According to a new report titled “Energy Efficient Homes” that has been released by Cleantech market intelligence firm Pike Research, interest in energy efficient homes and buildings is continuously rising as global energy consumption is increasing steadily and this in turn is causing rising demand in power infrastructure leading to greenhouse gas emissions.
The report states that the CAGR of the industry of new construction of energy efficient homes and retrofit buildings will rise by 42% from 2012 to 2020. This translates to usage of 118.6billion sqft of residential space which will create an annual market value of $84 billion by 2020. According to the firm, energy efficient homes are defined as those that are built to exceed the standards of the 2009 Energy Conservation Code by a minimum of 15%.
Of the total growth projected, the strongest growth will be achieved by the European Union with an annual CAGR of 44% through 2020 due to strict mandates on carbon and energy efficiency. The slowest growth will be seen by North America since existing buildings in the market have not been altered. According to Brittany Gibson, research analyst achieving the standards laid down by the International Energy Conservation Code is determined by various factors such as local weather, funds and materials available and local legislation. The report also discusses various important market segments such as water heating, lighting, soft costs, energy audits and HVAC and other appliances with regard to different local and regional markets.