April 28, 2009
The energy efficiency retrofit market recently received a major boost from the American Recovery and Reinvestment Act, which will provide substantial funding for renovations to federal buildings. However, this segment pales in comparison to the total U.S. commercial building market, which includes 70 billion square feet of space and represents one of the largest opportunities for energy savings, reduction of carbon emissions, and increased property values.
According to a new report from Pike Research, the total opportunity for major green renovations in the commercial building sector (both public and private) is approximately $400 billion over the coming years. Though currently a relatively small market, Pike Research forecasts that comprehensive efficiency retrofits will more than triple in annual revenue to $6.6 billion by 2013.
“High-performance green building space experiences lower vacancy rates and commands a premium price, compared to conventional space,” says managing director Clint Wheelock. “Because of this, commercial building owners are adopting green retrofits as a market differentiator. The favorable retrofit business model will fuel steady momentum until most commercial building space has been retrofitted for energy efficiency.”
While direct energy savings can be significant with green retrofits, Pike Research’s analysis shows that most major projects will not be driven by cost savings, but instead will be initiated to meet broader policy and business objectives such as lower carbon footprints, higher employee productivity, and higher property values.
Pike Research’s study, “Energy Efficiency Retrofits for Commercial and Public Buildings”, provides an in-depth examination of the market opportunities, drivers, barriers, and best practices within the commercial building sector. The report features detailed quantitative analysis of the addressable market for green retrofits, along with forecasts for market growth over the next five years. An Executive Summary of the report is available for free download on the firm’s website.
Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Renewable Energy, Clean Transportation, Clean Industry, Green Consumers, and Environmental Management sectors. For more information, visit www.navigantresearch.com or call +1.303.997.7609.