Energy Retrofit Systems Market Size & Growth Analysis to 2030

The global energy retrofit systems market size is anticipated to register a sustainable CAGR of over 4% during the forecast period from 2022 to 2028. The growing energy consumption around the world and the rising demand for energy efficiency are some major factors driving the market growth. Furthermore, the increasing adoption of systems in the construction sector to optimize energy consumption is further anticipated to fuel the market growth over the forecast period. Moreover, the improving government regulations to implement energy improvement projects to improve the energy performance around the buildings are projected to propel the market. In addition, the increasing penetration of HVAC appliances in various sectors is anticipated to increase the demand for products in the next upcoming years.

Market Drivers:

Government Initiatives and Policies: Governments around the world are implementing various initiatives and policies to promote energy efficiency and reduce carbon emissions. These include regulations, tax incentives, subsidies, and energy efficiency targets. Such initiatives create a favorable environment for energy retrofit systems by encouraging building owners and operators to invest in energy-saving measures.

Rising Energy Costs: The increasing cost of energy is a significant driver for the adoption of energy retrofit systems. Building owners and operators are seeking ways to reduce energy consumption and lower operational costs. Retrofitting existing buildings with energy-efficient systems and technologies can significantly reduce energy bills and improve overall cost-efficiency.

Environmental Sustainability and Carbon Footprint Reduction: The growing awareness of environmental sustainability and the need to reduce carbon emissions are driving the demand for energy retrofit systems. Retrofitting buildings with energy-efficient systems helps reduce greenhouse gas emissions and mitigate the environmental impact of buildings, which are significant contributors to energy consumption and carbon emissions.

Aging Building Infrastructure: Many existing buildings have outdated and inefficient energy systems. As buildings age, their energy consumption tends to increase due to deteriorating infrastructure, inefficient equipment, and poor insulation. Retrofitting these buildings with energy-efficient systems helps improve their energy performance, enhance occupant comfort, and extend their lifespan.

Technological Advancements in Energy Retrofit Systems: Advancements in energy-efficient technologies and systems have made retrofitting more accessible and cost-effective. Improved insulation materials, energy-efficient lighting systems, HVAC upgrades, smart building automation systems, and renewable energy integration have significantly enhanced the effectiveness and efficiency of energy retrofit systems.

Return on Investment and Long-Term Savings: Energy retrofit systems often provide attractive return on investment (ROI) and long-term savings. While the upfront costs of retrofitting may be significant, the energy savings achieved over time can offset these costs. Building owners and operators are increasingly recognizing the financial benefits of energy retrofit systems, including reduced energy bills, increased property value, and potential operational cost savings.

Corporate Social Responsibility and Green Building Certifications: Many organizations and businesses prioritize corporate social responsibility and aim to achieve green building certifications such as LEED (Leadership in Energy and Environmental Design). Retrofitting buildings with energy-efficient systems and obtaining green building certifications align with these objectives, enhancing the reputation and sustainability credentials of the organization.

Market Competitiveness and Tenant Demand: Energy-efficient buildings have become more attractive to tenants, as they offer lower operating costs and a healthier indoor environment. Building owners and developers are retrofitting existing buildings to meet tenant demands for sustainable and energy-efficient spaces. The market competitiveness and tenant preferences are driving the adoption of energy retrofit systems.

Market Snapshot:

Market Insights:

By product, the envelope segment held the largest revenue share of the global market in 2021

The global energy retrofit systems market is bifurcated into product, application, and geography. On the basis of product, the market is further segmented into the envelope, LED retrofit lighting, HVAC retrofit, and others. The envelope segment dominated the global market in 2021 and expected to hold the largest market share of over half of the market by the end of the analysis period. The increasing adoption of the product in buildings to maintain thermal comfort, as it allows users to add insulation and air barrier in the building, which is a major factor to drive the segment growth. On the flip side, the LED retrofit lighting segment is estimated to grow at the highest CAGR over the forecast period.

By application, the residential segment is anticipated to register the highest CAGR over the forecast period

On the basis of application, the market is segmented into residential and non-residential applications. The non-residential application segment dominated the global energy retrofit systems market in 2021 and estimated to hold the largest revenue share of over 2/3 market share by the end of the analysis period. The large-scale installation of HVAC systems is one of the key factor driving the segment growth. On the flip side, the residential application segment is estimated to grow at the fastest growth rate over the forecast period. The significant increase in expensive residential properties, rising energy concerns, and strict regulations regarding various emissions are expected to fuel the segment’s growth over the forecast period.

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The energy retrofit systems comprehensive study analyzes industry trends, market size, competitive analysis, and market forecast – 2022 to 2028. Research Corridor report provides detailed premium insight into the global market and reveals the potential revenue streams, commercial prospects, market drivers, challenges, opportunities, issues, and events affecting the industry. In addition, the report has a dedicated section covering market forecasts and analysis for leading geographies, profiles of major companies operating in the market and expert opinion obtained from interviews with industry executives and experts from prominent companies.

The energy retrofit systems market research report presents the analysis of each segment from 2019 to 2028 considering 2021 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2022 to 2028.

Historical & Forecast Period

• 2019-20 – Historical Year
• 2021 – Base Year
• 2022-2028 – Forecast Period

Market Segmentation:

By Product:

• Envelope
• LED Retrofit Lighting
• HVAC Retrofit
• Others

By Application:

• Residential
• Non-Residential

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

By region, Europe held the largest market share of the global market in the base year

On the basis of region, Europe dominated the global energy retrofit systems market in 2021 and expected to maintain its dominance over the forecast period. The increasing concerns regarding greenhouse gas emissions and the stringent regulations to reduce carbon footprints are some major factors driving the market growth in the region. Furthermore, the significant growth in population and the growing demand for clean energy are further anticipated to drive the market growth in Europe. On the other hand, the Asia Pacific is estimated to register the fastest growth rate over the forecast period due to the growing construction industry coupled with the increasing adoption of these systems in residential and non-residential sectors.

Geographically, the energy retrofit systems market report comprises dedicated sections centering on the regional market revenue and trends. The energy retrofit systems market has been segmented on the basis of geographic regions into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The energy retrofit systems market has been extensively analyzed on the basis of various regional factors such as demographics, gross domestic product (GDP), inflation rate, acceptance, and others. Energy retrofit systems market estimates have also been provided for the historical years 2019 & 2020 along with forecasts for the period from 2022 – 2028.

Competitive Assessment:

Some of the prominent market players operating in the global energy retrofit systems market are Daikin Industries Ltd., Ameresco, Eaton, AECOM, and General Electric. Companies are exploring markets through expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• Daikin Industries Ltd.
• Ameresco
• Eaton
• AECOM
• General Electric
• Schneider Electric
• Johnson Controls
• Orion Energy Systems, Inc.
• Siemens
• Trane

Key Questions Answered by Energy Retrofit Systems Market Report

• Global energy retrofit systems market forecasts from 2022-2028
• Regional market forecasts from 2022-2028 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2022-2028 covering 15 major countries from the regions as mentioned above
• Energy retrofit systems submarket forecasts from 2022-2028 covering the market by product, application, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level energy retrofit systems markets from 2022-2028
• Competitive Landscape and market positioning of top 10 players operating in the market