Already a global leader in building sustainability legislation and initiatives, the European market for energy efficient building technologies is expected to grow from $83.5 billion in 2017 to $111.9 billion in 2026.
A new report from Navigant Research examining the market for energy efficient building technologies in Western and Eastern Europe was published last week, providing a market forecast for the sector through to 2026. Europe already stands as a global leader when it comes to implementing legislation and initiatives to increase building energy efficiency and bringing in new technologies. The European Union already has two key pieces of legislation — the Energy Performance of Buildings Directive (EPBD) and the Energy Efficiency Directive (EED) — through which European countries are delivering their 2020 emissions reductions goals.
The next step for Europe is the Clean Energy for All Europeans legislation which was proposed in November 2016 and agreed upon by the European Energy Council in June of this year. However, according to Navigant Research, “this legislation is regarded by many as a compromise” and that “Original energy efficiency targets of 40% by 2030 have been reduced to 30% and energy savings targets of 1.5% per year have been reduced to 1% per year from 2026 through 2030 based on the results of positive progress reports in 2024.” The primary concern for opponents of these revisions is that Europe will fade away from its 2050 goals and its Paris Climate Agreement commitments.
Navigant Research explains that if Europe is to hold on to the tremendous gains it has already made, it will need to make use of the tremendous advancements in building technologies which “are evolving toward an integrated ecosystem of components and sensors that work together as a platform for optimizing facility operations.”
The importance of energy efficiency developments across Europe is highlighted in the energy efficient building technology spending across the next decade through 2026, which is expected to grow in Western and Eastern Europe from $83.5 billion in 2017 to $111.9 billion in 2026.
“Europe has been a global leader in sustainability legislation and initiatives, with commercial buildings playing an essential role in meeting ambitious targets set for 2020,” explained Tom Machinchick, principal research analyst at Navigant Research. “Intelligent digital building technologies will be necessary for Europe to continue toward its long-term goals of significantly increasing efficiency while reducing overall carbon emissions. A certain level of efficiency can be attained with relative ease, but as future efficiency targets get deeper, so must the building efficiency projects and the technologies that support those efforts.”