May 22, 2024
Energy Retrofit Market

Energy Retrofit Market is thriving on the trends of sustainability and energy efficiency

The energy retrofit market encompasses a wide range of products and services that help in upgrading existing buildings and infrastructure with advanced energy-efficient systems and equipment. This includes upgrades to HVAC, lighting, building controls, water heating systems, and renewable energy systems among buildings. Energy retrofitting helps existing structures significantly reduce their energy consumption and operational costs over the long term, while also decreasing their carbon footprint.

The Global Energy Retrofit Market is estimated to be valued at US$ 134.64 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the Energy Retrofit Market are Trimble, Topcon, Raven Industries, KUBOTA, Teletrac Navman, AGCO, Aagland, Lely, AgJunction, Robert Bosch, AgLeader Technology, AgEagle, DICKEY John, CLAAS, CNH Industrial, BouMatic, Hexagon Agriculture, Farmers Edge, Autonomous Tractor Company, and Deere & Company. The growing awareness about benefits of energy-efficient systems and incentives by governments worldwide is fueling the demand for energy retrofitting solutions across industries. Major players are expanding their global footprint by strengthening their distribution channels and entering into strategic partnerships with building owners and facility managers.

The growing demand for reducing energy consumption and operational costs across various industries including commercial, residential and public infrastructure is driving the Energy Retrofit Market Size. Government policies and regulations promoting energy efficiency are further boosting the adoption of retrofitting solutions. Manufacturers are developing innovative and integrated solutions to make retrofitting processes simpler and cost-effective.

Rising awareness about sustainability and government goals for limiting global warming has further increased investments in energy-efficient technologies. Retrofitting helps transition existing infrastructure towards renewable energy sources, which is a major trend. Integration of IoT-enabled smart sensors and controls allow comprehensive remote monitoring and data-driven upgrades. These technologies optimize resource usage and manage carbon footprints effectively over the long run.

Market Key Trends

The key trend driving growth in the energy retrofit market is the increasing focus on sustainability and making existing infrastructure environment-friendly. Retrofitting existing buildings and factories with energy-efficient solutions allows organizations to reduce their carbon footprint significantly. Moreover, incorporating renewable energy technologies during retrofits also makes infrastructure more self-reliant. The availability of attractive financial incentives and funding schemes from governments and international organizations has also boosted investments in retrofitting projects. Data-driven IoT solutions are also gaining traction as they help facilities optimize resource consumption continuously and upgrade infrastructure remotely.

Porter’s Analysis
Threat of new entrants: The energy retrofit market requires high investments in developing new technologies, training technicians and gaining consumer trust. This poses significant barriers for new companies.

Bargaining power of buyers: Individual homeowners have low bargaining power compared to large commercial clients and government entities who source retrofit services for multiple properties. Their larger demand enables better rates.

Bargaining power of suppliers: The market has several technology providers, installers and auditors supplying services. This diversity prevents any single supplier from influencing prices.

Threat of new substitutes: While new construction uses latest energy efficient designs, existing buildings cannot be replaced and will require retrofitting over time with no close substitutes.

Competitive rivalry: Being a specialized sector, companies have to constantly innovate services and solutions to gain competitive edge as clients value most energy and cost savings.

Geographical regions
North America accounts for the largest share currently owing to policies promoting energy efficiency, rebates and tax credits. States like California have set ambitious retrofitting targets.
The Asia Pacific region is expected to be the fastest growing market during the forecast period. Rapid urbanization and infrastructure growth provide huge opportunities, while concerns over emissions are driving government support for green buildings here.

The energy retrofit market in Europe is concentrated in countries like Germany, Britain and France that allocated large funds post COVID recovery packages for energy efficient home upgrades.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it