Net Zero Energy Buildings Market Size & Share by Energy Source (Solar Energy, Biogas); Equipment Type (HVAC System, Lighting, Walls & Roof); End User (Residential, Non-Residential)- Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 3673
  • Published Date: Mar 04, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Net Zero Energy Buildings Market size is expected to reach USD 310 Billion by the end of 2036, growing at a CAGR of 24% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of net zero energy buildings was USD 48 Billion. Global warming is causing the rise in Earth’s temperature and globally, there has been a recent rise of 1.5 degrees Celsius which is resulting in various environmental issues like melting of polar ice caps, degraded air quality, and climatic changes. Moreover, increasing temperature encourages residential and commercial sectors to opt for net zero energy buildings. Construction of residential and commercial buildings holds a large share of energy because of the growing demands for services and human comfort, and it has been observed that 42% of the world’s annual carbon emissions are generated by this sector. Net zero buildings are highly energy efficient, and the energy required by buildings is derived by using renewable sources of energy. 

In addition to these, another factor that is believed to fuel the net zero energy buildings market growth of net zero energy buildings is the increasing population at a very fast pace, along with the future growth in the construction sector, which is anticipated to be aided by a considerable increase in population. According to recent reports, the global population is expected to reach 9 billion by 2036.

Net Zero Energy Building Market overview
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Net Zero Energy Buildings Sector: Growth Drivers and Challenges

Growth Drivers

  • Increasing Government Initiatives to Reduce Carbon Emissions - Net zero energy buildings requires very little energy which can be produced using renewable sources like solar energy and wind energy. With the rise in population, the rate of carbon emission is increasing gradually leading to various environmental changes. As a result, the government has introduced various initiatives to reduce carbon emissions. For instance, The European Union’s 2023 revision of the Energy Performance of Buildings Directive (EPBD) objective is to achieve a neutral climate in the construction sector by the year 2050 by involving zero emissions for all new buildings that are being constructed for the public sector from the year 2026 and all new buildings from 2028 and to tighten the standards for buildings which are already there over time.  
  • Growing Environmental Awareness - The most important thing that can be done to reduce energy consumption, pollution, and emissions are involvement of people and knowledge-sharing. The process begins with participation and providing the right information, giving them more knowledge about the consequences of carbon emission and how it’s deteriorating the environment. People started adopting net zero buildings as they are becoming more aware of the effects carbon emissions are leading to and how net zero buildings can lead to sustainable development.
  • Increasing Intent in Energy Efficient and Sustainability - Sustainable development is a strategy that doesn’t compromise the environment’s quality for future generations. Using energy efficiently and encouraging less environmentally harming development. As a result, net zero buildings are becoming more popular and can serve this purpose successfully, and while utilizing renewable sources, the rate of consumption should not surpass the rate of production.


  • Very Slow Adoption of the Concept - People not being familiar with the concept of net zero buildings can be a major issue for market downfall. Awareness among people about the reason behind the construction of net zero buildings and the efficient use of energy with minimal carbon emission can protect the environment. If people start adapting this concept and become aware of how net zero buildings can be cost and time-efficient, the market rate will start increasing gradually
  • The requirement of large initial investment can pose a threat to the net zero energy buildings market. The construction of net zero buildings requires huge capital.
  • Low conversion capacity of solar photovoltaic cell

Net Zero Energy Buildings Market: Key Insights

Base Year 


Forecast Year 




Base Year Market Size (2023) 

~ USD 48 Billion 

Forecast Year Market Size (2036) 

~ USD 310 Billion 

Regional Scope 

  • North America (U.S., and Canada) 
  • Latin America (Mexico, Argentina, Rest of Latin America) 
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) 
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) 
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa) 
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Net Zero Energy Buildings Segmentation

Energy Source (Solar Energy, Biogas)

The solar energy segment predicted to account for 58% share of the global net zero energy buildings market by 2036. Net-zero buildings require energy generation and solar energy is the most feasible option to generate energy. Installation of solar panels can significantly reduce carbon emissions with reduced energy costs. Power generation technologies using renewable sources of energy can reduce carbon emissions, solar energy has more potential than biogas to produce energy. In addition, the abundance of sunlight, ease of installing solar panels, and government subsidies on solar panels are estimated to boost the segment growth. According to the International Energy Agency, solar electricity accounts for 4.5% of the world's total electricity production and is still the third largest source of renewable electricity.

Equipment Type (HVAC System, Lighting, Walls & Roof)

The equipment type segment is predicted to account for 39% share of the global net zero energy buildings market by 2036. HVAC systems regulate humidity, temperature, and airflow to ensure a healthy indoor atmosphere. Modern air, filtration, ventilation, and monitoring technologies are included in HVAC systems in zero-energy buildings to ensure optimal air quality and comfort for occupants. Furthermore, government and regulatory agencies are using a high energy efficiency setup for buildings construction which includes an HVAC system that is resulting in less emission of greenhouse gases. It is noted that the share of HVAC in the buildings's total energy ranged from 23.8% to 72.9%, depending on the HVAC selection and climate zone.

Our in-depth analysis of the net zero energy buildings market includes the following segments: 

          Energy Source

  • Solar Energy
  • Biogas 

          Equipment Type

  • HVAC System
  • Lighting
  • Walls & Roof

          End User

  • Residential
  • Non-Residential

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Global Net-Zero Energy Buildings Industry - Regional Synopsis

North American Market Analysis

The net zero energy buildings market in the North America region is anticipated to gain the largest revenue share of almost 34% by the end of 2036 owing to the increasing government initiatives for environment conservation, along with high public awareness regarding carbon emission. For instance, In the United States, the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE), published a report in 2023 where they mentioned the standard operations for zero net energy and zero net carbon standards for buildings operations. Moreover, the presence of major market players in the region, and the adoption of advanced technologies like super insulate and super seal, installing energy-efficient appliances, and using green construction technology are projected to fuel the regional market growth. Furthermore, the increasing preference to become energy-independent due to growing energy costs has led to a fast adoption of solar energy combined with energy storage devices in the region.

APAC Market Analysis

The Asia pacific net zero energy buildings market encounter a significant surge during the forecast period and grab the position of second largest with estimated share of 28% by the end of 2036 driven by the rapid adoption and construction of net zero energy buildings in the region. For instance, net zero energy buildings have been constructed in China in more than 5 million square meters of area in 2019. Over 18 projects in China had accomplished the development of super-low, close to-zero energy and far-zero energy utilization by the end of the same year. Moreover, as India targets accomplishing net zero by 2070, the nation needs to move center at different levels to accomplish the objective. Union Minister of Environment, Forest and Climate Change Bhupendra Yadav declared in February 2023, that the country was focused on cutting down carbon emissions by 45% by 2030 and arriving at net zero by 2070. This can only be achieved by focusing on the development of net zero energy buildings infrastructure.

Research Nester
Net Zero Energy Building Market size
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Companies Dominating the Net Zero Energy Buildings Landscape

    • Altura Associates
      • Company Overview 
      • Business Strategy 
      • Key Product Offerings 
      • Financial Performance 
      • Key Performance Indicators 
      • Risk Analysis 
      • Recent Development 
      • Regional Presence 
      • SWOT Analysis 
    • Daikin Industries, Ltd.
    • Kingspan Group plc
    • Rockwool International A/S
    • SAGE Electrochromics, Inc.
    • Schneider Electric SE
    • Siemens AG
    • Solatube International, Inc.
    • Net Zero Buildings Group

In the News

  • 15 September, 2023: Daikin Industries, Ltd. released the sustainability report of 2023 which covers Daikin Group's main strategy for using its operations to help realize a sustainable society, as well as its fiscal 2022 outcomes and future objectives.
  • 12 April, 2021: Kingspan Group plc, dropped a report which describes Kingspan's industry-leading decarbonization initiative, which aims to cut the carbon intensity in half and reduce manufacturing carbon emissions near to zero as technically possible.

Author Credits:  Dhruv Bhatia

  • Report ID: 3673
  • Published Date: Mar 04, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Rising awareness about environmental conservation and increasing focus on sustainability and energy efficient buildings construction.

The market size of Net Zero Energy Buildings market is anticipated to attain a CAGR of 24% over the forecast period, i.e., 2024-2036.

The major players in the market are Daikin Industries, Ltd., Kingspan Group plc, Rockwool International A/S, SAGE Electrochromics, Inc., Schneider Electric SE, Siemens AG, Solatube International, Inc., and others.

The solar energy segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Net-Zero Energy Buildings Market Report Scope

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