Global Energy Efficient Building - Market Share, Trends, and Growth Forecasts, 2026-2031 | Market to Reach USD 70.11 Billion as Smart Controls and Stricter Codes Drive 11.56% CAGR

Boost building ROI through demand-response revenue, automated energy management, utility incentives and performance contracts that cut bills and reduce retrofit risk.

Dublin, Nov. 10, 2026 (GLOBE NEWSWIRE) -- "Energy Efficient Building - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

The global energy efficient building market is expected to expand from USD 36.56 billion in 2025 to USD 40.58 billion in 2026. By 2031, the market is forecast to reach USD 70.11 billion, registering an 11.56% CAGR during 2026-2031. Growth is being driven by stricter building energy codes, rising energy costs, corporate decarbonization targets, green building certification requirements, and increasing adoption of advanced building controls and energy management systems.

Building Energy Codes Accelerate Market Growth

Governments across major construction markets are strengthening energy performance requirements for new and existing buildings. The 2027 International Energy Conservation Code, scheduled for publication on December 1, 2026, lowers residential Energy Rating Index thresholds and requires duct systems to be located in conditioned spaces. These provisions are expected to increase demand for insulation, air-sealing products, mechanical ventilation recovery systems, and other high-performance building solutions.

In Europe, the revised Energy Performance of Buildings Directive requires member states to establish minimum energy performance standards for non-residential buildings. China's 15th Five-Year Plan mandates green building standards for new urban construction and supports building-integrated photovoltaics. India is also advancing mandatory star ratings for large commercial and residential properties. Together, these policies are creating sustained demand for efficient equipment, building controls, envelope upgrades, and energy monitoring technologies.

Energy Costs Strengthen the Business Case for Building Upgrades

Rising and volatile energy prices are improving the financial case for energy efficient building investments. Commercial properties participating in demand-response programs can generate annual revenue of USD 8,000 to USD 45,000 from modest curtailable loads and 20 to 50 dispatch hours. Grid-interactive buildings may also receive USD 80 to USD 225 per kilowatt of capacity each season.

Energy management systems can lower electricity billing costs by 7% to 27%, depending on the property type and available metering detail. OpenADR gateways further support automated demand-response activity, reducing the need for manual intervention. These capabilities are particularly valuable for real estate owners managing multiple sites, as centralized controls can improve operating efficiency while supporting emissions reduction commitments.

High Upfront Costs Continue to Limit Retrofit Activity

Capital requirements remain a significant obstacle for comprehensive commercial and industrial retrofits. Older properties often require several legacy systems to be replaced or integrated simultaneously, increasing project complexity and making phased upgrades more difficult. Financing conditions are especially important for projects combining HVAC improvements, building envelope work, controls, and energy management systems.

The U.S. Section 179D deduction will be unavailable for projects beginning construction after June 30, 2026, removing a cost offset for qualifying commercial developments. Energy Savings Performance Contracts can reduce upfront risk by allowing contractors to guarantee savings, but their availability depends on established ESCO markets and creditworthy counterparties. Split incentives between owners and tenants also continue to delay investment in some markets.

Commercial Buildings Maintain the Largest Market Share

Commercial buildings accounted for 41.5% of the energy-efficient building market in 2025. Offices, retail properties, and healthcare facilities face concentrated energy expenses, expanding disclosure requirements, and direct compliance pressure from minimum performance standards. LEED v5 and BREEAM Version 7 are also increasing the importance of measurable building performance in commercial project planning.

Owners of commercial property portfolios can deploy centralized energy management platforms and repeatable retrofit programs across multiple sites. This supports investment in lighting, ventilation, HVAC upgrades, monitoring systems, and smart building controls. AI-enabled fault detection using existing building data is also creating opportunities to identify inefficiencies and improve system performance.

Industrial buildings have distinct priorities, including process heat integration, compressed-air efficiency, rooftop solar, commissioning, and managed energy services. Residential buildings, meanwhile, are forecast to grow at a 12.7% CAGR through 2031. Mandatory code cycles, electrification incentives, and ultra-low-energy housing requirements are supporting residential demand for insulation, glazing, air sealing, ventilation, and efficient HVAC equipment.

Asia-Pacific Forecast to Record the Fastest Regional Growth

North America held 32.3% of the global market in 2025. The region benefits from a large commercial building base, ongoing lighting and energy management system upgrades, mature performance-contracting capabilities, and corporate net-zero commitments. Canada's provincial energy-code activity and aging building stock are supporting envelope and HVAC improvements, while manufacturing investment is increasing construction activity in Mexico.

Europe remains a major market, supported by minimum energy performance standards and national renovation programs. Germany and France lead regional demand, while Poland offers significant potential due to its under-retrofitted commercial and residential building stock. Italy and Spain are also benefiting from renovation incentives.

Asia-Pacific is projected to grow at a 14.1% CAGR through 2031, making it the fastest-growing regional market. China's green building requirements, India's proposed star-rating framework, and continued investment in advanced HVAC and smart controls across Japan and South Korea are key growth drivers. Urbanization is also increasing opportunities in Indonesia, Vietnam, and Thailand. In the Middle East and Africa, national decarbonization programs in Saudi Arabia and the United Arab Emirates are supporting adoption, with South Africa and Morocco emerging as important regional markets.

Key Topics Covered:

1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.2.1 Stricter Building Energy Codes and Performance Standards
4.2.2 Rising Energy Prices and Demand-Cost Exposure
4.2.3 Corporate Decarbonization and Green-Building Certification Requirements
4.2.4 Public Incentives for Energy-Efficient Retrofits and Electrification
4.2.5 AI-Enabled Fault Detection from Existing Building Data
4.2.6 Grid-Interactive Buildings for Flexibility Revenue
4.3 Market Restraints
4.3.1 High Upfront Cost and Long Retrofit Payback Periods
4.3.2 Split Incentives Between Building Owners and Tenants
4.3.3 Interoperability Gaps Across Legacy Building Systems
4.3.4 Shortage of Skilled Building-Controls Integrators
4.4 Supply-Chain Analysis
4.5 Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Competitive Rivalry
4.6 Technology Outlook
4.7 Regulatory Landscape
4.8 Investment Analysis

5 MARKET SIZE AND GROWTH FORECASTS
5.1 By Building Type
5.1.1 Residential
5.1.2 Commercial
5.1.3 Industrial
5.2 By Component Type
5.2.1 Ventilation Systems
5.2.2 Lighting Technologies
5.2.3 Energy Management Systems
5.2.4 Building Controls
5.2.5 Others
5.3 By Technology
5.3.1 Hardware
5.3.2 Software AG
5.3.3 Services
5.4 By Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 France
5.4.2.3 Italy
5.4.2.4 Spain
5.4.2.5 United Kingdom
5.4.2.6 Poland
5.4.2.7 Russia
5.4.2.8 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 India
5.4.3.3 Japan
5.4.3.4 South Korea
5.4.3.5 Australia
5.4.3.6 Indonesia
5.4.3.7 Vietnam
5.4.3.8 Thailand
5.4.3.9 Rest of Asia-Pacific
5.4.4 South America
5.4.4.1 Brazil
5.4.4.2 Argentina
5.4.4.3 Chile
5.4.4.4 Rest of South America
5.4.5 Middle East and Africa
5.4.5.1 Saudi Arabia
5.4.5.2 United Arab Emirates
5.4.5.3 Egypt
5.4.5.4 South Africa
5.4.5.5 Morocco
5.4.5.6 Rest of Middle East and Africa

6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
6.4.1 Johnson Controls
6.4.2 Honeywell .
6.4.3 Siemens AG
6.4.4 Schneider Electric SE
6.4.5 ABB Ltd
6.4.6 Carrier Global Corporation
6.4.7 Trane Technologies plc
6.4.8 Daikin Industries, Ltd.
6.4.9 Signify N.V.
6.4.10 ROCKWOOL A/S
6.4.11 Saint-Gobain S.A.
6.4.12 Kingspan Group plc
6.4.13 Owens Corning
6.4.14 BASF SE
6.4.15 Covestro AG
6.4.16 The Dow Chemical Company
6.4.17 Mitsubishi Electric Corporation
6.4.18 Azbil Corporation
6.4.19 Ameresco, Inc.
6.4.20 GridPoint, Inc.
6.4.21 KMC Controls, Inc.

7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK

For more information about this report visit https://www.researchandmarkets.com/r/cj5voz

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