Energy Efficient Buildings Are Expected to Reach Nearly $623 Billion in Annual Revenue by 2023

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The barriers to constructing and retrofitting energy efficient buildingscenter around cost, report concludes

A new report from Navigant Research analyzes the global market for commercial building energy efficient products and services, including global market forecasts for revenue through 2023.

Concerns about increasing energy costs are driving many organizations to look to their existing building stock for ways to reduce operating costs.  Corporate and government efforts to reduce carbon emissions and manage assets in a more strategic manner have produced global market opportunities for energy efficient buildings that are supported by country- and region-wide legislation and initiatives.  According to a new report from Navigant Research, worldwide revenue from energy efficient buildings is expected to grow from $307 billion in 2014 to nearly $623 billion in 2023.

“Services that would have seemed costly or unnecessary to building owners 5 to 10 years ago – such as corporate sustainability initiatives focused on energy efficiency – are becoming increasingly mainstream,” says Noah Goldstein, research director with Navigant Research.  “Energy efficiency can help governments to reduce the carbon intensity of local and national economies and corporations reduce costs as well as their carbon footprints.”

The barriers to broad adoption of energy efficiency measures center around cost, according to the report.  In many countries, energy costs remain less than $0.10 per kilowatt-hour for commercial customers, rendering the paybacks of many energy efficiency measures difficult to justify within stringent investment criteria.  Outside of developed economies, energy efficiency tends to be low on the list of priorities, even with significant new construction activity in regions such as Southeast Asia, Latin America, and the Middle East.

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The report, “Energy Efficient Buildings: Global Outlook,” analyzes the global market for commercial building energy efficient products and services.  The study summarizes the market drivers and barriers for energy efficient products and services, including the services provided by energy service companies (ESCOs) through energy performance contracting, across the policy and technology landscape in seven regions.  Global market forecasts for revenue, broken out by product and service, building type, construction type, and region, extend through 2023.  The report also examines the key technologies related to energy efficient building products and services, as well as the competitive landscape.  An Executive Summary of the report is available for free download on the Navigant Research website.

Navigant Consulting 

December 11, 2014