28 August 2014: Cumulative spending on energy efficient buildings in Europe is expected to reach nearly US$800 billion over the next ten years according to market research and consulting firm Navigant Research. A report by the company analyzes the European market for building energy efficient products and services. It finds that the EU’s Energy Efficiency Directive (EED) and the Energy Performance of Buildings Directive (EPBD) will play an important role in expanding the market.
The report, titled ‘Energy Efficient Buildings: Europe,’ presents market drivers and barriers for energy efficient products and services, and explores key technologies and the competitive landscape, including key industry players, in the 28 EU member States, Norway and Switzerland. The report includes market forecasts for revenue by product, development and building type through 2023.
On the policy landscape, the report projects the EED to fall short of its goals, which include a 20% energy saving target by 2020, but indicated that the EED and the EPBD will play a significant role in the expansion of the energy efficient buildings market across the region. It also finds wide variation in the completeness and ambition of European countries’ energy efficiency programmes, with Northern EU Member States tending to lead in policy.
While noting that the EU’s energy efficiency landscape is among the most stringent in the world, the report identifies region-wide hindrances common to energy efficiency markets globally, including competing options for corporate investments, split incentives between tenants and landlords, and lack of incentives and long payback periods.
On technologies, including heating, ventilation and air conditioning (HVAC), lighting, insulation, and energy management technologies, the report notes the need for different approaches based on the range of building vintages in the region, and differences in construction and uses between the residential and commercial building stock.
On market forecasts, the report expects the European market for energy efficient building-related products and services to expand from US$56 billion in 2014 to US$109 billion by 2023, at a compound annual growth rate (CAGR) of 7.7%. It identifies HVAC and controls as the largest market area, and France, Germany and the UK as the regional market leaders in energy efficient buildings.
Explaining the centrality of efforts to improve energy efficiency in the sector, the report emphasizes that buildings are responsible for 40% of Europe’s final energy consumption. [Navigant Research Press Release] [Publication Website] [Publication: Energy Efficient Buildings: Europe – Executive Summary]