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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.

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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.