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The global net zero energy buildings (NZEB) market stood at $896.6 million in 2018, and it is expected to reach $2,106.6 million by 2024, demonstrating a CAGR of 15.6% during the forecast period (2019–2024).
North America held the largest market share accounting for 79.1% in 2018. The market in the region is projected to showcase the fastest growth, demonstrating a CAGR of 16.0% during the forecast period. A significant increase is noticed in greenhouse gas emissions, owing to burning of fossil fuels for electricity generation. With increasing environmental concerns, a shift toward NZEBs is observed, due to energy conservation and no greenhouse gas emissions. In addition, targets set by governments for construction of NZEBs are likely to boost the growth of the net zero energy buildings market.
Dynamics of Net Zero Energy Buildings Market
The increase in energy efficiency plans by governments is one of the major drivers for the net zero energy buildings market. There are several initiatives by the governments to reduce the usage of nonrenewable energy and increase usage of renewable energy at a larger scale. For instance, California Public Utilities Commission (CPUC) implemented the California Long-Term Energy Efficiency Strategy Plan to ensure all new residential buildings by 2020 and all new commercial building by 2030 be zero net energy (ZNE) buildings. With the implementation of this plan, new builders are obligated to build NZEBs in California, which, in turn, is expected to boost the market for NZEBs in the forecast period.
The rise in construction targets set by international associations provide growth opportunities in the net zero energy buildings market. These targets aim for the development of NZEBs in residential as well as commercial sectors in order to reduce carbon emissions and dependency on fossil fuels. For instance, in September 2019, World Green Building Council issued its annual campaign of World Green Building Week, which envisions how buildings and new infrastructure can reach 40% less embodied carbon emissions by 2030, and achieve 100% net zero emissions by 2050. Therefore, such factors are expected to serve as major opportunities for the global market during the forecast period.
Segmentation Analysis of Net Zero Energy Buildings Market
The commercial construction category held the largest share, accounting for 98.4%, in net zero energy buildings market in 2018, and is projected to demonstrate a CAGR of 15.6% during the forecast period. Commercial construction comprises more floor spaces, which increase the construction value of the building. With the motive of reducing energy generation through fossil fuels, governments across countries are introducing policies to create a shift toward construction of NZEBs.
The solar photovoltaic (PV) panels category on the basis of equipment accounted for the dominant share, of 57.1%, in the net zero energy buildings market and generated $511.9 million in 2018. Commercial floor spaces require a significant amount of energy to source electricity to all appliances in a building, owing to which a high demand of solar PV panels arise. With the projected future NZEB development plans and high adoption and importance of solar units in NZEBs, the market category holds immense potential of growth in the coming times.
Geographical Analysis of Net Zero Energy Buildings Market
Geographically, North America held the largest share in the net zero energy buildings market during the historical period and is expected to maintain the trend during the forecast period as well. This can be mainly attributed to the targets of reducing GHG emissions and reduction in energy consumption in the region. Moreover, U.S. and Canada have been involved in a number of programs in order to attain sustainable energy consumption. Europe region accounted to be the second largest market, and the combined share of North American and European market stood at over 95%. This can be attributed to the increasing regulations for adoption of renewable energy sources for electricity generation along with increasing environmental concerns.
Competitive Landscape of Net Zero Energy Buildings Market
Some of the leading players operating in the net zero energy buildings market include Kingspan Group plc, Daikin Industries Ltd., Rockwool Group, Xtratherm Limited, and Solatube International Inc.
Recent Strategic Developments of Major Net Zero Energy Buildings Market Players
Market players have taken several strategic measures in order to gain a larger share in the global net zero energy buildings market. For instance, in April 2019, Kingspan Group plc launched three new panels in the market, namely, KingSeam, KingRib 3, and KingRib 5. These roofing panels are suitable for NZEBs since these are energy efficient, cost-effective, and utilize chlorofluorocarbon (CFC)-free foamed-in-place polyisocyanurate (PIR) foam, which provides an R-value of 12 for a 1.5” panel, all the way up to an R-value of 49 for a 6” panel.
Market Size Breakdown by Segment
The Global Net-Zero Energy Buildings (NZEBs) market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2024.
Based on Construction
Based on Equipment
Key Questions Addressed