Net-Zero Energy Buildings Market Size, Share, Analysis, Trends, Growth, Forecasts, 2032

Net-Zero Energy Buildings Industry Prospective:

The global net-zero energy buildings market size was evaluated at $47 billion in 2023 and is slated to hit $191 billion by the end of 2032 with a CAGR of nearly 18% between 2024 and 2032.

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Net-Zero Energy Buildings Market: Overview

Net-zero energy buildings are structures designed to produce only the energy needed for yearly consumption. Apart from this, they help achieve a balance between energy usage and production. Furthermore, the large-scale popularity of net-zero energy buildings can be attributed to the surging requirement of maintaining a sustainable environment, the need to minimize carbon emissions, and the need to reduce energy consumption.

Key Insights

• s per the analysis shared by our research analyst, the global net-zero energy buildings market is projected to expand annually at the annual growth rate of around 18% over the forecast timespan (2024-2032)
• In terms of revenue, the global net-zero energy buildings market size was evaluated at nearly $47 billion in 2023 and is expected to reach $191 billion by 2032.
• The global net-zero energy buildings market is anticipated to grow rapidly over the forecast timespan owing to new technological breakthroughs such as innovations in PV tools and solar panels along with an immense increment in the use of geothermal & wind energy.
• In terms of building type, the residential segment is slated to register the highest CAGR over the forecast period.
• Based on construction phase, the new construction segment is predicted to record immense growth in the upcoming years.
• Region-wise, the Asia-Pacific net-zero energy buildings industry is projected to register the fastest CAGR during the projected timespan.

Net-Zero Energy Buildings Market: Growth Factors

Launch of green technologies in construction activities will drive the global market surge by 2032

New technological breakthroughs, such as innovations in PV tools and solar panels, along with an immense increment in the use of geothermal & wind energy, have culminated in massive global net-zero energy buildings market demand. Moreover, constant enhancements in energy management systems, along with their integration with renewable energy sources, will drive the market trends globally.

Furthermore, the need to improve the proficiency of buildings will scale up the expansion of the market globally. Adoption of NZEB practices and the need for strict laws related to green building certifications can proliferate the size of the global market.

Moreover, benefits offered by net-zero energy buildings include environmental sustainability, enhanced indoor air quality, financial benefits, and comfortable living provided by advanced HVAC systems & efficient insulation tools.

Net-Zero Energy Buildings Market: Restraints

Need for high fund allocation for new constructions can hinder the global industry surge over 2024-2032

The necessity of huge initial investments in deploying solar panels or solar cells (PV cells) can inhibit the expansion of the global net-zero energy building industry. Furthermore, technological limitations and changing government policies can shrink the global industry expansion.

Net-Zero Energy Buildings Market: Opportunities

Supportive government schemes can open new horizons for global market growth in the coming years

Favorable government initiatives such as tax incentives and grants, along with a growing preference for reducing power utility bills, can open new panoramas of growth for the global net-zero energy buildings market. Moreover, constructions with low energy charges and enhanced power conservation have led to an increment in the real-estate prices, thereby scaling up the global market surge.

Net-Zero Energy Buildings Market: Challenges

Lesser know-how of advantages provided by green edifices can obstruct the global industry progress in the forthcoming years

Lack of awareness about the benefits offered by net-zero energy buildings to homeowners can deter the growth of the global net-zero energy buildings industry. Additionally, the non-uniform policies of lawmakers and supply chain limitations can further demean the industry space in the coming years.

Net-Zero Energy Buildings Market: Segmentation

The global net-zero energy buildings market is divided into building type, construction phase, and region.                                             

In terms of building type, the net-zero energy buildings market across the globe is segmented into residential and commercial segments. Apparently, the residential segment, which amassed nearly 54% of the global market revenue in 2023, is anticipated to record the fastest CAGR in the coming seven years due to an increase in the number of homeowners as well as renters across the globe with an increase in the migration population. Additionally, growing investments in rental properties are likely to augment the segmental surge.

Based on the construction phase, the global net-zero energy buildings industry is segmented into renovation and new construction segments. Apparently, the new construction segment, which accounted hugely to the global industry revenue in 2023, is anticipated to register lucrative growth in the ensuing years. This can be credited to the cost-efficiency and demand for new designs by the house owners for improving power efficiency and reducing energy wastage in buildings.

Net-Zero Energy Buildings Market: Report Scope

Net-Zero Energy Buildings Market: Regional Insights

North America is likely to maintain leading status in the global market over the analysis timespan

North America, which contributed about 46% of the global net-zero energy buildings market earnings in 2023, is slated to establish a leading position in the global market in the coming few years. Additionally, the regional market progression in the next couple of years can be credited to supportive government policies and the launch of energy-efficient technologies in countries such as the U.S. Furthermore, supportive government incentives will spur regional market trends.  

The Asia-Pacific net-zero energy buildings industry is likely to record the fastest compound annual growth rate in the forecast timeline. The elevation of the industry in Asia-Pacific can be a result of swift urbanization and a surge in construction activities in India and China. Apart from this, supportive government initiatives, along with the presence of giant firms in the sub-continent, will aid the progress of the industry in the APAC zone.

Key Developments

• In March 2024. Mahindra Lifespaces Developers Limited, the real estate & infrastructure development unit of Mahindra Group of Companies, introduced Mahindra Zen, a zero-waste energy residential venture in Bangalore, India.

Net-Zero Energy Buildings Market: Competitive Space

The global net-zero energy buildings market profiles key players such as:

• Mitsubishi Electric Corporation
• Altura Associates LLC
• Daikin Industries Ltd.
• Siemens AG
• Kingspan Group plc
• Canadian Solar Inc.
• General Electric Company
• Honeywell International Inc.
• Rockwool Group
• Schneider Electric SE.

The global net-zero energy buildings market is segmented as follows:

By Building Type

• Residential
• Commercial

By Construction Phase

• Renovation
• New Construction

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa