The construction of net zero energy buildings (NZEBs) has surged across the world due to the implementation of energy efficiency plans by several governments. This is also an organizational step to reduce the dependence on conventional energy and ensure the usage of non-conventional energy at a larger scale. For instance, the California Long-Term Energy Efficiency Strategy Plan has been implemented by the California Public Utilities Commission (CPUC) to ensure that all new commercial buildings and residential buildings are NZEBs by 2030 and 2020, respectively.
Apart from local, federal, and central governments, international organizations are also supporting the construction of NZEBs, by setting up emission targets for the construction sector. Such targets have the objective of reducing the dependence on fossil fuels. For instance, the World Green Building Council has publicized plans that can help NZEBs attain 40% fewer embodied carbon emissions by 2030 and reach 100% net zero emissions by 2050. The local and international support will therefore accelerate the net zero energy buildings market at a high 15.6% CAGR during 2019–2024. The market value is expected to grow from $896.6 million in 2018 to $2,106.6 million by 2024.
According to P&S Intelligence, North America dominated the net zero energy buildings market in the past, and it will continue its dominance in the foreseeable future. This can be primarily owed to the strict targets of reducing GHG emissions and curtailing energy consumption in the region. Moreover, North America is expected to register the fastest growth in the construction of NZEBs in the coming years due to the rising penetration of this concept, especially in commercial spaces. NZEBs can decrease pollution during the construction phase of the building and ensure carbon neutrality, which can aid in attaining a net zero carbon status.
Hence, in an attempt to save the environment, local, federal, and state governments, along with international agencies, are increasingly focusing on NZEBs. In essence, the urge to eliminate GHG emissions will fuel the construction of such buildings in the coming years.
Market Segmentation by Construction
Market Segmentation by Equipment
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