The global market for energy-efficient technologies in commercial buildings is expected to grow to more than $60.2 billion by 2019, with a five-year compound annual growth rate (CAGR) of 8%, according to a recent report by BCC Research. In regional terms, Asia, the fastest-moving area, is rising at a significant 9.8% CAGR.
Several key factors are currently influencing markets for commercial energy-efficient technologies at the regional and global scale, including underlying growth in emerging and transitioning economies, heightened interest in green buildings and green building certification, activity in corporate greening, and the desire to reduce energy consumption and costs. Changes in energy costs are also particularly important because cost increases create strong incentives to implement energy-saving technologies.
Asia is by far the dominant region in the overall market. It is expected to reach $26.2 billion in 2019. Energy costs in Japan and other areas of eastern Asia have skyrocketed in recent years, driving strong interest in energy efficiency as building operators struggle with increasing utility bills. North America, the second largest and fastest growing region, is forecast to grow to nearly $17.7 billion by 2019 with a 7.9% CAGR. Growth in this market is driven by the fact that natural gas markets in North America have plummeted in the wake of the natural gas boom. However, surging applications of energy-efficient technologies for commercial buildings have continued to grow in North America—particularly in the U.S.
“Trends in new commercial building construction vary considerably from region to region,” said Robert Eckard, analyst. “North American markets appear to be entering a moderate to strong growth phase for commercial building construction, which is helping to drive markets in that region. In contrast, markets in China have slowed in comparison to recent highs, and this softening is driving a slowdown in year-over-year market growth in that country.”
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