Oct 23 2009
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.
Source: http://www.mcgraw-hill.com/