120 billion square feet of energy-efficient housing to be created
May 9, 2012 - As total residential energy consumption continues to rise—creating greater demands on power infrastructure and contributing to greenhouse gas emissions—interest in energy-efficient homes is growing deeper and more widespread, says Pike Research. Globally, energy-efficient residential design, construction and retrofits can take on many guises: as “an unrealized aspiration, a nearly cost-prohibitive endeavor, or a branding strategy”.
May 9, 2012 By Anthony Capkun
According to a new report from Pike, though, market dynamics will drive strong growth in the development of energy-efficient homes through the remainder of this decade. Construction of new energy-efficient homes—and retrofits of existing buildings—will increase at a compound annual growth rate (CAGR) of 42% from 2012 to 2020, producing 118.6 billion square feet of energy-efficient residential space and driving an annual market value of $84 billion by 2020.
“Pike Research defines energy-efficient homes as properties that are built to exceed the 2009 International Energy Conservation Code by at least 15% on a kWh/sf basis,” said research analyst Brittany Gibson. “Achieving such energy savings, in new construction or in existing building stock, is a design problem complicated by factors such as local climate, availability of materials, funding and legislation. In order to achieve this level of energy savings, homebuilders and retrofitters must adopt a systems approach to home design and construction, integrating all aspects of home assembly and operation.”
The global financial crash of 2008-2009 continues to have a strong effect on residential real estate markets, including energy-efficient homes, says Pike. Rising economic prosperity is driving soaring residential construction in Asia Pacific, and the region stands to experience significant growth in energy-efficient homes—if appropriate regulatory and financing programs can be implemented.
The European Union, meantime, represents the most mature market for energy-efficient homes globally, but will still see the strongest growth through 2020, at a regional CAGR of 44%, driven primarily by energy efficiency and carbon mandates. Growth will be slowest in North America, where the existing building stock remains largely unaddressed at the moment.
Pike Research’s report, “Energy Efficient Homes”, analyzes the global market opportunity for energy-efficient homes, including a focus on market segments such as building envelope improvements, lighting, HVAC and major appliances, water heating, energy audits, and soft costs associated with energy efficiency.
Print this page