Global market for energy efficient buildings to reach $103.5 billion by 2017
As governments across the globe are focused to reduce energy consumption by improving the efficiency of the building stock, the market for energy efficiency services and equipment is expected to rise.
With buildings being one of the largest sources of energy consumption, the opportunity to improve efficiency is significant, ranging from high-efficiency heating, ventilation, and air conditioning (HVAC) systems to the utilization of energy-efficient lighting technologies to business models such as energy performance contracting (EPC) as employed by energy service companies (ESCOs) around the world.
Research analyst Eric Bloom said: â€œThe structure of energy efficient building markets varies considerably from one country or region to another and vendors and service providers aiming to increase their coverage of energy efficiency markets must remain cognizant of the changing dynamics in order to maintain a strong presence.â€
Mr Bloom adds that, with regard to the existing building stock, ESCOs are leading the energy efficiency charge for commercial buildings in many countries, using EPC and other financing mechanisms to install energy efficient equipment and kick-start ongoing energy efficiency services.
The market for energy efficient equipment, including efficient HVAC and lighting systems, is also in a period of transformation, as green building trends drive increase interest in efficient systems and as efficient lighting technologies, such as LEDs, continue to decline in cost.
Pike Researchâ€™s forecasts indicate that the ESCO market will represent the largest segment of the energy efficient buildings industry in the coming years, with revenues more than doubling from $30.1 billion in 2011 to $66 worldwide by 2017, a compound annual growth rate (CAGR) of 14 percent.
Significant growth will also occur in the market for high-efficiency HVAC systems, which will expand from $3.1 billion to $6.4 billion during the same period.
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