The global market for zero net energy (ZNE) commercial buildings is expected to grow to $239.7 million by 2018, with a five-year compound annual growth rate (CAGR) of 50.6 percent, according to a new report by BCC Research.
Zero Net Energy Buildings: Global Markets shows growth is being driven by a global green building boom, ongoing governmental regulations and regional environmental concerns. ZNE buildings—those that consume only as much energy as they generate within a year—are the next target for green building construction and renovation over the next several years, the report shows. Although the market is at an early stage, ZNE has become the focus of the green building industry and regulators in most major geographic markets.
The global market will be led by countries in Asia-Pacific, especially China, where the sheer volume of the building boom in urban areas, combined with the need to reduce energy consumption, will drive significant growth over the near term. As such, this region is expected to exceed $117 million in 2018 and to register a notable 55.3 percent CAGR.
Meanwhile, the European Union (EU) has set intermediate term targets for energy reduction in government, commercial and residential buildings, which is driving growth at a healthy pace. The EU is also the second largest and fastest-growing region in the market and is projected to reach to nearly $75 million in 2018 and register a CAGR of 47.5 percent.
The Americas will be led by the United States, according to the report. Government encouragement through specifications and guidance is the driver, with the greatest activity in government facilities. This market is expected to reach $47.6 million in 2019 and to register a notable 45.9 percent CAGR.
In April, Honda unveiled its net zero energy "Smart Home" on the University of California, Davis campus. The building, which includes a charging facility for a Honda Fit EV and is intended to demonstrate Honda's vision for zero-carbon living and personal mobility, will on average generate more electricity from on-site renewable energy than it receives from the local utility.
In related green building news, Danielle Dahan was recently named the Grand Prize winner of this year’s Climate CoLab for her proposal, Improve Building Energy Performance: Green Job Skills Training, which addresses the shortage of qualified personnel to maintain the increasingly sophisticated heating, ventilation and air conditioning (HVAC) systems installed in green buildings today.
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Founder & Principal Consultant, Hower Impact
Mike Hower is the founder of Hower Impact — a boutique consultancy delivering best-in-class strategic communication advisory and support for corporate sustainability, ESG and climate tech.
Published Nov 19, 2014 9am EST / 6am PST / 2pm GMT / 3pm CET