Report: Market for energy efficient retrofits to double by 2020
While the popularity of green technologies for properties is increasing around the world, the pace at which this transition could occur highlights how many companies want to make the transition to energy efficient buildings sooner rather than later.
The market for energy efficient retrofits is expected to double by 2020, according to Pike Research, as the total industry is expected to reach $152 billion around the world during this period.
According to the report, there are a number of drivers for building owners to adopt retrofits and tenants to ask for more efficient practices in their offices.
These include lowered operating costs, a sense of social responsibility to reduce greenhouse gases, increased market value and various improvements regarding workplace health and productivity.
According to the report, titled Energy Efficiency Retrofits for Commercial and Public Buildings, regardless of the motivation for making the change, the market is expected to grow from $80.3 billion in 2011 to $151.8 billion in 2020.
"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 will more than double during this time, but Western Europe will still represent the largest market for retrofits. However, the rest of the world is beginning to catch up, as the understanding of the positive financial impact of retrofitting spreads to emerging markets.
The U.S. is trying to promote the use of retrofitting projects by companies and building owners, as the Department of Energy designated an innovation Hub to transform the commercial real estate market in Philadelphia to serve as a model for the rest of the country.
One Pennsylvania county recently completed a large-scale energy retrofit project, which is expected to save the local government more than $300,000 in annual energy costs, according to Environmental & Energy Management News. More than 16,000 individual energy conservation measures were installed in 75 buildings.