Dec. 22, 2014: Energy Efficient Buildings Expected to Reach Nearly $623 Billion in Revenue by 2023
The Barriers to Constructing and Retrofitting Energy Efficient Buildings Center Around Cost
BOULDER, Colo. — Concerns about increasing energy costs are driving many organizations to look to their existing building stock for ways to reduce operating costs, notes Navigant Research. Corporate and government efforts to manage assets in a more strategic manner and reduce carbon emissions 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 the research firm, 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 five to 10 years ago — such as corporate sustainability initiatives focused on energy efficiency — are becoming increasingly mainstream,” said 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.
Publication date: 12/22/2014