The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
Energy Retrofit Systems Market Growth & Trends
The global energy retrofit systems market size is projected to reach USD 182.9 billion by 2027, escalating at a CAGR of 4.1% over the forecast period, according to a new report by Grand View Research, Inc. Increasing energy demand along with deficit of storage technology for fulfilling the requirements are likely to boost market growth over the forecast period.
Proliferation of HVAC technology in residential and commercial buildings is accounting for more than one third of the total energy consumption in 2019, globally. Effective energy budgeting is expected to lower the HVAC costs and boost the profitability of businesses, positively impacting the market by 2027.
The retrofitting of existing buildings significantly reduces the carbon footprint and assists in restricting Greenhouse Gas (GHG) emission which, in turn is predicted to complement market growth. Growing consumer awareness towards compliances with environmental standards and regulatory certifications including the ISO and Greenpeace is projected to drive the market over the forecast period.
The market is expected to witness a surge in the replacement of obsolete HVAC systems owing to increasing energy prices along with government initiatives to boost adoption of energy efficient technology in existing buildings. Concern over energy security along with increasing perils of climate change is projected to drive market growth.
The HVAC retrofit segment held the largest market share in 2019 owing to expensive and complex retrofitting. Change in HVAC technology after every five years is likely to propel segment growth. In addition, limitations associated to previously installed HVAC solutions will drive segment growth over the forecast period.
Asia Pacific dominated the market in 2019 and is expected to continue its dominance over the forecast period. This is attributed to availability of cheap infrastructure and rising demand for environment-friendly green buildings in the region. In addition, government policies and programs including code enforcement and three-star rating system for buildings are anticipated to propel growth of the market in the region over the forecast period.
Energy Retrofit Systems Market Report Highlights
- The LED retrofit lighting segment is predicted to be the fastest-growing product segment, at a CAGR of 4.7% over the forecast period due to the affordable product prices along with widespread adoption of the product across the globe
- The non-residential segment is projected to reach USD 125.0 billion by 2027 owing to high concentration of retrograde HVAC systems in office and commercial buildings especially in developed countries
- In 2019, the HVAC product segment was valued at USD 79.7 billion in 2019 due to expensive replacement costs associated with older equipment which is at the end of its shelf life
- In 2019, Asia Pacific accounted for 33.0% revenue share in the market owing to affordable manufacturing and abundant availability of the systems in the region.