Energy Efficiency Retrofits Market is anticipated to generate significant revenues by 2023
The need of energy efficient control systems has led to the development of mechanical systems which could provide the required environment in a cost effective manner. On a global scale, commercial and residential buildings account for a major share of the total energy consumption. The commercial and residential complexes consume a substantial amount of energy related to activities such as Heating, Ventilating and Air- Conditioning (HVAC) systems, lighting and water management activities.
Several countries are implementing energy efficient systems to optimize energy consumption and reduce emissions. Energy retrofits in commercial and residential buildings provide an improvised method for energy security. The market for energy efficiency retrofits is directly influenced by many building standards. The ISO is one such environmental standard which has established principles related to building designs. The market for advanced energy efficiency retrofits control systems is anticipated to rise at a rapid pace in the future due to increasing demand for such smart control systems.
Energy cost reduction initiatives and regulatory measures are the major drivers bolstering investment in energy efficiency retrofit market. The increasing expenditure on energy systems and enforcement of strict emission regulations have forced many industrial and commercial organizations to adopt for advanced energy efficiency retrofit systems. The policy incentives announced by governmental agencies in several nations have attracted building developers to invest in this technology. The real estate market value of the commercial and residential buildings substantially increases if the building developers invest in energy efficiency systems by replacing old conventional technologies. In developed economies such as the U.S., the government has announced clear policy objectives and financing schemes for energy efficiency retrofits in public buildings. Attractive public polices and incentive schemes for energy efficiency retrofits are some of the major factors for the success of this market in developed economies. Lack of product differentiation in this market has significantly increased competition among the various market players and this acts a major restraint for companies willing to enter the energy efficiency retrofits market.
The market for energy efficiency retrofits can be segmented on the basis of end-user segments. Heating, Ventilating and Air- Conditioning (HVAC), lighting, building, control systems, water management services, and energy efficiency services are the major segments included in this study.
Many government societies and standards govern the regional markets of energy efficiency retrofit systems for commercial and residential complexes. American Society of Heating, Refrigerating and Air-Conditioning Engineers are one such society which has enforced certain regulations which influence the HVAC control systems market. In North America and Europe several old energy systems are being retrofitted with new energy efficient systems. The regulatory and policy measures announced by governmental agencies in these regions are the major factors attracting investment in this market. These regions are anticipated to account for a significant share of the overall retrofit market for energy efficient systems. The growing need for efficient heating and cooling solutions in the developing economy of Asia Pacific will provide the major market for energy efficiency retrofits. The increasing residential requirement in the Middle East region is another potential segment for the growth of this market.
Several major players are investing substantial amounts in providing solutions for energy efficiency retrofits in commercial and residential buildings. Some of the key players are Ameresco, Inc., Daikin Industries, Siemens Building Technologies, E.ON Energy Services, Eaton Corp.