Rising Demand for Energy Conservation Impacting the Global Energy-efficient Building Market Until 2020: Technavio
Technavio’s latest report on the global
energy-efficient building market provides an analysis
on the most important trends expected to impact the market outlook from
2016-2020. Technavio
defines an emerging trend as a factor that has the potential to
significantly impact the market and contribute to its growth or decline.
Sayani Roy, an industry expert from Technavio, specializing in research
on smart
grid sector, says, “The global energy-efficient building
market was valued at USD 347 billion in 2015. It is expected to reach
USD 550 billion by 2020, growing at a CAGR of almost 10%. This is
primarily attributed to the need for energy management, increase in
technological advancements, and increase in the number of green
buildings. Energy-efficient products and services provide
significant benefits to a broad range of end-users, such as residential,
IT parks, hotels, restaurants, manufacturing plants, government
institutions, and retail outlets.”
Services segment to dominate the market with a CAGR of around 11% by
2020
Increased awareness of environmental issues, such as GHG and CO2
emissions, and new government policies are contributing to the growth of
the services segment. The presence of an extensive service system is
necessary to ensure the effective implementation of an energy management
program. Increased awareness of environmental issues, such as GHG and
CO2 emissions, and new government policies are contributing to the
growth of the services segment. The presence of an extensive service
system is necessary to ensure the effective implementation of an energy
management program.
The top three emerging trends driving the global energy-efficient
building market according to Technavio energy
research analysts are:
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Increase in government support and investments
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Rising energy prices
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Reduction in GHG emission levels
Increase in government support and investments
Sayani adds, “Governments worldwide are enforcing regulations to
support the development of energy-efficient buildings. Some policies
have been introduced to aid the development of zero-energy buildings.
For instance, the UK government has set the zero carbon policy and has
made a commitment to have zero carbon homes from 2016.”
Barratt, one of the leading house builders, built 195 zero carbon
homes on a disused hospital site near Bristol in 2009. The projected
improvement due to these homes should bring about a reduction in CO2
emissions by around 17 million tons. The Committee on Climate Change
(CCC) estimates a substantial reduction in the CO2 emissions that are
released to British homes by 2020. In 2009, the UK government made an
additional investment of USD 3.2 million to facilitate the research and
development of energy-efficient buildings. The research tests new
technologies and material to provide valuable evidence for future
standards and ways to reduce energy bills. To encourage zero carbon
homes, an exemption from the Stamp Duty Land Tax was implemented in 2006.
Rising energy prices
Constant depletion of energy from natural resources without
replenishment and a simultaneous increase in energy demand from various
residential and commercial operations have resulted in a marked increase
in energy cost over the years. For example, in the US, average
electricity price for retail and residential sectors notched up a 2.3%
annual growth rate from 2008-2015. This has led to the growing demand
for energy-efficient buildings worldwide.
The focus has shifted from energy generation to energy conservation. The
aim of designing these buildings is to improve the operational
efficiency and slash overall energy costs. Moreover, they are also
designed to help in the conservation of fossil fuels, thereby reducing
the overall impact on the environment.
Reduction in GHG emission levels
Different operations in a building, both residential and commercial,
that involve heating, cooling, and lighting contribute to the increase
of CO2 in the environment. Unlike conventional buildings, there are no
GHG emissions in energy-efficient buildings. Therefore, they
significantly help in environmental and economic benefits.
“A zero-energy building is one that produces as much energy as it
consumes over a year. Recently, this has been translating from research
to reality. It is considered to be a very effective way to reduce
dependence on non-renewable sources of energy and also decrease carbon
emission levels. Moreover, with the increased use of renewable energy
and energy-efficient products, there will be a reduction in the energy
load of a building and also the GHG emission levels. This is expected to
increase the demand for the energy-efficient building market,”
asserts Sayani.
Key vendors:
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Honeywell
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Johnson Controls
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Schneider Electric
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Siemens
Other prominent vendors:
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Company
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Products offered
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ABB
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The company provides automation technologies and power for
industrial and utility customers worldwide.
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Building IQ
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The company offers DR for buildings and software-as-a-service
solutions to optimize energy use in commercial buildings.
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EnerNOC
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The company provides energy intelligence software and related
solutions for commercial, institutional, and industrial customers.
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GridPoint
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The company provides integrated and automated energy management
solutions that leverage big data analytics, software-as-a-service,
computing, and wireless technologies.
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Pacific Controls
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The company develops and delivers information and communication
technology enabled machine-to-machine automation and control
solutions.
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Source: Technavio
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Technavio
is a leading global technology research and advisory company. The
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