Net-Zero Energy Buildings (NZEBs) Market Report

Net-Zero Energy Buildings (NZEBs) Market Analysis By Equipment (Lighting, Walls & Roofs, HVAC Systems), By Services, By Type, By Region, And Segment Forecasts, 2014 - 2025

Published: November 2017  |  130 Pages  |  Format: PDF  |  Report ID: GVR-2-68038-235-8

Industry Insights

The global Net-Zero Energy Buildings (NZEBs) market size was valued at USD 8.04 billion in 2016. The need for a transitioning to a low-carbon economy in order to develop energy-efficient solutions and reinvent the existing as well as new infrastructure is anticipated to elevate the demand for net-zero energy. In an attempt to achieve sustainable development, leading companies in the construction and energy sectors have launched the Energy Efficiency Buildings (EEB) project. The project aims at identifying and removing barriers and transforming structures in an effective way to reach energy self-sufficiency.

The governments of different countries and various organizations are working in collaboration with engineers, architects, builders & contractors, regulators, material suppliers, utilities, and developers to initiate self-sustainable projects worldwide. Various initiatives such as WGBC, EEB, and NBI have been undertaken by global authorities to create awareness regarding the benefits of green, low-carbon emission, and nearly-zero energy buildings. This is a key factor that is expected to drive growth of the global NZEBs market over the forecast period.

U.S. Net-Zero Energy Buildings market by equipment, 2014 - 2025 (USD Million)

U.S. Net-Zero Energy Buildings market

The green building codes, policies, and programs are continuously tailored and updated so as to promote the adoption of green buildings and transform existing and newly constructed buildings. Owing to increasing environmental concerns, stringent regulations for building codes, and rising need to conserve natural energy are paving the way for several lucrative opportunities for the NZEBs market worldwide.

Numerous companies are working on developing NZEBs to transform the built environment. Besides carefully designing and installing appropriate technologies, an NZEB project places great emphasis on paying continuous attention to building controls and regularly monitoring the performance, which are considered as the key influential factors.

Policies and programs play a vital role in driving the overall market. The market is expected to witness significant changes over the coming years owing to various initiatives and evolving building codes led by the cities, states, and district authorities. Schools and public structures are expected to lead the ZNE projects in developed and developing countries. The codes are being focused on appropriately implementing policies & programs and establishing energy targets to support ZNE in future.

However, Challenges involved in the installation design with respect to roof and site space for photovoltaic and other setups, coupled with the limited purchasing capacities of solar panels, are a few limitations in the adoption of ZNEBs and actual zero energy operations. In addition, operational and occupancy variations are also major factors likely cause difficulty in achieving the targets, thereby hindering the market growth.

Equipment Insights

Based on equipment, the Net-Zero Energy Buildings market has been segmented into lighting, walls & roofs, HVAC systems, and other equipment. The lighting equipment includes lightings designed to offer minimum energy consumption, higher operational efficiency, and longer life expectancy. Walls & roofing equipment consist of paneling and roofing materials, components, systems, and solutions that are required for setting up NZEBs.

Building automation plays a vital role in the successful deployment of nearly zero energy buildings. HVAC systems are responsible for most of the energy consumption; researchers and HVAC system manufacturers are extending their technological limits to enhance the energy efficiency of HVAC products by designing and developing specialized HVAC systems for ZNE applications.

Other products include glazing equipment, electrical & mechanical equipment, components, and spare parts. The HVAC system segment accounted for the major market share in 2016 and is expected to continue dominating the market over the forecast period. The high revenue of the segment is attributed to the high-cost HVAC equipment, which is the most integral part of the ZNE setup and, therefore, cannot be avoided.

The walls and roofs segment, on the other hand, is expected to register the second highest CAGR over the forecast period. As these products are continuously developed and upgraded to achieve the desired efficiency targets, the segment is anticipated to attract a considerable share over the estimated duration.

Services Insights

The services segment has been categorized into software services and consulting & designing services. Software is used by architects, engineers, designers, and consultants.

The software particularly includes designing tools such as CAD and AutoCAD, which the designers use to design the structure of NZEBs. Designing and drawing are one of the important aspects for architects to understand the exact requirements and necessary structuring and arrangements of ZNE equipment and components.

Consulting is a service where a consultant is hired by the construction/site owner to get professional advice on the set up of net zero energy building. Along with providing consulting services, the consultant monitors the installation process to help the owner achieve desired results.

The consulting & designing services segment accounted for the maximum share in 2016 owing to the importance of these services in the initial stage of a ZNE project. The segment is predicted to witness a smooth growth over the estimated duration due to rising awareness and demand for ZNE structures from commercial and residential sectors worldwide. The software segment is anticipated to grow at a steady pace over the coming years owing to the rising need for designers & architectures to practice and innovate more sustainable structural designs using different tools & software.

Type Insights

Based on types, the Net-Zero Energy Buildings market has been segregated into commercial and residential. The commercial segment held the maximum market share in 2016 on account of greater demand and higher adoption than the residential sector.

Constructing a new ZNE project or refurbishing an existing structure into a nearly-zero building that is low on carbon emission is a costlier process. As per current regulations, government and regulatory authorities are propelling the commercial sector to increase their involvement in green initiatives and projects.

The commercial segment is likely to grow at a steady rate over the estimated duration. Commercial building structures such as institutes, corporate offices, government offices, and huge manufacturing/production plants are the early targets. However, the residential sector is likely to portray the highest growth rate over the forecast period.

The growth of the residential sector is accredited to the growing need for environmental protection and efforts led by local organizations to create awareness regarding benefits of ZNE. The initiatives are carried out in the form of campaigns, awareness fests, and promotions, focusing on explaining the long-term benefits of a ZNE structures in an attempt to attract the residential population in urban areas.

Global Net-Zero Energy Buildings market by type, 2016 (%) 

Global Net-Zero Energy Buildings market

Regional Insights

Based on regions, the NZEBs market has been segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The North American region accounted for the largest market share in 2016. Countries such as the U.S. and Canada are the most prominent adopters of technologies, which has resulted in the high market growth in this region. 

Factors such as stringent laws laid down by the U.S. government coupled with the efforts of local organizations and U.S. energy department to work toward achieving the sustainability of existing and new buildings are the key factors driving market growth. Moreover, the largest number of net-zero buildings in California have also contributed to the region’s large market share.

Meanwhile, the European region is anticipated to witness the highest growth rate over the forecast period on account of the active involvement and extensive efforts carried out by the countries in this region for attaining global sustainability. The rising awareness with respect to building a clean and green environment and curbing carbon emissions is expected to be a key factor for the growth of the regional market over the forecast period.

The Asia Pacific region is expected to follow the European region and generate significant revenue owing to the growing urbanization. Additionally, the increasing investments in infrastructural development and awareness regarding the benefits of green buildings in the region are anticipated to drive the overall NZEBs market growth. Developed and developing countries such as China, South Korea, Singapore, Taiwan, India, Australia, and Japan have realized the potential of net-zero energy buildings. Therefore, regional manufacturers, builders, and service providers, in collaboration with the regional governments and organizations, are keenly focused on tapping opportunities in the region, which witnesses a high demand from the population.

Competitive Insights

Manufacturers and service providers in the net-zero energy buildings industry are focusing on improvising the technology by upgrading and innovating equipment, components, and materials to meet the increasing pressures and desired targets laid down by the government. Prominent industry players include Johnson Controls, SunPower Corporation, Kingspan Group, General Electric, Integrated Environmental Solutions, Siemens AG, and Schneider Electric, among others.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Revenue in USD Million & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, and South America, and MEA

Country scope

U.S., Canada, Mexico, UK, Germany, France, Italy, Spain, Sweden, Netherlands, Finland, Norway, Japan, China, Australia, Singapore, South Korea, and Brazil

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the NZEBs market based on equipment, services, building type, and region:

  • Equipment Outlook (Revenue, USD Million; 2014 - 2025)

    • Lighting

    • Walls & Roofs

    • HVAC Systems

    • Others

  • Services Outlook (Revenue, USD Million; 2014 - 2025)

    • Software

    • Consulting & Designing

  • Building Type Outlook (Revenue, USD Million; 2014 - 2025)

    • Commercial

    • Residential

  • Regional Outlook (Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • UK

      • France

      • Italy

      • Spain

      • Sweden

      • Netherlands

      • Norway

      • Finland

    • Asia Pacific

      • China

      • Japan

      • South Korea

      • Singapore

      • Australia

    • South America

      • Brazil

    •  The Middle East & Africa

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