by The Energy Retrofit market is estimated to be valued at US$ 116.87 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Energy retrofit involves upgrading existing buildings and infrastructures to make them more energy efficient. This includes replacing or upgrading existing windows, doors, lighting, HVAC systems etc. with more efficient products. Energy retrofit helps in reducing energy usage and carbon footprint of buildings significantly. It is widely adopted across residential, commercial and industrial sectors.
Market Dynamics:
Growing emphasis on integration of renewable energy sources such as solar and wind is a major driver for the growth of energy retrofit market. Retrofitting existing buildings and infrastructures helps in better management and storage of intermittent renewable energy. It enables utilization of surplus renewable energy during peak generation hours. Stringent government regulations regarding energy efficiency and carbon emission reductions from buildings is another key factor fueling demand for energy retrofitting solutions. In addition, availability of various financing options and incentives for energy efficient retrofits is boosting market growth. However, high initial investment requirements continue to hinder the market to some extent.
SWOT Analysis
Strength: The energy retrofit market has various opportunities to lower energy costs and increase building efficiency through upgrades and retrofitting existing building infrastructure. Major retrofitting of aging buildings and infrastructure provides opportunities to adopt modern energy efficient technologies. Government incentives and rebates are supporting investments in green retrofits.
Weakness: High upfront capital costs associated with energy retrofits pose challenges. Long payback periods discourage many building owners from undertaking retrofits. Lack of consumer awareness about benefits of retrofits is another weakness. Retrofitting inhabited buildings requires coordination and planning which increases complexity.
Opportunity: Growing focus on reducing carbon footprint and government regulations mandating energy efficiency provide opportunities. Rapid urbanization is increasing demand for retrofitting commercial and residential buildings. Digital technologies enable remote monitoring and control improving customer experience. Increasing investments in smart cities present new opportunities.
Threats: Geopolitical tensions and supply chain disruptions can impact material availability and costs. Slow economic recovery post-Covid may reduce consumer spending on non-essential upgrades. Strict emission reduction targets pose compliance challenges. Changing regulatory environment and policy support can impact investments.
Key Takeaways
The Global Energy Retrofit Market Growth is expected to witness high, exhibiting CAGR of 5.1% over the forecast period, due to increasing focus on reducing carbon emissions and energy costs. Rapid urbanization and aging building infrastructure are driving significant retrofitting needs.
Regional analysis: North America dominates the global market currently, accounting for over 35% share due to favorable government policies and consumer awareness. Asia Pacific is projected to grow at the fastest pace owing to rapid infrastructure growth, emerging economies pushing efficiency agendas, and supportive initiatives by governments. China, India, and Japan are major retrofitting markets in the region.
Key players operating in the energy retrofit market are Carrier, Haier Group, Emerson Electric Co., LG Electronics., Lennox International, Rheem Manufacturing Company, Trane Technologies plc, Vishay Intertechnology, Inc., Acuity Brands Lighting, Inc., Ideal Industries, Inc., Lumigrow, Hubbell, Constellation Newenergy, Inc., Energy Systems Group, Cmta, Inc., The Brewer-Garrett Company, Digi-Key Electronics, Renesas Electronics Corporation., Ameresco. Major players are focusing on product innovation and adoption of digital solutions to strengthen their positions. Partnerships with contractors are another key strategy.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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