Global energy efficiency market driven by governments looking to reduce energy consumption

The global energy efficiency industry hit a market value of $595.45 billion by the end of 2012. After a slight slip during the global recession of 2008-2009, business has picked back up and many market segments are now thriving.

For example, smart meters are projected to experience a near 732.9% hike between 2012 and 2023, while energy efficiency appliances are expected to grow nearly 574% in the same time period.

The market for energy efficiency services and equipment is on the rise as national governments look to reduce energy consumption by improving the efficiency of the building stock.

With buildings being one of the largest sources of energy consumption, the opportunity to improve efficiency is significant, ranging from high-efficiency heating, ventilation, and air conditioning (HVAC) systems to the utilisation of energy-efficient lighting technologies to business models such as energy performance contracting (EPC) as employed by energy service companies (ESCOs) around the world.

The rising energy consumption of the housing sector, which has an impact on nearly every aspect of a country's economy, is driving diverse and increasing interest in residential energy efficiency for both new homes and retrofits of existing ones.

Globally, more than half of the energy consumption in buildings - which is expected to rise from 31,983 terawatt-hours (TWh) to 51,253 TWh by 2050, according to the International Energy Agency (IEA) - comes from residential buildings.

The dynamics of the energy-efficient housing market vary widely across regions and countries. It has yet to be determined whether or not energy efficient homes - and all the products and services used in them - can be a saviour for sluggish housing markets in developed economies, or provide a demand-side tool to help control rising electricity demand.

Going green has become popular, not only among regulators and governments, but also in the consumer world. People around the globe are becoming increasingly aware of their environment and personal health and also want to do their part to lower GHG emissions and reduce the use of natural resources.

For more information on the global energy efficiency market, see the latest research: Global Energy Efficiency Market

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