Posted in | News

Green Retrofit Market Expected to Grow by 20% - 30% By 2014

Green building is booming, but new buildings account for less than 2.5% of the U.S. building market each year. Retrofits of existing structures, a tremendous market opportunity for green builders, owners and building product manufacturers, are the focus of McGraw-Hill Construction's latest SmartMarket Report, Green Building Retrofit & Renovation: Rapidly Expanding Market Opportunities Through Existing Buildings, released today at the Green Retrofit Conference in New York.

According to the report, green building currently comprises 5-9% of retrofit and renovation market activity by value--equating to a $2-4 billion marketplace for major projects. By 2014, that share is projected to grow to 20-30%--a $10-15 billion market for major retrofit projects in just five years.

"It is critically important that 20-30% of all retrofit and renovation activity will be green in five years because 98% of our buildings already exist, and they represent some of our most inefficient buildings," said Harvey Bernstein, vice president of global thought leadership and business development, McGraw-Hill Construction. "This is a $10-15 billion market opportunity in major projects alone, and it will significantly contribute to the expansion of green products and services, which will have a long-term impact on our future economy and ability to build green."

The first report of its kind, the Green Building Retrofit & Renovation SmartMarket Report, profiles more than 20 projects to provide qualitative insights and offers cutting-edge research data to the growing green building industry. Highlights of the report findings include:

  • Market opinion and indicators suggest much higher levels of activity long-term for retrofits and renovations overall as well as for the green share, which is expected to reach a tipping point in 10 to 15 years. At this time, half of all retrofits and renovations will be green.

  • Owners and tenants with green retrofit experience are likely to do more green retrofit projects. 70% of owners who have engaged in green retrofit or renovation activities are planning to continue to do so for over 15% of future projects; 24% will do so on over 60% of projects. Tenants fall into two extremes: one-third are committed to green retrofits for over 60% of projects, while 17% are not yet committed.

  • The downturn is encouraging the adoption of energy- and water-efficient practices in renovation projects. 62% of owners expect the savings achieved from energy efficiency improvements to recoup their investments within 10 years. The most frequently applied features include energy-efficient lighting or natural lighting. Nearly all (92%) also report installing more energy-efficient mechanical and electrical systems.


Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.