Energy Retrofit Market Poised for $56 Billion Growth by 2029

"Energy retrofits improve building efficiency by reducing energy consumption and costs. They play a crucial role in driving sustainability and growth in global markets for commercial and public buildings."

BOSTON, March 25, 2025 /PRNewswire/ -- According to the latest study from BCC Research, the demand for Energy Retrofits for Commercial and Public Buildings: Global Markets is growing from $134.7 billion in 2024 to $191.3 billion by the end of 2029, at a compound annual growth rate (CAGR) of 7.3% from 2024 through 2029.

This report analyzes the energy retrofit market by retrofit type, product and building type, highlighting key technologies, regulations and market trends. It includes a patent review, Porter's Five Forces analysis, ESG developments, and profiles of leading companies. Regional coverage spans North America, Europe, Asia-Pacific, and the Rest of the World, with detailed insights into countries such as the U.S., Germany, the U.K., and China. The study uses 2023 as the base year, provides projections from 2024 to 2029, and excludes residential and industrial buildings. All values are presented in millions of dollars.

Interesting facts 

• Retrofitting older buildings can cut global energy use by nearly 40%, according to the World Economic Forum.
• In 2023, over 8,800 U.S. commercial buildings earned Energy Star ratings, saving $2.2 billion and reducing 5.7 million metric tons of greenhouse gas (GHG) emissions.
• Buildings account for 39% of global energy-related carbon emissions—28% from operations (heating, cooling, and power) and 11% from materials and construction, according to the World Green Building Council.

Factors contributing to the market's growth include:

1. Government regulations and incentives that improve energy efficiency in buildings: Governments are introducing regulations and incentives to encourage energy-efficient upgrades in buildings. These measures help reduce energy consumption, lower costs, and support sustainability goals.
2. Initiatives that reduce GHG emissions are increasing: More initiatives are being launched globally to reduce GHG emissions and fight climate change. These efforts focus on cleaner technologies and sustainable practices to protect the environment.
3. Growing focus on how to harness power from clean energy sources: The world is increasingly focusing on harnessing clean energy sources such as solar, wind, and hydropower to reduce reliance on fossil fuels. These efforts aim to create a more sustainable and eco-friendly energy future.
4. Technological innovations in energy retrofit systems: Technological innovations in energy retrofit systems are helping buildings become more energy-efficient and eco-friendly. These advances include smarter insulation, energy-saving windows, and upgraded heating and cooling systems.

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Report Synopsis

This report addresses the following questions:

1. What is the projected market size and growth rate?
The projected market size in 2029 is $191.3 billion, and the market's CAGR is 7.3% during the forecast period.

2. What factors are driving the growth of the market?
Supportive government regulations and incentives to improve energy efficiency in buildings, growing initiatives to reduce GHG emissions and Increasing focus on harnessing power from clean energy sources.

3. What market segments are covered in the report?
Retrofit type, product type, building type and region.

 4. Which product type segment will be dominant in 2029?
The building envelope segment will lead the market in 2029.

5. Which region has the largest market share in the market?
Europe holds the largest share of the global market.

Leading companies in the market include:

• AECOM
• Ameresco
• American Hydrotech Inc.
• Carrier
• Copeland LP
• Daikin Industries Ltd.
• Eaton
• Honeywell International Inc.
• Johnson Controls
• Lennox International Inc.
• Metrus Energy Inc.
• Orion Energy Systems Inc.
• Schneider Electric
• Signify Holding
• Trane Technologies Plc.

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