BOULDER, Colo. — Small and medium commercial buildings (SMCBs), those ranging from less than 10,000 square feet up to 100,000 square feet, have not seen the same penetration of energy efficiency technologies as larger facilities due to lower expenditures on energy management, lack of customer education, perceived high risk of retrofit financing, and split incentives between the building owner and tenant, notes Navigant Research. However, with the largest commercial buildings already engaged in energy efficiency retrofits, the focus is expected to shift to SMCBs, which represent the majority of buildings worldwide. According to a new report from the research firm, revenue in the global energy efficiency retrofit market for small and medium commercial buildings is expected to grow from $24.1 billion in 2016 to $38.6 billion in 2025.

“Energy efficiency retrofits can improve building performance, reduce consumption, and save operating costs,” said Christina Jung, research associate with Navigant Research. “Tailored solutions and business models that take into consideration the fact that the SMCB market is diverse and large, consisting of buildings of all ages, sectors, and management regimes, will be able to capture the great potential the SMCB market holds.”