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Energy-Efficient Building Market Set To Climb From $153.62 Billion In 2026 To $192.52 Billion By 2030
The energy-efficient building market has shown strong expansion in recent years. It is forecast to grow from $145.09 billion in 2025 to $153.62 billion in 2026, achieving a compound annual growth rate (CAGR) of 5.9%. This past growth can be attributed to several factors including increasing demand for sustainable construction practices, the early adoption of efficient lighting and HVAC systems, an increase in green building certifications, a heightened focus on reducing operational costs, and the expansion of regulatory standards aimed at energy efficiency.
The energy-efficient building market size is projected to experience robust expansion over the coming years. This market is set to reach $192.52 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.8%. Factors contributing to this growth during the forecast period include increased investment in net-zero building initiatives, a surge in the adoption of smart building innovations, greater incorporation of renewable energy systems, the broadening of energy management offerings, and the development of advanced building envelope materials. Key trends anticipated during this period encompass the increasing deployment of high-efficiency HVAC solutions, the wider implementation of smart energy management systems, the extended integration of renewable energy within structures, a greater reliance on sophisticated insulation materials, and the proliferation of net-zero and near-zero energy building endeavors.
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Energy-Efficient Building Market Growth Catalysts And Demand Drivers
Looking ahead, a rise in government investment is anticipated to propel the expansion of the energy-efficient building market. Government investment refers to funds allocated by governmental bodies for various purposes, such as infrastructure development, social programs, education, healthcare, research and development, and clean energy initiatives. Specifically, governmental funding for energy-efficient building projects is vital for accelerating sustainable construction adoption, decreasing energy usage, diminishing greenhouse gas emissions, and fostering economic prosperity and stability. For example, the Office for National Statistics, a UK-based executive office of the UK Statistics Authority, reported in July 2024 that the total market sector investment in infrastructure reached $14.93 billion in constant prices in 2023, marking a 3.9% increase from 2022. Consequently, the growing government investment is a key driver for the energy-efficient building market.
Energy-Efficient Building Market Segment Landscape And Growth Outlook
The energy-efficient building market covered in this report is segmented –
1) By Type: Heating, Ventilation, And Air Conditioning (HVAC), Lighting, Building Controls, Water Efficiency, Water Heating, Building Envelope, Other Types
2) By Material: Roofing, Fiber Cement, Concrete Tiles, Insulation, Construction Chemicals, Sealants, Water Proofers, Other Materials
3) By End User: Residential, Commercial, Industrial Sector
Subsegments:
1) By Heating, Ventilation, And Air Conditioning (HVAC): High-Efficiency HVAC Systems, Geothermal Heating And Cooling Systems, Smart Thermostats, Variable Refrigerant Flow (VRF) Systems
2) By Lighting: LED Lighting, Smart Lighting Systems, Solar-Powered Lighting, Dimmable Lighting, Lighting Controls
3) By Building Controls: Building Management Systems (BMS), Energy Management Systems (EMS), Smart Thermostats, Occupancy Sensors, Advanced Metering Infrastructure (AMI)
4) By Water Efficiency: Low-Flow Fixtures, Water-Efficient Landscaping, Rainwater Harvesting Systems, Greywater Recycling Systems
5) By Water Heating: Solar Water Heating Systems, Heat Pump Water Heaters, Tankless Water Heaters, High-Efficiency Water Heaters
6) By Building Envelope: Insulation Materials, Energy-Efficient Windows, Roofing Solutions, Air Sealing And Draft Prevention, Reflective And Insulating Materials
7) By Other Types: Energy-Efficient Appliances, Renewable Energy Systems, Smart Home Technology For Energy Efficiency, Green Building Materials
Energy-Efficient Building Market Trends Shaping Long-Term Demand
Companies operating in the energy-efficient building market are concentrating on developing new products featuring advanced technologies, such as intelligent IoT solutions, to enhance their market profitability. These smart IoT solutions play a crucial role in promoting energy efficiency across various sectors, including homes, structures, industries, and urban centers, ultimately supporting sustainability and ecological preservation efforts. For example, in March 2023, Siemens AG, a German energy technology and manufacturing enterprise, introduced Connect Box. This Connect Box is an IoT solution specifically for small to medium-sized buildings, capable of smoothly integrating wired or wireless devices. It works by optimizing energy consumption, monitoring operational performance, and improving indoor air quality through continuous real-time analysis. With its plug-and-play setup, multiple licensing options, and easy-to-use interfaces, it addresses various needs while ensuring adherence to sustainability regulations and delivering up to 30% energy savings.
Energy-Efficient Building Market Competitive Landscape: Who Leads The Industry?
Major companies operating in the energy-efficient building market are Siemens AG, Panasonic Corporation, GE Electrical Equipment, Veolia Environnement S.A., Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Daikin Industries Ltd., Toshiba Corporation, Johnson Controls International plc, Eaton Corporation PLC, Carrier Global Corporation, Koninklijke Philips N.V., Trane Technologies plc, Emerson Electric Co., Legrand S.A., Osram GmbH, Acuity Brands Inc., Itron Inc., Zumtobel Group AG, Cree Inc., GridPoint Inc., Pacific Controls Inc., BuildingIQ Inc
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Energy-Efficient Building Market Regional Analysis And Top Geography
Europe was the largest region in the energy-efficient building market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the energy-efficient building market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
