Energy Retrofit Systems Market Forecasts to 2028 – Global Analysis By Product (LED Lighting, Appliances, Envelope, Heating, Ventilation and Air Conditioning (HVAC) and Other Products), By Type (Quick Wins Retrofit and Deep Retrofit) and By Application (Co

Energy Retrofit Systems Market Forecasts to 2028 – Global Analysis By Product (LED Lighting, Appliances, Envelope, Heating, Ventilation and Air Conditioning (HVAC) and Other Products), By Type (Quick Wins Retrofit and Deep Retrofit) and By Application (Commercial, Residential, Institutional and Other Applications) and Geography

According to Stratistics MRC, the Global Energy Retrofits Systems Market is accounted for $167.18 billion in 2022 and is expected to reach $239.84 billion by 2028 growing at a CAGR of 6.2% during the forecast period. Energy retrofits are used to lower total energy use and GHG emissions. Residential, commercial, and public buildings are becoming more energy efficient thanks to consumer efforts, which reduce energy costs and a sizable portion of greenhouse gas emissions. The construction sector has a considerable opportunity to improve energy efficiency and lower carbon emissions. As the demand for energy-efficient systems increases, the market for energy retrofit systems is predicted to expand. The rapid urbanisation, industrialization, and development of new infrastructure in developing economies, the adoption of HVAC appliances, government regulations governing building codes in developed countries, and green certifications for commercial buildings are some of the major factors influencing the market's growth.

According to the US Energy Information Administration (EIA), the overall domestic consumption is expected to grow at 0.3% annually through 2040, which is less than half the rate of population growth. According to the European Commission, in July 2022, more than three-quarters of the European population lives in urban areas, and this figure is expected to rise to almost 85% by 2050.

Market Dynamics:

Driver:

Growing Need for Improvement in Energy Efficiency

Energy is the main source of fuel for social and economic growth. Since more consumers want these systems, which are necessary for all sectors to function, there is a constant need for energy. To help the shift to more sustainable energy systems, regulators and politicians have been supporting measures to boost energy efficiency and encourage energy retrofit systems. The residential sector is seeing substantial changes in energy operations as building managers become more aware of the need to implement energy-efficient lighting, heating, and cooling systems. For people who utilise battery-powered devices and those with restricted access to an energy source, energy efficiency is of the utmost significance. the ability to remotely regulate HVAC systems and other energy-consuming equipment as well as collect data on energy-consuming electronic devices and appliances.

Restraint:

More extended Reimbursement Periods

Due to significant expenditures associated with research and development, energy retrofit systems' technologies are still costly. Furthermore, a company's capital expenditures and financial health are closely tied. In addition to being sluggish, the return on investment can take three to four years. These factors clearly act as major market restrictions. Hidden costs are any expenses that are normally not included in a company's economic models. In addition to the necessary cost of energy retrofit systems, the overall investment required includes various hidden costs, such as general overhead costs, costs particular to a given sector when picking an energy-efficient alternative and the potential loss of utility associated with such solutions. This drives up the cost of energy retrofit systems even more and limits market expansion.

Opportunity:

Increasing Global Energy Consumption

Through numerous software and technical solutions offered by energy as a service provider, businesses can comprehend the patterns of power usage. Energy is used in a wide range of industries as a result of the sharp increase in energy consumption. The sector that uses the most energy to run district heating services is the commercial sector. There will be an increase in the commercial sector's demand of electricity as a result of various currently employed technologies for generating power from renewable sources. The expanding installation of energy systems and the broad availability of smart devices have made room for new business models to emerge in the power industry as a result of an increase in the demand for energy consumption globally.

Threat:

Lack of Information and Insufficient Infrastructure

The residential sector is responsible for around 27.2% of energy consumption and 24% of CO2 emissions, according to the European Union (EU). However, achieving efficient energy levels in the residential sector is not an easy feat. The current energy efficiency gap is a result of residential consumers' illogical behavioural behaviours. Numerous research have looked at the fact that the energy efficiency gap between investment prospects and actual implementation slows the market expansion for energy retrofit systems. The market's expansion is also hampered by behavioural reasons, model and measurement flaws, and a lack of knowledge about the advantages and myriad opportunities offered by energy efficiency.

Covid-19 Impact

The unexpected COVID-19 outbreak that resulted in a global health emergency has had a profound impact on the development of energy efficiency. Businesses and consumers have put off investing in more efficient technologies as a result of the present economic crisis. Market behaviour has changed as a result of the crisis, which has increased the level of uncertainty surrounding improvements in energy efficiency. For instance, the historic fall in air transport demand could change the energy intensity of international travel and freight, depending on how the aviation industry bounces back after the epidemic. Energy efficiency currently enjoys widespread acceptance for its socioeconomic advantages. Governments have announced billions of dollars in stimulus spending to increase energy efficiency, particularly in buildings and transportation, as a response to the task of ""building better"" following the crisis.

The envelope segment is expected to be the largest during the forecast period

The envelope segment is estimated to have a lucrative growth. Installing exterior window films, exterior window blinds, outside window light shelves, wall and roof insulation, a vestibule, a cool roof, and new windows can improve the energy efficiency of a building's envelope. The building envelope acts as a protection barrier and cover for the main structure. It also helps to keep the building warm or cold, regulate noise and odours from the outside, and maintain acceptable air quality. A building's envelope can be retrofitted to provide walls with insulation and an air barrier, enhancing thermal comfort and reducing draughts. Less heat is lost as a result, which reduces energy consumption and the carbon impact of both owners and tenants. The public's opinion will be favourably impacted by actions that demonstrate a commitment to environmental sustainability. As a result, this segment is accelerating the market growth during the projection period.

The residential segment is expected to have the highest CAGR during the forecast period

The residential segment is anticipated to witness the fastest CAGR growth during the forecast period, due to many customers are choosing retrofits because of rising residential property costs and the creation of laws to protect historic buildings, as well as the fact that existing buildings have been modified. The development of technology helps homeowners control their energy expenditures and promotes the use of renewable energy sources, hence lowering global carbon footprints. Due to the decreasing cost of LED bulbs and the public's growing awareness of the benefits provided by green structures, LED lighting and envelopes are the most often retrofitted goods in residential applications.

Region with largest share:

Europe is projected to hold the largest market share during the forecast period. Energy retrofit systems are expected to become more popular as a result of factors like growing concerns over greenhouse gas (GHG) emissions and rigorous laws to reduce carbon footprint. Population growth and the demand for clean, effective energy are predicted to drive the market. The European region has been engaged in research and development for producing clean and effective energy. The European Union's sponsorship of energy conservation and energy efficiency initiatives has been one of the major elements affecting the region's growth.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period owing to the three biggest rivals on the market are China, Japan, and India. End users in the residential and commercial sectors across Asia Pacific are encouraged to quickly embrace energy modernization systems due to the region's cheaper infrastructure and renewable energy costs. The Chinese government adopted many plans and policies, including a three-star rating system, to encourage the construction of new ecologically friendly green buildings and the repair of existing ones around the country. In the past ten years, the national government has logically expanded the scope of laws and regulations. These energy building codes lay out the specifications that must be followed when brand-new homes and other buildings are constructed in China's cities.

Key players in the market

Some of the key players profiled in the Energy Retrofits Systems Market include Siemens, Daikin Industries Ltd., Orion Energy Systems Inc., Trane, Ameresco, Eaton, General Electric, Johnson Controls, Signify N.V., Engie SA, AECOM and Schneider Electric.

Key Developments:

In October 2022, The Greater Toronto Airports Authority (GTAA) selected AECOM, Alectra Energy Solutions (Alectra), and Enwave Energy Corporation to provide an original and comprehensive solution to support the GTAA's decarbonisation goals.

In September 2022, AECOM, the world's most reputable infrastructure consulting company, and Ferrovial Vertiports announced a division of the largest global infrastructure operator Ferrovial, that a due-diligence framework had been put in place to find the best locations for a network of planned Vertiports connecting key Florida locations.

In October 2021, Ameresco, Inc. announced its partnership with Wells County, Indiana, on a comprehensive jail facility renovation and modernization project. Ameresco will repair the jail's existing HVAC systems, update the lighting with LED retrofits both inside and out, revamp the parking lot, enhance the controls system, and remodel and construct a new building expansion.

In December 2020, Orion Energy Systems, Inc. has secured a new contract extension totalling approximately USD 40 million for the turnkey LED lighting and controls retrofit of 290 additional locations for an existing large national retail customer. The turnkey retrofit projects include installing LED lighting fixtures and state-of-the-art IoT control integration.

Products Covered:
• LED Lighting
• Appliances
• Envelope
• Heating, Ventilation and Air Conditioning (HVAC)
• Other Products

Types Covered:
• Quick Wins Retrofit
• Deep Retrofit

Applications Covered:
• Commercial
• Residential
• Institutional
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements