BOULDER, COLO. — The energy efficiency retrofit market received a boost from the American Recovery and Reinvestment Act, which will provide substantial funding for renovations to federal buildings. However, this segment pales in comparison to the total U.S. commercial building market, which represents one of the largest opportunities for energy savings, reduction of carbon emissions and increased property values.
According to a new report from Pike Research, a market research and consulting firm that provides analysis of global clean technology markets, the total opportunity for major green renovations in the commercial building sector, both public and private, is approximately $400 billion in the coming years. Pike Research forecasts that comprehensive efficiency retrofits will more than triple in annual revenue to $6.6 billion by 2013.
“High-performance green building space experiences lower vacancy rates and commands a premium price, compared to conventional space,” said Managing Director Clint Wheelock. “Because of this, commercial building owners are adopting green retrofits as a market differentiator. The favorable retrofit business model will fuel steady momentum until most commercial building space has been retrofitted for energy efficiency.”
While direct energy savings can be significant with green retrofits, Pike’s analysis shows that most major projects will not be driven by cost savings, but will be initiated to meet broader policy and business objectives such as lower carbon footprints, higher employee productivity and higher property values.
Pike’s study, Energy Efficiency Retrofits for Commercial and Public Buildings, provides an examination of the market opportunities, drivers, barriers and best practices within the commercial building sector. The report features quantitative analysis of the addressable market for green retrofits, along with forecasts for market growth over the next five years.
A summary of the report is available on the firm’s Web site at: www.pikeresearch.com.