by The energy retrofit market primarily involves upgrading existing buildings and infrastructure with energy efficient systems and products such as HVAC systems, lighting, controllers, insulation, water heaters and windows. Retrofitting aims to reduce energy consumption, lower carbon emission and decrease utility bills. The residential sector dominates the global energy retrofit market and adoption of retrofit solutions for commercial and industrial facilities is also gaining traction. Various government schemes and incentives promoting energy conservation coupled with availability of low interest financing options are encouraging property owners to undertake retrofit projects. Furthermore, growing awareness about benefits of green buildings and potential cost savings associated with energy efficiency is positively impacting market growth.
The global energy retrofit market is estimated to be valued at US$ 116.87 Bn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the market is the emerging demand for energy efficient buildings. Rapid urbanization and increasing population has boosted construction activities globally. However, majority of existing infrastructure is energy intensive. Retrofitting with efficient technologies helps reduce carbon footprint of buildings significantly. For instance, according to estimates nearly 40% of total energy consumption in United States occurs in residential and commercial buildings. Thus, government agencies across nations are promoting large scale retrofit programs to achieve sustainability targets and make buildings green.
Another driver for the market is favourable government policies supporting energy conservation. Many countries have established codes and standards regarding minimum energy performance of buildings. Non-compliance can attract heavy penalties. Furthermore, various incentives like tax credits and rebates are incentivizing building owners for undertaking retrofitting. This is expected to further fuel demand over the forecast period.
Segment Analysis
The energy retrofit market is segmented by technology into management systems and services. The management systems sub-segment dominates the market as it helps manage the energy-efficient lighting, heating, and cooling systems installed through retrofits. These systems provide real-time monitoring and control over equipment and allow facilities managers to optimize usage.
PEST Analysis
Political: Governments across regions are focusing on reducing carbon footprint through stringent emission norms which is driving demand for energy-efficient retrofits in buildings and industrial facilities. Economic: Rising energy costs and availability of tax incentives and subsidies for implementing energy conservation measures are encouraging property owners and facility managers to adopt retrofits. Social: Growing environmental awareness among public and organizations is promoting adoption of green technologies and investments in retrofits to lower carbon footprint. Technological: Advancements in IoT, analytics, and automation are enabling remote monitoring and control of retrofitted systems leading to optimized operations and energy savings.
Key Takeaways
Global Energy Retrofit Market Size is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis:
North America region currently dominates the market due to stringent regulations and upgrades required in existing infrastructure. Europe and Asia Pacific regions are fastest growing regional markets driven by initiatives to improve energy efficiency of buildings and industrial facilities.
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, Deere & Company.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
