BOULDER, Colo.--(BUSINESS WIRE)--Several substantial, durable drivers are expanding the potential market for energy efficiency retrofits in commercial buildings, which can provide energy savings ranging from 10% to more than 50%. In addition to cost savings, energy retrofits are attractive for purposes of greenhouse gas (GHG) reductions, energy independence, green branding, property valuation, and productivity. A key growing segment of the larger retrofit industry is the market for retro-commissioning projects, which provide savings of 10% to 20% with an average payback of slightly over 1 year.
According to a recent report from Pike Research, the retro-commissioning market in the United States could grow from about $160 million in 2010 to more than $1.8 billion by 2014, under an aggressive forecast scenario. A more conservative baseline forecast scenario still calls for robust growth in the retro-commissioning market, with revenue reaching $759 million by 2014.
“Retro-commissioning projects are low-risk investment opportunities with average cash-on-cash return on investment of over 90%,” says industry analyst Levin Nock. “As the commissioning industry matures from fewer than 2,000 commissioners at present to more than 20,000, it will probably consolidate around successful marketing and sales strategies. When mature, we believe that the annual revenue opportunity for retro-commissioning will be approximately $4 billion.”
Nock adds that almost all buildings would benefit from retro-commissioning. However, in recent construction built within the past 10 years, the ROI is lower – about 40%, compared to 90% for older buildings. Pike Research’s analysis indicates that typical retro-commissioning projects will cost less than $1.00 per square foot.
Pike Research’s study, “Energy Efficiency Retrofits for Commercial and Public Buildings,” analyzes the market opportunity for building retrofits in the United States. It provides a detailed examination of the market drivers, barriers, and industry dynamics in today’s market, along with several scenarios for future growth. The report includes an in-depth assessment of policy and regulatory factors, financing structures, demand drivers by segment, retrofit business cases, key industry players, and market forecasts. An Executive Summary of the report is available for free download on the firm’s website.
Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. For more information, visit www.pikeresearch.com or call +1.303.997.7609.