Since many large facilities are currently engaged in energy efficient retrofits, small and medium commercial buildings are expected to be the next target
A new report from Navigant Research analyzes the state of the global market for energy efficiency retrofits in small and medium commercial buildings (SMCBs), including the key market drivers and barriers, and market forecasts for revenue, segmented by region, through 2025.
SMCBs, those ranging from less than 10,000 square feet up to 100,000 square feet, have not seen the same penetration of energy efficiency technologies as larger facilities due to the lower expenditures on energy management, lack of customer education, perceived high risk of SMCB retrofit financing, and split incentives between the building owner and tenant. However, with the largest commercial buildings already engaged in energy efficiency retrofits, the focus is expected to shift to SMCBs, which represent the majority of buildings worldwide. Click to tweet: According to a new report from @NavigantRSRCH, revenue in the global SMCB energy efficiency retrofits market is expected to grow from $24.1 billion in 2016 to $38.6 billion in 2025.
“Energy efficiency retrofits can improve building performance, reduce consumption and save operating costs,” says Christina Jung, research associate with Navigant Research. “Tailored solutions and business models that take into consideration the fact that SMCB market is diverse and large, consisting of buildings of all ages, sectors, and management regimes, will be able to capture the great potential SMCB market holds.”
Approximately two-thirds of the global buildings floor space is occupied by SMCBs and more than 90 percent of commercial buildings are small or medium, according to the report. Because most service and technology providers have already focused their marketing and sales on the larger buildings due to the ability to generate more revenue and a shorter return on investment (ROI) period, SMCBs are the next step.
The report, Energy Efficiency Retrofits for Small and Medium Commercial Buildings, examines the state of the global market for energy efficiency retrofits in SMCBs. The study examines the key market drivers and barriers related to energy efficiency retrofits in commercial buildings with less than 10,000 SF (small buildings) and between 10,000 SF and 100,000 SF (medium buildings). Global market forecasts for revenue, segmented by region, extend through 2025. The report also examines definitions related to energy efficiency retrofits for SMCBs and provides profiles of key industry players. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Energy Efficiency Retrofits for Small and Medium Commercial Buildings, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.