Energy Efficient Building Technologies Market to Reach $623 Billion by 2023
The market for energy efficient building technologies today is $307.3 billion and is expected to grow to $623 billion by 2023. A new report from Navigant Research analyzes the global market for commercial building energy efficient products and services, including global market forecasts for revenue through 2023.
The building industry is on a long-term path toward improved levels of energy efficiency. Building owners are increasingly implementing corporate sustainability initiatives focused on energy efficiency—something that would have seemed costly or unnecessary 5 to 10 years ago. With few exceptions, governments are introducing policies aimed at promoting energy efficiency through incentives, prescriptive measures, building codes and other means. In addition, utilities continue to embrace energy efficiency as a way to manage strained grid infrastructure by reducing the amount of energy their customers consume.
The barriers to broad adoption of energy efficiency measures center around cost, the report says. In many countries, energy costs remain less than $0.10/kWh for commercial customers, rendering the paybacks of many energy efficiency measures difficult to justify within stringent investment criteria. Outside of developed economies, energy efficiency tends to be low on the priorities list, even with significant new construction activity in areas such as Southeast Asia, Latin America and the Middle East.
The report, Energy Efficient Buildings: Global Outlook, says the largest energy efficient building market segment is currently building envelope technologies, including building materials. However, mechanical and electrical systems such as HVAC, lighting and controls represent major segments as well.
Worldwide, Western Europe is the largest region for energy efficient building, as high energy prices and stringent energy codes have created a robust market. North America and Asia Pacific are also major markets, and energy efficiency is becoming increasingly mainstream for building projects in these regions.
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