July 25, 2024

Energy Retrofit Market: Growing Demand for Energy Efficient Solutions to Drive Market Growth

The global energy retrofit market is estimated to be valued at US$ 111.2 billion in 2022 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023-2030. The market is driven by the increasing need for energy-efficient solutions in order to reduce energy consumption and carbon emissions.

Market Overview:

Energy retrofit refers to the process of upgrading the existing building infrastructure to make it more energy efficient. Energy retrofit solutions include insulation, HVAC systems, lighting, and renewable energy systems, among others. These solutions offer several advantages such as reduced energy costs, improved indoor comfort, and lower environmental impact. With the growing emphasis on sustainable practices, there is a rising demand for energy retrofit products in residential, commercial, and industrial sectors.

Market Key Trends:

One key trend in the energy retrofit market is the adoption of smart energy management systems. These systems integrate various IoT technologies to monitor and optimize energy consumption in buildings. Smart energy management systems enable real-time data monitoring, energy conservation, and cost savings. They also provide actionable insights for improving energy efficiency and reducing carbon footprint. The increasing focus on smart buildings and sustainable development is driving the adoption of smart energy management systems in the energy retrofit market.

Porter’s Analysis:

Threat of new entrants: The energy retrofit market is expected to face a low threat of new entrants due to high barriers to entry. These barriers include the need for specialized knowledge and expertise, significant capital investment, and strong relationships with suppliers and clients.

Bargaining power of buyers: The bargaining power of buyers in the energy retrofit market is moderate. While buyers have the ability to negotiate prices and services, the limited number of suppliers and the specialized nature of the industry can limit their power to a certain extent.

Bargaining power of suppliers: The bargaining power of suppliers in the energy retrofit market is low. There are numerous suppliers in the market offering a wide range of products and services, giving buyers the option to choose from different suppliers. Additionally, the suppliers may face competition from substitute products, further reducing their bargaining power.

Threat of new substitutes: The threat of new substitutes in the energy retrofit market is low. Energy retrofit solutions are essential for reducing energy consumption and improving energy efficiency, and there are limited alternatives available that can achieve the same level of benefits.

Competitive rivalry: The competitive rivalry in the energy retrofit market is moderate. There are several key players operating in the market, offering a variety of energy retrofit solutions. However, the market is also characterized by collaboration and partnerships among companies to expand their product portfolios and reach a wider customer base.

Key Takeaways:

The global energy retrofit market is expected to witness high growth, exhibiting a CAGR of 5.1% over the forecast period (2023-2030). This growth can be attributed to the increasing focus on energy efficiency and sustainability, as well as government regulations promoting the adoption of energy retrofit solutions. For example, initiatives such as the Paris Agreement and various energy efficiency programs implemented by governments around the world are driving the demand for energy retrofit services and products.

In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the energy retrofit market. The presence of stringent regulations and incentives for energy efficiency, along with the growing emphasis on sustainable practices, are driving the demand for energy retrofit solutions in the region. Additionally, the increasing number of old and inefficient buildings that require retrofitting is contributing to the market growth in North America.

Key players operating in the energy retrofit market include Carrier, Haier Group, Emerson Electric Co., LG Electronics, Lennox International, Rheem Manufacturing Company, Trane Technologies plc, Vishay Intertechnology, Inc., Acuity Brands Lighting, Inc., Ideal Industries, Inc., Lumigrow, Hubbell, Constellation Newenergy, Inc., Energy Systems Group, Cmta, Inc., The Brewer-Garrett Company, Digi-Key Electronics, Renesas Electronics Corporation, and Ameresco. These key players are focusing on product innovation, partnerships, and acquisitions to gain a competitive edge in the market.

In conclusion, the energy retrofit market is expected to experience significant growth driven by increasing demand for energy efficiency, government regulations, and the need to reduce carbon emissions. The market is characterized by moderate competitive rivalry and low supplier bargaining power, while buyers have moderate bargaining power. North America is expected to be the fastest-growing region in the market, and key players are adopting strategies to enhance their market presence.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it