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The zero-energy buildings market size is estimated to decline at a CAGR of 23.51% between 2023 and 2028. The market size is forecast to increase by USD 172.65 billion. The growth of the market depends on several factors, such as the growing use of sustainable energy, the rising number of green buildings, and the increased need for cost reduction of energy. Our report examines historic data from 2018 - 2022, besides analyzing the current market scenario.
This report extensively covers market segmentation by application (public and commercial buildings, and residential buildings), Product (HVAC and controls, insulation and glazing, lighting and controls, and water heating), and Geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Zero-energy Buildings Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Manufacturing plants, commercial buildings, and healthcare facilities are the most energy-intensive end-users as they need to function continuously and use various equipment for their in-house operations. This requires a significant amount of electricity, adding to the overall energy costs. The increasing number of commercial buildings having large floor spaces is adding to the energy cost of the building sector. Simultaneously, the steady rise in electricity prices has also increased the operation cost of such facilities, resulting in a direct impact on the facility's bottom-line expenses.
However, building sectors are working toward reducing energy expenses globally. By implementing energy management practices, a building can save on a substantial quantity of energy consumption and can extend it further with a comprehensive energy plan. Thus, the increased need for cost reduction of energy will drive the growth of the global zero-energy buildings market during the forecast period.
Recently, the World Green Building Council (WGBC) announced its plan to advance the Net Zero initiative, which aims at achieving 100% net-zero buildings by 2050. The pilot sites chosen by WGBC for developing net-zero certifications for existing and new buildings are Australia, Brazil, Canada, Germany, India, the Netherlands, South Africa, and Sweden. The building sector in these countries is expected to witness tremendous growth in the next few decades. By transforming buildings into green buildings, the HVAC market will witness soaring growth rates.
In addition, compliance with energy regulations and standards has encouraged several manufacturers to incorporate energy-efficient equipment in buildings. Thus, the Net-Zero buildings will drive the growth of the global Zero-energy buildings market during the forecast period.
About 12%-16 % of the sunlight that falls on the solar panel is converted to energy by solar PV systems. Although technology has constantly been advancing, the conversion rate does not match the conventional fossil fuel energy generation level. The type of PV also plays a significant role in the generation of energy. The most efficient of all PVs is the monocrystalline silicon PV. This type of PV accounts for around 15% of energy conversion. The rest of the materials used in the construction of solar PVs are less efficient, and hence, the productivity rate is low. Polycrystalline silicon has an efficiency of 12%-15 %, and amorphous silicon (used in thin-film technology) has an efficiency of 6%-8%.
In addition, some PV materials, such as amorphous silicon, which have a supple form factor and, hence, a greater integration potential, are more susceptible to thermally accelerated degradation than other materials. Also, PV materials with greater integration potential, such as flexible PV technologies and thin films, generally have minor efficiencies. This might contribute to higher energy costs. Thus, the Low conversion efficiency of solar PV will hamper the growth of the Net-zero Energy Building (NZEBs) Market during the forecast period.
The market share growth by the public and commercial buildings segment will be significant during the forecast period. The market for the public and commercial buildings segment will grow significantly over the forecast period, driven by the need to reduce energy consumption costs. Governments are imposing regulatory and policy measures worldwide to support the development of zero-energy buildings, especially in the commercial and public building segment. Commercial buildings consume a large amount of energy owing to the extensive use of HVAC, water heating, and lighting systems.
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The public and commercial segment was the largest and was valued at USD 6.24 billion in 2018. The US is one of the major markets for commercial construction and is expected to witness moderate to significant growth in every aspect of the commercial sector. The commercial construction sector will experience double-digit growth in lodging, office, and retail spaces in the US. The zero-energy buildings market in North America will be dominated by the US, owing to the high number of skyscrapers being constructed in the country. Apart from the US, Canada is another major market for zero-energy buildings. Many skyscrapers are being built in the country. Thus, the increased public and commercial building will fuel the growth of the Net-zero Energy Building (NZEBs) Market during the forecast period.
Based on product, the market has been segmented into HVAC and controls, insulation and glazing, lighting and controls, and water heating. The HVAC and controls segment will account for the largest share of this segment.? HVAC systems consume the maximum energy in a zero-energy building and can be integrated with other systems, such as domestic hot water (DHW), into buildings to improve energy efficiency and minimize energy consumption. In the implementation of HVAC systems, the equipment is either replaced or added to the existing system to tackle challenges caused by high indoor air humidity and the resulting condensation. European countries are paying more and more attention to the need to replace traditional HVAC systems with advanced, environmentally friendly, and energy-efficient HVAC systems, which will drive the growth of the global zero-energy buildings market. The non-residential segment accounts for the largest share of total demand for energy-efficient HVAC systems due to huge, costly energy-efficient HVAC systems used in buildings. High adoption of HVAC systems is expected to propel global zero-energy buildings market growth during the forecast period.
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APAC is estimated to contribute 33% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Another region offering significant growth opportunities to vendors is North America. The zero-energy buildings market is expected to grow rapidly in North America. This is due to the rapid use of solar energy coupled with energy storage systems, driven by the need to achieve energy independence by households owing to rising energy costs. Over the past several years, there has been a continuous adoption of solar PV systems in the residential sector due to falling costs and incentives provided by the government.
In addition, according to the Solar Energy Industries Association (SEIA), the US installed 3.9 gigawatts (GWdc) of solar capacity in the first quarter of 2022, reaching a total installed capacity of 126.1 GWdc. This is enough capacity to power its 22 million homes in America. Solar power accounted for 50% of all new capacity added in the US in the first quarter. Residential solar posted its biggest quarterly growth ever with an installed capacity of 1.2 GWdc, up 30% year-on-year in 2022. Therefore, with the high adoption of renewable energy, the market in focus is expected to witness high growth during the forecast period.
In 2020, the outbreak of COVID-19 severely impacted the construction industry in the region. However, the government initiation of the vaccination drives in 2021 helped in the reduction of COVID-19 cases, which further helped in the resumption of manufacturing and supply chain operations. Additional investments will help in putting the regional economy back on track in the near future. For instance, in January 2021, the US President announced a COVID-19 stimulus package worth USD 1.9 billion to overcome the adverse effects of the COVID-19 pandemic on the US economy. Such measures will drive the growth of the regional market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
altPOWER Inc - The company offers zero energy buildings namely altPOWER which has building integrated photovoltaic systems.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
altPOWER Inc., Altura Associates, Canadian Solar Inc., Daikin Industries Ltd., Danfoss AS, ertex solar, First Solar Inc., General Electric Co., Heliatek GmbH, Honeywell International Inc., Johnson Controls International Plc, Kingspan Group Plc, Mahindra and Mahindra Ltd., Schneider Electric SE, Siemens AG, TotalEnergies SE, Trane Technologies plc, Trina Solar Co. Ltd., Wuxi Suntech Power Co. Ltd., and Yingli Green Energy Holding Co. Ltd.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The zero-energy buildings market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Zero-energy Buildings Market Scope |
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Report Coverage |
Details |
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Page number |
176 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Decelerate at a CAGR of 23.51% |
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Market growth 2024-2028 |
USD 172.65 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
25.27 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 33% |
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Key countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
altPOWER Inc., Altura Associates, Canadian Solar Inc., Daikin Industries Ltd., Danfoss AS, ertex solar, First Solar Inc., General Electric Co., Heliatek GmbH, Honeywell International Inc., Johnson Controls International Plc, Kingspan Group Plc, Mahindra and Mahindra Ltd., Schneider Electric SE, Siemens AG, TotalEnergies SE, Trane Technologies plc, Trina Solar Co. Ltd., Wuxi Suntech Power Co. Ltd., and Yingli Green Energy Holding Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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