Countries covered: United States
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 Methodology
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 3: HVAC & Roofing 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 3: HVAC & Roofing 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.
Additional Information
Market Insights: A Selection From The Report
The Future of Home Energy Rating
SBI anticipates that home energy ratings will become much more popular throughout the U.S. in the years up to 2013. While SBI does not expect home energy ratings to become mandatory for all homes sold by 2013, it will become a selling feature that will become more and more recommended by realtors. SBI expects that the HERS Index home energy ratings will become mandatory for all homes eventually, starting with energy progressive states such as Oregon, Maine, and California.
OEM Metal Coatings Surprisingly Strong in 2008
Most cool metal roofs come from the manufacturer with a reflective coating applied during the manufacturing process. The coatings can be non-textured applied along with material such as gravel to give a textured look to the metal. SBI estimates that over 90% of the residential cool metal roofs installed in 2008 had the reflective coating applied to the metal prior to being installed.
Green Roofs Growing Slowly
Germany is the world leader in green roof installations, where it is estimated that 10% of flat roofs are green roofs. The green roof market in the U.S. has shown an SBI estimated CAGR of 16% in square footage installed from 2004 to 2008, growing from $27.7 million in 2004 to $49.4 million in 2008. The market actually grew 8.3% from 2007 to 2008, primarily because the commercial construction sector was still strong through most of 2008. SBI expects that the U.S. green roof market will be down 10% in 2009.
In the News
Green Roofing and HVAC Products to Post Double-Digit Gains by 2011 as Homeowners Capitalize on Government Incentive to Remodel Efficiently
New York, November 5, 2009 - The market for energy-efficient heating and cooling (HVAC) products and exterior roofing products will experience double-digit growth by 2011 as American homeowners regain confidence in the economy and capitalize on the expanded government tax credits for green home remodeling, according to Energy-Efficient Home Renovations Market, Part 3: HVAC & Roofing by leading industrial market research publisher SBI Energy.
First announced earlier in 2009, the tax credits are part of the Obama administration’s ongoing support of energy efficiency as a means to decrease U.S. dependency on foreign fuels and reduce greenhouse gases. In the one year alone, the administration has provided more money to advance energy efficiency programs across the board than in the last decade combined. Going into 2010, portions of this vast sum of energy efficiency money will also be matched by each state, further growing the pool of available funds for the initiative.
Ultimately, the government provisions are expected to generate an estimated $6 billion in green remodeling work by the end of next year, according to The Congressional Budget Office (CBO).
“Beyond 2010, we project that all residential energy-efficient roofing and HVAC product segments will follow the anticipated rise in the construction and remodeling cycle that will occur as a result of the government stimulus,” says Shelley Carr, publisher of SBI Energy.
Overall, SBI Energy forecasts the HVAC product segment will post a compound annual growth rate (CAGR) of 16% from 2009 to 2013, reaching a market value exceeding $5 billion by the end of the forecast period. Meanwhile, residential roofing will explode from 2011 to 2013, posting sales increases of 20% to 30% in each of those years, finishing with almost $3 billion in sales by 2013.
Energy-Efficient Home Renovations Market, Part 3: HVAC & Roofing is the final installment in a three part series. This edition highlights two specific home improvement product segments: energy heating and cooling (HVAC) products and exterior roofing products. Along with analyzing the economic factors affecting the energy-efficient home remodeling market, the report explores the trends that are driving renovations and examines the market potential of energy-efficient home renovations in the U.S. through to 2013.
The previous reports in the Energy-Efficient Home Renovations series are also available. Published in July, Part 1 explores the market for energy-efficient doors and windows, caulking and weather stripping, and insulation used in home renovation projects. Part 2, published in August, examines the energy-efficient appliance and lighting markets for home remodeling.
About SBI Energy
SBI Energy (Specialists in Business Information), a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, automotive/transportation and packaging markets. SBI Energy also offers a full range of custom research services.
