Growing Need for Lower Carbon Emissions Driving Net Zero Energy Buildings Market

The global net zero energy buildings market was valued at $896.6 million in 2018, and it is predicted to reach a revenue of $2,106.6 million by 2024. According to the estimates of the market research company, P&S Intelligence, the market will demonstrate a CAGR of 15.6% from 2019 to 2024 (forecast period). The market is being propelled by the surging adoption of the net zero energy building concept, especially in the commercial sector of North America. In addition, the launch of energy efficiency plans by the governments of several countries is also fueling the expansion of the market across the globe.

Many governments have launched initiatives in recent years to mitigate the use of non-renewable energy sources and encourage the adoption of renewable energy sources at a bigger scale. For example, the California Long-Term Energy Efficiency Strategy Plan was launched by the California Public Utilities Commission (CPUC) to ensure that all new commercial buildings and residential buildings be zero net energy (ZNE) buildings by 2030 and 2020, respectively. With the launch of this plan, real estate developers are obligated to construct NZEBs in California, which is predicted to propel the progress of the NZEB market in the coming years.

Besides the aforementioned factor, the increasing construction activities are creating immense growth opportunities for the players operating in the industry. The construction targets set by various international organizations are supporting the market growth, as these targets are fueling the construction of NZEBs in commercial and residential sectors to mitigate carbon emissions and reduce the reliance of fossil fuels. For example, the World Green Building Council announced its annual World Green Building Week campaign, which envisions how new infrastructure and buildings can generate 40% less carbon emissions by 2030 and achieve 100% net zero emissions by 2050, in September 2019.

Depending on construction, the market is divided into residential and commercial categories. Of these, the residential category is predicted to demonstrate faster growth in the coming years. This is ascribed to the increasing implementation of government targets and regulations regarding the use of non-renewable energy sources. Additionally, the surging environmental concerns are further boosting the public awareness about the benefits of NZEBs in developed countries, such as Canada and the U.S.

Geographically, North America contributed the highest revenue to the NZEB market in the past and it is predicted to register the highest growth rate during the forecast period. This is credited to the various targets laid down by the governments of Canada and the U.S. for attaining sustainable energy consumption. Additionally, NZEBs can massively reduce pollution during the construction of buildings and ensure that carbon neutrality is maintained, which will, in turn, assist in achieving a net zero carbon status.

Hence, it can be safely said that the demand for NZEBs will surge sharply in the forthcoming years, primarily because of the increasing concerns being raised over the escalating pollution levels, rising requirement for higher energy efficiency, and implementation of supportive government policies across the world.