The global energy retrofit market is anticipated to grow at a significant CAGR of 4.9% during the forecast period. The increase in awareness and demand for renewable energy will boost the growth of the market. The shelf life of mostly HVAC and lighting technologies is more than 25 years, which are required to be replaced. Hence, retrofitting these technologies reduces energy costs significantly. Retrofitting an HVAC system is a cost effective alternative to unit replacement, which involves installation of new or tailored parts to an already existing system, essentially allowing it to function optimally. Additionally,several government initiatives catering to gain attraction of the population has further propel the awareness for adopting energy efficient devices. For instance, the government of India National Energy Conservation Day is observed to spread awareness for energy conservation. In the year 2021, the government organization - The Bureau of Energy Efficiency has conducted national level competitions based on Energy Conservation. 

Impact of COVID-19 Pandemic on Global Energy Retrofit Market

The COVID-19 pandemic had disrupted the manufacturing operations of various industries across the globe, which has reduced the investments from private and government firms in the sector of energy efficiency systems. In addition, increase in implementation work from home policies owig to the lockdown imposed by the government of the countries across the globe, there is a significant dcline in the consumption of electricity in commercial buildings. However, the consumption of electricity among the residential building and places have been increased rapidly, which is expected to bolster the growthof the market. As the COVID-19 situation normalizes, the energy retrofit market started recovery as industrial operations were normalized after the recovery. 

Segmental Outlook 

The global energy retrofit market is segmented based on the product and application. Based on the product, the market is segmented into envelope, LED retrofit lighting, HVAC Retrofit and appliances. Appliances include dryers, refrigerators, and air purifier. Based on the application, the market is sub-segmented into the residential and non-residential. The above mentioned segments can be customized as per the requirements. 

Global Energy Retrofit  Market Share by Product, 2020 (%)

The Envelope Segment Holds the Major Share in the Global Energy Retrofit Market

Among the product, envelope segment is expected to play a prominent role in the energy retrofit market during the forecast period (2021-2027). The primary factor attributable to the market growth is the advantages such as improved facilitation of climate control and protection of indoor environment offered with the retrofication of envelope on the infrastructure. Building retrofitting envelope facilitates air barriers to walls that improves thermal comfort and reduces carbon footprint. For instance, in June 2021, Dr. Fixit launched  building envelope solutions for roof and walls with enhanced thermal insulation of the building. With this launch the company aims to strengthen its low energy consumption system and expand modern system solutions.

Regional Outlooks

The global energy retrofit market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America).  The market can be analyzed for particular region or country level as per the requirement.

Global Energy Retrofit  Market Growth, by Region 2021-2027

The European Region Holds the Major Share in the Global Energy Retrofit Market

The Europea region is anticipated to hold consider market share in the energy retrofit market over the forecast period. Owing to the rising concern about GHG emissions coupled with rise in introduction of several restrictions catering to reduce carbon footprints across the region. Back in 2016, the European Union in collaboration with Green Building Councils launched a collaborative retrofit project to cut down the emissions from buildings across Europe. Further, in March 2021, WorldGBC’s Europe Regional Network announces that 24 cities across Europe, including the Madrid, Rome and Zagreb joined the European Union (EU)-funded BUILD UPON2 project.

Market Players Outlook

The major companies serving the global Energy Retrofit market include Daikin Industries, Ltd., Ameresco, AECOM, Orion Energy Systems, Inc., Johnson Controls Inc., Trane Technologies Company, LLC, BlocPower Public Benefit Corporation, Chevron Corporation, Schneider Electric, Kontrol Technologies Corp. and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in December 2021, Kontrol Technologies launched an integrated geothermal and variable refrigerant flow solution which includes SmartPower, for energy retrofit market. SmartPower is an advanced technology of company, subsequent to its existing platforms for building HVAC Control. 

Furthermore, In May 2021, Johnson Controls has adopted Environmentally Sustainable R-454B to replace R-410A in its commercial and residential unitary products as well as air-cooled scroll chillers. 

The Report Covers

    • Market value data analysis of 2020 and forecast to 2027.

    • Annualized market revenues ($ million) for each market segment.

    • Country-wise analysis of major geographical regions.

   • Key companies operating in the global energy retrofit market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

   • Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

    • Analysis of market-entry and market expansion strategies.

    • Competitive strategies by identifying ‘who-stands-where’ in the market.