In the larger quest to address climate change and energy use, efficiency plays a major role. Within the realm of efficiency, buildings have become a major focal point.


Along those lines, the market for building-energy-efficiency products and services is in a position to grow. That is the assertion of the recent report, “Energy Efficient Buildings: Global Market,” from Boulder, Colo.-based market research firm Navigant, which identifies a number of factors that support growth.


According to Navigant, one of the primary considerations for energy efficiency is, and always has been, cost. The study notes that, in many countries, energy costs remain less than $0.10 per kilowatt-hour for commercial customers, making the potential payback on efficiency improvements too low to justify their upfront costs.


On the other hand, changes underway have made efficiency a more cost-effective proposition. Navigant asserts that “energy efficiency has become a central part of corporate and government strategies to reduce carbon emissions and manage assets in a strategic manner.” Increasing energy costs have forced many businesses and organizations to look at their existing buildings to cut costs. Meanwhile, green building certification has become more mainstream.


All of this has put the building industry on a long-term path toward greater efficiency. Services that would have seemed costly or unnecessary 5 or 10 years ago are now becoming more mainstream. Navigant reports that many corporations are adopting sustainability initiatives focused on energy efficiency. Government and utility incentive programs also are expanding.


The increase in building energy efficiency supports a strong market for those who provide products and services in that industry. Navigant expects the global market for building energy efficiency to grow from $307 billion to nearly $623 billion in 2023.


In defining and analyzing the building-energy-efficiency market, Navigant examines products such as heating, ventilation, air conditioning, lighting, controls, water efficiency, water heating and building envelope. It also examines services such as installation, commissioning, renewable-energy systems, energy management software and energy-performance contracting.