PUBLISHER: The Business Research Company | PRODUCT CODE: 1877640
PUBLISHER: The Business Research Company | PRODUCT CODE: 1877640
Energy retrofit systems refer to upgrades or modifications made to existing buildings or infrastructure to enhance energy efficiency and reduce overall energy consumption. These systems often incorporate advanced technologies to optimize performance, lower operational costs, and minimize environmental impact. They also promote sustainability, extend the lifespan of structures, and support efforts to mitigate climate change.
The primary types of energy retrofit systems include heating, ventilation, and air conditioning (HVAC) and controls, insulation and glazing, lighting and controls, and water heating. HVAC retrofitting focuses on upgrading systems with high-efficiency components and smart controls to improve energy performance, comfort, and environmental sustainability. These systems are implemented across residential, commercial, and public buildings and are utilized by various end-users, including homeowners, property managers, government agencies, and others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the utilities sector, particularly in power generation, grid infrastructure, and renewable energy projects. Higher duties on imported equipment such as turbines, transformers, solar panels, and battery storage systems have increased capital and operational costs for utility providers, forcing them to reconsider project timelines or pass on expenses to consumers through higher energy rates. The water and waste management segments are also affected, with tariffs driving up the cost of essential machinery, piping, and treatment technologies. Additionally, retaliatory tariffs have disrupted global supply chains for critical raw materials like rare earth metals used in clean energy technologies, further complicating the transition to sustainable energy sources. The sector must now prioritize domestic sourcing, digitalization, and efficiency-driven innovations to manage escalating costs while ensuring energy security and regulatory compliance.
The energy retrofit systems market research report is one of a series of new reports from The Business Research Company that provides energy retrofit systems market statistics, including energy retrofit systems industry global market size, regional shares, competitors with the energy retrofit systems market share, energy retrofit systems market segments, market trends, and opportunities, and any further data you may need to thrive in the energy retrofit systems industry. This energy retrofit systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The energy retrofit systems market size has grown strongly in recent years. It will grow from $174.25 billion in 2024 to $186.63 billion in 2025 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to the increasing demand for smart energy management, rising energy costs, growing environmental awareness, heightened focus on building efficiency, and the expanding adoption of insulation and glazing retrofits.
The energy retrofit systems market size is expected to see strong growth in the next few years. It will grow to $242.35 billion in 2029 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to the increasing demand for energy-efficient buildings, rising government incentives and regulations promoting sustainable infrastructure, growing adoption of green building certifications, expanding retrofitting of aging infrastructure, and heightened focus on reducing carbon emissions. Major trends in the forecast period include advancements in smart building technologies, development of energy-efficient HVAC retrofits, innovations in renewable energy integration, incorporation of IoT-enabled energy management systems, and progress in green building materials.
The rising energy consumption is expected to drive the growth of the energy retrofit systems market in the coming years. This increase is primarily driven by rapid urbanization, as expanding cities require more commercial buildings, residential complexes, and industrial facilities that continuously consume energy for their operations. The growing demand for energy highlights the importance of adopting energy retrofit systems to enhance efficiency, reduce waste, and lower operational costs while minimizing environmental impacts. For example, in 2025, according to energy.gov.au, an Australian government statistics source, the country's energy consumption rose by 0.5% in 2023-24 to 5,977 petajoules, marking an increase of 27 petajoules. Therefore, the rising energy consumption is a key factor contributing to the growth of the energy retrofit systems market.
Major companies in the energy retrofit systems market are focusing on developing innovative solutions such as energy-efficient heating systems to improve home energy performance and reduce carbon emissions. These systems are designed to provide effective heating while using less energy, helping reduce utility costs and improve comfort. For instance, in April 2025, the Royal Institution of Chartered Surveyors (RICS), a UK-based professional body for property, land, and infrastructure standards, launched a residential retrofit and energy improvement guide. The guide offers detailed insights on energy-efficient home upgrades, including heating systems, insulation, ventilation, and energy audits, enabling homeowners to make informed decisions and participate in the growing energy retrofit market. This initiative reflects the increasing emphasis on sustainable housing solutions and the expanding opportunities for businesses offering practical tools and technologies to accelerate residential energy retrofits.
In June 2024, Energy Systems Group LLC, a US-based energy services provider, acquired Yearout Energy Services LLC for an undisclosed amount. Through this acquisition, Energy Systems Group aims to expand its national reach, strengthen its service offerings, and diversify its client base across key southwestern states such as Texas, Colorado, Arizona, and New Mexico. The acquisition will enable the company to deliver comprehensive energy efficiency, distributed generation, resiliency, and sustainability solutions. Yearout Energy Services LLC, a US-based energy services and design-build construction firm, specializes in energy retrofit systems, reinforcing Energy Systems Group's position in the growing national energy solutions market.
Major players in the energy retrofit systems market are ENGIE SA, Siemens AG, General Electric Company, Schneider Electric SE, Mitsubishi Electric Corporation, Honeywell International Inc., Cummins Inc., Centrica Business Solutions Ltd., ABB Ltd, Daikin Industries Ltd., Toshiba Corporation, Johnson Controls International plc, Eaton Corporation plc, Trane Technologies plc, Emerson Electric Co., AECOM Technology Corporation, Tremco CPG Inc., Ameresco Inc., Orion Energy Systems Inc., and Home Innovation Research Labs Inc.
Europe was the largest region in the energy retrofit systems market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in energy retrofit systems report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the energy retrofit systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The energy retrofit systems market consists of sales of lighting systems, building insulation materials, boilers, geothermal heat pumps, energy storage systems, and smart building automation and control systems. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Energy Retrofit Systems Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on energy retrofit systems market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for energy retrofit systems ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The energy retrofit systems market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.