Global Market for Commercial Building Electrification Estimated to Grow to Over $145 Billion by 2033
Market drivers include legislation, electrification incentives and rebates, sustainability commitments and energy resilience
A new report from Guidehouse Insights explores the global commercial building electrification market.
Demand for commercial building electrification has been growing over the past decade as organizations aim to reduce their carbon footprint and become more energy efficient. By electrifying systems such as HVAC, water heating, and cooking, building owners and organizations have been able to achieve benefits such as increased energy efficiency, reduced carbon emissions, and safer buildings. According to a new report from Guidehouse Insights, revenue attributed to commercial building electrification is expected to increase from $91.3 billion in 2024 to $145.3 billion in 2033 at a compound annual growth rate (CAGR) of 5.3%.
“As buildings transition away from traditional fossil fuel energy sources, adopting electric systems is becoming increasingly essential for achieving sustainability goals and reducing operational expenses,” says Krystal Maxwell, research director with Guidehouse Insights. “The increased availability of renewable energy has made building electrification more desirable. Servicing fully electrified buildings with renewable energy can allow building and business owners to claim that their buildings generate zero emissions.”
Commercial building electrification has accelerated in recent years due to the need to increase energy efficiency, improve sustainability, and comply with regulations, as well as available incentives and the desire for energy resilience. However, market growth is limited by high product and installation costs, the complexity of new technologies, and the need to pair building electrification with renewable energy sources to fully realize the benefits of electrification, according to the report.
The report, Commercial Building Electrification, provides a comprehensive analysis of the commercial building electrification market, covering the trends, drivers, and barriers that have shaped its evolution in recent years. Additionally, it presents a 10-year analysis, offering 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 free download on the Guidehouse Insights website.
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* The information contained in this press release concerning the report, Commercial Building Electrification, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.