With buildings accounting for 40 per cent of Europe's energy consumption, facilities managers will spend nearly $800 billion over the next decade to make them more efficient, although some countries will lag behind.
That's according to US research firm Navigant, which forecasts a lively market of $791.7 billion in energy saving technologies such as LED lighting and controls, and modern heating and cooling systems.
Annual spending will nearly double, from $56 billion this year to $109 billion in 2023, the Boulder, Colorado company predicts.
'The market for energy efficient buildings in Europe is supported by stringent regulations that apply across the European Union,' Navigant says in its report, Energy Efficient Buildings: Europe.
'As a result of legislation, including the Energy Performance of Buildings Directive (EPBD), mandatory changes to country-level building codes are increasing the performance requirements that apply to new construction and major renovations of existing buildings. These codes are pushing toward the delivery of nearly zero energy buildings by 2019 and 2021 for public and private buildings, respectively.'
A separate piece of legislation, the Energy Efficiency Directive, will also spur market growth.
'The EED aims to achieve 20 percent improvements in energy efficiency, carbon emissions, and the penetration of renewable energy,' Navigant analyst Eric Bloom says in a press release. 'Although we believe it is likely to fall short of its goals, it will play a big role, along with the EPBD, in expanding the energy efficient buildings market across the region.'
The report points out that some European countries have been slow to pass national legislation that supports the EU directives. Northern Europe has tended to lead the pack, it notes.
In LED lighting, Navigant notes that price declines and performance gains will also encourage uptake.
Photo: City of efficient light? Paris, like all European cities, is under pressure from the EU to make its buidlings more energy efficient. Image is from Wikimedia.