International. The global energy efficiency building market is projected to rise at a compound annual growth rate (CAGR) of 9.6% during the forecast period from 2016 to 2020, according to a report by Sandler Research.
According to the report, rising energy prices will be a key trend for the growth of the market. Increased energy demand from various residential and commercial operations has resulted in a marked increase in energy cost over the years. For example, in the US, the average price of electricity for the commercial and residential sectors was targeted at an annual growth rate of 2.3% from 2008 to 2015. This has led to the growing demand for energy-efficient buildings. Attention has shifted from power generation to energy conservation.
Increasing new construction activity and increasing introduction of energy efficiency policies, especially in countries such as Germany, China, USA and UK will drive market growth.
The energy-efficient construction market appears to be highly fragmented due to the presence of multiple vendors offering smart building systems and services. Suppliers offer a full range of smart building systems and provide complete turnkey solutions for buildings. The market is currently dominated by big players, who have product portfolios that can be customized to customer needs.
