PUNE, India — The global energy-efficient building market is projected to grow at a compound annual growth rate (CAGR) of 9.6 percent during the forecast period of 2016 to 2020, according to a report from Sandler Research.
The report says rising energy prices will be a key trend for market growth. The increase in energy demand from various residential and commercial operations has resulted in a marked increase in energy cost over the years. For example, in the U.S., the average electricity price for the retail and residential sectors notched up at a 2.3 percent annual growth rate from 2008-2015. This has led to the growing demand for energy-efficient buildings. The focus has shifted from energy generation to energy conservation.
The rise in new construction activity and the increasing introduction of energy efficiency policies especially in countries such as China, Germany, the U.S., and the United Kingdom will fuel the growth of the market.
The energy-efficient building market appears to be highly fragmented due to the presence of multiple vendors offering smart building systems and services. Vendors offer a complete range of intelligent building systems and provide complete turnkey solutions for buildings. The market is currently dominated by large players, who have product portfolios that can be customized to the client’s requirements.
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Publication date: 8/29/2016