The Energy Retrofit Market is estimated to be valued at US$ 116.87 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

 

Market Overview:

The energy retrofit market involves retrofitting existing buildings to improve their energy efficiency. This generally involves upgrading lighting systems, HVAC systems, windows, insulation, and building controls to more energy efficient technologies. Retrofitting helps improve energy savings, reduce carbon emissions, enhance occupant comfort, and lower operating costs. Commercial and residential buildings account for around 40% of total energy consumption globally. Energy retrofitting existing buildings presents a major opportunity to curb energy usage and power bills substantially.

 

Market Dynamics:

The energy retrofit market is primarily driven by the rising focus on improving energy efficiency of buildings and reducing carbon footprint. Stringent regulations regarding energy efficiency in buildings are pushing the need for retrofitting existing infrastructure. According to the International Energy Agency, existing building retrofits could deliver up to 30% of the emissions reductions needed to meet climate change targets. Rising energy prices are another major driver as retrofitting helps lower operating costs through energy savings over the long term. Government incentives and rebate programs are encouraging business owners and homeowners to undergo retrofits. For example, tax credits are available in many countries for energy-saving home upgrades. Technological advancements are leading to more efficient retrofitting solutions such as smart controls and renewable energy integration, further boosting the market.
 

Segment Analysis

The global energy retrofit market is segmented by component, service, and application. The component segment is further divided into HVAC and control systems, insulation and glazing, lighting and controls, and water heating. Among these, HVAC and control systems dominates the market as it offers high energy savings and immediate return on investment. Retrofitting HVAC systems with energy-efficient components enhances indoor air quality and reduces operating costs significantly.

 

PEST Analysis

Political: Stringent government regulations towards energy conservation and carbon emission reduction are driving the adoption of energy-efficient retrofitting solutions. Various subsidies and tax incentives are encouraging building owners to retrofit their existing infrastructure.

Economic: Rising energy costs and fluctuating fuel prices are compelling commercial, industrial, and residential sectors to optimize energy usage through retrofitting. This improves cost savings in the long run.

Social: Increasing consumer awareness about sustainability and green buildings is positively influencing the retrofitting trend. Organizations are also encouraging retrofitting to enhance their environmental credentials.

Technological: Advancements in IoT, AI, and digital twin technologies allow for remote monitoring and predictive maintenance of retrofitted systems. This improves overall operational efficiency.

 

Key Takeaways

The Global Energy Retrofit Market Size was valued at US$ 116.87 Bn in 2023 and is expected to reach US$ 206.51 Bn by 2030, expanding at a CAGR of 5.1% during the forecast period. Rapid urbanization and the growing need for energy-efficient infrastructure are spurring the demand for retrofitting solutions.

Regionally, North America dominated the market in 2023 with a share of over 30%, led by the strong presence of retrofitting service providers in the US and Canada. Europe and Asia Pacific are also attractive markets, witnessing high spending on retrofitting commercial buildings and industrial facilities.

Key players operating in the energy retrofit market are Carrier, Haier Group, Emerson Electric Co., LG Electronics., Lennox International, Rheem Manufacturing Company, Trane Technologies plc, Vishay Intertechnology, Inc., Acuity Brands Lighting, Inc., Ideal Industries, Inc., Lumigrow, Hubbell, Constellation Newenergy, Inc., Energy Systems Group, Cmta, Inc., The Brewer-Garrett Company, Digi-Key Electronics, Renesas Electronics Corporation., and Ameresco. Major players are focusing on partnerships, M&As, and advanced technological solutions to strengthen their positions in the market.
 

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