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Government Policy and Financial Incentives Will Combine to Drive Energy Efficiency Retrofits in Public and Commercial Buildings, According to Pike Research

Energy efficiency retrofits to existing commercial and public buildings represent a rapidly growing market that will benefit building owners, tenants, communities, and the environment. While most energy efficiency retrofits take place because the building owner is looking to reduce energy costs, government policy is a growing influence. States, cities, municipalities, and the federal government are providing incentives to those who may not previously have considered retrofitting their commercial properties for increased energy efficiency. According to a recent report from Pike Research, a part of Navigant’s Energy Practice, the combination of financial benefits and government policies will drive rapid growth in the market for energy efficiency retrofits over the remainder of the decade.

This global market for energy efficiency retrofits in the commercial building sector will expand from $80.3 billion in 2011 to $151.8 billion by 2020, the study concludes.

“While some players in the commercial housing market have found their way to energy efficient buildings through benevolent motivations and the promise of global benefits, many more require policy and regulatory requirements or incentives to inspire them to enter the energy efficient retrofit market,” says senior research analyst Eric Bloom. “Sometimes these retrofits are encouraged through incentives or ratings programs that reward the most efficient buildings. More often, government agencies encourage higher efficiency buildings by educating the companies buying and selling buildings about the effect that the buildings will have on the environment and, more importantly, on their utility costs.”

The products and services offered to address energy efficiency retrofits can be grouped into several categories: heating, ventilation, and air conditioning (HVAC), lighting, commissioning, control, solar, water management, and building envelope, as well as offerings from energy service companies (ESCOs). These products are being supplied by an ever-increasing number of companies that wish to establish a place in this growing industry. ESCOs currently make up the largest portion of the energy efficiency retrofit market, but the fastest growing segments over the next eight years will be solar power and water management, according to the report.

The report, “Energy Efficiency Retrofits for Commercial and Public Buildings”, examines the global market landscape for energy efficiency retrofits in commercial and public buildings, including analysis and forecasts for eight different building types as well as eight product and service categories. The report covers key industry drivers by world region including regulatory and policy factors as well as market-based factors and economic considerations. More than 50 industry players are profiled in depth and energy efficiency retrofit revenue forecasts, segmented by world region and key countries, extend through 2020. An Executive Summary of the report is available for free download on the Pike Research website.

About Pike Research

Pike Research, which joined Navigant’s global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.

About Navigant

Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.

* The information contained in this press release concerning the report, “Energy Efficiency Retrofits for Commercial and Public Buildings,” is a summary and reflects Pike Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

About Business Wire
Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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