Energy retrofits are used to reduce overall energy consumption and GHG emissions. Consumers from residential, commercial, and public buildings are taking measures to improve energy efficiency, which helps to reduce the cost of energy and high amount of GHG emissions. The building sector presents a high potential for improvements in energy efficiency and reductions in carbon emissions. Increase in demand for energy-efficient systems is expected to boost the growth of the global energy retrofit systems market. The rapid urbanization, industrialization, and construction of new infrastructures across the developing economies, adoption of HVAC appliances, government regulations across the developed countries regarding the building codes, and green ratings for commercial buildings are some of the prominent drivers behind the market growth. On the other hand, high installation & initial costs and lack of awareness regarding energy conservation techniques are some of the factors, which are expected to limit the growth of the global energy retrofit systems market.
COVID-19 Impact Analysis
- The unfavorable global effects of COVID-19 are already evident and it had a big impact on the energy retrofit systems in 2020.
- The World Health Organization (WHO) has declared a public health emergency after the COVID-19 virus outbreak in December 2019. The disease has spread in over 100 nations and resulted in massive deaths globally. Exports & imports, global manufacturing, tourism, and financial sectors have all been heavily damaged.
- The downward pressure on the global economy, which had previously shown signs of improvement, has escalated once more. The outbreak of the virus has added danger factors to the international economy's already sluggish development. Many international groups have stated that the global economy is experiencing its most difficult moment since the financial crisis.
- Since the pandemic, the restriction of imports and exports has affected the energy retrofit systems market to a great extent as the consumers’ consumption and demand patterns are changing amidst the pandemic.
Top Impacting Factors
The rise in adoption of HVAC appliances across sectors is projected to further boost the market. Most HVAC and lighting technologies have an average shelf life of 25 years, after which the technology is termed obsolete and needs replacement. Energy retrofit systems lead to a substantial reduction in energy costs for homes and offices. In U.S., the market is expected to witness substantial growth rate primarily due to large scale construction and adoption of energy retrofit systems to replace existing ones that have proven to be expensive and energy consuming. Since the Federal Government opted out of the Paris Accord on Climate Change, there has been a speculation of non-renewable energy companies capitalizing on the opportunity. However, the rise in awareness towards adoption of renewable energy is projected to grow at robust rates.
- Surge in Concern about Depletion of Energy Resources and Adoption of Eco-friendly
- Sources of Energy
- Energy scarcity is one of the prime factors that drives the global energy retrofits systems market. The rise in demand for energy owing to a surge in industrialization and infrastructural development is also a significant driver of the global energy retrofits systems market. Implementation of energy retrofit products is being perceived as a corporate social responsibility by many organizations. Moreover, certain consumers install energy retrofits systems to conform to environmental standards and acquire ISO compliance, Greenpeace, and REACH certifications, thus attempting to raise their standards.
- Increasing Industrialization and Urbanization in Asia-Pacific Expected to Bolster Market Growth
- Asia-Pacific accounted for the largest revenue share in 2021. Lower costs of renewable energy and cheaper infrastructure have encouraged rapid production of energy retrofit systems, leading to growing adoption across the residential and commercial end users.
- Favorable Government Policies Help Market to Grow in Upcoming Times
- Government programs and policies in China for existing and new constructions including the three-star rating system are encouraging environment-friendly green buildings. The code enforcement extent has increased justifiably by the central government over the past decade. The codes set a prerequisite that needs to be followed during the construction of all new residential and non-residential buildings in every city. Central and South America is expected to witness a robust growth rate owing to the introduction of regulations for emission control, and adoption of clean energy.
Key Benefits of Report
This study presents the analytical depiction of the energy retrofit systems industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the energy retrofit systems market share.
- The current market is quantitatively analyzed to highlight the energy retrofit systems market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed energy retrofit systems market analysis based on competitive intensity and how the competition will take shape in the coming years.
Questions Answered in Energy Retrofit Systems Market Report
- Who are the leading market players active in the energy retrofit systems market?
- What current trends will influence the market in the next few years?
- What are the driving factors, restraints, and opportunities in the market?
- What future projections would help in taking further strategic steps?
Energy Retrofit Systems Market Report Highlights
By Product Type