Building Retrofitting Market Report 2026

The building retrofitting market size has grown strongly in recent years. It will grow from $102.88 billion in 2025 to $110.77 billion in 2026 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to aging building infrastructure, rising maintenance costs of old structures, increasing urbanization and building density, growing awareness of structural safety risks, early adoption of energy conservation measures.

The building retrofitting market size is expected to see strong growth in the next few years. It will grow to $150.21 billion by 2030 at a compound annual growth rate (CAGR) of 7.9%. The growth in the forecast period can be attributed to stricter energy efficiency regulations, rising demand for sustainable construction practices, increasing climate resilience requirements, growing smart building integration in retrofits, expansion of government-led renovation programs. Major trends in the forecast period include increasing adoption of energy-efficient building envelope upgrades, growing use of fiber-reinforced polymer (frp) strengthening systems, rising demand for seismic retrofitting in aging infrastructure, expansion of green building certification-driven retrofits, increasing deployment of modular and minimally invasive retrofitting methods.

The growing adoption of green building certifications is expected to propel the growth of the building retrofitting market going forward. Green building certifications are third-party verifications confirming that buildings meet standards related to energy efficiency, water conservation, indoor environmental quality, and sustainable site development. The rising adoption of green building certifications is driven by stricter environmental regulations, contributing to the encouragement of developers to comply with sustainability standards and minimize the environmental impact of buildings. For instance, in May 2024, according to the U.S. Environmental Protection Agency, a US-based federal government agency responsible for environmental protection, the number of commercial buildings that earned ENERGY STAR certification rose from more than 7,000 in 2022 to more than 8,800 in 2023, reflecting an increase of approximately 1,800 buildings. Therefore, the growing adoption of green building certifications is supporting the growth of the building retrofitting market.

Leading companies operating in the building retrofitting market are focusing on developing advanced solutions, such as open and easy-to-use IoT, to optimize building performance and enhance operational efficiency. Easy-to-use IoT in building retrofitting refers to simple-to-deploy connected sensors and smart devices that monitor and manage building systems in real time to improve energy efficiency and operational performance. For example, in March 2023, Siemens AG, a Germany-based technology company, introduced the Connect Box, an open and easy-to-use IoT solution designed for building management. It integrates wireless sensors, cloud-based monitoring, and artificial intelligence-driven analytics to optimize energy performance in small and medium-sized buildings. The solution offers remote monitoring, real-time energy insights, and cybersecurity features, supporting advanced retrofit strategies.

In November 2023, Trane Technologies, an Ireland-based provider of heating, ventilation, and air conditioning systems, climate control technologies, and sustainable building solutions, acquired Nuvolo for an undisclosed amount. With this acquisition, Trane Technologies aims to strengthen its digital and connected building capabilities by integrating advanced cloud-based asset management and workplace solutions into its retrofit and building modernization offerings. Nuvolo is a US-based provider of a platform that supports facility management and renovation planning.

Major companies operating in the building retrofitting market are Siemens AG, BASF SE, Compagnie de Saint-Gobain S.A., Schneider Electric SE, Honeywell International Inc., ABB Ltd., Daikin Industries Ltd., 3M Company, Johnson Controls International plc, Carrier Global Corporation, Trane Technologies plc, Skanska AB, Emerson Electric Co., AECOM, Owens Corning, Kingspan Group plc, Signify N.V., Lennox International Inc., ROCKWOOL A/S, OSRAM GmbH.

North America was the largest region in the building retrofitting market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the building retrofitting market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the building retrofitting market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The building retrofitting market consists of revenues earned by entities by providing services such as seismic strengthening, façade modernization, HVAC system upgrades, and electrical and lighting system modernization. The market value includes the value of related goods sold by the service provider or included within the service offering. The building retrofitting market also includes sales of insulation panels, high-performance windows and glazing systems, smart HVAC control units, and energy-efficient LED lighting fixtures. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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