Funding Strategies & Emerging Tech: Energy Retrofit System Market

According to Inkwood Research, the global energy retrofit system market is projected to grow at a CAGR of 6.65% over the forecast period 2024 to 2032. An energy retrofit system involves upgrading existing buildings or infrastructure to improve energy efficiency and reduce consumption. 

These systems are important in innovating building energy performance by combining deep retrofitting and services from Energy Service Companies (ESCOs). Deep retrofitting involves upgrading HVAC systems, lighting, insulation, and windows to enhance energy efficiency. ESCOs contribute expertise in identifying and implementing optimized energy-saving solutions.

Furthermore, integrating IoT devices and data analytics enhances these systems significantly. IoT devices gather real-time data on energy usage and equipment performance, analyzed to identify patterns and anomalies. By leveraging these technologies, these systems deliver significant energy savings, cost reduction, and sustainable indoor environments.

Energy Retrofit System Market - Inkwood Research

Feasibility & Efficacy of Deep-Energy Retrofit System 

How is the construction industry upgrading older building enclosures to achieve net-zero energy use and create sustainable indoor spaces?

Here’s how the Net-Zero Energy Retrofit Living Lab project addresses this

The Net-Zero Energy Retrofit Living Lab project was commenced with substantial funding of $1.36 million from the New York State Energy Research and Development Authority (NYSERDA) and an additional $200,000 from Syracuse University. This pioneering initiative, led by faculty and student researchers, aimed to revolutionize sustainability practices in building infrastructure.

The project focused on upgrading building enclosures and mechanical systems in 1972-built older multi-family apartment buildings at Syracuse University’s South Campus. Further, the aim was to achieve net-zero energy use, reduce energy costs, enhance indoor air quality, and establish sustainable indoor environments.

It underlines the success of implementing high-efficiency heat pumps and advanced heat recovery ventilation systems. Following the completion of the retrofitting process in 2022, this resulted in substantial energy savings of up to 80% for heating and cooling by the year 2024.

Additionally, the project demonstrates the feasibility and efficacy of deep-energy retrofits in older buildings. It emphasizes the critical importance of interdisciplinary collaboration and holistic approaches in driving tangible sustainability outcomes.

Get CUSTOMIZED market insights delivered right to your inbox!

ESCO Solutions for Sustainable Development: Energy Retrofit System Market

ESCOs (Energy Service Companies) play a pivotal role globally in energy retrofit projects by providing expertise, financing, and implementation of energy-efficient solutions. They collaborate with businesses, governments, and institutions to upgrade buildings, reduce energy consumption, and mitigate environmental impact. Through innovative strategies and technology adoption, ESCOs contribute significantly to achieving sustainability goals and promoting a greener, more efficient energy domain worldwide.

In line with this, let’s view some global strategic collaborations and initiatives incorporating ESCO solutions

  1. Shepherd University partnered with CMTA to overhaul its Butcher Athletic Center, achieving significant energy cost savings and reducing utility bills by 31% in the first year. This success highlights ESCOs’ role in driving energy-efficient retrofits and addressing sustainability goals in sectors such as education, public institutions, and commercial buildings.
  2. In Ukraine, the Energy Efficiency in Public Buildings Project is targeted at reducing greenhouse gas emissions and promoting energy efficiency in public facilities. The project was led by UNDP and supported by GEF in 2024. Additionally, it employed the ESCO model to target CO2 reduction, energy conservation, financial investment attraction, and green job creation. 
  3. Grundfos India, in 2023, with facilities in Ahmedabad and Chennai, exemplified sustainability in combating climate change and promoting energy efficiency. The company’s commitment to science-based emissions targets, solar-powered facilities, and LEED-certified buildings showcased a proactive approach. Their innovative pumping technology emphasized achieving energy efficiency and reducing greenhouse gas emissions in commercial buildings.
  4. Orion Energy Systems (Nasdaq: OESX) secured a $9.6 million contract for LED lighting retrofits at five Department of Defense (DoD) bases in Europe in 2022. The initiative, supported by a European-based Energy Service Company, involved over 60,000 energy-efficient lighting fixtures and was set to begin in Q4 of FY 2023. This initiative reflected Orion’s dedication to improving energy efficiency and workplace safety, with a priority on transparent operations and risk assessment in investment decisions.
  5. The National Energy Transition Roadmap (NETR) in Malaysia, launched in Kuala Lumpur in 2024, encompasses a major retrofit program for government buildings. This step aims to develop a platform for energy service companies to connect small and medium enterprise ESCOs with government projects. By facilitating this connection, the NETR seeks to enhance energy efficiency specifically within government buildings.

Energy Retrofit System Market: Harnessing IoT & Data Analytics Success

IoT (Internet of Things) and data analytics are essential in energy retrofit systems to maximize energy use and enhance efficiency. By integrating IoT sensors, buildings can monitor energy consumption in real time, identifying areas for improvement. Data analytics further utilizes this information, offering insights for strategic energy-saving measures. 

This coordination between IoT and data analytics is key to achieving sustainable and cost-effective energy retrofit systems for various companies. Countries like the United States and China are leading the adoption of IoT and data analytics in energy retrofit projects as part of their national strategies for sustainability and energy efficiency.

Stay up-to-date with what’s trending in the Global Energy Retrofit System Market

Here’s a more detailed elaboration:

  1. Google: Google, through ventures like the Smart Cities Challenge, is a leader in integrating IoT and data analytics into energy retrofit projects in the United States. Their Nest devices and software contribute significantly to smart home energy management solutions.
  2. Siemens and Schneider Electric: In Germany, companies like Siemens and Schneider Electric are at the forefront of using IoT and data analytics for energy retrofitting. Their solutions, such as Siemens’ Navigator and Schneider Electric’s EcoStruxure platform, optimize energy usage in buildings and industrial facilities, aligning with Germany’s energy transition objectives.
  3. Hitachi and Toshiba: In Japan, Hitachi and Toshiba are eminent for their development of IoT-based solutions for smart buildings and cities. These companies leverage IoT technologies and data analytics to improve energy management and retrofit existing infrastructure for enhanced efficiency.
  4. Huawei and Alibaba Cloud: In China, companies like Huawei and Alibaba Cloud are vital in driving the adoption of IoT and data analytics in energy retrofit projects. Their IoT platforms and data analytics tools enable precise energy monitoring and optimization in buildings and urban environments. This supports China’s sustainability and carbon reduction goals.

An energy retrofit system is integral to enhancing energy efficiency and sustainability in buildings. As it improves operational efficiency and reduces energy consumption, the demand for these sustainable solutions is elevating globally. 

With a broader shift towards more environmentally conscious practices and the adoption of technologies, the energy retrofit system market is predicted to experience sustained growth during the forecasting period.

By Harshita Kumari

    Can’t find what you’re looking for? Talk to an expert NOW!


    Energy retrofit systems offer several benefits, including reduced energy bills, improved indoor comfort and air quality, increased property value, compliance with energy regulations, and a smaller environmental footprint through reduced greenhouse gas emissions.

    The energy retrofit system market applies to various sectors, including commercial buildings, residential complexes, educational institutions, healthcare facilities, government buildings, and industrial plants.