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Energy-Efficient Home Renovations Market, Part 1: Windows, Doors & Insulation


Attention: There is an updated edition available for this report.

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 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.

About SBI

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. 

 

Additional Materials


Market Insights for the Energy Efficient Home: Audio

Retailers, manufacturers, residential builders and remodelers all must provide knowledgeable energy conservation expertise to succeed in their business. Inside find key market insights on the following ‘green’ building: HVAC, windows, doors, and roofing.

Chapter 1: Executive Summary
Scope of This Report
Methodology
The Market
The U.S. Energy-Efficient Home Renovations Market
Figure 1-1: Energy-Efficient Residential Renovations Market, 2003-2008 (in billion $)
Energy-Efficient Product Segments for the Renovations Market
Forecast
Figure 1-2: Residential Energy-Efficient Renovations Market Forecast, 2009-2013 (in billion $)
Figure 1-3: Residential Energy-Efficient Renovations Market Segments Forecast, 2009-2013 (in billion $)
Measuring Energy Efficiency
Prescriptive Energy Efficiency Programs
Home Energy Efficiency Auditing for Renovations
Home Performance Programs
Financial Programs
State Energy Efficiency Renovation Incentives
Government Assistance Programs
Financial Benefits of Energy-Efficient Home Renovations
Figure 1-4: Breakdown of Residential Energy Usage, 2006 (percent)
Trends
Figure 1-5: NAHB Remodeling Market Index & JCHS Leading Indicator for Remodeling Activity, 2002-2009
Value of Remodeling Projects has gone down
Consumers Want More Green!
Fenestration Remodeling Trends
Insulation & Air Sealing Remodeling Trends
DIY and Pro
Figure 1-6: Frequency of Energy Efficiency Products Commonly Installed by Remodelers, 2001-2008 (percent)
Remodeling Industry Suffers from Unprofessional Image
The Future for Energy Efficiency Remodelers
DIY Versus Pro by Product Segment
Demographics
Renovation Product Segment Demographics
Manufacturers & Retailers
Window & Door Manufacturers
Insulation, Caulking & Weather Stripping Manufacturers
Retailers

Chapter 2: The Market
Scope of This Report
Methodology
A Note on the American Housing Survey
Defining Energy-Efficient
Energy-Efficient Windows & Doors
Insulation, Caulking & Weather Stripping
The Residential Construction Industry
The U.S. Housing Construction Market
Figure 2-1: Residential Construction Value Put in Place, 2002-2008 (in billion $)
The U.S. Home Renovations Market
Figure 2-2: Residential Renovations Market, 2001-2008 (in billion $)
The U.S. Energy-Efficient Home Renovations Market
Figure 2-3: Energy-Efficient Residential Renovations Market, 2003-2008 (in billion $)
The U.S. Window and Door Market
Table 2-1: U.S. Shipments of Windows and Doors, 2002-2008 (in billion $)
The U.S. Window & Door Renovations Market
Table 2-2: Residential Prime Window Renovation Sales, 2002-2008 (in million units)
The Energy-Efficient Window & Door Renovations Market
Figure 2-4: Residential Energy-Efficient Window & Door Renovations Market, 2001-2008 (in billion $)
The U.S. Insulation & Caulking Market
Table 2-3: U.S. Shipments of Insulation & Caulking, 2002-2008 (in billion $)
The Residential Renovations Insulation & Weatherization Market
Figure 2-5: Residential Insulation, Caulking & Weather Stripping Renovations Market, 2001-2008 (in billion $)
Figure 2-6: Residential Weather Stripping Renovations Market, 2005-2008 (in million $)
Imports & Exports of Windows & Doors
Table 2-4: U.S. Imports & Exports of Windows & Doors, 2002-2008 (in million $)
Figure 2-7: Breakdown of Canadian Window & Door Imports to the U.S., 2008 (percent)
Imports & Exports of Insulation & Caulking
Table 2-5: U.S. Imports & Exports of Mineral Wool Insulation & Caulking, 2002-2008 (in million $)
Forecast
Figure 2-8: Residential Energy-Efficient Renovations Market Forecast, 2009-2013 (in billion $)
Energy-Efficient Home Renovations Product Segment Forecasts
Figure 2-9: Residential Energy-Efficient Window/Door and Insulation Renovations Project Market Forecast, 2009-2013 (in billion $)

Chapter 3: Measuring Energy Efficiency
Independent Product Testing Organizations
National Fenestration Rating Council
ASTM International
Prescriptive Energy Efficiency Programs
ENERGY STAR
Figure 3-1: ENERGY STAR Program Aided Vs. Unaided Consumer Awareness, 2001-2008 (percent)
International Energy Conservation Code
Energy Efficiency Standards of Fenestration Products
Table 3-1: ENERGY STAR Window Criteria, 2005, 2009
Energy Efficiency Standards of Insulation Products
Table 3-2: IECC 2009 Minimum Residential Insulation Requirements by Component, 2009 (R-Values)
Home Energy Efficiency Auditing for Renovations
Energy Efficiency Auditor Certifications
Table 3-3: State Level Home Energy Auditor Certification Programs, 2009
Home Performance with ENERGY STAR
Home Performance Energy Auditing is a Fragmented Market
Home Performance Energy Efficiency Rating Programs
The RESNET HERS Index
Home Environmental Rating Programs That Include Energy Performance
The Future of Home Energy Rating
Green Remodeling Certifications and Programs
Table 3-4: National Green Remodeling Certification Programs, 2009

Chapter 4: Financial Programs
ARRA Providing $20 Billion for Energy Efficiency
Federal Energy Efficiency Renovation Incentives
The ARRA Residential Tax Credits
Future Federal Energy Efficiency Legislation
State Energy Efficiency Renovation Incentives
Energy Efficiency Home Renovation Programs by State
Table 4-1: State & Utility Incentives for Whole Home Residential Energy Efficiency Renovations, 2009
Table 4-2: State & Utility Incentives for Residential Window & Door Energy Efficiency Renovations, 2009
Table 4-3: State & Utility Incentives for Residential Insulation & Air Sealing Energy Efficiency Renovations, 2009
Government Assistance Programs
EERE Weatherization Program
Figure 4-1: Homes Weatherized Under the DOE EERE
Weatherization Assistance Program, 2000-2007 (in thousand homes)
Table 4-4: EERE WAP State Funding Allocations Under the ARRA, 2009 (in million $)
LIHEAP Weatherization Assistance Program
Housing and Urban Development Programs
Financial Benefits of Energy-Efficient Home Renovations
Figure 4-2: Breakdown of Residential Energy Usage, 2006 (percent)
Window & Door Energy Savings
Table 4-5: Annual Savings by Upgrading Windows to ENERGY STAR Qualified Windows, 2009
Insulation and Weatherization Energy Savings

Chapter 5: Trends
Remodeling Indexes look Grim
Figure 5-1: NAHB Remodeling Market Index & JCHS Leading Indicator for Remodeling Activity 2002-2009
Value of Remodeling Projects has gone down
Table 5-1: Window Replacement Projects Cost vs. Value, 2007-2008
Government Now Much More Interested in Energy Efficiency
State Level Residential Energy Efficiency Awareness
Table 5-2: ACEEE State Energy Efficiency Ranking, 2008
Green Remodeling Trends
Consumers Want More Green!
The Holy Grail of Energy Efficiency: Zero-Energy Homes
The Downside of Increased Energy Efficiency Awareness: Greenwashing
Energy Efficiency Remodeling for the Future
Fenestration Remodeling Trends
Current State-of-the-Art Window Energy Efficiency Technology
Vacuum Insulating Glass: The Ultimate Window Insulation
Windows that are More Than Just Windows
Beyond Energy Efficiency: Ease of Installation and Impact Resistance
Energy Efficiency is Not Key to Selling Doors
Insulation Remodeling Trends
Pink and Blue Become Green
Recycling for Green
Innovative Home Insulation Products
Caulking Trends

Chapter 6: DIY and Pro
The Remodelers View of the Market
Remodeling is a Heavily Fragmented Market
Remodeling Industry Suffers from Unprofessional Image
Figure 6-1: Customer Willingness to Hire the Same Remodeler, 2008 (percent)
Energy-Efficient Remodeling High on Remodelers’ Lists
Figure 6-2: Frequency of Energy Efficiency Products Commonly Installed by Remodelers, 2001-2008 (percent)
The Future for Energy Efficiency Remodelers
Majority of Fenestration Replacements Done by Pros
Figure 6-3: Pro and DIY Window and Door Installations, 2001-2008 (in billion $)
DIY and Pro Insulation Projects Equal in Popularity
Figure 6-4: Pro and DIY Insulation Installations, 2001-2008 (in billion $)
Weather Stripping Remains a DIY Market
Figure 6-5: Ratio of Pro and DIY Weather Stripping Installations, 2004-2008 (percent)

Chapter 7: Demographics
Note on Simmons Market Research Bureau Consumer Data
Green Thinking and Energy Efficiency Renovations
Figure 7-1: ‘Smart Greens’ of Different Energy Efficiency Home Renovations, 2008
Energy-Efficient Window Renovation Demographics
Table 7-1: Demographic Indicators and Resistors of Insulated Windows Installation Projects Finished in the Previous 12 Months, 2008 (index)
Insulation and Weather Stripping Renovation Demographics
Table 7-2: Demographic Indicators and Resistors of Weather Stripping Installation Projects Finished in the Previous 12 Months, 2008 (index)
Table 7-3: Demographic Indicators and Resistors of Insulation Installation Projects Finished in the Previous 12 Months, 2008 (index)
Regional Home Improvement Retailer Demographics
Figure 7-2: Regional Penetration of Major Home Improvement Stores, 2008 (percent)

Chapter 8: Manufacturers & Retailers
Window & Door Manufacturers
Andersen
Overview
Performance & Products
Table 8-1: Andersen Energy-Efficient Replacement Fenestration Products, 2009
JELD-WEN
Overview
Performance & Products
Table 8-2: JELD-WEN Energy-Efficient Replacement Fenestration Products, 2009
Masonite
Overview
Performance & Products
Table 8-3: Masonite Energy-Efficient Replacement Fenestration Products, 2009
Pella
Overview
Performance & Products
Table 8-4: Pella Energy-Efficient Replacement Fenestration Products, 2009
Serious Materials Inc.
Overview
Performance & Products
Table 8-5: Serious Materials Energy-Efficient Replacement Fenestration Products, 2009
Insulation, Caulking & Weather Stripping Manufacturers
Dow Chemical
Overview
Performance & Products
Table 8-6: Dow Chemical Residential Insulation Products, 2009
Owens Corning
Overview
Performance & Products
Table 8-7: Owens Corning Residential Insulation Products, 2009
RPM International
Overview
Performance & Products
Table 8-8: DAP Caulking and Air Sealing Products, 2009
Thermwell
Overview
Performance & Products
Table 8-9: Thermwell Residential Weather Stripping Products, 2009
Retailers
Figure 8-1: Frequency of Customer Visits in a 4-Week Period,Home Depot & Lowe’s, 2004-2008
The Home Depot
Overview
Performance
Figure 8-2: Home Depot World Revenue, FY2005-2009(in billions of dollars)
Lowe’s
Overview
Performance
Figure 8-3: Lowe’s World Revenue, FY2004-2008(in billions of dollars)

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