Net Zero Energy Buildings Market Trends

Growth Drivers

• Increasing government initiatives to reduce carbon emissions: Net zero energy buildings require little energy which can be produced using renewable sources such as solar and wind energy. With the rise in population, the carbon emission rate is increasing gradually, leading to various environmental changes. As a result, several governments have introduced various initiatives to reduce carbon emissions. For instance, The European Union’s 2023 revision of the Energy Performance of Buildings Directive (EPBD) objective is to achieve a neutral climate in the construction sector by 2050 by involving zero emissions for all new buildings that are being constructed for the public sector from 2026. Moreover, the governments are providing tax credits, grants and subsidies for net zero construction projects to encourage adoption.

• Increasing intent in energy efficient and sustainability: Sustainable development is a strategy that doesn’t compromise the environment’s quality for future generations. As a result, net zero buildings are becoming more popular and can serve this purpose successfully. Many organizations and enterprises are focused on retrofitting older buildings. For instance, the European Commission has introduced the Renovation Wave initiative for public and private buildings as a key initiative to drive energy efficiency, improve quality of life, and cut emissions by increasing house renovations across the EU.

Challenges

• Slow adoption of the concept: One of the major challenges expected to hamper the adoption of net zero buildings is the low awareness among people about the advantages of net zero buildings and efficient energy use. Despite increasing discussion on sustainability, many potential tenants, and homeowners do not understand the benefits or feasibility of net zero buildings. 

• Technological integration challenges: The integration of advanced technologies such as IoT, energy storage, or automated building controls is complex and can add up the overall costs. In addition, different building components such as solar, HVAC, and sensors might lack seamless compatibility, resulting in restrained net zero energy buildings market growth.