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Government Investment Fueling Growth In The Energy-Efficient Building Market: Powering Innovation and Expansion in the Energy-Efficient Building Market by 2025
Energy-Efficient Building
What Is the Expected CAGR for the Energy-Efficient Building Market Through 2025?
The market size for energy-efficient buildings has experienced significant expansion in the past few years. The forecast points towards a rise from $135.6 billion in 2024 to $145.84 billion in 2025, maintaining a compound annual growth rate (CAGR) of 7.6%. Factors contributing to the growth during the historic period include energy costs, environmental rules, advancements in technology, public consciousness, and governmental incentives.
What's the Projected Size of the Global Energy-Efficient Building Market by 2029?
The market size for energy-efficient buildings is anticipated to witness robust expansion in the forthcoming years. The expectation is for it to escalate to a value of $184.19 billion by 2029, with a compound annual growth rate (CAGR) of 6.0%. This anticipated expansion during the forecast period is largely due to factors such as efforts to mitigate climate change, technological advancements, urbanization patterns, the rising demand for eco-friendly structures, and concerns regarding energy security. The period also foresees prominent trends of net-zero energy buildings, the implementation of passive design principles, use of modular construction for enhanced energy efficiency, incorporation of the internet of things (IoT) into building management, and the application of circular economy principles.
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Top Growth Drivers in the Energy-Efficient Building Industry: What's Accelerating the Market?
The boost in governmental funding is predicted to power the growth of the energy-efficient building sector in the future. This investment by government bodies covers a wide array of areas including infrastructure development, social schemes, education, healthcare, research and innovation, as well as clean energy projects. Critical to speeding up the uptake of sustainable building standards, reducing energy use, diminishing greenhouse gas emissions, and stimulating economic expansion and robustness, is the governmental backing of energy-efficient building projects. For example, in July 2024, the Office for National Statistics, a key executive office of the UK Statistics Authority, revealed that the total investment of the market sector in infrastructure during 2023 was $14.93 billion in constant prices, experiencing a rise of 3.9% from 2022. Thus, the amplified government investment propels the energy-efficient building sector's growth.
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What Trends Will Shape the Energy-Efficient Building Market Through 2029 and Beyond?
Leading firms within the energy-efficient construction market are striving to create innovative products, utilizing cutting-edge technologies such as Smart IoT solutions, to enhance their profitability in the marketplace. These solutions foster energy efficiency in numerous areas such as homes, buildings, industries and even entire cities, thereby promoting sustainability and aiding conservation of the environment. An example of this is when Siemens AG - a German production and energy technology company,- unveiled the Connect Box in March 2023. The Connect Box, an IoT solution developed for small to medium buildings, allows for easy integration of both wireless and wired devices. It optimises energy use, supervises performance, and improves the quality of indoor air through real-time analytics. The Box offers a plug-and-play setup, a variety of licensing options, and is user-friendly, meaning it meets a range of needs while also adhering to sustainability regulations, and providing up to 30% energy savings.
What Are the Main Segments in the Energy-Efficient Building Market?
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 Top Companies are Driving Growth in the Energy-Efficient Building Market?
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
Which Regions Will Dominate the Energy-Efficient Building Market Through 2029?
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.
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