-friendly construction materials, including
recycled content, low-VOC (Volatile Organic Compounds) paints, and
environmentally responsible finishes.
Government
Incentives
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 Commercial
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 Commercial Energy-Efficient Buildings. These advancements have
expanded the range of available options and increased the market feasibility of
energy-efficient solutions.
Demand
And Consumer Preferences Have Shifted Towards Commercial Energy-Efficient
Buildings
Furthermore,
market demand and consumer preferences have shifted towards Commercial
Energy-Efficient Buildings. Homebuyers, tenants, and businesses are
increasingly prioritizing sustainability and energy savings when making
decisions about where to live, work, and invest. Commercial 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 Commercial
Energy-Efficient Building market revenue.
Government
Incentives
Energy
cost savings are a compelling and fundamental driver behind the growth of the
global commercial energy-efficient building market. Commercial buildings are
significant consumers of energy, and the quest to reduce energy-related
expenses has become a primary motivator for businesses, property owners, and
investors. This focus on cost savings is rooted in several key factors, First
and foremost, energy-efficient buildings are designed and equipped to consume
substantially less energy than their non-efficient counterparts. This
translates directly into lower utility bills. For commercial property owners,
operators, and tenants, these reduced operating costs represent a tangible and
immediate financial benefit. By optimizing the building envelope, upgrading
HVAC systems, implementing energy-efficient lighting, and incorporating smart
building management technologies, businesses can achieve substantial ongoing
savings on their energy bills.
The
long-term financial advantages of energy-efficient buildings are also
significant. Over the lifespan of a commercial property, the cumulative energy
cost savings can be substantial, greatly enhancing the building's overall
economic viability. These energy-efficient features contribute to higher
property values and rental rates, attracting investors and tenants who
appreciate the potential for lower operational expenses. Government incentives
and regulations further amplify the importance of energy cost savings. Many
governments worldwide offer tax credits, rebates, and grants to promote
energy-efficient building practices. Compliance with energy codes and standards
that prioritize efficiency is often a prerequisite for obtaining these
incentives. As a result, businesses and property owners are compelled to invest
in energy-efficient building technologies to take advantage of these financial
benefits.
Additionally,
as energy costs continue to rise over time, the value of energy-efficient
buildings becomes even more pronounced. Energy-efficient measures act as a
hedge against escalating energy expenses, providing a degree of insulation from
price volatility and reducing the financial risk associated with energy
dependency. In conclusion, energy cost savings are a driving force in the
global commercial energy-efficient building market. The ability to reduce
operational expenses, enhance property values, attract tenants, and leverage
government incentives make energy efficiency a compelling proposition for
businesses and property owners. As energy costs remain a significant concern,
the adoption of energy-efficient building practices and technologies is poised
to continue its steady growth, delivering both economic and environmental
benefits.
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Key Market Challenges
High
Initial Costs
The
global commercial energy-efficient building market faces a significant
challenge in the form of high initial costs, which can hamper its growth and
adoption. While energy-efficient buildings offer long-term financial and
environmental benefits, the upfront investment required to implement these
technologies and design practices can be a barrier for many stakeholders.
Here's a closer look at how high initial costs can pose challenges, Capital
Intensity: Energy-efficient building features and technologies often involve
substantial capital expenditures during the construction or retrofitting
process. This includes the cost of advanced insulation materials,
energy-efficient HVAC systems, smart building management systems, and renewable
energy installations. These upfront expenses can strain the budgets of property
developers and building owners.
Return
on Investment (ROI) Timing: The ROI for energy-efficient building investments
typically occurs over an extended period. While energy savings are realized
gradually, the initial costs are incurred upfront. This misalignment between
costs and benefits can deter some stakeholders, especially those with shorter
investment horizons or limited access to financing. Perception of High Risk:
Some investors and property owners perceive energy-efficient building projects
as riskier due to the uncertainty surrounding long-term energy savings and
technology performance. This perception can lead to hesitation in adopting
these measures, particularly in markets with limited experience in
energy-efficient construction.
Lack
of Access to Financing: Securing financing for energy-efficient building
projects can be challenging, particularly for smaller businesses and property
owners. Traditional lenders may be cautious about providing loans for
innovative and energy-efficient projects, requiring additional collateral or
charging higher interest rates.
Competing
Priorities: In some cases, building owners and developers may prioritize other
aspects of a project, such as architectural design or location, over energy
efficiency due to perceived higher immediate value or market demand. Knowledge
and Expertise Gaps: The planning and implementation of energy-efficient
technologies require specialized knowledge and expertise. The lack of skilled
professionals in the field can result in inefficiencies and increased project
costs, further contributing to the initial cost challenge.
Market
Maturity: In regions where the market for energy-efficient building
technologies is still emerging, the lack of a competitive market can result in
higher prices for these technologies and services, making them less accessible
to potential adopters. To address these challenges, various strategies can be
employed, such as government incentives, tax credits, grants, and subsidies
that help offset initial costs. Additionally, education and awareness campaigns
can promote the long-term benefits of energy-efficient buildings, encouraging
more stakeholders to prioritize these investments. Collaboration between public
and private sectors can also drive innovation and reduce costs in the
energy-efficient building market. Despite these challenges, the economic and
environmental advantages of energy-efficient buildings make them a compelling
and sustainable choice for the future of commercial construction.
Integrated
Design
Commercial
Energy-Efficient Buildings require an integrated design approach. Architects,
engineers, and other stakeholders must work collaboratively to optimize the
building's performance across various parameters, such as energy use, thermal
comfort, lighting, and indoor air quality. The integration of advanced
technologies, such as energy-efficient HVAC systems, building automation, and
renewable energy sources, adds complexity to the design and construction
process. These technologies need to work seamlessly together for the building
to perform efficiently. The design and construction of the building envelope, including
insulation, windows, and roofing, is crucial for controlling heat transfer and
maintaining energy efficiency. Achieving the desired level of insulation and
airtightness can be complex. Commercial Energy-Efficient Buildings are often
customized to suit the specific needs and climate of the region. This
customization requires careful consideration of local weather conditions,
building orientation, and materials.
Skill
Shortages
There
is a shortage of skilled professionals with expertise in Commercial
Energy-Efficient Building practices and technologies. This scarcity can lead to
suboptimal designs and inefficient construction processes. Achieving an
integrated design that optimizes energy efficiency requires close coordination
among multiple disciplines, including architecture, engineering, and interior
design. Miscommunication or a lack of collaboration can lead to inefficiencies.
The integration of sophisticated energy-efficient technologies can be
challenging. Compatibility issues, technical glitches, and a lack of knowledge
among construction teams can hinder the successful implementation of these
systems. Many consumers and property owners are unaware of the benefits of Commercial
Energy-Efficient Buildings. Raising awareness and promoting long-term cost
savings can be a challenge.
Key Market Trends
Energy
Performance Certifications
Energy
performance certifications play a pivotal role in driving the global commercial
energy-efficient building market. These certifications, such as LEED (Leadership
in Energy and Environmental Design), BREEAM (Building Research Establishment
Environmental Assessment Method), and others, provide a standardized framework
for assessing and verifying the energy efficiency and sustainability of
commercial buildings. They serve as powerful drivers for several key reasons, Credibility
and Recognition: Energy performance certifications are widely recognized and
respected within the real estate and construction industries. They provide a
credible and objective assessment of a building's energy efficiency and
environmental impact. This credibility is essential for building owners and
developers looking to showcase their commitment to sustainability to tenants,
investors, and the public.
Market
Differentiation: Having an energy performance certification sets a building
apart from its competitors. Certified buildings are often viewed as more
desirable by tenants and investors because they offer tangible benefits, such
as reduced operating costs and a smaller environmental footprint. This
differentiation can translate into higher rental rates, property values, and
occupancy rates. Environmental Stewardship: Many businesses and organizations
prioritize sustainability and environmental responsibility. Energy performance
certifications demonstrate a commitment to reducing greenhouse gas emissions,
conserving resources, and minimizing environmental impact. This aligns with the
values and goals of environmentally conscious stakeholders.
Cost
Savings: Achieving an energy performance certification often involves
implementing energy-efficient technologies and practices. While there are costs
associated with these improvements, they are typically offset by long-term
energy cost savings. Certification programs encourage and reward these
energy-saving investments. Regulatory Compliance: In some regions, energy
performance certifications are a requirement for regulatory compliance.
Governments and municipalities may mandate that new commercial buildings meet
certain energy efficiency standards or achieve specific certification levels.
This legal framework compels building owners and developers to prioritize
energy efficiency.
Tenant
Attraction and Retention: Tenants increasingly seek out energy-efficient spaces
due to the financial benefits and enhanced comfort they offer. Certified
buildings are more likely to attract and retain tenants, which can lead to
stable rental income for property owners. Access to Incentives: Some government
incentives, grants, and tax credits are specifically tied to energy performance
certifications. Building owners and developers who pursue certification may
qualify for these financial incentives, further offsetting the costs of
energy-efficient upgrades.
Global
Consistency: Energy performance certifications provide a standardized approach
to measuring and comparing the energy efficiency of buildings globally. This
consistency allows for cross-border comparisons and helps international
investors and tenants assess a building's sustainability regardless of its location.
In conclusion, energy performance certifications are powerful drivers for the
global commercial energy-efficient building market. They not only provide a
recognized standard for measuring and promoting energy efficiency but also
offer numerous benefits to building owners, developers, tenants, and the
environment. As sustainability continues to be a top priority in the commercial
real estate industry, the influence of these certifications is expected to
grow, further incentivizing the adoption of energy-efficient building practices
worldwide.
Segmental Insights
Components
Insights
Ventilation
systems, Lighting technology, Energy management system, Control, HVAC, Water
efficiency, Water heating, and Building envelope are the key components covered
in the study. The energy management segment can anticipate recording the
highest growth over the assessment timeline due to the surging need for highly
equipped systems from different end-users.
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Regional Insights
The North
America region has established itself as the leader in the Global Commercial
Energy-Efficient Building Market with a significant revenue share in 2022. The North America Commercial 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. Commercial
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. The market in North America is expected to grow at the fastest rate in
the coming years. Using cutting-edge technologies like the Internet of Things,
big data, cloud computing, data analytics, deep learning, and artificial
intelligence, the sector has seen the development of the most modern
intelligent building solutions. Saving energy, cutting operating costs, bolstering
comfort levels in buildings, and adhering to stricter international laws and
sustainability standards are currently the key focus areas in the region. North
America is also the most technologically sophisticated region in the world as a
result of the region's businesses adopting new technologies quickly.
Additionally, two significant nations that have aided in the technological
advancement of the area are the United States and Canada.
Europe has a substantial market share because
of stringent energy efficiency laws for sustainable development. Energy
conservation is a significant priority for these two regions' sustainable
growth, which is fueling the need for energy-efficient structures. Profitable
solutions for intelligent buildings have also been developed as a result of the
expansion of the European construction sector, which includes high-tech
construction and rehabilitation projects. The increase in per capita energy
prices, particularly in commercial and industrial buildings, can be blamed for
the high adoption rate. Some of the key markets for solar transformers in the
APAC region include China, India, Japan, South Korea, and Australia. These
countries are experiencing rapid growth in their solar energy markets, and this
is driving the demand for solar transformers. The APAC region is expected to
continue to dominate the Commercial Energy-Efficient Building market in the
coming years. This is due to the continued growth of the solar energy market in
the region, the presence of key Commercial Energy-Efficient Building manufacturers
in the region, supportive government policies for solar energy, and growing investments
in the solar sector. The Asia Pacific region is the dominating region in the Commercial
Energy-Efficient Building market. This is attributed to the growing demand for
solar energy in the region, the presence of key Commercial Energy-Efficient
Building manufacturers in the region, supportive government policies for solar
energy, and growing investments in the solar sector. The APAC region is
expected to continue to dominate the Commercial Energy-Efficient Building market
in the coming years.
Recent 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.
Key Market Players
- Cleantech Group
- Johnson Controls
- Ameresco Inc.
- Serious Energy Inc.
- Knauf Insulation
- Architectural Energy Corporation
- KMC Controls Inc.
- Among others.
|
By
Component Type
|
By
Region
|
- Ventilation
Systems
- Lighting
Technologies
- Energy
Management Systems
- Controls
|
- North
America
- Europe
- Asia
Pacific
- South
America
- Middle
East & Africa
|
Report
Scope:In
this report, the Global Commercial Energy-Efficient Building Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- Global Commercial Energy-Efficient
Building Market, By Component Type:
o Ventilation Systems
o Lighting Technologies
o Energy Management Systems
o
Controls
- Global Commercial Energy-Efficient
Building Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Asia-Pacific
§ China
§ India
§ Japan
§ South Korea
§ Indonesia
o Europe
§ Germany
§ United Kingdom
§ France
§ Russia
§ Spain
o South America
§ Brazil
§ Argentina
o Middle East & Africa
§ Saudi Arabia
§ South Africa
§ Egypt
§ UAE
§ Israel
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Global Commercial
Energy-Efficient Building Market.
Available
Customizations:
Global
Commercial Energy-Efficient Building 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).
Global Commercial Energy-Efficient
Building Market is an upcoming report to be released soon. If you wish an early
delivery of this report or want to confirm the date of release, please contact
us at [email protected]