• Cat-intel
  • MedIntelliX
  • Resources
  • About Us
  • Request Free Sample ×

    Kindly complete the form below to receive a free sample of this Report

    Leading companies partner with us for data-driven Insights

    clients tt-cursor
    Hero Background

    Net Zero Energy Buildings Market

    ID: MRFR/CO/24114-CR
    111 Pages
    Tejas Chaudhary
    September 2024

    Net Zero Energy Buildings Market Research Report By Building Type (Residential Buildings, Commercial Buildings, Institutional Buildings, Industrial Buildings), By Energy Source (Solar Photovoltaics, Wind Power, Geothermal Energy, Biomass Energy, Hydropower), By Construction Method (New Construction, Retrofit), By Net Zero Energy Requirement (On-Grid Net Zero, Off-Grid Net Zero, Passive House) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

    Share:
    Download PDF ×

    We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

    Net Zero Energy Buildings Market Infographic
    Purchase Options

    Net Zero Energy Buildings Market Summary

    The Global Net Zero Energy Buildings Market is projected to grow from 91.47 USD Billion in 2024 to 672.97 USD Billion by 2035, indicating robust expansion.

    Key Market Trends & Highlights

    Net Zero Energy Buildings Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 19.89% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 673.0 USD Billion, showcasing significant growth potential.
    • in 2024, the market is valued at 91.47 USD Billion, reflecting the increasing focus on sustainable building practices.
    • Growing adoption of energy-efficient technologies due to rising environmental concerns is a major market driver.

    Market Size & Forecast

    2024 Market Size 91.47 (USD Billion)
    2035 Market Size 672.97 (USD Billion)
    CAGR (2025-2035) 19.89%

    Major Players

    Siemens, Schneider Electric, Honeywell, Eaton, Cisco Systems, Johnson Controls, Daikin Industries, Carrier Global, Legrand, ABB, Trane Technologies, Emerson Electric, Mitsubishi Electric, Hitachi, Lutron Electronics

    Net Zero Energy Buildings Market Trends

    The demand for NZEB is expected to continue to grow as governments and consumers become more aware of the environmental and economic benefits they offer.

     

    The increasing emphasis on sustainability and energy efficiency in the construction sector appears to drive a transformative shift towards Net Zero Energy Buildings, reflecting a growing commitment to reducing carbon footprints and enhancing energy resilience.

    U.S. Department of Energy

    Net Zero Energy Buildings Market Drivers

    Rising Energy Costs

    Rising energy costs are a critical factor influencing the Global Net Zero Energy Buildings Market Industry. As traditional energy prices continue to escalate, the financial appeal of net zero energy buildings becomes increasingly pronounced. These buildings, which produce as much energy as they consume, offer a viable solution to mitigate energy expenses. In many regions, homeowners and businesses are seeking ways to reduce their reliance on grid energy, thus driving demand for energy-efficient designs and renewable energy installations. This shift is likely to propel the market towards an estimated value of 673.0 USD Billion by 2035.

    Market Growth Projections

    The Global Net Zero Energy Buildings Market Industry is poised for substantial growth, with projections indicating a market value of 91.5 USD Billion in 2024 and an anticipated increase to 673.0 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate (CAGR) of 19.89% from 2025 to 2035. The increasing adoption of energy-efficient technologies, supportive government policies, and rising consumer demand for sustainable living solutions are key factors contributing to this upward trend. As the industry evolves, stakeholders are likely to explore innovative strategies to capitalize on emerging opportunities.

    Technological Advancements

    Technological advancements are significantly driving the Global Net Zero Energy Buildings Market Industry. Innovations in energy-efficient technologies, such as smart grids, advanced insulation materials, and renewable energy systems, are enhancing the feasibility of net zero energy buildings. For example, the integration of solar photovoltaic systems and energy storage solutions allows buildings to generate and store their own energy. This trend is expected to contribute to a compound annual growth rate (CAGR) of 19.89% from 2025 to 2035, as more stakeholders recognize the economic and environmental benefits of adopting these technologies.

    Consumer Awareness and Demand

    Consumer awareness and demand for sustainable living options are accelerating the growth of the Global Net Zero Energy Buildings Market Industry. As environmental concerns become more prevalent, individuals and organizations are increasingly prioritizing sustainability in their purchasing decisions. This heightened awareness is leading to a greater demand for net zero energy buildings, which are perceived as a responsible choice for reducing carbon footprints. Market players are responding by offering more eco-friendly building solutions, thereby expanding their market share and contributing to the overall growth of the industry.

    Urbanization and Population Growth

    Urbanization and population growth are driving forces behind the Global Net Zero Energy Buildings Market Industry. As urban areas continue to expand, the demand for energy-efficient buildings becomes more pressing. The increasing population in cities necessitates innovative solutions to manage energy consumption and reduce environmental impact. Net zero energy buildings offer a sustainable alternative to traditional construction methods, aligning with urban development goals. This trend is expected to sustain market growth, as cities strive to meet the energy needs of their growing populations while minimizing their carbon footprints.

    Government Regulations and Incentives

    Government regulations and incentives play a pivotal role in the Global Net Zero Energy Buildings Market Industry. Many countries are implementing stringent building codes and standards aimed at reducing carbon emissions. For instance, the European Union has set ambitious targets for energy efficiency and renewable energy use in buildings. These regulations often come with financial incentives, such as tax credits and grants, which encourage developers and homeowners to invest in net zero energy buildings. As a result, the market is projected to reach 91.5 USD Billion in 2024, reflecting the growing commitment to sustainable construction practices.

    Market Segment Insights

    Net Zero Energy Buildings Market Building Type Insights  

    The Net Zero Energy Buildings Market segmentation by building type encompasses residential buildings, commercial buildings, institutional buildings, and industrial buildings. Among these segments, residential buildings hold a significant market share owing to growing consumer awareness regarding energy efficiency and sustainability. The increasing adoption of smart home technologies and government incentives for energy-efficient construction further contribute to the growth of this segment. Commercial buildings, including offices, retail stores, and hospitality establishments, also represent a substantial market segment.The focus on reducing operating costs and enhancing occupant comfort drives the adoption of net zero energy solutions in this sector.

    Institutional buildings such as schools, hospitals, and government buildings prioritize energy efficiency due to their large energy consumption and public service mandate. Industrial buildings, including manufacturing facilities and warehouses, offer significant potential for net zero energy adoption as they seek to optimize energy usage and reduce environmental impact. The Net Zero Energy Buildings Market revenue is projected to reach USD 80.36 billion in 2024, showcasing the growing importance of sustainable and energy-efficient building practices worldwide.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Net Zero Energy Buildings Market Energy Source Insights  

    The Global Net Zero Energy Buildings  Market is segmented based on energy source, solar photovoltaic, wind power, geothermal energy, biomass energy, hydro power, amongst others. The solar photovoltaics held  the largest market share in 2023, and is expected to continue its dominance in the forthcoming years. The growth can be attributed to the increase in the  installation of solar panels owing to reducing costs, and the support of the government.

    One of the major energies used is wind power, and the segment is anticipated to grow due to high demand for green energy sources.Geothermal energy is another key enery type and is expected to garner a significant market share, as it is a reliable and sustainable energy. biomass energy and hydro power are other important segments which are anticipated to grow the overall Net Zero Energy Buildings market.

    Net Zero Energy Buildings Market Construction Method Insights  

    The Net Zero Energy Buildings Market is segmented by Construction Method into New Construction and Retrofit. New Construction is expected to hold a larger market share over the forecast period, due to the increasing demand for sustainable and energy-efficient buildings. The Net Zero Energy Buildings Market for New Construction is expected to reach a valuation of USD 35.8 billion by 2026, exhibiting a CAGR of 22.5% during the forecast period. The Retrofit segment is expected to witness significant growth over the forecast period.

    The increasing focus on energy efficiency and sustainability in existing buildings is driving the growth of this segment.The Net Zero Energy Buildings Market for Retrofit is expected to reach a valuation of USD 27.9 billion by 2026, exhibiting a CAGR of 20.4% during the forecast period.

    Net Zero Energy Buildings Market Net Zero Energy Requirement Insights  

    The Net Zero Energy Buildings Market is segmented by Net Zero Energy Requirement into On-Grid Net Zero, Off-Grid Net Zero, and Passive House. In 2023, the On-Grid Net Zero segment held the largest market share, accounting for over 60% of the Net Zero Energy Buildings Market revenue. The Off-Grid Net Zero segment is expected to grow at the highest CAGR during the forecast period, due to the increasing demand for off-grid energy solutions in remote areas.

    The Passive House segment is also expected to grow at a significant CAGR, due to the increasing awareness of the benefits of passive design principles.

    Get more detailed insights about Net Zero Energy Buildings Market

    Regional Insights

    The regional segmentation of the Net Zero Energy Buildings Market offers valuable insights into the market's geographical distribution and growth opportunities. North America is expected to hold a significant market share due to the increasing adoption of energy-efficient building technologies and government initiatives promoting sustainable construction. Europe is another major market, driven by stringent environmental regulations and a growing focus on energy independence.

    The APAC region is projected to witness substantial growth, fueled by rapid urbanization and rising demand for energy-efficient buildings.South America and MEA are emerging markets with growing potential, as governments and businesses recognize the benefits of net zero energy buildings.

    Net Zero Energy Buildings Market Regional Insights

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    Key players in the Net Zero Energy Buildings Market are making their presence global and product offers diverse to meet the rising demand for energy-efficient and sustainable building. The Net Zero Energy Buildings Market is unwavering as the leading players in the market are either wholly acquiring companies or setting up mutually beneficial alliances and joint ventures to increase their market share. Adopting two or more development strategies has always been paramount for companies to thrive, more so for the increasingly consolidating Net Zero Energy Buildings Market.

    However, the Net Zero Energy Buildings Market faces considerable threats and opportunities, ongoing side by side.According to the research, Siemens is considered to be one of the leading companies within the Net Zero Energy Buildings Market. Among the energy-efficient building technologies and solutions proposed by the organization are smart building management systems, energy monitoring and optimization solutions, and renewable energy generation systems. With its headquarters in Germany, the company serves different clients worldwide, including commercial, industrial, and government organizations.

    At present, Siemens is devoted to the achievement of its sustainability goals and promoting innovations; due to this, it gives utmost priority to research in order to improve the energy performance of buildings.This is how it stands with the competitor company – Schneider Electric, which offers not only overall energy management but automation within the building, from energy meters and software to building automation. It is also focusing on the development of sustainability solutions helping organizations reduce their energy consumption and emission levels.

    Schneider’s has its headquarters in France and serves clients around the globe, from commercial and industrial to residential.

    Key Companies in the Net Zero Energy Buildings Market market include

    Industry Developments

    The Net Zero Energy Buildings market is projected to experience significant growth in the coming years, driven by increasing environmental concerns and government regulations promoting sustainable building practices. In 2023, the market is valued at approximately USD 63.63 billion, and it is expected to reach USD 325.5 billion by 2032, exhibiting a CAGR of 19.89% during the forecast period. The rising demand for energy-efficient buildings, coupled with technological advancements in renewable energy sources, is expected to fuel market expansion. Additionally, government initiatives and incentives for green building construction are anticipated to bolster market growth.

    Notable recent developments include the launch of the "Net Zero Energy Commercial Buildings Initiative" by the U.S. Department of Energy and the announcement of the "Green Building Masterplan" by the Singapore government, which aims to transform the country's built environment into a sustainable and low-carbon one.

    Future Outlook

    Net Zero Energy Buildings Market Future Outlook

    The Net Zero Energy Buildings Market is projected to grow at a 19.89% CAGR from 2025 to 2035, driven by regulatory support, technological advancements, and increasing energy efficiency demands.

    New opportunities lie in:

    • Develop integrated energy management systems for real-time monitoring and optimization. Invest in innovative building materials that enhance energy efficiency and sustainability. Expand service offerings in retrofitting existing buildings to achieve net zero standards.

    By 2035, the Net Zero Energy Buildings Market is expected to be a cornerstone of sustainable construction globally.

    Market Segmentation

    Net Zero Energy Buildings Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Net Zero Energy Buildings Market Building Type Outlook

    • {""=>["Solar Photovoltaics"
    • "Wind Power"
    • "Geothermal Energy"
    • "Biomass Energy"
    • "Hydropower"]}

    Net Zero Energy Buildings Market Energy Source Outlook

    • {""=>["New Construction"
    • "Retrofit"]}

    Net Zero Energy Buildings Market Construction Method Outlook

    • New Construction
    • Retrofit

    Net Zero Energy Buildings Market Net Zero Energy Requirement Outlook

    • {""=>["North America"
    • "Europe"
    • "South America"
    • "Asia Pacific"
    • "Middle East and Africa"]}

    Report Scope

    Report Attribute/MetricDetails
    Market Size 202491.47(USD Billion)
    Market Size 2025109.67(USD Billion)
    Market Size 2035672.97 (USD Billion)
    Compound Annual Growth Rate (CAGR)19.89% (2025 - 2035)
    Report CoverageRevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year2024
    Market Forecast Period2025 - 2035
    Historical Data2020 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledHoneywell ,Eaton ,Cisco Systems ,Schneider Electric ,Johnson Controls ,Daikin Industries ,Siemens ,Carrier Global ,Legrand ,ABB ,Trane Technologies ,Emerson Electric ,Mitsubishi Electric ,Hitachi ,Lutron Electronics
    Segments CoveredBuilding Type ,Energy Source ,Construction Method ,Net Zero Energy Requirement ,Regional
    Key Market OpportunitiesEnergyefficient designs Government incentives Rising environmental concerns Technological advancements Smart home integration
    Key Market DynamicsRising energy costs Government incentives Technological advancements Growing environmental concerns Increasing demand for sustainable buildings
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    FAQs

    What is the expected market size of the Net Zero Energy Buildings Market in 2025?

    The Net Zero Energy Buildings Market is expected to reach a valuation of USD 109.67 billion in 2025.

    What is the projected CAGR of the Net Zero Energy Buildings Market from 2025 to 2034?

    Net Zero Energy Buildings Market is expected to grow with a CAGR of 19.89% in the period 2025-2035

    Which region is expected to hold the largest market share in the Net Zero Energy Buildings Market in 2024?

    Net Zero Energy Buildings Market was valued at USD 91.47 Billion in 2024

    What are the key applications of Net Zero Energy Buildings?

    Key applications of Net Zero Energy Buildings include residential, commercial, and industrial buildings.

    Who are some of the key competitors in the Net Zero Energy Buildings Market?

    Key competitors in the Net Zero Energy Buildings Market include Skanska AB, Lendlease Group, and Siemens AG.

    What are the major growth drivers of the Net Zero Energy Buildings Market?

    Major growth drivers of the Net Zero Energy Buildings Market include increasing environmental concerns, government regulations, and technological advancements.

    What are the challenges faced by the Net Zero Energy Buildings Market?

    Challenges faced by the Net Zero Energy Buildings Market include high upfront costs and lack of skilled professionals.

    What are the opportunities for the Net Zero Energy Buildings Market?

    Opportunities for the Net Zero Energy Buildings Market include increasing demand for sustainable buildings and government incentives.

    What are the key trends in the Net Zero Energy Buildings Market?

    Key trends in the Net Zero Energy Buildings Market include the integration of renewable energy sources and the use of energy-efficient technologies.

    Download Free Sample

    Kindly complete the form below to receive a free sample of this Report

    Case Study
    Chemicals and Materials