Global Energy Retrofit Systems Market; By Product (Envelope, LED Retrofit Lighting, HVAC Retrofit, Appliances); By Application (Residential, Non-Residential); as well as By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast: 2023-2032
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Report Overview
In 2021, the global energy retrofit system market was valued at USD 148.8 billion and is projected to grow at a Compound Annual Growth Rate (CAGR) of 4.2%, between 2023 and 2032. It is expected to reach USD 233.96 billion in the forecast period. This global market is expected to be driven by key factors such as growing concerns about Greenhouse Gas (GHG) emissions, and strict regulations to reduce the overall carbon footprint. Furthermore, this market is expected to grow due to the widespread adoption of HVAC appliances in various industries. The average shelf life for lighting and HVAC technologies is 25 years. After that, they are considered obsolete and need to be replaced. These systems can be retrofitted to reduce energy costs in homes and commercial settings. Due to the adoption of retrofit technologies to replace existing systems that are expensive and inefficient, the U.S. market is expected to grow significantly over the forecast period.
Global Energy Retrofit Systems Market Scope:
Printing Type Analysis
Product Insights
This global market can be divided into four product segments: LED retrofit lighting, Envelope, HVAC retrofit, and Appliances. In 2021, the highest revenue share was accounted for by the envelope product segment. It accounted for more than 51.5% of this market and is expected to continue its dominance, expanding at a steady pace over the forecast period.
Retrofitting a building envelope improves thermal comfort by providing insulation and an air barrier between walls. This reduces heat loss, which is beneficial to both owners and occupants. It also helps reduce energy consumption and carbon footprint. It is expected to encourage public support for environmental sustainability and positive public opinion. The LED retrofit lighting segment is slated to index the highest CAGR at over 4.9%, between 2023 and 2032.
Application Analysis
In 2021, the non-residential segment dominated this market and accounted for more than 71.5% of total revenues. This growth was due to large-scale HVAC system installations, and the technological obsolescence of traditional systems that were used in non-residential buildings. Retrofitting power systems will be especially beneficial in areas that are subject to extreme winter conditions. This is due to their dependence on lighting and HVAC systems.
The fastest projected CAGR for the application segment of this market will be indexed by the residential sub-segment over the forecast period. Due to increasing prices for residential properties, and the creation of laws protecting older buildings, many consumers are opting for retrofit solutions instead. A surge in energy costs and strict compliance with emission regulations have forced many commercial and industrial organizations to invest in advanced energy-efficient modernization approaches.
Key Market Segments:
By Product
- Envelope
- LED Retrofit Lighting
- HVAC Retrofit
- Appliances
By Application
- Residential
- Non-Residential
Market Dynamics:
There has been speculation that non-renewable energy companies will profit from the Paris Accord on Climate Change being abandoned by the United States Federal Government. A number of financial incentives offered by governmental agencies will continue to increase awareness about renewable energy. These components must be technologically updated to improve the performance of retrofit systems modules.
Manufacturers/developers of these components invest a significant proportion of the annual budgets towards R&D initiatives. These systems function optimally only when all components are integrated to match the system’s requirements. In order to make energy retrofit systems, assemblers and integrators combine all components. These systems can be designed and integrated by companies such as Johnson Controls, General Electric, and Schneider Electric.
The industry that uses the most energy to run district heating services is the commercial industry. The majority of energy is used by the construction industry.
The market expansion would be fueled by government initiatives to increase the market for new technologies and provide major retrofits in existing structures.
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.
Regional Analysis
In 2021, Europe was the dominant market and had a revenue share greater than 47.5%. Russia was the top-earning country in Europe, in terms of revenues in 2021. Due to growing concerns about GHG emissions and stringent regulations to reduce carbon footprints, this regional market is driven primarily by greater product adoption levels. Market growth is expected to be bolstered by growing population figures and the increasing demand for clean and efficient energy.
Europe is also active in R&D efforts to produce clean, efficient energy, which in turn has supported the market growth. Regional market growth has been aided by the availability of financing from the European Union for energy conservation projects and energy efficiency projects. The Asia Pacific will, however, be the region with the highest CAGR over the forecast period.
The Asia-Pacific region’s quick development of energy modernization systems and the acceptance of these systems by residential and commercial end users are likely to assist in the reduction in the cost of renewable energy and the cost of infrastructure, which will boost market growth.
Key Regions and Countries Covered in This Report:
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Russia
- Spain
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- Rest of Asia-Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- GCC
- South Africa
- Israel
- Rest of MEA
Market leaders compete on the basis of their product development capabilities as well as new technologies used in product formulations. Ameresco is one of the most established players in this market. They invest in developing sustainable and innovative solutions to create new and better products.
The major market players are utilizing cutting-edge and advanced technologies to build the market for energy retrofit systems.
Ameresco, for example, announced in June 2021 that it had partnered with Defense Logistics Agency Energy and Cannon Air Force Base to provide USD 19 million in Energy Savings Performance Contracts (ESPC). Ameresco’s project will result in tangible facility improvements as well as recurring reductions in utility costs. The DOE Energy Savings Performance Contracts will be used to help Cannon Air Force Base achieve its mission capabilities, as well as meet its sustainability and energy goals. The following are some major players in the global market for energy retrofit systems:
Market Key Players:
- Daikin Industries Ltd.
- Ameresco
- Eaton Corporation Plc
- AECOM
- Johnson Control International
- Orion Energy Systems Inc.
- Siemens AG
- Trane Technologies Inc.
- Other Key Players
Frequently Asked Questions (FAQ)
How much is the energy retrofit systems market worth?
The global market size was USD 148.23 billion in 2021 and is projected to surpass USD 233.96 billion by 2032.
At what CAGR is the energy retrofit systems market projected to grow in the forecast period (2023-2032)?
Registering a CAGR of 4.2%, the market will exhibit a decent growth rate during the forecast period (2023-2032).
How big is the energy retrofit systems market?
The global energy retrofit systems market size was estimated at USD 148.8 billion in 2021 and is expected to reach USD 233.96 billion in 2032.
What is the energy retrofit systems market growth?
The global energy retrofit systems market is expected to grow at a compounded annual growth rate of 4.2% from 2023 to 2032 to reach USD 233.96 billion by 2032.
Who are the major players operating in the energy retrofit systems market?
The major players operating in the energy retrofit systems market are Trane, Daikin Industries Ltd., Eaton Corporation PLC, Siemens, Ameresco, Johnson Control, Schneider Electric, AECOM Energy, Chevron Energy Solutions, E.ON Energy Services, Orion Energy Systems Inc., Engie SA, Alectra Energy Solutions, General Electric and Signify N.V.
Which region will lead the global energy retrofit systems market?
Europe dominated the energy retrofit systems market in 2021 and will lead in the forecast period.
What are the growth factors for the energy retrofit systems market?
Growing concerns about Greenhouse Gas emissions, widespread adoption of air conditioning appliances in various industries, and rapid urbanization are major growth factors for the energy retrofit systems market.
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- Daikin Industries Ltd. Company Profile
- Ameresco
- Eaton Corporation Plc
- AECOM
- Johnson Control International
- Orion Energy Systems Inc.
- Siemens AG
- Trane Technologies Inc.
- Other Key Players
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