Photo from Pike Research's (News - Alert) "Energy Efficient Homes" report.

Remember when we used to “keep the home lights burning,” just to welcome family and friends, and to scare off potential burglars? Those little luxuries are a thing of the past, both for economical and ecological reasons. Today, what we value is energy efficiency—and builders have taken notice.

In fact, according to a new report from Boulder, Colorado-based Pike Research, market dynamics will drive strong growth in the development of energy efficient homes through the remainder of this decade.  Construction of new energy efficient homes, and retrofits of existing buildings, will increase at a compound annual growth rate (CAGR) of 42 percent from 2012 to 2020, the cleantech market intelligence firm forecasts, producing 118.6 billion square feet of energy efficient residential space and driving an annual market value of $84 billion by 2020.

“Pike Research defines energy efficient homes as properties that are built to exceed the 2009 International Energy Conservation Code by at least 15 percent on a kilowatt-hour (kWh) per-square-foot basis,” comments research analyst Brittany Gibson.  “Achieving such energy savings, in new construction or in existing building stock, is a design problem complicated by factors such as local climate, availability of materials, funding, and legislation.  In order to achieve this level of energy savings, home builders and retrofitters must adopt a systems approach to home design and construction, integrating all aspects of home assembly and operation.”

The research finds that the global financial crash of 2008-2009 continues to have a strong effect on residential real estate markets, including energy efficient homes. Globally, energy efficient residential design, construction, and retrofits can take on many guises—as an unrealized aspiration, a nearly cost-prohibitive endeavor, or a branding strategy. 

But the market varies by region, based on the latest research:

In Asia-Pacific, rising economic prosperity is driving soaring residential construction and the region stands to experience significant growth in energy efficient homes, if appropriate regulatory and financing programs can be implemented;

The European Union, meanwhile, represents the most mature market for energy efficient homes globally, but will still see the strongest growth through 2020, at a regional CAGR of 44 percent, driven primarily by energy efficiency and carbon mandates; and

Growth will be slowest in North America, where the existing building stock remains largely unaddressed at the moment.

Pike Research’s report, “Energy Efficient Homes,” analyzes the global market opportunity for energy efficient homes, including a focus on key market segments—among them, building envelope improvements, lighting, HVAC and major appliances, water heating, energy audits, and soft costs associated with energy efficiency.  Market forecasts are provided through 2020 for both new and existing building stock across five world regions.  Details of local, regional, and supranational market drivers and barriers are discussed in depth, and a cross-section of key industry players are profiled, highlighting their product and services offerings.  An executive summary of the report is available for free download on the firm’s website.

Edited by Rachel Ramsey