BOULDER, Colo. — Regardless of the motivation, whether it’s to save the environment or save money, energy efficiency retrofits represent a rapidly growing market. According to a new report from Pike Research, this global market will expand from $80.3 billion in 2011 to $151.8 billion by 2020.

Pike Research noted that efforts to retrofit commercial and public buildings to make them more energy efficient have a number of drivers, including a sense of social responsibility to reduce greenhouse gases and carbon footprint, an attempt to retain tenants and gain a market edge in a competitive building market, and, above all, the desire to reduce operational costs by reducing energy consumption.

“Retrofitting existing buildings offers one of the most cost-effective ways for a business to reduce its operating expenses,” said senior analyst Eric Bloom. “Many energy conservation measures can be implemented within strict investment criteria, and a growing number of financial instruments are deepening the scope of energy efficiency retrofits, driving continued investment in energy efficient HVAC, lighting, and control systems.”

North American energy efficiency revenues are forecast to more than double over the remainder of the decade, increasing to $35.3 billion by 2020.

Western Europe is expected to remain the largest market for energy efficiency retrofits in commercial and public buildings, but its share of world revenues is predicted to drop from 41 percent in 2011 to 37 percent in 2020. Asia Pacific, which represented 32 percent ($26 billion) of the revenue stream in 2011, is forecast to increase to 36 percent ($54.6 billion) by 2020, almost equaling Western Europe.

Publication date: 7/16/2012