NZEBs Market Growth
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Net Zero Energy Buildings (NZEBs) Market to Witness Over Two-Times Growth during 2019–2024
Over 35% of the world’s total energy consumption and
40% of its greenhouse gas (GHG) emissions are generated by buildings and the
construction sector, as per the World Green Building Council. Since these
emissions cause air pollution, there is a growing need to limit them. Another
problem with high energy usage is that since most of it is produced from fossil
fuels, their reserves are depleting at a high pace, which is leading to the
sky-rocketing prices of coal and crude oil. To deal with such issues, the
construction of net-zero-energy buildings (NZEB), also termed zero net energy
buildings, is being strongly encouraged in nations across the world.
This is why, from $896.6 million in 2018, the Net-Zero Energy Buildings Market is projected to grow to $2,106.6 million by 2024, at a 15.6% CAGR
during 2019–2024 (forecast period). Such buildings only use the electricity
they generate on site, primarily from renewable sources, such as wind and the sun.
Zero net energy (ZNE) buildings are either certified as ZNE-verified or
ZNE-emerging. Both these types of infrastructure are constructed for
residential as well as commercial purposes. Of these, more such buildings were
built for commercial purposes during 2014–2018, as these boast a larger floor
space, which raises their value.
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An NZEB uses solar photovoltaic (PV) Panels, insulation panels, and efficient lighting and heating, cooling, and air conditioning (HVAC) Systems to be energy-efficient. Historically, the largest demand was generated for solar PV panels, as most such buildings use the sun to create electricity, which is consumed in high amounts every day. During the forecast period, the usage of all components, including solar PV panels, will continue increasing, due to the rise in the construction of such infrastructure.
Across the world, governments are under pressure to
control global warming. The Intergovernmental Panel on Climate Change has
claimed that in order to reduce the average worldwide temperature increase by
1.5 °C, countries must achieve net-zero GHG emissions by 2050. Similarly, in
2019, the government of Vancouver, Canada, mandated a 40% reduction in the
embodied carbon in new buildings, by 2030. Considering that electricity
generation accounts for a large portion of these emissions, governments are
actively working to reduce the wastage of energy as well as create it from
renewable sources.
For instance, the California Long-Term Energy
Efficiency Strategy Plan has been initiated by the public utilities body of the
state, to ensure that all residential buildings being constructed by 2020 and
all commercial ones by 2030 are NZEBs. Additionally, as per the New Buildings
Institute (NBI), California had 214 zero-energy projects in 2018, which
increased by 131% from 2014. Further, the state will also retrofit existing
commercial and state buildings, to achieve 100% net-zero energy consumption by
2050.
Across the world, North America is currently the
largest market for NZEBs, on account of the stiff target in the region to
reduce non-renewable energy usage as well as the associated GHG emissions. Even
during the forecast period, the continent would account for the highest number
of such projects and sale of the required components. Within the region, the net-zero energy buildings market in the U.S. is larger, since such
infrastructure is being rapidly built in its south-western and north-eastern
regions. The NBI says that in the country, 482 buildings were certified
ZNE-verified or ZNE-emerging, in 2018.
Hence, as the focus on reducing the electricity usage
and harmful emissions increase, so would the construction of NZEBs.