The Global Energy Retrofit Systems Market is predicted to grow from USD 163.95 billion in 2022 and is anticipated to reach a valuation of USD 223.68 billion by 2028, and is predicted to register a CAGR of 5.52% over the foreseen period 2023-2028.
Governments across Europe enforce building rules and introduce green ratings for commercial buildings, propelling the global retrofit systems market for energy retrofit technologies. Consumers are also receiving incentives from governments to adopt energy retrofit systems. There is a great need for energy retrofit systems because commercial buildings use so much energy for heating, ventilation, air conditioning (HVAC), water heating, lighting, and other building systems.
Market Drivers and Restraints:
One of the primary factors uplifting the global energy retrofit systems market is the scarcity of energy. A prominent driver of the worldwide energy retrofit systems market is the rising demand for energy due to increased industrialization and infrastructure development. Many businesses consider energy retrofit goods to be a kind of corporate social responsibility. Furthermore, some consumers install energy retrofit systems to comply with environmental regulations and obtain ISO, Greenpeace, and REACH certifications, elevating their standards. The global energy retrofit systems market is expected to be driven by growing concerns about greenhouse gas (GHG) emissions and stringent laws to reduce carbon footprint.
In addition, the increased deployment of HVAC appliances across numerous industries is expected to raise product demand even more. Most HVAC and lighting technologies have a 25-year shelf life, after which they are considered obsolete and must be replaced. The retrofitting of these systems results in significant energy cost savings for households and companies. Due to large-scale construction and the adoption of retrofit systems to replace current ones, which have proven to be expensive and energy-consuming, the market in the United States is predicted to rise significantly over the forecast period. Since the United States' withdrawal from the Paris Climate Accord, there has been concern that non-renewable energy corporations will take advantage of the chance.
Furthermore, due to the financial incentives provided by government agencies, awareness of renewable energy adoption is expected to continue to expand at a rapid pace. Therefore, these components must be technologically upgraded regularly to improve the performance of energy retrofit system modules. Moreover, due to an increase in global energy demand, new business models in the electrical industry have emerged as a result of the expanding installation of energy infrastructure and the ubiquitous accessibility of smart devices. As a result, consumers' energy-related needs in the residential, commercial, and industrial sectors steadily increase.
The advent of smart home gadgets has enabled continuous monitoring of power consumption for residential consumers. During the projected period, these factors are expected to drive the global energy retrofit systems market forward. In addition, the building or construction industry has a lot of room for improving energy efficiency and lowering carbon emissions. As a result, the global energy retrofit systems market is predicted to grow in response to the rising demand for energy-efficient systems. Furthermore, rapid urbanization, industrialization, construction of new infrastructures in developing economies, the adoption of HVAC appliances, government regulations regarding building codes in developed countries, and the green ratings for commercial buildings are some of the major factors driving the global energy retrofit systems market growth. High installation and starting expenses and a lack of awareness about energy-saving strategies are projected to constrain the growth of the worldwide energy retrofit systems market.
Market Recent Developments:
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2022 – 2028 |
|
Base Year |
2022 |
|
Forecast Period |
2023 - 2028 |
|
CAGR |
5.52% |
|
Segments Covered |
By Product, Application, and Region. |
|
Various Analyses Covered |
Global, Regional and Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
|
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
|
Market Leaders Profiled |
Daikin Industries, ltd., Ameresco, Eaton, AECOM, Johnson Controls, Orion Energy Systems Inc., Siemens, Trane, Signify Holding, Engie, and Others |
Market Segmentation:
In 2020, the envelope product sector had the highest revenue share, accounting for more than 51% of the global energy retrofit systems market share. Over the forecast period, the segment is expected to maintain its dominance while growing at a stable CAGR. Retrofitting a building envelope increases thermal comfort and decreases draughts by adding insulation and an air barrier to the walls. As a result, heat loss is reduced, resulting in lower energy consumption and a lower carbon footprint for tenants and owners. This will also influence public perception positively by demonstrating a commitment to environmental sustainability. However, from 2022 - 2027, the LED retrofit lighting market is expected to grow at the quickest rate, with a CAGR of above 5%.
Moreover, the HVAC Retrofit segment is estimated to grow in the global energy retrofit systems market significantly. HVAC comprises heating, ventilation, and air conditioning. These systems help to improve the aesthetic value of both residential and business spaces. Key firms invest in R&D to develop innovative products like hybrid HVAC equipment, which heats and cools using diverse energy sources. The market is predicted to grow due to the development of energy-efficient HVAC systems and increased customer preference for comfort when using HVAC systems.
In 2020, the non-residential category dominated the global energy retrofit systems market, accounting for more than 71 percent of total sales. The growth can be linked to large-scale HVAC system installations and the technological obsolescence of older non-residential building systems. In addition, because of their dependency on HVAC and lighting systems, areas that undergo extreme winter weather will benefit the most from power system upgrades.
During the projection period, the residential application category is expected to develop at the quickest CAGR. Increasingly expensive residential properties and the enactment of regulations to safeguard historic structures have led to alterations to existing systems, with many consumers choosing retrofits. Furthermore, rising energy costs and stricter enforcement of various emission standards prompt several industrial and commercial enterprises to develop advanced energy-efficient modernization systems.
Market Regional Analysis:
The Global Energy Retrofit Systems Market Report includes the segmentation of Regions:
The European region dominated the global energy retrofit systems market, accounting for more than 47% of total revenue. In terms of revenue, Russia will lead the European regional market in 2020. The expanding product uptake in the regional market is primarily driven by growing concerns about GHG emissions and rigorous restrictions to reduce carbon footprint. Furthermore, the global energy retrofit systems market expansion is fueled by a rising population and increased demand for efficient and clean energy.
The Asia Pacific region will hold significant global energy retrofit systems market growth from 2022 - 2027. Construction activity will pick up, and the industrial sector will expand, propelling market growth in the region. The low cost of renewable energy and infrastructure has sped up the adoption of energy retrofit systems, becoming more popular in residential and business settings. In addition, government regulations and programs promoting environmentally friendly green buildings are predicted to stimulate regional growth in emerging countries. During 2023 - 2028, the market is expected to develop due to increased consumer knowledge about retrofitting and the availability of energy retrofit solutions.
In 2020, the COVID-19-imposed lockdown, which forced most sectors worldwide to halt production, caused a 9 per cent reduction in overall energy efficiency system investments. In addition, as of April 2020, citizens in significant economies have reduced their trips to workplaces by more than 60%, reducing commercial building electricity use. For example, according to the International Energy Agency, average household electricity usage in the United States climbed by 30% in April 2020, followed by decreased commercial building electricity consumption. Therefore, owing to these factors, the global energy retrofit systems market faces a negative impact.
Market Key Players:
The companies covered in the report include:
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1800
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region