Global energy efficient buildings market report size, share, growth drivers, trends, opportunities & forecast 2025–2030

Global Energy Efficient Buildings Market Overview

• The Global Energy Efficient Buildings Market is valued at USD 31.5 billion, based on a five-year historical analysis. This growth is primarily driven by increasing energy prices, rapid urbanization, government regulations promoting sustainability, and rising consumer awareness regarding energy efficiency. The market has seen significant investments in smart city projects, advanced building technologies, and sustainable construction practices, making it a focal point for both public and private sectors.
• Key players in this market include the United States, Germany, and China, which dominate due to their robust construction sectors, stringent energy efficiency regulations, and significant investments in smart building technologies. These countries have established themselves as leaders by implementing comprehensive policies and incentives that encourage the adoption of energy-efficient practices and technologies in building design and construction.
• In 2023, the European Union implemented the Energy Performance of Buildings Directive (EPBD), which mandates that all new buildings must be nearly zero-energy by 2021. The EPBD (Directive 2010/31/EU, recast 2018, European Parliament and Council) requires member states to set minimum energy performance standards and promote the use of renewable energy sources in building operations, thereby enhancing the overall energy efficiency of the building sector.

Global Energy Efficient Buildings Market Segmentation

By Type:The market is segmented into various types, including Heating, Ventilation, and Air Conditioning (HVAC), Lighting, Building Controls, Water Efficiency, Building Envelope, and Other Types. Each of these segments plays a crucial role in enhancing energy efficiency in buildings. The HVAC segment is dominant due to its critical role in maintaining indoor air quality and thermal comfort while minimizing energy consumption. The increasing adoption of smart HVAC systems, which utilize advanced technologies for better energy management, is driving this segment's growth. Additionally, the rising demand for energy-efficient heating and cooling solutions in both residential and commercial buildings is further propelling the HVAC market forward.

By End-User:The market is segmented into Residential, Commercial, Industrial, Government & Utilities, and Others. Each end-user segment has unique requirements and contributes differently to the overall market dynamics. The Residential segment leads the market, driven by increasing consumer awareness of energy efficiency and the rising costs of energy. Homeowners are increasingly investing in energy-efficient solutions to reduce utility bills and enhance comfort. Additionally, government incentives and rebates for energy-efficient home improvements are further encouraging residential consumers to adopt these technologies.

Global Energy Efficient Buildings Market Competitive Landscape

The Global Energy Efficient Buildings Market is characterized by a dynamic mix of regional and international players. Leading participants such as Johnson Controls, Siemens AG, Honeywell International Inc., Schneider Electric, Trane Technologies, United Technologies Corporation, Kingspan Group, BASF SE, Owens Corning, Rockwool International A/S, Saint-Gobain, LG Electronics, Daikin Industries, Ltd., Mitsubishi Electric Corporation, Signify Holding (formerly Philips Lighting), KMC Controls Inc., Ameresco, Inc., Integrated Environmental Solutions, Solatube International, SageGlass (Saint-Gobain subsidiary), Knauf Insulation, Telefonica, Cleantech Group, Architectural Energy Corporation contribute to innovation, geographic expansion, and service delivery in this space.

Global Energy Efficient Buildings Market Industry Analysis

Growth Drivers

• Increasing Energy Costs:The global average energy price has surged, with electricity costs rising by approximately 15% in many regions since 2021. This increase has prompted building owners to seek energy-efficient solutions to mitigate expenses. In future, the projected energy expenditure for commercial buildings is expected to reach $220 billion, driving demand for energy-efficient technologies that can significantly reduce operational costs and enhance profitability.
• Government Incentives for Energy Efficiency:Governments worldwide are implementing robust incentives to promote energy efficiency. In future, the U.S. government plans to allocate $12 billion for energy efficiency programs, including tax credits and grants for retrofitting buildings. Such financial support encourages investments in energy-efficient technologies, making them more accessible to property developers and owners, thereby accelerating market growth in the energy-efficient buildings sector.
• Rising Environmental Awareness:Public concern regarding climate change has intensified, with 75% of consumers prioritizing sustainability in their purchasing decisions. This shift is reflected in the construction industry, where energy-efficient buildings are increasingly favored. In future, the demand for green buildings is projected to increase by 30%, as stakeholders recognize the long-term benefits of sustainable practices, including reduced carbon footprints and improved indoor air quality.

Market Challenges

• High Initial Investment Costs:The upfront costs associated with energy-efficient building technologies can be prohibitive. For instance, the average cost of implementing energy-efficient systems in new constructions can exceed $55 per square foot. This financial barrier often deters property developers from adopting these technologies, despite the long-term savings they offer, creating a significant challenge for market penetration in the energy-efficient buildings sector.
• Lack of Awareness and Education:A significant knowledge gap exists regarding the benefits of energy-efficient buildings. Approximately 65% of property developers are unaware of available technologies and incentives. This lack of awareness hinders the adoption of energy-efficient practices, as many stakeholders do not fully understand the potential cost savings and environmental benefits, thereby stalling market growth in the energy-efficient buildings sector.

Global Energy Efficient Buildings Market Future Outlook

The future of the energy-efficient buildings market appears promising, driven by technological advancements and increasing regulatory pressures. As smart building technologies become more prevalent, their integration will enhance energy management and operational efficiency. Additionally, the growing emphasis on sustainability will likely lead to stricter building codes and standards, compelling developers to adopt energy-efficient practices. This evolving landscape presents significant opportunities for innovation and investment in energy-efficient solutions, fostering a more sustainable built environment.

Market Opportunities

• Smart Building Technologies:The integration of smart technologies in building management systems is a key opportunity. In future, the smart building market is expected to reach $120 billion, driven by IoT applications that optimize energy consumption and enhance user experience. This trend presents a lucrative avenue for companies specializing in energy-efficient solutions, as demand for smart systems continues to grow.
• Retrofitting Existing Buildings:The retrofitting of existing structures represents a significant market opportunity, with an estimated 85% of buildings in future requiring upgrades to meet energy efficiency standards. This sector is projected to generate $60 billion in investments, as property owners seek to enhance energy performance and comply with evolving regulations, creating a robust demand for energy-efficient technologies and services.