Market drivers include legislation, electrification incentives and rebates, sustainability commitments and energy resilience
BOULDER, Colo., Oct. 15, 2024 — A new report from explores the global commercial building electrification market.
Demand for commercial building electrification has been increasing over the past decade as organizations strive to reduce their environmental impact and enhance energy efficiency. By adopting electric systems for heating, ventilation, air conditioning (HVAC), water heating, and cooking, building owners and organizations have been able to reap benefits like improved energy efficiency, reduced carbon emissions, and enhanced building safety. A new report from Guidehouse Insights indicates that revenue associated with commercial building electrification is projected to rise from $91.3 billion in 2024 to $145.3 billion in 2033, signifying a compound annual growth rate (CAGR) of 5.3%.
“As buildings transition away from traditional fossil fuel-based energy sources, the adoption of electric systems is becoming increasingly critical for achieving sustainability goals and minimizing operational expenses,” explains Krystal Maxwell, research director at Guidehouse Insights. “The increased accessibility of renewable energy has made building electrification more attractive. Supplying fully electrified buildings with renewable energy enables building and business owners to declare their buildings as zero-emission facilities.”
The momentum of commercial building electrification has accelerated in recent years due to the necessity to enhance energy efficiency, promote sustainability, comply with regulations, capitalize on available incentives, and foster energy resilience. However, the report identifies limitations to market growth, including high product and installation costs, the complexity of new technologies, and the imperative to pair building electrification with renewable energy sources to fully realize the advantages of electrification.
The report, , offers a comprehensive analysis of the commercial building electrification market, delving into the trends, drivers, and obstacles that have shaped its evolution in recent years. Furthermore, it presents a 10-year analysis, providing insights into the future trajectory of the market across five global regions (North America, Europe, Asia Pacific, Latin America, Middle East & Africa), four technology segments (heat pumps, electric chillers, electric water heaters, electric cooking appliances), two construction types (new construction, retrofit), and eight commercial building types (office, retail, education, healthcare, hotels and restaurants, institutional/assembly, warehouse, transport). An executive summary of the report is available for complimentary download on the .
About Guidehouse Insights
Guidehouse Insights, the specialized market intelligence branch of Guidehouse, provides research, data, and benchmarking services to contemporary industries undergoing rapid change and subject to strict regulations. Our insights are grounded in comprehensive analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with an in-depth examination of technology trends, to deliver a comprehensive understanding of emerging resilient infrastructure systems. Further information about Guidehouse Insights can be found at .
About Guidehouse
Guidehouse is a global consultancy providing advisory, digital, and managed services to the commercial and public sectors. Guidehouse is specifically designed to serve the national security, financial services, healthcare, energy, and infrastructure industries. By disrupting traditional consulting delivery models with its agility, capabilities, and scale, the firm provides technology-enabled, focused solutions that empower clients to embrace innovation, build resilience, and achieve growth. With high-quality standards and an unwavering dedication to client success, Guidehouse’s team of over 17,000 employees collaborates with leaders to outmaneuver complexity and accomplish transformative changes that meaningfully shape the future.
* The information presented in this press release concerning the report, Commercial Building Electrification, is a summary and reflects the present expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may vary significantly from those outlined in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underpinning the report’s conclusions and the methodologies employed to create the report. Neither Guidehouse Insights nor Guidehouse assumes any responsibility to update any of the information contained in this press release or the report.
For more information, contact:
Cecile Fradkin for Guidehouse Insights
+1.646.941.9139
SOURCE Guidehouse Insights