Energy-Efficient Building Market Report 2026

The energy-efficient building market size has grown strongly in recent years. It will grow from $145.09 billion in 2025 to $153.62 billion in 2026 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to rising demand for sustainable construction practices, early adoption of efficient lighting and hvac systems, growth in green building certifications, increasing focus on reducing operational costs, expansion of regulatory standards for energy efficiency.

The energy-efficient building market size is expected to see strong growth in the next few years. It will grow to $192.52 billion in 2030 at a compound annual growth rate (CAGR) of 5.8%. The growth in the forecast period can be attributed to growing investment in net-zero building projects, rising adoption of smart building technologies, increasing integration of renewable energy systems, expansion of energy management services, growth in advanced building envelope materials. Major trends in the forecast period include rising integration of high-efficiency hvac solutions, growing adoption of smart energy management systems, expansion of renewable energy integration in buildings, increased use of advanced insulation materials, growth in net-zero and near-zero energy building projects.

The anticipated increase in government investment is expected to drive the growth of the energy-efficient building market. Government investment refers to funds allocated by public authorities for various sectors such as infrastructure development, social programs, education, healthcare, research and development, and clean energy projects. In the case of energy-efficient buildings, government funding is pivotal in accelerating the adoption of sustainable construction practices, reducing energy consumption, lowering greenhouse gas emissions, and fostering economic growth and resilience. For example, in July 2024, the Office for National Statistics, a UK-based government agency, reported that total market sector investment in infrastructure in 2023 amounted to $14.93 billion (in constant prices), reflecting a 3.9% increase from 2022. As a result, the rise in government investment is playing a key role in driving the energy-efficient building market.

Key players in the energy-efficient building market are actively engaged in developing innovative products featuring advanced technologies, with a particular focus on smart Internet of Things (IoT) solutions to enhance market profitability. Smart IoT solutions play a crucial role in promoting energy efficiency across various domains, including homes, buildings, industries, and cities. These solutions contribute to sustainability and environmental conservation efforts. Siemens AG, a Germany-based energy technology and manufacturing company, exemplifies this trend with the March 2023 launch of the Connect Box. This IoT solution, tailored for small to medium-sized buildings, seamlessly integrates wired or wireless devices, optimizing energy usage, monitoring performance, and improving indoor air quality through real-time analysis. With a plug-and-play setup, diverse licensing options, and user-friendly interfaces, the Connect Box addresses varied needs while ensuring compliance with sustainability regulations and delivering up to 30% energy savings.

In May 2023, Bosch Building Technologies, a Germany-based company providing integrated solutions for building security, building automation, and energy services, acquired Paladin Technologies for an undisclosed amount. This strategic acquisition reinforces Bosch's expertise, market presence, and competitive advantage in North America's commercial building services industry, driven by the increasing emphasis on energy efficiency and security needs. Paladin Technologies, a Canada-based company specializing in complex systems integration for building technology solutions, brings valuable capabilities in IP security, audiovisual, low voltage, and integrated technology solutions to further complement Bosch's offerings in the energy-efficient building market.

Major companies operating in the energy-efficient building market are Siemens AG, Panasonic Corporation, GE Electrical Equipment, Veolia Environnement S.A., Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Daikin Industries Ltd., Toshiba Corporation, Johnson Controls International plc, Eaton Corporation PLC, Carrier Global Corporation, Koninklijke Philips N.V., Trane Technologies plc, Emerson Electric Co., Legrand S.A., Osram GmbH, Acuity Brands Inc., Itron Inc., Zumtobel Group AG, Cree Inc., GridPoint Inc., Pacific Controls Inc., BuildingIQ Inc.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the energy-efficient building market by raising costs for imported insulation materials, HVAC components, energy-efficient lighting systems, and smart building control devices used across residential, commercial, and industrial sectors. Regions heavily dependent on foreign-made efficiency technologiesparticularly Europe and Asia-Pacificface higher project costs and delayed adoption. However, tariffs may promote domestic manufacturing of green construction materials and accelerate investment in localized energy-efficient technologies, enhancing long-term supply resilience.

The energy-efficient building market research report is one of a series of new reports that provides energy-efficient building market statistics, including energy-efficient building industry global market size, regional shares, competitors with an energy-efficient building market share, detailed energy-efficient building market segments, market trends and opportunities, and any further data you may need to thrive in the energy-efficient building industry. This energy-efficient building market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Energy-efficient buildings are structures meticulously designed and built with a primary emphasis on reducing energy consumption, all the while ensuring the preservation or enhancement of occupant comfort, health, and productivity. These principles extend beyond residential construction and are also applied in the planning and operation of commercial and industrial facilities, including offices, retail stores, factories, warehouses, and institutional buildings.

Energy-efficient buildings encompass various components, including heating, ventilation, and air conditioning (HVAC) systems, lighting solutions, building controls, water efficiency measures, water heating systems, building envelope enhancements, and other elements. HVAC specifically involves systems within buildings that regulate temperature, humidity, and air quality. This comprises heating systems for warmth, ventilation systems to ensure fresh air circulation, and air conditioning systems for cooling purposes. Materials utilized in energy-efficient construction include roofing materials, fiber cement, concrete tiles, insulation, construction chemicals, sealants, water proofers, and other relevant components. These technologies and materials find applications across residential, commercial, and industrial sectors.Europe was the largest region in the energy-efficient building market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the energy-efficient building market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the energy-efficient building market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The energy-efficient building market includes revenues earned by entities by providing services such as conducting energy audits, designing energy-efficient systems, installing high-efficiency equipment, providing maintenance, incorporating renewable energy sources, implementing building automation, monitoring energy use, and educating occupants. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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