Energy Efficient And Green Construction Retrofitting Market
Energy-efficient & Green Construction / Retrofitting Market Forecasts to 2032 – Global Analysis By Type (Energy-efficient New Construction and Green Retrofitting), Component, Building Type, Certification Standard, Application, End User and By Geography
According to Stratistics MRC, the Global Energy-efficient & Green Construction / Retrofitting Market is accounted for $200.1 billion in 2025 and expected to reach $86.8 billion by 2032 growing at a CAGR of 5.2% during the forecast period. Energy-efficient and green construction or retrofitting refers to the design, renovation, or upgrade of buildings to minimize environmental impact and optimize energy use. It involves integrating sustainable materials, advanced insulation, efficient HVAC systems, renewable energy sources, and smart technologies to reduce carbon emissions and operational costs. Retrofitting existing structures enhances performance by replacing outdated systems with eco-friendly alternatives, improving indoor air quality, and conserving resources. These practices support climate resilience, regulatory compliance, and long-term savings, while promoting healthier living and working environments. Green construction aligns with global sustainability goals, transforming built environments into low-impact, high-efficiency spaces for future generations.
Market Dynamics:
Driver:
Government Incentives & Regulations
Government incentives and evolving regulations are key drivers propelling the market. Tax credits, subsidies, and mandates for carbon reduction are motivating developers and property owners to adopt sustainable practices. Regulatory frameworks like building codes and energy performance standards are accelerating retrofitting initiatives across residential, commercial, and industrial sectors. These policies not only reduce environmental impact but also stimulate innovation and investment in green technologies, aligning construction practices with national climate goals and global sustainability commitments.
Restraint:
High Upfront Costs
High upfront costs significantly hinder the adoption of green construction practices. The expense of advanced HVAC systems, sustainable materials, and smart technologies creates financial barriers, especially for small developers and low-income sectors. These costs delay retrofitting decisions, reduce project scalability, and limit market penetration. Without accessible financing or incentives, stakeholders may prioritize short-term savings over long-term sustainability, slowing progress toward climate goals and widespread green infrastructure transformation.
Opportunity:
Technological Advancements
Technological advancements present a transformative opportunity for the market. Innovations in smart building systems and modular retrofitting are enhancing efficiency and scalability. Breakthroughs in insulation materials, solar integration, and water-saving technologies are driving performance gains while reducing environmental impact. These developments enable predictive maintenance, real-time monitoring, and adaptive climate control, making buildings more resilient and cost-effective. As tech adoption accelerates, it unlocks new business models and expands access to sustainable infrastructure globally.
Threat:
Regulatory Complexity
Regulatory complexity hampers the growth of market by creating fragmented standards, inconsistent enforcement, and burdensome approval processes. Navigating diverse building codes, certifications, and compliance frameworks increases project timelines and costs, especially for small and mid-sized firms. This uncertainty discourages investment, slows innovation, and limits scalability. Without harmonized regulations and streamlined pathways, stakeholders face operational inefficiencies that delay sustainable retrofitting and undermine broader climate and energy goals.
Covid-19 Impact:
The Covid-19 pandemic disrupted construction timelines, supply chains, and investment flows, temporarily slowing the green retrofitting market. However, it also catalyzed demand for healthier indoor environments, energy resilience, and remote monitoring technologies. Stimulus packages and recovery plans in several regions prioritized sustainable infrastructure, accelerating retrofitting projects. The crisis underscored the importance of climate-resilient buildings and flexible design, prompting a shift toward smart HVAC systems, touchless technologies, and improved air filtration.
The HVAC systems segment is expected to be the largest during the forecast period
The HVAC systems segment is expected to account for the largest market share during the forecast period because of its central role in energy optimization and indoor air quality. Advanced HVAC technologies, including smart thermostats and energy recovery ventilators, are increasingly integrated into retrofitting projects. These systems significantly reduce energy consumption and carbon emissions while enhancing occupant comfort. Rising demand for climate-responsive buildings and regulatory pressure to meet energy standards is driving widespread adoption. HVAC upgrades offer measurable ROI, making them a retrofit priority.
The water conservation segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the water conservation segment is predicted to witness the highest growth rate due to growing concerns over resource scarcity and climate resilience. Innovations such as greywater recycling, low-flow fixtures and smart irrigation systems are gaining traction in both new construction and retrofits. Regulatory mandates and LEED certification criteria are encouraging adoption, especially in water-stressed regions. These solutions not only reduce utility costs but also support sustainable urban development. As awareness grows, water-efficient retrofitting is becoming a strategic imperative.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share due to rapid urbanization, infrastructure expansion, and strong government support for green building initiatives. Countries like China, India, and Japan are investing heavily in sustainable construction to meet climate targets and improve energy security. Rising middle-class demand for eco-friendly housing and commercial spaces is fueling retrofitting activity. Regional policies promoting energy efficiency, coupled with technological adoption and foreign investments, position Asia Pacific as a dominant force in the global market.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR owing to advanced technological adoption, and robust retrofitting programs. The U.S. and Canada are prioritizing energy-efficient upgrades in aging infrastructure, supported by federal incentives and green financing. Growing awareness of climate risks and operational cost savings is accelerating demand across residential, commercial, and institutional sectors. The region’s leadership in smart building technologies and sustainability certifications further propels growth, making North America a hotspot for innovation and investment.
Key players in the market
Some of the key players in Energy-efficient & Green Construction / Retrofitting Market include Turner Construction Company, Johnson Controls, Skanska AB, Honeywell International Inc., Bechtel Corporation, Siemens AG, AECOM, Trane Technologies, Bouygues Construction, Saint-Gobain, L&T Construction, Schneider Electric, Balfour Beatty, Kiewit Corporation, and Fluor Corporation.
Key Developments:
In September 2025, Tabreed and Johnson Controls have struck a long-term deal to co-develop next-generation district cooling technology, focusing on efficient centrifugal chillers, real-time performance analytics, and lifecycle services—all to cut energy use, emissions, and cost while aligning with regional climate-neutrality goals.
In June 2025, Honeywell has expanded its licensing agreement with AFG Combustion and Greens Combustion Ltd. to include Callidus Ultra Blue Hydrogen process burners and flare technologies. This collaboration aims to support the energy transition by integrating innovative flare technologies with hydrogen solutions, paving the way for a more sustainable future.
Types Covered:
• Energy-efficient New Construction
• Green Retrofitting
Components Covered:
• Building Envelope
• HVAC Systems
• Lighting Systems
• Renewable Energy Integration
• Water Efficiency Solutions
• Smart Building Technologies
Building Types Covered:
• Residential Buildings
• Institutional Buildings
• Commercial Buildings
• Industrial Buildings
Certification Standards Covered:
• LEED (Leadership in Energy and Environmental Design)
• WELL Building Standard
• Green Globes
• Other Regional Standards
Applications Covered:
• Energy Efficiency
• Water Conservation
• Indoor Environmental Quality
• Waste Reduction & Material Efficiency
• Other Applications
End Users Covered:
• Government & Public Sector
• Private Sector
• Real Estate Developers
• Facility Management Companies
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Energy-efficient & Green Construction / Retrofitting Market, By Type
5.1 Introduction
5.2 Energy-efficient New Construction
5.3 Green Retrofitting
6 Global Energy-efficient & Green Construction / Retrofitting Market, By Component
6.1 Introduction
6.2 Building Envelope
6.2.1 Insulation
6.2.2 Roofing & Wall Systems
6.2.3 Windows & Doors
6.3 HVAC Systems
6.3.1 Heating Systems
6.3.2 Cooling Systems
6.3.3 Ventilation Systems
6.4 Lighting Systems
6.4.1 LED Lighting
6.4.2 Smart Lighting Controls
6.5 Renewable Energy Integration
6.5.1 Solar PV
6.5.2 Geothermal Systems
6.5.3 Wind Energy
6.6 Water Efficiency Solutions
6.6.1 Rainwater Harvesting
6.6.2 Greywater Recycling
6.7 Smart Building Technologies
6.7.1 Building Automation Systems (BAS)
6.7.2 Energy Management Systems (EMS)
7 Global Energy-efficient & Green Construction / Retrofitting Market, By Building Type
7.1 Introduction
7.2 Residential Buildings
7.3 Institutional Buildings
7.4 Commercial Buildings
7.5 Industrial Buildings
8 Global Energy-efficient & Green Construction / Retrofitting Market, By Certification Standard
8.1 Introduction
8.2 LEED (Leadership in Energy and Environmental Design)
8.3 WELL Building Standard
8.4 Green Globes
8.5 Other Regional Standards
9 Global Energy-efficient & Green Construction / Retrofitting Market, By Application
9.1 Introduction
9.2 Energy Efficiency
9.3 Water Conservation
9.4 Indoor Environmental Quality
9.5 Waste Reduction & Material Efficiency
9.6 Other Applications
10 Global Energy-efficient & Green Construction / Retrofitting Market, By End User
10.1 Introduction
10.2 Government & Public Sector
10.3 Private Sector
10.4 Real Estate Developers
10.5 Facility Management Companies
10.6 Other End Users
11 Global Energy-efficient & Green Construction / Retrofitting Market, By Geography
11.1 Introduction
11.2 North America
11.2.1 US
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 Italy
11.3.4 France
11.3.5 Spain
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.1 Japan
11.4.2 China
11.4.3 India
11.4.4 Australia
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.1 Argentina
11.5.2 Brazil
11.5.3 Chile
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.2 UAE
11.6.3 Qatar
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa
12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.4 Expansions
12.5 Other Key Strategies
13 Company Profiling
13.1 Turner Construction Company
13.2 Johnson Controls
13.3 Skanska AB
13.4 Honeywell International Inc.
13.5 Bechtel Corporation
13.6 Siemens AG
13.7 AECOM
13.8 Trane Technologies
13.9 Bouygues Construction
13.10 Saint-Gobain
13.11 L&T Construction
13.12 Schneider Electric
13.13 Balfour Beatty
13.14 Kiewit Corporation
13.15 Fluor Corporation
List of Tables
1 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Region (2024-2032) ($MN)
2 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Type (2024-2032) ($MN)
3 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Energy-efficient New Construction (2024-2032) ($MN)
4 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Green Retrofitting (2024-2032) ($MN)
5 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Component (2024-2032) ($MN)
6 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Building Envelope (2024-2032) ($MN)
7 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Insulation (2024-2032) ($MN)
8 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Roofing & Wall Systems (2024-2032) ($MN)
9 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Windows & Doors (2024-2032) ($MN)
10 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By HVAC Systems (2024-2032) ($MN)
11 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Heating Systems (2024-2032) ($MN)
12 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Cooling Systems (2024-2032) ($MN)
13 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Ventilation Systems (2024-2032) ($MN)
14 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Lighting Systems (2024-2032) ($MN)
15 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By LED Lighting (2024-2032) ($MN)
16 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Smart Lighting Controls (2024-2032) ($MN)
17 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Renewable Energy Integration (2024-2032) ($MN)
18 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Solar PV (2024-2032) ($MN)
19 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Geothermal Systems (2024-2032) ($MN)
20 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Wind Energy (2024-2032) ($MN)
21 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Water Efficiency Solutions (2024-2032) ($MN)
22 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Rainwater Harvesting (2024-2032) ($MN)
23 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Greywater Recycling (2024-2032) ($MN)
24 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Smart Building Technologies (2024-2032) ($MN)
25 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Building Automation Systems (BAS) (2024-2032) ($MN)
26 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Energy Management Systems (EMS) (2024-2032) ($MN)
27 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Building Type (2024-2032) ($MN)
28 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Residential Buildings (2024-2032) ($MN)
29 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Institutional Buildings (2024-2032) ($MN)
30 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Commercial Buildings (2024-2032) ($MN)
31 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Industrial Buildings (2024-2032) ($MN)
32 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Certification Standard (2024-2032) ($MN)
33 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By LEED (Leadership in Energy and Environmental Design) (2024-2032) ($MN)
34 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By WELL Building Standard (2024-2032) ($MN)
35 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Green Globes (2024-2032) ($MN)
36 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Other Regional Standards (2024-2032) ($MN)
37 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Application (2024-2032) ($MN)
38 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Energy Efficiency (2024-2032) ($MN)
39 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Water Conservation (2024-2032) ($MN)
40 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Indoor Environmental Quality (2024-2032) ($MN)
41 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Waste Reduction & Material Efficiency (2024-2032) ($MN)
42 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Other Applications (2024-2032) ($MN)
43 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By End User (2024-2032) ($MN)
44 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Government & Public Sector (2024-2032) ($MN)
45 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Private Sector (2024-2032) ($MN)
46 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Real Estate Developers (2024-2032) ($MN)
47 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Facility Management Companies (2024-2032) ($MN)
48 Global Energy-efficient & Green Construction / Retrofitting Market Outlook, By Other End Users (2024-2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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