Revenue for Energy-efficiency Retrofits in SMCBs Expected to Grow

A new report from Boulder, Colo.-based Navigant Research analyzes the state of the global market for energy-efficiency retrofits in small and medium commercial buildings (SMCBs), including the key market drivers and barriers, as well as market forecasts for revenue segmented by region through 2025.

SMCBs, those ranging from less than 10,000 square feet up to 100,000 square feet, have not seen the same penetration of energy-efficiency technologies as larger facilities because of the lower expenditures on energy management, lack of customer education, perceived high risk of SMCB retrofit financing, and split incentives between the building owner and tenant. However, with the largest commercial buildings already engaged in energy-efficiency retrofits, the focus is expected to shift to SMCBs, which represent the majority of buildings worldwide.

“Energy-efficiency retrofits can improve building performance, reduce consumption and save operating costs,” says Christina Jung,research associate with Navigant Research. “Tailored solutions and business models that take into consideration the fact that the SMCB market is diverse and large, consisting of buildings of all ages, sectors and management regimes, will be able to capture the great potential SMCB market holds.”

Approximately two-thirds of global buildings’ floor space is occupied by SMCBs and more than 90 percent of commercial buildings are small or medium, according to the report. Because most service and technology providers have already focused their marketing and sales on the larger buildings because of the ability to generate more revenue and a shorter return-on-investment period, SMCBs are the next step.

The report, “Energy Efficiency Retrofits for Small and Medium Commercial Buildings”, states revenue in the global SMCB energy-efficiency retrofits market is expected to grow from $24.1 billion in 2016 to $38.6 billion in 2025. The study examines the key market drivers and barriers related to energy-efficiency retrofits in SMCBs. It provides definitions related to energy-efficiency retrofits for SMCBs and profiles key industry players. An Executive Summary of the report is available for free download on the Navigant Research website.

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