Energy Retrofit Systems Market Size, Share & Trends Analysis Report By Product (Envelope, LED Retrofit Lighting, HVAC Retrofit, Appliances), By Application, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global energy retrofit systems market size was exhibited at USD 149.49 billion in 2023 and is projected to hit around USD 280.61 billion by 2033, growing at a CAGR of 6.5% during the forecast period of 2024 to 2033.

Energy Retrofit Systems Market Size 2024 To 2033

Key Takeaways:

  • Europe dominated the global market in 2023 and accounted for the largest volume share of over 48.0%.
  • The envelope product segment led the market and accounted for 51.54% of the global volume share in 2023.
  • The non-residential segment led the market and accounted for 72.0% of the global volume share in 2023.

Energy Retrofit Systems Market Report Scope

 Report Coverage  Details
Market Size in 2024 USD 149.49 Billion
Market Size by 2033 USD 280.61 Billion
Growth Rate From 2024 to 2033 CAGR of 6.5%
Base Year 2023
Forecast Period 2024-2033
Segments Covered Product, Application, Region
Market Analysis (Terms Used) Value (US$ Million/Billion) or (Volume/Units)
Regional Scope North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa
Key Companies Profiled DAIKIN INDUSTRIES, Ltd.; Ameresco; Eaton; AECOM; Johnson Controls; Orion Energy Systems, Inc.; Siemens; Trane; Signify Holding; Engie; General Electric; Schneider Electric.

 

The growth is expected to be driven by factors such as growing concerns about greenhouse gas (GHG) emissions and stringent laws to reduce carbon footprint. The increasing deployment of HVAC appliances across numerous industries is expected to drive product demand even further. Most HVAC and lighting technologies have a shelf life of 25 years, after which they are considered obsolete and must be replaced. Retrofitting these systems results in significant savings in energy expenses for households and offices.

The market in the U.S. is expected to witness significant growth over the forecast period due to large-scale construction and the adoption of retrofit systems to replace the existing ones, which have proven to be expensive and energy-consuming. Since the Federal Government of the U.S. opted out of the Paris Accord on Climate Change, there has been speculation about the non-renewable energy companies capitalizing on the opportunity.

Also, awareness to adopt renewable energy is projected to continue to grow at a robust rate on account of financial sops offered by government agencies. For the enhanced performance of energy retrofit system modules, these components need to be continuously technologically upgraded.

Moreover, The DOE announced the Commercial Buildings Integration initiative and funds from the Solution to Improve the Energy Efficiency of Small and Medium Buildings. The finished project produced yearly energy savings of 103 166 MMBtu, reduced GHG emissions of 190 298 during the life of the renovations, and annual utility savings of USD 4008 per building.

Manufacturers/developers of these components invest a significant proportion of the annual budget in R&D. The systems function perfectly only when all components are integrated to match the system requirements. Integrators and assemblers integrate all components to create energy retrofit systems as an integrated offering. Siemens, General Electric, Schneider Electric, and Johnson Controls are some of the companies that design and integrate such systems for various applications.

Segments Insights:

Product Insights

The envelope product segment led the market and accounted for 51.54% of the global volume share in 2023. Building envelope retrofitting provides insulation and an air barrier to walls, increasing thermal comfort and reducing drafts. As a result, heat loss is reduced, resulting in lower energy consumption and a lower carbon footprint for tenants and owners. This will also influence public perception positively by demonstrating a commitment to environmental sustainability.

Furthermore, HVAC systems account for a significant portion of building energy usage, boosting their efficiency is one of the most efficient strategies to minimize energy expenses. This category incorporates the systems and technologies used to heat, cool, and ventilate buildings, such as chillers, boilers, and air-handling equipment. The increased need for energy-efficient HVAC systems mainly in the commercial and industrial sectors is projected to fuel the expansion of this market segment.

Application Insights

The application segment consists of residential and non-residential. The non-residential segment led the market and accounted for 72.0% of the global volume share in 2023. The expansion can be attributed to large-scale HVAC system installation and the technological obsolescence of traditional systems utilized in non-residential buildings.

Energy Retrofit Systems Market Share, By End-use, 2023 (%)

The factories require massive amounts of energy to run their operations and machines. As a result, implementing energy retrofit systems in such locations lowers energy expenditures and greenhouse gas emissions. Due to their dependency on HVAC and lighting systems, areas that undergo extreme winter conditions will benefit the market over the forecast period.

The residential segment is anticipated to grow at a significant CAGR during the forecast period. Increasingly expensive residential properties, in addition to the creation of legislation to protect historic properties, have led to improvements in existing structures, with many consumers selecting retrofits. Furthermore, rising energy-related costs and the tight application of various emission standards have driven some industrial and commercial companies to embrace innovative energy-efficient modernization systems.

Regional Insights

Europe dominated the global market in 2023 and accounted for the largest volume share of over 48.0%. Russia led the Europe regional market in 2023 in terms of revenue. The regional market is being driven primarily by expanding product adoption as a result of growing concerns about GHG emissions and stringent requirements to reduce carbon footprint. Furthermore, the growing population along with increasing demand for efficient and clean energy is expected to propel market growth.

Energy Retrofit Systems Market Share, By Region 2023 (%)

Moreover, Europe has been very active in using R&D for clean and efficient energy generation, which supports the market growth. The availability of funding in the European Union for energy conservation and energy efficiency projects has also been one of the major factors driving the regional market growth. On the other hand, Asia Pacific is estimated to register the fastest CAGR during the forecast period.

Germany is one of the first countries to implement clean energy solutions for residential and non-residential buildings. HVAC systems are widely implemented in the non-residential sector, and traditional systems have become technologically outmoded, necessitating a significant transfer to modernization. This is due to the increased relevance of clean energy solutions under the EU government's energy law.

Moreover, based on statutes, related policies, and regulations have been formed to address various issues of various industries. Such characteristics have proven to be advantageous for getting into the German energy retrofit systems business model.

HVAC retrofitting is more popular in commercial buildings in the U.K., where it can reduce energy usage by 35 to 40% in high-rise buildings and 30 to 35% in small offices. It offers tenants more control over temperature and humidity, resulting in better comfort. Furthermore, retrofitting HVAC equipment is much less expensive than financing a whole commercial HVAC system replacement, which provides a greater ROI.

During the forecast period, the Asia-Pacific region will register the fastest growth rates. China, Japan, and India dominate the market in this region. Reduced costs for renewable energy and infrastructure, as well as quick manufacturing of energy modernization systems in the region and adoption of these systems by residential and commercial end users, are likely to drive market expansion in the Asia-Pacific region. Government rules and incentives, such as building energy requirements and tax credits, are also pushing the regional market for energy retrofits.

Some of the prominent players in the energy retrofit systems market include:

  • DAIKIN INDUSTRIES, Ltd.
  • Ameresco
  • Eaton
  • AECOM
  • Johnson Controls
  • Orion Energy Systems, Inc.
  • Siemens
  • Trane
  • Signify Holding
  • Engie
  • General Electric
  • Schneider Electric

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global energy retrofit systems market.

Product

  • Envelope
  • LED Retrofit Lighting
  • HVAC Retrofit
  • Appliances

Application

  • Residential
  • Non-Residential

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa (MEA)

Frequently Asked Questions

The global energy retrofit systems market size was exhibited at USD 149.49 billion in 2023 and is projected to hit around USD 280.61 billion by 2033

The global energy retrofit systems market is expected to grow at a compounded annual growth rate of 6.5% from 2024 to 2033 to reach USD 280.61 billion by 2033.

Some key players operating in the energy retrofit systems market include Daikin Industries, Orion Energy Systems, Inc., Eaton, Schneider Electric, Ameresco, and Johnson Control, among others.

Chapter 1 Energy Retrofit Systems Market: Methodology & Scope

1.1 Market Segmentation & Scope

1.2 Market Definition

1.3 Information Procurement

1.3.1 Purchased Database

1.3.2 Internal Database

1.3.3 Secondary Sources

1.3.4 Third-Party Perspective

1.3.5 Primary Research

1.4 Information Analysis

1.4.1 Data Analysis Models

1.5 Market Formulation and Data Visualization

1.6 Data Validation and Publishing

Chapter 2 Energy Retrofit Systems Market: Executive Summary

2.1 Market Snapshot

2.2 Segment Snapshot

2.3 Competitive Landscape Snapshot

Chapter 3 Energy Retrofit Systems Market: Variables, Trends, and Scope

3.1 Penetration and Growth Prospects

3.2 Industry Value Chain Analysis

3.3 Technology Overview

3.4 Regulatory Framework

3.4.1 Standard & Compliances

3.5 Market Dynamics

3.5.1 Market Driver Analysis

3.5.1.1 Need to improve energy efficiency

3.5.1.2 Rising energy consumption

3.5.1.3 Regulatory mandates and incentive programs

3.5.2 Market Restraint Analysis

3.5.2.1 Longer payback period and hidden costs

3.5.3 Industry Challenges

3.6 Underground Gas Storage Industry Analysis - Porter’s

3.7 Underground Gas Storage Industry Analysis - PESTEL

3.8 Impact of Corona Virus on the Energy Retrofit Systems Market

3.8.1 Impact Verdict - Medium

Chapter 4 Energy Retrofit Systems Market: Product Estimates & Trend Analysis

4.1 Energy Retrofit Systems Market: Product Movement Analysis, 2024 & 2033

4.2 Envelope

4.2.1 Underground Natural gas storage market estimates and forecasts, by envelope, 2021 - 2033

4.3 LED Retrofit Lighting

4.3.1 Underground Natural gas storage market estimates and forecasts, by LED Retrofit Lighting, 2021 - 2033

4.4 HVAC Retrofit

4.4.1 Underground Natural gas storage market estimates and forecasts, by HVAC Retrofit, 2021 - 2033

4.5 Appliances

4.5.1 Underground Natural gas storage market estimates and forecasts, by Appliances, 2021 - 2033

Chapter 5 Energy Retrofit Systems Market: Application Estimates & Trend Analysis

5.1 Energy Retrofit Systems Market: Application Movement Analysis, 2024 & 2033

5.2 Residential

5.2.1 Underground Natural gas storage market estimates and forecasts, by residential, 2021 - 2033

5.3 Non-residential

5.3.1 Underground Natural gas storage market estimates and forecasts, by non-residential, 2021 - 2033

Chapter 6 Energy Retrofit Systems Market: Regional Estimates & Trend Analysis

6.1 Global Energy Retrofit Systems Market: Regional Movement Analysis, 2024 & 2033

6.2 North America

6.2.1 North America Energy Retrofit Systems market estimates and forecasts, By Application, 2021 - 2033

6.2.2 North America energy retrofit systems market estimates and forecasts, by Application 2021 - 2033

6.2.3 U.S.

6.2.3.1 U.S. energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.2.3.2 U.S. energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.2.4 Canada

6.2.4.1 Canada energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.2.4.2 Canada energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.2.5 Mexico

6.2.5.1 Mexico energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.2.5.2 Mexico energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.3 Europe

6.3.1 Europe Energy Retrofit Systems market estimates and forecasts, By Application 2021 - 2033

6.3.2 Europe energy retrofit systems market estimates and forecasts, by Application 2021 - 2033

6.3.3 Germany

6.3.3.1 Germany energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.3.3.2 Germany energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.3.4 Russia

6.3.4.1 Russia energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.3.4.2 Russia energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.3.5 U.K.

6.3.5.1 U.K. energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.3.5.2 U.K. energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.3.6 Spain

6.3.6.1 Spain energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.3.6.2 Spain energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.3.7 Italy

6.3.7.1 Italy energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.3.7.2 Italy energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.3.8 France

6.3.8.1 France energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.3.8.2 France energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.4 Asia Pacific

6.4.1 Asia Pacific Energy Retrofit Systems market estimates and forecasts, By Application 2021 - 2033

6.4.2 Asia Pacific energy retrofit systems market estimates and forecasts, by Application 2021 - 2033

6.4.3 China

6.4.3.1 China energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.4.3.2 China energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.4.4 Japan

6.4.4.1 Japan energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.4.4.2 Japan energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.4.5 South Korea

6.4.5.1 South Korea energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.4.5.3 South Korea energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.4.6 India

6.4.6.2 India energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.4.6.3 India energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.4.7 Australia

6.4.7.1 Australia energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.4.7.2 Australia energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.5 Central & South America

6.5.1 Central & South America Energy Retrofit Systems market estimates and forecasts, By Application 2021 - 2033

6.5.2 Central & South America energy retrofit systems market estimates and forecasts, by Application 2021 - 2033

6.5.3 Brazil

6.5.3.1 Brazil energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.5.3.2 Brazil energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.5.4 Colombia

6.5.4.1 Colombia energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.5.4.3 Colombia energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.5.5 Paraguay

6.5.5.1 Paraguay energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.5.5.3 Paraguay energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.6 Middle East & Africa

6.6.1 Middle East & Africa Energy Retrofit Systems market estimates and forecasts, By Application 2021 - 2033

6.6.2 Middle East & Africa energy retrofit systems market estimates and forecasts, by Application 2021 - 2033

6.6.3 Saudi Arabia

6.6.3.1 Saudi Arabia energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.6.3.2 Saudi Arabia energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.6.4 UAE

6.6.4.1 UAE energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.6.4.2 UAE energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.6.5 South Africa

6.6.5.1 South Africa energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.6.5.3 South Africa energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

6.6.6 Egypt

6.6.6.1 Egypt energy retrofit systems market estimates and forecasts, By Application, 2021 - 2033

6.6.6.2 Egypt energy retrofit systems market estimates and forecasts, by application, 2021 - 2033

Chapter 7 Competitive Landscape

7.1 Key Global Players & Recent Developments & Their Impact on the Industry

7.1.1 Major Deals & Strategic Alliances

7.2 Vendor Landscape

7.2.1 List of Key Distributors and Channel Partners

7.3 Public Companies

7.3.1 competitive Dashboard Analysis

7.4 Private Companies

7.4.1 List of Key Emerging Companies/Technology Disruptors/Innovators

Chapter 8 Company Profiles

8.1 DAIKIN INDUSTRIES, Ltd.

8.1.1 Company Overview

8.1.2 Financial Performance

8.1.3 Product Benchmarking

8.1.4 Strategic Initiatives

8.2 Ameresco

8.2.1 Company Overview.

8.2.2 Financial Performance

8.2.3 Product Benchmarking

8.2.4 Strategic Initiatives

8.3 Eaton

8.3.1 Company Overview

8.3.2 Financial Performance

8.3.3 Product Benchmarking

8.3.4 Strategic Initiatives

8.4 AECOM

8.4.1 Company Overview

8.4.2 Financial Performance

8.4.3 Product Benchmarking

8.4.4 Strategic Initiatives

8.5 Johnson Controls

8.5.1 Company Overview

8.5.2 Financial Performance

8.5.3 Product Benchmarking

8.5.4 Strategic Initiatives

8.6 Orion Energy Systems Inc.

8.6.1 Company Overview

8.6.2 Product Benchmarking

8.6.3 Strategic Initiatives

8.7 Siemens

8.7.1 Company Overview

8.7.2 Product Benchmarking

8.7.3 Financial Performance

8.7.4 Strategic Initiatives

8.8 Trane

8.8.1 Company Overview

8.8.2 Product Benchmarking

8.8.3 Financial Performance

8.8.4 Strategic Initiatives

8.9 Signify Holding

8.9.1 Company Overview

8.9.2 Financial Performance

8.9.3 Product Benchmarking

8.9.4 Strategic Initiatives

8.10 Engie

8.10.1 Company Overview

8.10.2 Financial Performance

8.10.3 Product Benchmarking

8.10.4 Strategic Initiatives

8.11 GENERAL ELECTRIC

8.11.1 Company Overview

8.11.2 Financial Performance

8.11.3 Product Benchmarking

8.11.4 Strategic Initiatives

8.12 GENERAL ELECTRIC

8.12.1 Company Overview

8.12.2 Financial Performance

8.12.3 Product Benchmarking

 

8.12.4 Strategic Initiatives

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