The Energy Retrofit Market is estimated to be valued at US$ 111.2 Billion in 2022 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.
The energy retrofit market refers to upgrades and modifications made to existing buildings and infrastructures aimed at improving energy efficiency. This includes replacement of inefficient lighting and HVAC systems with efficient ones, installation of renewable energy systems like rooftop solar panels, and improvement of building insulation and envelopes. Such retrofits help reduce energy consumption and costs for both commercial and residential properties.
The energy retrofit market is driven by stringent government regulations and building codes pertaining to energy efficiency. Many countries have set targets to reduce carbon emissions and energy consumption from buildings significantly by 2030-2050. This is necessitating retrofits of the existing building stock. Additionally, rising climate change concerns are pushing property owners and businesses to adopt greener solutions and retrofit existing infrastructure to lower carbon footprint. Stringent efficiency standards for appliances, lighting, and heating/cooling equipment are also fueling replacement demand. The tangible benefits of reduced energy costs through retrofits are further encouraging end users to invest in upgrades.
Strength: The energy retrofit market offers significant cost savings opportunities for businesses and homeowners. Energy retrofit solutions can help reduce energy consumption by 20-30% on average. Government policies and rebates in many countries encourage the adoption of energy efficient retrofit solutions.
Weakness: High upfront costs of energy retrofit projects pose a major barrier. Many homeowners and small businesses lack access to capital needed for retrofits. Quality issues can arise if uncertified or inexperienced contractors are used for retrofit installations.
Opportunity: With rising energy costs and focus on sustainability, demand for energy audits and retrofitting is growing. Technologies like IoT sensors and data analytics enable customized retrofit strategies. Favorable policies in the US and Europe to reduce carbon emissions will drive further market expansion.
Threats: Customers may opt for relatively cheaper non-retrofit options like purchasing more efficient appliances. Strict standards and regulations around product certifications increase compliance costs. Economic slowdowns can negatively impact discretionary retrofit spending.
The Global Energy Retrofit Market Demand is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing focus on energy efficiency and carbon reduction goals. Rising energy costs are further driving demand for cost-effective retrofit solutions across the commercial and residential sectors.
Regional analysis The US dominates the global energy retrofit market, accounting for over 30% share due to large building stock and supporting policies. Europe is another major market fueled by the EU directive on energy performance of buildings and renovation. Countries like Germany and the UK are frontrunners in the region’s retrofitting industry.
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, Lumigrow, Hubbell, Constellation Newenergy, Inc., Energy Systems Group, Cmta, Inc., The Brewer-Garrett Company, Digi-Key Electronics, Renesas Electronics Corporation., Ameresco.
The market is increasingly consolidated with big firms undertaking large retrofitting projects across various sectors.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it