MANHASSET, NY According to a new report from Lux Research, the market for energy saving green buildings technologies will expand from $144 billion today to $277 billion in 2020, representing a 6.1 percent compound annual growth rate.
Rather than take the conventional approach of measuring the market based on property values, Lux Research instead analyzed the revenue and growth potential of the market's enabling technologies.
It defines "green building technologies" as any service, equipment, or material that improves the energy efficiency or reduces net material consumption of a building over and above that of the standard used at the time of original construction.
"The developed world's 728 billion square feet of residential, commercial, and government floor space account for nearly 40 percent of its primary energy use, and consume 72 percent of its electricity," said Michael LoCascio, a Senior Analyst at Lux Research, and the report's lead author. "But while there's increasing interest in cost-saving green building technologies, the market remains poorly defined."
The report focuses on energy-saving green building technologies and came up with the following conclusions:
The energy-saving equipment category will gear up to reach $146 billion in 2015. The segment represented $67 billion in 2009, but new growth in LEDs, smart lighting, and advanced heat technologies will help sustain a 7.3 percent CAGR through 2015.
The services segment will deliver the most robust growth. Strong expansion of emerging technologies, like demand response, will expand the segment's revenues to $55 billion in 2020, reflecting a robust 12 percent CAGR.
Materials are the slowest growing segment, with a few bright spots. Emerging technologies to watch include electrochromic, thermochromic, and thermoreflective windows, which control how much sunlight windows admit.
The report "Diamonds in the Rough: Uncovering Opportunities in the $277 Billion Green Buildings Market" is part of the Lux Green Buildings Intelligence service.