by Shane Henson — December 14, 2012—Energy efficiency retrofits to existing commercial and public buildings represent a rapidly growing market, driven mainly by building owners and facilities managers seeking to reduce their electricity costs through making their buildings more energy efficient, but increasingly influenced by government policy, according to a report from Pike Research, a division of Navigant’s Energy Practice that provides in-depth analysis of global clean technology markets.
States, cities, municipalities, and the federal government are providing incentives to those who may not previously have considered retrofitting their commercial properties for increased energy efficiency. According to the report, the combination of financial benefits and government policies will drive rapid growth in the market for energy efficiency retrofits over the remainder of the decade.
The report, Energy Efficiency Retrofits for Commercial and Public Buildings examines the global market landscape for energy efficiency retrofits in commercial and public buildings, including analysis and forecasts for eight different building types as well as eight product and service categories, says Pike Research.
The report covers key industry drivers by world region, including regulatory and policy factors as well as market-based factors and economic considerations. More than 50 industry players are profiled in depth, and energy-efficiency retrofit revenue forecasts, segmented by world region and key countries, extend through 2020.
According to the report, the global market for energy efficiency retrofits in the commercial building sector will expand from $80.3 billion in 2011 to $151.8 billion by 2020.
“While some players in the commercial housing market have found their way to energy efficient buildings through benevolent motivations and the promise of global benefits, many more require policy and regulatory requirements or incentives to inspire them to enter the energy efficient retrofit market,” says senior research analyst Eric Bloom. “Sometimes these retrofits are encouraged through incentives or ratings programs that reward the most efficient buildings. More often, government agencies encourage higher efficiency buildings by educating the companies buying and selling buildings about the effect that the buildings will have on the environment and, more importantly, on their utility costs.”
The products and services offered to address energy efficiency retrofits can be grouped into several categories: heating, ventilation, and air conditioning, lighting, commissioning, control, solar, water management, and building envelope, as well as offerings from energy service companies (ESCOs), notes Pike Research. These products are being supplied by an ever-increasing number of companies that wish to establish a place in this growing industry. ESCOs currently make up the largest portion of the energy efficiency retrofit market, but the fastest growing segments over the next eight years will be solar power and water management, according to the report.
