Energy Retrofit Market is Estimated to Witness High Growth Owing to Improved Energy Efficiency
The Energy Retrofit Market is estimated to be valued at US$ 111.2 billion in 2022 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Energy retrofitting involves modifying existing residential and commercial buildings to reduce energy consumption through improved insulation, efficient heating and cooling systems, lighting solutions and renewable energy integration. By upgrading to energy efficient equipment and appliances, owners can achieve substantial savings on energy bills while also lowering carbon footprint.
Market key trends:
One of the major trends driving growth in the energy retrofit market is the push for improved energy efficiency. Stringent government regulations and policies focused on reducing greenhouse gas emissions have compelled commercial and residential building owners to undertake retrofitting activities. Various incentive schemes and subsidies are encouraging retrofits of aging infrastructure. Rapid urbanization has also increased the demand for retrofitting of existing structures. Wide availability of innovative and cost-effective solutions such as LED lighting, smart thermostats and renewable energy options are making retrofits more viable for property owners looking to curb expenses and optimize operations.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established brands create barriers for new companies. Bargaining power of buyers: Large buyers can negotiate better prices and terms due to their high purchase volumes. Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitute components. Threat of new substitutes: Emerging energy efficient technologies pose potential threat. Competitive rivalry: Intense competition among existing players to gain market share.
SWOT Analysis
Strengths: Established brands and reputation for reliability and quality. Wide product portfolio and geographic presence. Weaknesses: Supply chain disruptions due to pandemic and geo-political issues increase production costs. Significant investments required to develop new technologies. Opportunities: Government regulations and policies promoting energy efficiency drive market demand. Growth in retrofitting of commercial and residential buildings. Threats: Rising labour and raw material costs. Intense competition from local and international players.
Key Takeaways
The Global Energy Retrofit Market Growth is expected to witness high, exhibiting CAGR of 5.1% over the forecast period, due to increasing need to reduce energy consumption and carbon emissions. The US dominates the global market, with a share of over 30% in 2022. Stringent government regulations in the region regarding energy efficiency are major drivers for market growth.
Regionally, Asia Pacific is projected to be the fastest-growing market during the forecast period. Presence of developing economies such as China and India with high construction activities provide numerous opportunities for market players in the region.
Key players operating in the energy retrofit market are Carrier, Haier Group, Emerson Electric Co., LG Electronics., Lennox International, Rheem Manufacturing Company, Trane Technologies plc, Vishay Intertechnology, Inc., Acuity Brands Lighting, Inc., Ideal Industries, Inc., Lumigrow, Hubbell, Constellation Newenergy, Inc., Energy Systems Group, Cmta, Inc., The Brewer-Garrett Company, Digi-Key Electronics, Renesas Electronics Corporation., Ameresco. These players are focusing on new product development and partnerships to gain a competitive advantage in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
