Energy-saving retrofits involve installing or replacing existing building parts to improve energy efficiency. Moreover, it help ensure the longevity of buildings and structures, reduce long-term operating costs, and lower carbon dioxide emissions. Over decades, government efforts to deal with climate change have boosted global demand. Inkwood Research anticipates the global energy retrofit systems market to grow with a CAGR of 4.65% during the forecast years, 2022-2030.
The market growth is accelerated by company pledges to attain net-zero emission in conducting and handling value chain, minimizing greenhouse gas (GHC) emission, and implementing energy-efficient operations in their businesses. Companies like PepsiCo, Coca-Cola, etc., who have recently pledged to be net-zero, are set to optimize their manufacturing units, supply-chain processes, office building, and other infrastructures. Energy retrofit systems will aid these companies in achieving the target emission levels owing to their cost and longevity efficiency, supporting their demand in the global market.
On the other hand, the energy crisis severely affects millions worldwide. Therefore, energy-efficient products are vastly adopted and encouraged to avoid and tackle the crisis, integrating energy retrofit systems in indoor spaces like offices, malls, buildings, etc. Hence, the global energy retrofit systems market is expected to surge as these implementations will help counter the energy crisis as well as create an energy-efficient operational environment while drastically reducing carbon dioxide emission levels.
Market Overview | Segmentation and Regional Analysis
The global energy retrofit systems market analysis entails segmentation by product and application. These segments are studied with respect to their growth prospects in regions worldwide.
Geographically, North America will lead the global market with a CAGR of 4.97% during the forecast years.
The region is performing well owing to the growing requirement for energy retrofit applications in private companies. Moreover, governments are introducing several policies to create energy-efficient ecosystems in high energy-consuming countries like the US and Canada. Further, ENERGY STAR, a joint venture of the Environmental Protection Agency and the Department of Energy, helps consumers identify top-performing and cost-effective products. The initiative eases the adoption of various energy retrofit products, supporting its growth in the market.
On the other hand, the product segment includes HVAC retrofit, envelope, LED retrofit, and appliances.
Our study suggest the LED retrofit to grow with the fastest CAGR during the forecast years. It extends the efficiency efforts by drastically reducing energy consumption with every installation. Also, the raw materials used for LED retrofits are more environmentally friendly and long-lasting, increasing their adaptability among the consumers and driving their demand. Major companies like Signify NV and Orion Energy System Inc., specialize in LED retrofits and make huge investments in their R&D to offer products with a longer life span and minimal maintenance requirements. Such advancements are expected to propel the product’s market growth globally.
Company Acquisition & Expansions: Emerging Growth Opportunities
The global energy retrofit systems market demands high initial investments, technical expertise, and profitability, depending on scale and economy. Therefore, the presence of big market players acts as an obstacle for new entrants unless they have a breakthrough innovation or development that can penetrate the market and provide opportunities for a takeover from established companies. Additionally, innovations and business expansions simultaneously maintain relevance in the global market scenario due to a fiercely competitive market.
In April 2022, Daikin Industries established an AC plant in Sri City, Andhra Pradesh, India, to expand its production capabilities in the region. It is reported to be the largest factory in the country, with a production capacity of 1.5 million air conditioners per year, including the manufacturing of compressors, controller boards, and other spare components.
Furthermore, in January 2022, Johnson Controls, one of the oldest companies in the energy retrofit market, acquired Foghorn, a software developer for industrial and commercial IoT application solutions. The company aims to make smart autonomous buildings by pervasively integrating Foghorn’s Edge AI platform throughout its OpenBlue portfolio solutions. The introduction of AI in energy retrofits will open up new possibilities for the products in the future.
All in All
Energy-efficient products are the future of every operation in households and various industries. Owing to the rapidly depleting natural resources, companies and governments are not only aiming at conservation but also alternate energy sources. As a result, operating players are constantly expanding their product portfolios, encouraging development and innovations in the Energy retrofit systems market.
FAQs:
What is the expected market value of energy retrofit systems during the forecast years?
The global energy retrofit systems market is estimated to be valued at $243.07 billion during the forecast period, 2022-2030.
What is the leading application in the global energy retrofit systems market?
Residential application is leading the market during the forecast years.