Energy Retrofit Systems Market Size, Share, and Growth Analysis

Energy Retrofit Systems market by Product (Envelope, HVAC Retrofit), by Application (Commercial, Residential), by Application (Medical Devices, Medical Implants), by region -industry forecast 2025-2032


Report ID: SQMIG10B2110 | Region: Global | Published Date: January, 2025
Pages: 184 |Tables: 62 |Figures: 70

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Energy Retrofit Systems Market Insights

Global Energy Retrofit Systems Market size was valued at USD 202.56 Billion in 2023 poised to grow from USD 217.55 Billion in 2024 to USD 385.12 Billion by 2032, growing at a CAGR of 7.4% in the forecast period (2025-2032).

Consequently, the global energy retrofit systems market has surged due to an overall trend towards environmentally friendly as well as efficient energy alternatives. This trend has been mainly boosted by the intent to reduce consumption of energy at buildings and an environmental concern and retrofitting of solutions is integral to updating these older designs. There is the demand for creative retrofit arrangements by many building owners and chiefs, trying to find frames that work around the existing foundations, allow the system to remain continually checked with possible upgrade mechanisms on energy consumption, detect areas of malfunction, and increase building performances. It probably is a result of the relentless integration of IoT and AI into retrofitting frameworks.

As part of their legislative initiatives and market driver that influence energy retrofit trends, several nations offer financial incentives, tax breaks, and sponsorships to promote the adoption of energy-efficient products. These motivations also set to supportability levels but also produce worthwhile opportunities and stimulate economic growth. Furthermore, the market's interest in energy retrofit systems is influenced by the overall mainstream focus on reducing fossil fuel byproducts. The energy retrofit systems market trends are influenced greatly by the increased mainstream focus on ecologically friendly power sources. The integration of endless developments, such as wind turbines and solar-powered chargers, enables buildings to provide pure energy on-site, strengthening and maintaining the energy base while reducing reliance on conventional sources.

Market snapshot - (2025-2032)

Global Market Size

USD 202.56 Billion

Largest Segment

Envelope

Fastest Growth

HVAC Retrofit

Growth Rate

7.4% CAGR

Global Energy Retrofit Systems Market ($ Bn)
Country Share by North America (%)

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Energy Retrofit Systems Market Segments Analysis

The global energy retrofit systems market is segmented based on product, application, and regions. In terms of product, the market is grouped into envelope, LED retrofit lighting, HVAC retrofit, and appliances. Based on application, the market is divided into residential and commercial. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Central & South America and the Middle East & Africa.

Analysis by Product

As per categorization by product, the market is classified as envelope, LED retrofit lighting, HVAC retrofit, and appliances. Among these, envelope earned the largest share and continues to hold the dominant global energy retrofit systems market share. Envelope products, including advanced insulation materials and energy-efficient building envelopes, are at the forefront of the global energy retrofit systems market. Their innovative designs improve energy performance, thereby suppressing heat loss and improving thermoregulation in buildings. As energy efficiency becomes a top priority, Envelope products dominate the market as it can significantly lower energy consumption, provide long-term cost savings, and help meet sustainability goals, which makes it an integral part of every energy-efficient retrofitting project on the globe.

HVAC retrofit products are poised to be the fastest-growing segment in the global energy retrofit systems market due to the increasing demand for energy-efficient solutions in commercial and residential buildings. The need for energy-saving measures and environmentally friendly ways to consume energy are driving benefits of upgrading old HVAC systems into newer, efficient, smart, and environmentally friendly technologies. Improving indoor air quality, decreasing operational costs, and reducing carbon footprint are some benefits from these retrofits. More so, improved automation and integration of IoT further makes HVACs responsive and adaptive to the point of increasing demand for energy retrofit projects as the owners of the buildings look forward to cost-effective and sustainable sources of energy.

Analysis by Application

Commercial applications are driving significant innovation in the global energy retrofit systems market, with businesses focusing on enhancing energy efficiency to reduce operational costs and meet sustainability goals. Such technologies for smart building as well as smart energy management system, advanced insulation, and highly efficient HVAC are common nowadays with commercial retrofit. These innovations are reducing energy consumption while enhancing comfort and productivity of the occupants of a commercial property. Highly sought after by the commercial sector, and more so by the growing push for green certifications and cost reductions and environmental responsibility, the commercial sector leads the market share. Commercial properties also receive incentives from local governments that further prop up adoption.

Residential applications are set to become the fastest-growing segment in the global energy retrofit systems market due to increasing awareness of energy efficiency and rising energy costs. Homeowners are looking for affordable ways to decrease utility bills, increase comfort, and add sustainability. Technologies used include energy-efficient windows, improved insulation, smart thermostats, and installation of solar panels. The fact that most governments have introduced incentives and rebates for implementing such energy-efficient upgrades encourages adoption. With growing environmental awareness and accessibility of technology, residential energy retrofitting is expected to gain more momentum in the future and will be on top of the agenda for the future of energy conservation.

Global Energy Retrofit Systems Market By Product (%)

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Energy Retrofit Systems Market Regional Insights

North America dominates the global energy retrofit systems market due to a combination of regulatory frameworks, technological advancements, and strong demand for energy efficiency. Incentives and tax rebates from the U.S. and Canadian governments for energy-efficient building upgrades have been very attractive, and the region also has a well-developed construction and infrastructure sector where energy retrofit systems are becoming more integrated in new builds and renovations. Along with the surging awareness towards climate change and with a proper concentration on sustainability and carbon emission, North America becomes a potential region for adoption of energy retrofit systems in both commercial, residential, and industrial fields.

Asia-Pacific is the fastest-growing region for the global energy retrofit systems market due to rapid urbanization, increasing energy consumption, and rising environmental awareness. Countries like China, India, and Japan are working towards energy-efficient retrofits to achieve stringent energy conservation goals as well as reduce carbon footprints. The government initiatives through incentives in updating the green building and smart city development projects are driving the demand for energy retrofit systems. Growth in the size of the middle class, along with investments in sustainable infrastructure, results in the adoption of energy-efficient systems. Therefore, Asia-Pacific is a leading growth driver of the global energy retrofit systems market.

Global Energy Retrofit Systems Market By Geography
  • Largest
  • Fastest

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Energy Retrofit Systems Market Dynamics

Drivers

Government Incentives and Regulations

  • Government policies and incentives play a significant role in the growth of the energy retrofit systems market. Investment in energy-efficient technology is encouraged by policies on efficiency, green building certifications, and financial incentives offered for retrofitting projects. Reducing carbon footprint, stimulating demand within the market, and fostering sustainability worldwide are ensured through these policies.

Growing Environmental Awareness

  • Increasing global awareness about climate change and the need for sustainability is driving for the global energy retrofit systems market growth. Consumers, industries, and the government are giving more importance to reducing carbon footprints and being energy efficient. This environmental awareness promotes retrofit systems, which can easily meet the desired energy-saving and eco-friendly results.

Restraints

Complexity in Implementation

  • Energy retrofitting involves intricate design and integration of various technologies, such as HVAC, insulation, and energy management systems. The complexity of retrofitting older buildings to meet modern energy efficiency standards can create challenges in terms of time, cost, and technical expertise, hindering widespread adoption in certain markets.

Long Payback Period

  • While energy retrofit systems offer long-term savings, the payback period can be lengthy, especially for large-scale commercial projects. The extended ROI can deter businesses and homeowners from embarking on the initial investment, especially in areas where returns are sought sooner rather than later.

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Energy Retrofit Systems Market Competitive Landscape

The global energy retrofit systems market is fiercely competitive, but due to more innovations in a system that deals with energy efficiencies by international-based companies, major market players operating within this region are Johnson Controls, Schneider Electric, Siemens, Honeywell, and Trane Technologies. These majors primarily focus upon supplying advanced forms of technologies used, such as smart building solutions, energy-friendly heating, cooling, and insulation, to offer greater retrofit solutions throughout residential and industrial sectors for businesses. Strategic partnerships, technological innovation, and government collaborations are the bases for maintaining a market leadership position.

Top Players in Energy Retrofit Systems Market

  • Johnson Controls (USA)
  • Schneider Electric (France)
  • Siemens (Germany)
  • Honeywell (USA)
  • Trane Technologies (Ireland)
  • ABB (Switzerland)
  • Bosch Thermotechnology (Germany)
  • Carrier Global Corporation (USA)
  • Daikin Industries (Japan)
  • Veolia North America (USA)
  • McKinstry (USA)
  • RICS Group (UK)
  • Arup Group (UK)
  • Lennox International (USA)
  • S&P Global (USA)

Recent Developments

  • In March 2023, Siemens has announced an expansion of its energy retrofit solutions in North America, which focus on the integration of renewable energy technologies into commercial buildings. New retrofit packages will include advanced energy storage systems, solar panels, and energy-efficient HVAC technologies that allow businesses to reduce their carbon footprints and energy costs significantly.
  • In October 2024, Johnson Controls has announced its new energy-efficient building technologies to reduce carbon emissions. The company launched a smart HVAC system integrated with IoT, enabling real-time energy management for commercial buildings. This innovation enhances building performance, lowers energy costs, and supports sustainability goals globally.
  • In July 2023, Schneider Electric launched its EcoStruxure™ Retrofit solution, combining energy management software with cutting-edge hardware to optimize energy use in industrial facilities. This system assists organizations in saving energy, monitoring performance, and achieving sustainability targets while enhancing energy efficiency through automation and real-time monitoring technologies.

Energy Retrofit Systems Key Market Trends

Energy Retrofit Systems Market SkyQuest Analysis

SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

As per SkyQuest analysis, the global energy retrofit systems industry has been growing vigorously due to enhanced demand for more energy-efficient products in the global residential and commercial sectors. Changing market dynamics due to innovation in retrofit technologies, that is, the integration of renewable energy and incorporation of IoT- enabled energy management systems in a smart building.

Government incentives and heightened environmental awareness further promote the adoption of energy retrofits systems. While challenges like long payback periods exist, the sector's future remains bright, especially with the continuous development of energy-saving solutions and global efforts to mitigate climate change, ensuring long-term sustainability and reduced carbon footprints worldwide.

Report Metric Details
Market size value in 2023 USD 202.56 Billion
Market size value in 2032 USD 385.12 Billion
Growth Rate 7.4%
Base year 2024
Forecast period (2025-2032)
Forecast Unit (Value) USD Billion
Segments covered
  • Product
    • Envelope, LED Retrofit Lighting, HVAC Retrofit, and Appliances
  • Application
    • Residential and Commercial
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Johnson Controls (USA)
  • Schneider Electric (France)
  • Siemens (Germany)
  • Honeywell (USA)
  • Trane Technologies (Ireland)
  • ABB (Switzerland)
  • Bosch Thermotechnology (Germany)
  • Carrier Global Corporation (USA)
  • Daikin Industries (Japan)
  • Veolia North America (USA)
  • McKinstry (USA)
  • RICS Group (UK)
  • Arup Group (UK)
  • Lennox International (USA)
  • S&P Global (USA)
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Energy Retrofit Systems Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Energy Retrofit Systems Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Energy Retrofit Systems Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Energy Retrofit Systems Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Energy Retrofit Systems Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Energy Retrofit Systems Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Global Energy Retrofit Systems Market size was valued at USD 202.56 Billion in 2023 poised to grow from USD 217.55 Billion in 2024 to USD 385.12 Billion by 2032, growing at a CAGR of 7.4% in the forecast period (2025-2032).

The global energy retrofit systems market is fiercely competitive, but due to more innovations in a system that deals with energy efficiencies by international-based companies, major market players operating within this region are Johnson Controls, Schneider Electric, Siemens, Honeywell, and Trane Technologies. These majors primarily focus upon supplying advanced forms of technologies used, such as smart building solutions, energy-friendly heating, cooling, and insulation, to offer greater retrofit solutions throughout residential and industrial sectors for businesses. Strategic partnerships, technological innovation, and government collaborations are the bases for maintaining a market leadership position. 'Johnson Controls (USA)', 'Schneider Electric (France)', 'Siemens (Germany)', 'Honeywell (USA)', 'Trane Technologies (Ireland)', 'ABB (Switzerland)', 'Bosch Thermotechnology (Germany)', 'Carrier Global Corporation (USA)', 'Daikin Industries (Japan)', 'Veolia North America (USA)', 'McKinstry (USA)', 'RICS Group (UK)', 'Arup Group (UK)', 'Lennox International (USA)', 'S&P Global (USA)'

Government policies and incentives play a significant role in the growth of the energy retrofit systems market. Investment in energy-efficient technology is encouraged by policies on efficiency, green building certifications, and financial incentives offered for retrofitting projects. Reducing carbon footprint, stimulating demand within the market, and fostering sustainability worldwide are ensured through these policies.

Rising Demand for Smart Energy Retrofit Solutions: The global energy retrofit systems market trend is experiencing a surge in demand for smart technologies, such as IoT-enabled energy management systems. These solutions will allow real-time monitoring, control and optimization of energy use, thereby enabling buildings to become more efficient and reduce their costs. It's hence the case that these solutions will be used widely across sectors.

North America dominates the global energy retrofit systems market due to a combination of regulatory frameworks, technological advancements, and strong demand for energy efficiency. Incentives and tax rebates from the U.S. and Canadian governments for energy-efficient building upgrades have been very attractive, and the region also has a well-developed construction and infrastructure sector where energy retrofit systems are becoming more integrated in new builds and renovations. Along with the surging awareness towards climate change and with a proper concentration on sustainability and carbon emission, North America becomes a potential region for adoption of energy retrofit systems in both commercial, residential, and industrial fields.

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Energy Retrofit Systems Market

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