Energy-Efficient Building Market Expected to Achieve 5.8% CAGR by 2029: Growth Forecast Insights

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How Large Will the Energy-Efficient Building Market Size By 2025?
There has been significant growth in the market size for energy-efficient buildings in the past few years. Its size is predicted to increase from $135.6 billion in 2024 to $145.09 billion in 2025, with a compound annual growth rate (CAGR) of 7.0%. Various factors such as rising energy costs, environmental regulations, advances in technology, public understanding, and government incentives have contributed to this growth in the historical period.

How Big Is the Energy-Efficient Building Market Size Expected to Grow by 2029?
Predictions point towards a significant increase in the energy-efficient building market in the near future, rising to a whopping $182.08 billion by 2029 with a compound annual growth rate (CAGR) of 5.8%. This anticipated expansion in the timeframe given could be the result of efforts to tackle climate change, advancements in technology, the growth of urban populations, a surge in demand for sustainable buildings, and concerns around energy security. The forecast period is set to see some major trends such as net-zero energy buildings, the usage of passive design principles, incorporating modular construction for better energy efficiency, the application of internet of things (IoT) in building management, and the adoption of circular economy principles.

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Which Key Market Drivers Powering Energy-Efficient Building Market Expansion and Growth?
The escalation in state funding is anticipated to stimulate the expansion of the energy-efficient building market moving ahead. State funding pertains to the financial resources provided by governmental institutions for diverse objectives, from infrastructure enhancement, social schemes, education and healthcare, to research and development, alongside clean energy strategies. Such investments by the government into energy-efficient building schemes are critical in expediting the embrace of eco-friendly construction methods, reducing power use, diminishing greenhouse gas discharge, and fostering economic development and adaptability. For example, as per the Office for National Statistics, an executive office of the UK-based UK Statistics Authority, the complete market sector investment in infrastructure in 2023 stood at $14.93 billion at constant rates, marking a 3.9% rise from 2022. Consequently, the surge in government funding is steering the growth of the energy-efficient building market.

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Which Fast-Growing Trends Are Poised to Disrupt the Energy-Efficient Building Market?
Leading businesses in the energy-efficient building market are concentrating on inventing original products using groundbreaking technologies, such as intelligent IoT solutions to enhance their market profitability. Intelligent IoT solutions aid in advancing energy efficiency in various sectors, such as residences, structures, industries, and cities, and play a significant role in sustainable and environmental preservation initiatives. For example, in March 2023, Siemens AG, an energy technology and manufacturing corporation based in Germany, introduced Connect Box. Connect Box is an IoT solution tailored for small to medium-sized structures that can easily integrate with wired or wireless devices. It optimizes energy consumption and monitors performance while improving indoor air quality by conducting real-time analysis. With easy plug-and-play setup, various licensing options, and intuitive user interfaces, it addresses a wide range of needs while adhering to sustainability regulations and can provide energy savings of up to 30%.

What Are the Emerging 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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Who Are the Global Leaders 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 are the Top Profitable Regional Markets for the Energy-Efficient Building Industry?
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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