Government Funding Drives Uptake of Net Zero-Energy Building Technologies Globally, Finds Frost & Sullivan

- Educating end users and investors on the upsides of net zero-energy building technologies key to obtain private-public funding

KUALA LUMPUR, Malaysia, Dec. 2, 2014 /PRNewswire/ -- As global warming and fossil fuel depletion highlight the need to save energy and reduce our carbon footprint, the net zero-energy building (NZEB) concept is gaining prominence. As NZEB is still at a nascent stage of adoption, funding plays an important role in developing its enabling technologies and ensuring wide-scale implementation.

New analysis from Frost & Sullivan, Enabling Technologies for Net Zero-Energy Buildings–Funding Analysis, finds that Europe leads in terms of funding available for NZEB technologies, followed by North America and Asia-Pacific.

Currently, Due to the lack of awareness on the benefits of NZEB technologies among end users and investors, current funding sources are limited mainly to governments. However, funding is more readily accessible for energy-efficiency initiatives than for NZEB projects. Pre-commercialized NZEB technologies are especially underfunded.

"While governmental or regional funding are the main drivers of NZEB technologies, public-private funding is the most effective in sustaining the application of the NZEB concept and advancing its development globally," noted Technical Insights industry analyst Jennifer Tan. "To attract public-private funding, governments need to educate end users on the advantages of NZEB technologies and implement relevant policies and building codes."

To further lure end users, market participants need to ensure that NZEB technologies can offer an attractive return on investment. As far as the potential for robust ROI goes, NZEB technologies for lighting rank first. Windows, heating, ventilation and air conditioning, and application of renewable energy technologies share the next rank in strategic attractiveness, followed by building envelope technologies. Controls and energy management technologies scored comparatively lower in most of the strategic evaluation parameters and thus is ranked the fourth.

Within the current market situation, commercial partnerships are the most effective means to penetrate the NZEB market globally. It is the most suitable strategy among the other options such as technology licensing, spin-off/technology incubator, commercialization funding, and mergers and acquisitions.

"Besides choosing the entry mode strategically, NZEB technology providers should introduce solutions that align well with investors' plans and expectations for the future," advised Tan. "Essentially, investors are expecting to have renewable energy fulfilling the remaining energy needs, to make buildings NZEB-ready as well as seeing more cost-effective and investment-worthy technologies being developed. Existing investors are also hoping for more investors to avail more funding and support to small businesses in the forthcoming years."

For more information on this study, please email Donna Jeremiah, Corporate Communications, at djeremiah@frost.com.

Enabling Technologies for Net Zero-Energy Buildings–Funding Analysis, a part of the Technical Insights (http://www.technicalinsights.frost.com) subscription, provides a sectoral analysis of the current trends and roadmap for NZEB technologies, availability of government grants and stimulus funding, and the gap analysis for funding needs. Some other areas dwelt upon in the study include an assessment of investor ecosystems based on investor networks and recent investment climate, funding patterns, future expectations of investors, and analyst insights and recommendations. Further, this research service includes investment opportunities evaluation and smart scouting and procurement strategies for developers.

Technical Insights is an international technology analysis business that produces a variety of technical news alerts, newsletters, and research services.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

• The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
• The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion
Join Us: Join our community
Subscribe: Newsletter on "the next big thing"
Register: Gain access to visionary innovation

Enabling Technologies for Net Zero-Energy Buildings–Funding Analysis
D538-TI

Contact:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247 8927
F: +61 (02) 9252 8066
E: djeremiah@frost.com

Carrie Low
Corporate Communications – Asia Pacific
P: +603 6204 5910
F: +603 6201 7402
E: carrie.low@frost.com

Melissa Tan
Corporate Communications – Asia Pacific
P: +65 6890 0926
F: +65 6890 0999
E: melissa.tan@frost.com

http://www.frost.com
http://www.technicalinsights.frost.com