Market For Energy Retrofit Estimated To Witness High Growth Owing To Increased Adoption Of Energy Efficient Technologies

The energy retrofit market is estimated to be valued at US$ 111.2 Billion in 2022 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:

Energy retrofit involves upgrading existing residential and commercial buildings with modern energy efficient technologies and equipment to reduce energy consumption and carbon footprint. Key energy retrofit products include HVAC systems, lighting equipment, advanced controls and building envelops. Retrofitting helps building owners to cut down operating costs through lower utility bills and earn attractive returns through energy savings over the lifetime of retrofitted assets.

Market Dynamics:

The rising adoption of energy efficient solutions is expected to be a key driver for the growth of global energy retrofit market over the forecast period. Stringent government policies and regulations regarding carbon emissions from commercial and residential sectors are compelling building owners to opt for retrofitting. Furthermore, growing awareness about monetary benefits of energy savings is encouraging retrofits of aging infrastructure. Additionally, the market is also expected to gain momentum owing to increasing R&D investments by manufacturers to develop innovative and cost-effective retrofitting technologies. However, high initial installation costs continue to hinder the widespread adoption of retrofits, especially in developing nations. Market players are focusing on offering innovative financing options and incentives to address this challenge.

 

Segment Analysis

The energy retrofit market can be segmented into heating, ventilation, and air conditioning (HVAC) retrofits, lighting retrofits, and building envelope retrofits. The HVAC retrofits segment is dominating the market as replacing or upgrading old HVAC systems can yield significant energy savings through better efficiency. HVAC systems account for over 40% of energy use in commercial buildings, so retrofitting HVAC is a priority to upgrade buildings’ energy performance.

PEST Analysis

Political: Favorable government policies supporting energy efficiency and retrofits through tax credits and incentives are driving market growth. For instance, the US federal government offers 25% tax credits for commercial and residential retrofit projects.
Economic: Rising energy costs and focus on reducing costs through retrofits is a major economic factor for the market. Energy retrofits offer attractive returns through lowered utility bills.
Social: Increasing environmental awareness and sustainability goals of organizations are promoting adoption of retrofit solutions to reduce carbon footprint.
Technological: Advances in IoT-enabled and automated building controls allow for remote monitoring and data-driven retrofits for optimized energy management.

Key Takeaways

The Global Energy Retrofit Market Size is expected to witness high growth, exhibiting a CAGR of 5.1% over the forecast period, due to increasing environmental concerns and favorable policies around greenhouse gas emission reductions. North America currently dominates the market due to stringent energy efficiency regulations in the US and Canada.

Regionally, the US holds the major share of the North American market due to the presence of major retrofit service providers and supporting government programs. The region’s commercial and industrial sectors extensively focus on retrofitting projects to achieve targeted emission reduction goals.

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., Ameresco. Emerging technologies around IoT integration, artificial intelligence, and digital twin are expanding opportunities for these market leaders.

 

Read More –  https://www.newsanalyticspro.com/energy-retrofit-market-share-demand-analysis-trends-and-size-forecast/ 

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