South America Net-Zero Energy Buildings - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the South America net-Zero energy buildings market size is expected to grow from USD 0.53 billion in 2025 to USD 0.61 billion in 2026 and is forecast to reach USD 1.31 billion by 2031 at 16.52% CAGR over 2026-2031.

This report is Segmented by Building Type (Residential, Commercial, Institutional, and Industrial), by Offerings (Solutions and Services), by Construction Type (New Construction and Renovation), and by Country (Brazil, Argentina, Colombia, Chile, and Rest of South America). The Market Forecasts are Provided in Terms of Value (USD).

South America Net-Zero Energy Buildings Market Trends and Insights

Energy Performance Regulations and Green Certification Drive Net-Zero Building Adoption

Brazil's CGIEE Resolution No. 4/2025 set minimum energy performance requirements for new buildings and linked compliance to the timing of construction permits. Federal public buildings must reach the ENCE Level A rating from 2027 and a near-zero energy building standard by 2035, while private buildings must meet Level C from 2030. The Ministry of Mines and Energy stated that the measure could save 17 million megawatt-hours and avoid USD 0.5 billion in electricity costs by 2040. That timetable gives developers time to adjust designs, while making future minimum performance more predictable for investors and product suppliers. Colombia's Resolution 0194 of 2025 recognizes Excellence in Design for Greater Efficiencies (EDGE) as a compliance route, making certification more relevant to project approval. Colombia had more than 364,000 EDGE-certified housing units across 25.4 million square meters and 1,282 projects by 2026. These measures give the South America net-zero energy buildings market a clearer path from voluntary certification to measured performance.

Corporate Decarbonization Goals Increase Demand for Sustainable Buildings

Corporate tenants and asset owners are making energy performance a more visible part of site selection and portfolio management. Siemens reported that 57% of surveyed organizations planned to increase investment in energy efficiency, 55% in smart building technologies, and 54% in building electrification within the following year. In Brazil, green certifications are increasingly relevant to real estate fund strategy and to leasing decisions in major business districts. This demand supports commercial buildings, where owners can combine lower operating costs with stronger environmental credentials and respond to tenant reporting requirements. It also underscores the need for commissioning, certification, and advisory services when a building must demonstrate actual performance rather than design intent. The South America net-zero energy buildings market, therefore, has room for service providers that can help owners convert stated targets into verified results, particularly where a lease or financing agreement requires evidence of energy savings.

High Upfront Costs and Limited Green Financing Restrict Market Adoption

Upfront cost remains a major barrier, particularly for private developers outside large urban centers. Siemens found that 60% of commercial real estate executives surveyed considered decarbonization too expensive, while 33% reported adequate access to financing. High local interest rates and limited green finance products make it harder to fund equipment and design changes before energy savings are realized. The World Green Building Council found that 68% of respondents in the Americas cited the lack of financial products as a primary barrier to adoption. This creates a practical gap between a project that looks viable over its operating life and one that can secure construction funding at the outset. The International Finance Corporation identifies Energy-as-a-Service models as a way to shift capital spending toward payments tied to guaranteed savings. Until such structures become more common, the South America net-zero energy buildings market will remain concentrated in projects with stronger balance sheets or public support.

Other drivers and restraints analyzed in the detailed report include:

1. Declining Costs of Distributed Solar and Smart Controls Improve Project Viability
2. Grid Reliability and Climate Risks Increase Demand for Energy-Resilient Buildings
3. Fragmented Regulatory Enforcement and Limited Operational Data Increase Compliance Challenges

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Commercial buildings accounted for 44.70% of the South America net-zero energy buildings market in 2025. Corporate environmental commitments, lease requirements, and green certification activity in prime office districts supported this position. In Sao Paulo, institutional investors and multinational occupiers have made certified space more relevant to portfolio quality and tenant attraction. The Global Network for Zero certified a Brazilian law firm office in June 2025, showing that operational net-zero recognition is reaching standard commercial settings. Commercial owners can more readily justify investments when energy savings, rental positioning, and compliance needs align. This makes the segment central to the South America net-zero energy buildings industry.

Institutional buildings are forecast to expand at a 17.40% CAGR through 2031, the fastest rate among building types. Public mandates and the need for resilient facilities support demand from hospitals, universities, and public buildings. Brazil's PROCEL Energia Zero program committed USD 17.5 million in 2025 for zero-energy retrofits of public facilities, including health and education buildings. The Hospital Oncopediatrico Erastinho in Curitiba received LEED Zero Energy certification in 2024, which provided a regional benchmark for health facilities. Residential demand should also increase as private housing is included in Brazil's future performance framework. Industrial properties are less advanced because retrofits are complex, and landlords and tenants often do not share the benefits of energy investments.

Complete Report Scope:

• By Building Type
  • Residential
  • Commercial
  • Institutional
  • Industrial
• By Offerings
  • Solutions (New Net-Zero Energy Building Development, Net-Zero Building Retrofit, Integrated Design & Delivery and Smart Net-Zero Building Solutions)
  • Services (Architectural & Engineering Design, Construction Services, Commissioning & Certification Services and Consulting Services)
• By Construction Type
  • New Construction
  • Renovation
• By Country
  • Brazil
  • Argentina
  • Colombia
  • Chile
  • Rest of South America

List of Companies Covered in this Report:

1. Schneider Electric SE
2. Johnson Controls International plc
3. Siemens AG
4. Honeywell International Inc.
5. Daikin Industries, Ltd.
6. Trane Technologies plc
7. Carrier Global Corporation
8. Mitsubishi Electric Corporation
9. Panasonic Holdings Corporation
10. ABB Ltd.
11. Saint-Gobain
12. Kingspan Group plc
13. ROCKWOOL A/S
14. Sika AG
15. Legrand SA
16. Bosch Building Technologies
17. Belimo Holding AG
18. Skanska AB
19. Lendlease Group
20. WSP Global Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support