GVR Report cover Energy Retrofit Systems Market Size, Share & Trends Report

Energy Retrofit Systems Market Size, Share & Trends Analysis Report By Application (Residential, Non-residential), By Product (LED Retrofit Lighting, Envelope), By Region (Europe, APAC), And Segment Forecasts, 2020 - 2028

  • Published Date: Oct, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68038-739-1
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 80

Report Overview

The energy retrofit systems market size was valued at USD 142.88 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.5% from 2020 to 2028. Factors, such as growing concerns about Greenhouse Gas (GHG) emissions and strict regulations to decrease carbon footprint, are projected to drive the global market. The growing adoption of HVAC appliances across various sectors is projected to further boost the product demand. Most HVAC and lighting technologies have an average shelf life of 25 years, after which, the technology is termed obsolete and needs replacement. Retrofitting of these systems leads to a substantial reduction in energy costs for homes and offices. The market in the U.S. is expected to witness significant growth over the forecast period due to large-scale construction and adoption of retrofit systems to replace the existing ones, which have proven to be expensive and energy-consuming.

U.S. energy retrofit systems market size, by product, 2018 - 2028 (USD Billion)

Since the Federal Government of the U.S. opted out of the Paris Accord on Climate Change, there has been speculation about the non-renewable energy companies capitalizing on the opportunity. Also, awareness to adopt renewable energy is projected to continue to grow at a robust rate on account of financial sops offered by government agencies. For the enhanced performance of energy retrofit system modules, these components need to be continuously technologically upgraded.

Manufacturers/developers of these components invest a significant proportion of the annual budget in R&D. The systems function perfectly only when all components are integrated to match the system requirements. Integrators and assemblers integrate all components to create energy retrofit systems as an integrated offering. Siemens, General Electric, Schneider Electric, and Johnson Controls are some of the companies that design and integrate such systems for various applications.

Product Insights

On the basis of product, the global market has been segmented into envelope, LED retrofit lighting, HVAC retrofit, and appliances. The envelope product segment accounted for the maximum revenue share of more than 51% of the global market in 2020. The segment is anticipated to maintain its dominance expanding further at a steady CAGR over the forecast period.

Retrofitting building envelope provides insulation and air barrier to walls, which improves thermal comfort and reduces drafts. Thus, the amount of heat loss gets reduced, which benefits occupants and owners with reduced energy usage and carbon footprint. This will also lead to a positive public opinion by displaying a commitment to environmental sustainability. However, the LED retrofit lighting segment is estimated to register the fastest CAGR of over 5% from 2020 to 2028.

Application Insights

The non-residential segment led the market in 2020 and accounted for the largest revenue share of more than 71% The growth can be attributed to the large-scale installation of HVAC systems and technological obsolescence of traditional systems used in non-residential buildings. Areas that experience extreme winter conditions will particularly benefit from the retrofitting of power systems owing to their prime reliance on HVAC and lighting systems.

Global energy retrofit systems market share, by application, 2020 (%)

The residential application segment is projected to grow at the fastest CAGR during the forecast period. Increasingly expensive residential properties and the formulation of laws for protecting old buildings have resulted in modifications to existing buildings, with a large number of consumers opting for retrofits. Moreover, the rise in expenses related to energy systems and the strict implementation of various emission regulations forcing several industrial and commercial organizations to adopt advanced energy-efficient modernization systems.

Regional Insights

The Europe region dominated the global market in 2020 and accounted for the largest revenue share of more than 47% in 2020. Russia led the Europe regional market in 2020, in terms of revenue. The regional market is primarily driven by the rising product adoption on account of the growing concerns about GHG emissions and strict regulations to decrease carbon footprint. Furthermore, the rising population coupled with increasing demand for efficient and clean energy is expected to propel market growth.

Moreover, Europe has been very active in using R&D for clean and efficient energy generation, which supports the market growth. The availability of funding in the European Union for energy conservation and energy efficiency projects has also been one of the major factors driving the regional market growth. On the other hand, Asia Pacific is estimated to register the fastest CAGR during the forecast period.

Key Companies & Market Share Insights

Leading market players compete based on their product development capabilities and new technologies used in product formulations. Established players, such as Ameresco, are investing in the development of innovative and sustainable solutions for formulating new and advanced solutions that give them an edge over their competitors.

For instance, in June 2021, Ameresco announced that it partnered with Defense Logistics Agency Energy and Cannon Air Force Base for USD 19 million Energy Savings Performance Contract (ESPC). The project designed by Ameresco will provide tangible facility improvements and enable recurring reductions in utility costs. On utilizing the DOE Energy Savings Performance Contract, the project will help enhance Cannon Air Force Base’s mission capabilities and address its sustainability and energy goals. Some of the prominent players operating in the global energy retrofit systems market are:

  • Daikin Industries Ltd.

  • Ameresco

  • Eaton

  • AECOM

  • Johnson Controls

  • Orion Energy Systems, Inc.

  • Siemens

  • Trane

Energy Retrofit Systems Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 145.74 billion

Revenue forecast in 2028

USD 203.12 billion

Growth rate

CAGR of 4.5% from 2020 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2020 - 2028

Quantitative units

Revenue in USD Billion, and CAGR from 2020 to 2028

Report coverage

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

Segments covered

Product, application, region

Region scope

North America; Europe; Asia Pacific; Central & South America; and Middle East & Africa

Country scope

U.S.; Canada; Mexico; U.K.; Germany; Russia; Spain; Italy; France; China; Japan; South Korea; India; Australia; Brazil; Colombia; Paraguay; Saudi Arabia; UAE; South Africa; Egypt

Key companies profiled

Daikin Industries Ltd.; Ameresco; Eaton; AECOM; Johnson Controls; Orion Energy Systems, Inc.; Siemens; Trane; Signify Holding; Engie; General Electric; Schneider Electric

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope

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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 industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global energy retrofit systems market report based on product, application, and region:

  • Product Outlook (Revenue, USD Billion, 2017 - 2028)

    • Envelope

    • LED Retrofit Lighting

    • HVAC Retrofit

    • Appliances

  • Application Outlook (Revenue, USD Billion, 2017 - 2028)

    • Residential

    • Non-Residential

  • Regional Outlook (Revenue, USD Billion, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • Russia

      • U.K.

      • Spain

      • Italy

      • France

    • Asia Pacific

      • China

      • Japan

      • South Korea

      • India

      • Australia

    • Central & South America

      • Brazil

      • Colombia

      • Paraguay

    • Middle East & Africa

      • Saudi Arabia

      • UAE

      • South Africa

      • Egypt

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