Design and Construction, Green Building, Maintenance and Operations, Sustainability/Business Continuity

Net-Zero Commercial Building Market Poised for Dramatic Growth: Report

The market for net-zero commercial buildings is expected to grow dramatically over the next decade, largely due to the implementation of net-zero building codes by national and state governments across Europe and North America.

According to a new report from Guidehouse Insights, the number of net-zero commercial buildings around the world is estimated to be nearly 500 in 2023 and is expected to rise to over 78,000 by 2032, representing a compound annual growth rate (CAGR) of 76.6%.

“Today, the term net-zero building commonly refers to buildings with either net-zero energy or net-zero emissions; however, the industry is generally moving toward a definition comprising elements of both, including energy efficiency, use of renewable energy, and limited emissions,” said Hannah Bastian, research analyst with Guidehouse Insights.

“Both private and public building owners are beginning to develop commitments and plans for achieving net-zero in their building portfolios, in preparation for future regulations, as well as in response to growing pressure from their employees, customers, boards, and constituents.”

While mandatory regulations and voluntary commitments are major drivers for this market, many barriers exist that will keep the growth of net-zero buildings modest for most of the next decade. For one, while net-zero buildings are technically feasible, the report said they can be difficult and costly to achieve, especially for existing buildings. Achieving a net-zero building requires a breadth of expertise in fields such as energy efficiency, passive design, building systems engineering, carbon accounting, regulatory and voluntary requirements, and renewable energy procurement.

Fortunately, many established players in the market are responding to these barriers by developing specific products and services to help commercial building owners develop and implement a strategy for reaching their net-zero goals, according to the report.

An executive summary of the report is available for free download here.

ALSO READ: Biden Admin Seeks Input on National Definition for Zero-Emissions Buildings

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