Press release
Leading Growth Driver in the Energy-Efficient Building Market in 2025: Government Investment Fueling Growth In The Energy-Efficient Building Market Driver's Influence
What market dynamics are playing a key role in accelerating the growth of the energy-efficient building market?The escalation in governmental expenditure is projected to stimulate the expansion of the energy-efficient building market moving forward. This investment by the government encompasses resources assigned by government entities for diverse objectives like infrastructure growth, social initiatives, education, healthcare, research and innovation, and green energy plans. A crucial part in accelerating the acceptance of eco-friendly building methods, decreasing energy usage, minimizing greenhouse gases, and fostering economic proliferation and stability is played by government investment in energy-efficient building projects. To illustrate, in July 2024, as reported by the Office for National Statistics, a UK's executive office of the UK Statistics Authority, the total investment in infrastructure from market sectors in 2023 stood at $14.93 billion in constant prices, an augmentation of 3.9% from 2022. Consequently, the energy-efficient building market is being propelled by the escalation in government expenditure.
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How will the growth rate of the energy-efficient building market shape industry trends by 2034?
In recent times, there has been a robust growth in the market size of energy-efficient buildings. The market, which is predicted to expand from $135.6 billion in 2024 to $145.84 billion in 2025, is experiencing a compound annual growth rate (CAGR) of 7.6%. Factors such as energy costs, environmental laws, technological progress, public consciousness, and governmental incentives have contributed to the growth during the historical time frame.
The market for energy-efficient buildings is anticipated to witness robust expansion in the forthcoming years, growing to a value of $184.19 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 6.0%. Several factors contributing to this growth in the forecasted period include efforts to lessen the impact of climate change, advancements in technology, urbanization patterns, increased need for environmentally-friendly structures, and concerns regarding energy. Some of the significant trends during this forecast period that are worth noting are buildings with net-zero energy consumption, the incorporation of passive design fundamentals, employing modular building techniques for better energy efficiency, the inclusion of the Internet of Things (IoT) in managing structures, and the principles of a circular economy.
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How are the latest trends influencing the growth of the energy-efficient building market?
Major firms involved in the energy-efficient building sector are concentrating on innovating new products with sophisticated technology, including smart IoT solutions, aimed at boosting their market profitability. These smart IoT solutions aid in improving energy efficiency in various sectors such as homes, buildings, industries, and cities, ultimately supporting sustainability and preserving the environment. For example, Siemens AG, a Germany-based company specializing in energy technology and manufacturing, launched the Connect Box in March 2023. The Connect Box, an IoT solution designed for small-medium buildings, effortlessly combines wired and wireless devices. It enhances energy efficiency, monitors operational performance, and improves indoor air quality via real-time analysis. Equipped with plug-and-play setup, a range of licensing choices, and user-friendly interfaces, it meets a variety of needs. It also guarantees compliance with sustainability regulations and potentially generates energy savings of up to 30%.
Which primary segments of the energy-efficient building market are driving growth and industry transformations?
The energy-efficient building market covered in this report is segmented -
1) By Type: Heating, Ventilation, And Air Conditioning (HVAC), Lighting, Building Controls, Water Efficiency, Water Heating, Building Envelope, Other Types
2) By Material: Roofing, Fiber Cement, Concrete Tiles, Insulation, Construction Chemicals, Sealants, Water Proofers, Other Materials
3) By End User: Residential, Commercial, Industrial Sector
Subsegments:
1) By Heating, Ventilation, And Air Conditioning (HVAC): High-Efficiency HVAC Systems, Geothermal Heating And Cooling Systems, Smart Thermostats, Variable Refrigerant Flow (VRF) Systems
2) By Lighting: LED Lighting, Smart Lighting Systems, Solar-Powered Lighting, Dimmable Lighting, Lighting Controls
3) By Building Controls: Building Management Systems (BMS), Energy Management Systems (EMS), Smart Thermostats, Occupancy Sensors, Advanced Metering Infrastructure (AMI)
4) By Water Efficiency: Low-Flow Fixtures, Water-Efficient Landscaping, Rainwater Harvesting Systems, Greywater Recycling Systems
5) By Water Heating: Solar Water Heating Systems, Heat Pump Water Heaters, Tankless Water Heaters, High-Efficiency Water Heaters
6) By Building Envelope: Insulation Materials, Energy-Efficient Windows, Roofing Solutions, Air Sealing And Draft Prevention, Reflective And Insulating Materials
7) By Other Types: Energy-Efficient Appliances, Renewable Energy Systems, Smart Home Technology For Energy Efficiency, Green Building Materials
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Which geographical regions are pioneering growth in the energy-efficient building market?
Europe was the largest region in the energy-efficient building market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the energy-efficient building market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the influential players reshaping the energy-efficient building market landscape?
Major companies operating in the energy-efficient building market are Siemens AG, Panasonic Corporation, GE Electrical Equipment, Veolia Environnement S.A., Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Daikin Industries Ltd., Toshiba Corporation, Johnson Controls International plc, Eaton Corporation PLC, Carrier Global Corporation, Koninklijke Philips N.V., Trane Technologies plc, Emerson Electric Co., Legrand S.A., Osram GmbH, Acuity Brands Inc., Itron Inc., Zumtobel Group AG, Cree Inc., GridPoint Inc., Pacific Controls Inc., BuildingIQ Inc
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What Is Covered In The Energy-Efficient Building Global Market Report?
• Market Size Forecast: Examine the energy-efficient building market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the energy-efficient building market for a structured understanding.
• Key Players Overview: Analyze major players in the energy-efficient building market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the energy-efficient building market.
• Segment Contributions: Evaluate how different segments drive overall growth in the energy-efficient building market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the energy-efficient building market.
• Industry Challenges: Identify potential risks and obstacles affecting the energy-efficient building market.
• Competitive Landscape: Review strategic developments in the energy-efficient building market, including expansions, agreements, and new product launches.
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