Commercial Building Energy-efficiency Retrofits Will Surpass $127 Billion by 2023

Efforts to reduce energy consumption and greenhouse-gas emissions have led to increasing deployments of energy-efficiency retrofits for commercial and public buildings. According to a new report from Boulder, Colo.-based Navigant Research, the worldwide market for energy-efficiency retrofits in commercial and public buildings will grow from $68.2 billion in 2014 to $127.5 billion by 2023.

“Because the existing building stock dwarfs the amount of new building space being added on an annual basis, energy-efficiency retrofits are a critical pathway to greening the world’s commercial buildings,” says Eric Bloom, principal research analyst with Navigant Research. “Enrollment in voluntary green-building certification programs has been on the rise around the world, even as regulatory and policy measures in a growing number of regions provide strong support for energy-efficiency retrofits.”

One key question within the building retrofit industry is the initial reason or motivator for pursuing energy-efficiency retrofits. Navigant Research estimates approximately 15 percent of all energy-efficiency retrofits are initiated with increasing energy efficiency as the primary motivator while the remaining 85 percent of energy-efficiency retrofits are initiated for other reasons, such as system replacements.

The report, “Energy Efficiency Retrofits for Commercial and Public Buildings”, examines the global market opportunity for energy-efficiency retrofits in eight different commercial- and public-building types. The report analyzes the key market and technology issues related to energy-efficiency retrofits with a focus on HVAC, lighting, controls, water efficiency, water heating, building envelope, power generation, commissioning, installation and energy-service companies. Global market forecasts for revenue, segmented by region, product and service type, and building type extend through 2023. The report also assesses the demand drivers, business models, and standardization and regulatory factors related to energy-efficiency commercial- and public-building retrofits, as well as profiles the key industry players in this market.

An executive summary of the report is available for free download at www.navigantresearch.com/research/energy-efficiency-retrofits-for-commercial-and-public-buildings.