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:
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 2: Appliances & Lighting 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 2: Appliances & Lighting 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:
Market Insights: A Selection From The Report
Imports & Exports of Residential Lighting Products
Unlike with appliances, residential lighting fixture imports have been dominated by imports from China for years, with 75% of imports to the U.S in this category in 2008. Even Mexico was a distant second with 11% of the residential lighting fixture imports to the U.S.
China is also the largest producer of CFLs in the world; the China Association of Lighting Industry states that in 2006 China was responsible for 70% of world CFL production. China was responsible for 87% of all fluorescent light imports to the U.S. in 2008 according to U.S. trade data, with 86% of those imports being of the screw in (Edison) type of light bulb and the rest using the pin type sockets. SBI estimates that 85% of the CFLs sold in the U.S. in 2008 were imported from China.
Imports of CFLs have grown prodigiously since 2002 with a CAGR of 24% from 2002 to 2008, but are now on the wane. CFL imports in 2008 saw a 14% drop in number compared to 2007 and a further 34% drop in the first quarter of 2009 compared to first quarter 2008. As an interesting side note, Canada dominates imports of the 1.2 meter straight fluorescent tubes commonly found in commercial buildings the way China dominates CFL imports to the U.S.In the News
Government Funding of Energy Efficiency Programs Generates Growth in $21 Billion Energy-Efficient Home Remodeling Market
New York, August 26, 2009 - Supporting energy efficiency as a way to decrease U.S. dependency on foreign fuels and reduce greenhouse gases moved to center stage in 2009. In the one year alone, the Obama administration has provided more money to advance energy efficiency programs across the board than in the last 10 years 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.
This huge surge of funding supports the U.S. energy-efficient home renovations market in a big way, according to Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting by leading industrial market research publisher SBI. The report cites the Congressional Budget Office’s (CBO) expectations that the newly available funding will generate an estimated $6 billion in remodeling work by the end of 2010, all of which is energy efficiency related according to the provisions of the funding.
SBI projects the energy-efficient home renovations market, which reached an estimated $21 billion in 2008, to experience a compound annual growth rate (CAGR) of 15% from 2009 to 2013, growing 50% faster than the U.S. renovations market as a whole. Ultimately, SBI forecasts energy-efficient renovations will total $35 billon and progress from claiming 12% of the overall home renovations market to 15% in the five years to 2013.
Growth in two prominent product segments, energy-efficient appliances and lightening, is expected to mirror the overall energy-efficient home renovations market. SBI projects that both segments will achieve a CAGR of about 13% for the five-year forecast period.
“With remodeling to improve a home's energy efficiency over buying a new home emerging as the preferred option in today's market, more and more homeowners will undoubtedly take advantage of the benefits of the tax credits offered by the stimulus plan for installations of energy-efficient appliances and lighting,” says Shelley Carr, publisher of SBI.
Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting is the latest installment in a three part series. The report highlights two specific home improvement product segments: energy-efficient appliances and lighting fixtures (including bulbs). 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 remaining reports in the Energy-Efficient Home Renovations series are available throughout 2009. 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 3, scheduled to publish later this year, 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.