Pike report shows revenue from Net Zero energy buildings to top $1 trillion by 2035
The growing popularity of green building practices has led to a movement that favors limiting energy consumption and lowering operating costs, but the next frontier for the energy efficient buildings sector could be net zero structures.
Zero energy buildings are classified as structures that consume as much energy as they produce through on-site and renewable energy systems. According to a report by Pike Research, worldwide revenue from these buildings is expected to reach $690 billion by 2020 and nearly $1.3 trillion by 2035.
The report noted that a number of countries and regions have established long-term targets and regulations requiring net zero energy for new buildings in the coming years. The U.S. Department of Energy designated a specific innovation HUB for energy efficient buildings to help address the issue in America.
Known as the Greater Philadelphia Innovation Cluster for Energy Efficient Buildings (GPIC), the effort is reliant on the brightest minds from the region to help establish itself as a leading voice in the sector, create green jobs and design and develop energy efficient buildings and technology.
The GPIC may lead to more net zero energy buildings in the U.S., as America is looking to limit the emissions and energy use of commercial buildings in the country, which currently account for 40 percent of the total consumption.
The report from Pike Research noted that there exist hurdles for green building, despite the many benefits.
"Following the surge in LEED and other green building certifications worldwide over the last few years, zero energy building has emerged as the 'holy grail' in green building design," research analyst Eric Bloom said in a company release. "Technically, zero energy building design is feasible for many building types in many regions, but concerns about the upfront cost continue to impede it in the market."
The report outlines how the market for zero energy buildings may be growing, including specific sectors like HVAC systems, glazing systems, wall and roof construction, renewable energy systems and construction soft costs.
According to Sustainable Business, the construction industry is already developing products and services to meet demands for zero energy building and ensure compliance for the new regulations that have been put forth. Eight buildings in the U.S. are currently registered as net-zero with the Department of Energy.