Global Market for Energy Efficiency Investment Estimated to Grow to $90 Million by 2032
Market drivers include strained existing grid infrastructure, clearer definition in government policies, and advances in energy efficient technology and digitalization
A new report from Guidehouse Insights analyzes the market for energy efficiency across the globe.
As governments around the world look to reduce reliance on foreign energy resources and reduce greenhouse gas (GHG) emissions, energy efficiency investment is expected to increase in every region over the next decade. According to a new report from Guidehouse Insights, the market for energy efficiency investment is expected to grow to $90.4 million by 2032, at a compound annual growth rate (CAGR) of 7.4%.
“Energy efficiency is the least expensive and one of the most effective resources for reducing GHG emissions,” says Pritil Gunjan, director with Guidehouse Insights. “It can lead to lower energy bills for consumers and reduced operational costs for energy providers. As a result, governments and utilities invest millions of dollars each year in energy efficiency initiatives.”
As electrification in the buildings and transportation sectors continues, existing grid infrastructure becomes increasingly strained, driving a need for energy efficiency investment. Government policy around energy and emissions remains one of the strongest drivers for market spending. Advances in energy efficient technology and digitalization have also expanded the opportunity for investment beyond traditional building retrofits and enabled new use cases for the resource. Among the barriers to more rapid energy efficiency investment are inherent utility disincentives, lack of available energy usage information for consumers, and difficulties with measurement and verification, according to the report.
The report, Global Energy Efficiency Markets, examines the global energy efficiency market including relevant market drivers and barriers to program spending along with an industry value chain and business model analysis. Regional level analyses for annual government and utility program spending and associated capacity savings are presented across five major geographic regions from 2023-2032 with each segmented by customer sector. While Europe is projected to spend the most on energy efficiency programs throughout the period, spending is expected to grow most quickly in emerging markets due to a smaller existing market size. 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, Global Energy Efficiency Markets, 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.