Green building is no longer just a fad; in fact, energy-efficient remodeling and renovating is one of the few aspects of the U.S. construction business that still holds a positive outlook in the midst of the economic turmoil in 2009.
The U.S. residential construction market was $363 billion in 2008, down 41% from its high of $620 billion in 2006. The home renovations market was $188 billion in 2008, down 18% percent from 2007. But SBI estimates that the home energy efficiency renovations market in the U.S. was $21 billion in 2008; down only 13% percent from 2007’s $24 billion.
Remodeling to improve a home’s energy efficiency instead of buying a new home has become a preferred option in today’s market. In fact, the National Association of Home Builders found that 32% of home builders also provided remodeling services in 2008. Homeowners are still seeing the benefits of improving their home’s energy efficiency even in the economic instability of 2009. With energy consciousness shooting to the forefront of the media during the 2008 oil price peak, the Propane Education & Research Council has found 80% of homeowners are now concerned about the energy efficiency of their homes.
Home builders and remodelers have been quick to provide remodeling services that are focused on energy conservation and green building practices; as an example, 85% of remodelers surveyed by the National Association of Home Builders in 2008 used energy-efficient windows on the majority of their projects. Retailers and manufacturers of building projects, residential builders and remodelers, and even state and federal organizations now have to be able to provide knowledgeable energy conservation expertise to succeed in their business.
Home energy efficiency analysis now uses a ‘whole building’ approach, affecting all categories of building materials, from windows and doors to insulation to completely eliminating air leaks. To fully embrace this view, this report looks at the impact energy-efficient building products are having on the renovations market in a number of categories:
Part I explores the market for energy-efficient doors and windows, caulking and weather stripping, and insulation used in home renovation projects.
Part II examines the energy-efficient appliance and lighting markets for home remodeling.
Part III looks at energy-efficient heating and cooling systems and the growing trend of energy-efficient roof renovations.
Report data were obtained from government sources, including the U.S. Department of Commerce, U.S. Census Bureau, U.S. Department of Housing and Urban Development and ENERGY STAR; trade associations such as the National Association of Home Builders (NAHB), and the National Association of the Remodeling Industry (NARI); research organizations such as the American Council for an Energy-Efficient Economy (ACEEE) and Harvard University’s Joint Center for Housing Studies (JCHS); websites of home improvement contractors, manufacturers and dealers, industry analysts and print and online business and trade journals.
Consumer demographics and spending trends derive from data compiled by Simmons Market Research Bureau, New York, NY. Trends and recent developments in the industry come directly from personal interviews with key players in manufacturing and sales of energy-efficient building products and discussions with knowledgeable insiders of associations such as the National Association of Home Builders.
What You’ll Get in This Report
Energy-Efficient Home Renovations Market, Part I: Windows, Doors & Insulation provides a concise, focused look on the world of whole home energy-efficient renovations as it exists today, and shows where the market is moving towards in the next five years. The report highlights key players in the industry and pinpoints ways current and prospective competitors can capitalize on recent trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that Energy-Efficient Home Renovations Market, Part I: Windows, Doors & Insulation offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.
How You’ll Benefit from this Report
If your company is already doing business in green home renovations or remodeling specializing in energy efficiency, or is considering making the leap, you will find this report invaluable as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for all aspects of energy-efficient renovations, as well as projected markets and trends through 2013.
This report will help:
Marketing managers identify market opportunities and develop targeted promotion plans for homeowners looking to renovate to reduce their utility costs.
Research and development professionals stay on top of competitor initiatives and explore demand for current energy efficiency remodeling trends and new emerging energy-efficient construction products.
Advertising agencies working with clients in the banking, retail and construction industries develop messages and images that compel homeowners to migrate towards energy-efficient products when considering home renovations.
Business development executives understand the dynamics of the market and identify possible partnerships.
Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.
Market Insights: A Selection From The Report
DIY Versus Pro by Product Segment
Both the American Housing Survey (AHS) and Experian Simmons surveys show that
professionals have been installing more than 75% of window replacement projects each year
since 2001. Experion Simmons data from 2004 to 2006 of insulated window installations
shows that the professionally installed portion of the market has been in a slight decline since
2005’s high of 78% market share, down to 71% share in 2008.
The JCHS tabulation of AHS survey data show that the percentage of professionally installed
insulation projects has hovered around 44% since 2001. However, the average project cost
for professionally completed insulation projects was $2240 in 2007; for DIY projects, the
average cost was $837, or 37% of the average professional project.
In 2008, DIY weather stripping projects accounted for 82% of all weather stripping projects
reported by Simmons, showing a very slight decline of less than 1% CAGR since 2004.
However, SBI calculates that the percentage of professional weather stripping projects will
increase by 4 to 6% in 2009 and 2010 as more homeowners try to maximize stimulus tax
credits available for home energy efficiency renovations.
In the News
Energy-Efficient Renovations to Thrive as Consumers Cut Costs
through Home Improvement
New York, July 7, 2009 - Energy-efficient home renovations will grow 50% faster than the renovations market as a whole over the next five years as consumers seek to cut costs during the recession through judicious home improvement, according to Energy-Efficient Home Renovations Market, Part I: Windows, Doors & Insulation, the first in a three part series from leading industrial market research publisher SBI. The energy-efficient renovations market is projected experience a compound annual growth rate (CAGR) of 15% from 2009 to 2013, and ultimately reach $35 billion by the end of the forecast period.
“Green building is one of the few aspects of the U.S. construction business that retains a positive outlook despite the economic downturn,”says Shelley Carr, publisher of SBI. “Remodeling and renovating to improve a home’s energy efficiency instead of buying a new home has become a preferred option in today’s market. Homeowners can save anywhere between 3% and 52% on their yearly heating and cooling costs by installing energy-efficient windows. And something as simple as adding insulation and weather stripping during a renovation project can save up to 20% in costs.”
Within the market, the growth trajectory of energy-efficient window and door replacement projects will mirror the energy-efficient home renovations market as a whole, with a CAGR of 14%. However, the greatest growth is expected to be in the insulation, caulking, and weather stripping segment, which SBI forecasts will grow 25% in 2010 with a CAGR of 21% for the five year period ending 2013.
SBI estimates that the 2008 energy-efficient home renovations market totaled $21 billion in 2008, down 13% from 2007’s $24 billion. Overall, the energy-efficient home renovation market grew a CAGR of more than 10% from 2003 to 2008, and climbed from accounting for just above 9% of the overall home renovations market to claim more than 11% during the same period.
Energy-Efficient Home Renovations Market, Part I: Windows, Doors & Insulation explores the market for energy-efficient doors and windows, caulking and weather stripping, and insulation used in home renovation projects. The report provides a concise, focused look at the world of whole home energy-efficient renovations as it exists today, and shows where the market is moving towards in the next five years. Key players in the industry are highlighted, and ways current and prospective competitors can capitalize on recent trends and spearhead new ones are pinpointed.
The remaining reports in the series will be published throughout 2009. Part II examines the energy-efficient appliance and lighting markets for home remodeling. While Part III explores energy-efficient heating and cooling systems and the growing trend of energy-efficient roof renovations.
SBI (Specialists in Business Information) publishes research reports in the industrial, energy, building/construction, automotive/transportation and packaging markets. SBI also offers a full range of custom research services.