According to Navigant Research, global revenue for energy efficiency retrofits in small and medium commercial buildings is expected to grow from $24.1 billion in 2016 to $38.6 billion in 2025. A new report from Navigant Research analyzes the state of the global market for energy efficiency retrofits in small and medium commercial buildings (SMCBs) through 2025.
SMCBs, those ranging from less than 10,000 square feet up to 100,000 square feet, have not seen the same penetration of energy efficiency technologies as larger facilities due to the lower expenditures on energy management, lack of customer education, perceived high risk of SMCB retrofit financing, and split incentives between the building owner and tenant. However, with the largest commercial buildings already engaged in energy efficiency retrofits, the focus is expected to shift to SMCBs, which represent the majority of buildings worldwide.
“Energy efficiency retrofits can improve building performance, reduce consumption and save operating costs,” says Christina Jung, research associate with Navigant Research. “Tailored solutions and business models that take into consideration the fact that the SMCB market is diverse and large, consisting of buildings of all ages, sectors, and management regimes, will be able to capture the great potential the SMCB market holds.”
Approximately two-thirds of the global buildings floor space is occupied by SMCBs and more than 90 percent of commercial buildings are small or medium, according to the report. Because most service and technology providers have already focused their marketing and sales on the larger buildings due to the ability to generate more revenue and a shorter return on investment (ROI) period, SMCBs are the next step.
The report, Energy Efficiency Retrofits for Small and Medium Commercial Buildings, examines the state of the global market for energy efficiency retrofits in SMCBs. The study examines the key market drivers and barriers related to energy efficiency retrofits in commercial buildings with less than 10,000 SF (small buildings) and between 10,000 SF and 100,000 SF (medium buildings). An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Energy Technologies, Utility Transformations, Transportation Efficiencies, and Buildings Innovations sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
About Navigant
Navigant Consulting, Inc. is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the Firm primarily serves clients in the healthcare, energy and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com.
* The information contained in this press release concerning the report, Energy Efficiency Retrofits for Small and Medium Commercial Buildings, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
