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.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~24% |
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Base Year Market Size (2023) |
~ USD 48 Billion |
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Forecast Year Market Size (2036) |
~ USD 310 Billion |
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Regional Scope |
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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:
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Energy Source |
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Equipment Type |
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End User |
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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.
Author Credits: Payel Roy, Dhruv Bhatia
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