July 18, 2024
Energy Retrofit Market

Energy Retrofit Market is Estimated To Witness High Growth Owing To Rising Demand For Energy Efficient Systems

The Energy Retrofit Market is estimated to be valued at US$ 116.87 Bn in 2023 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 retrofit involves upgrading existing building or infrastructure with more energy efficient systems to reduce energy consumption and carbon emissions. It includes replacement of outdated HVAC systems, lighting systems, building controls and facility systems by implementing more efficient equipment. Energy retrofits provide benefits such as lower energy costs, reduced carbon footprint, improved indoor air quality and higher productivity.

Market key trends:

One of the key trends driving growth of the energy retrofit market is rising demand for energy efficient systems. With growing focus on sustainability and reducing carbon emissions, there is increasing demand and implementation of energy efficient solutions across industrial, commercial and residential sectors globally. Various government regulations and programs to incentivize energy efficient retrofits are also facilitating adoption. Growing industrialization and urbanization in emerging economies has further boosted infrastructure development, which in turn is fueling installations of energy efficient systems during retrofitting of existing structures. Advancements in technologies such as IoT, AI and cloud based platforms are also enabling seamless integration of smart and connected energy systems.

Porter’s Analysis

Threat of new entrants: The energy retrofit market requires substantial investment and compliance with regulations and standards which acts as a barrier for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of several product and service providers in the market. However, switching costs associated with retrofitting limits their bargaining power.
Bargaining power of suppliers: Major suppliers in the market have low to moderate bargaining power due to the availability of substitutes and dependence of industry players on a limited number of raw material suppliers.
Threat of new substitutes: Threat of substitution is low as energy retrofit improves the energy efficiency of existing equipment and infrastructure with minimal capital expenditure.
Competitive rivalry: The market is moderately competitive with major players differentiating based on quality, service, and innovation.

SWOT Analysis

Strength: Energy retrofit offers cost savings through reduction in energy bills and improved operating efficiency. Various government initiatives and rebates support the adoption of retrofitting solutions.
Weakness: High initial costs associated with retrofitting projects and lack of awareness about benefits acts as barriers. Unfavorable policies in some regions also hinders the market growth.
Opportunity: Growing focus on reducing carbon footprint and reliance on non-renewable sources creates opportunities. Demand from industrial and commercial sectors is expected to rise in developing nations.
Threats: Emergence of cheap alternatives and economic slowdown can impact investments in retrofitting projects. Supply chain disruptions also poses risks.

Key Takeaways

The Global Energy Retrofit Market Size is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing industrialization and urbanization. Growing environmental concerns along with stringent regulations on energy efficiency and emissions will further drive the demand for retrofitting solutions.

Regionally, the North America region currently dominates the energy retrofit market and is expected to grow at a steady pace. Presence of strong policy support and infrastructure along with increasing initiatives by public and private organizations in the US and Canada for building retrofits creates significant opportunities 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. Major players are focusing on product innovations, partnerships and mergers & acquisitions to strengthen their market position.

 

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it