Net-zero energy buildings to see 29% growth by 2027

Driven by climate imperatives, policy support, and maturing technologies, the market is said to be forecasted to grow at a 29% Compound Annual Growth Rate (CAGR) through 2027.

“With buildings accounting for over one-third of global energy consumption, the real estate sector is under mounting pressure to embrace net-zero,” explains Dominique Bonte, Vice President of End Markets at ABI Research.

“Governments, corporations, and society at large recognize the pivotal role buildings play in reducing emissions and energy use.”

Despite currently representing just 0.023% of global buildings, the net-zero segment is gaining strong momentum says ABI Research. The report projects over 5,500 commercial and residential net-zero buildings globally by 2027, up from 1,200 in 2022.

The report highlights that the evolution is enabled by progress across renewable energy, efficiency software, and sustainable materials. Solar photovoltaics, geothermal heating, and battery storage make onsite zero-carbon energy generation achievable.

In addition to this, digital twin systems and building management software from companies such as Siemens, Schneider Electric, and Univers optimise performance.

Regions leading the net-zero building charge include North America, Western Europe, and progressive urban centres in Asia Pacific. Supportive policies, technology leadership, and climate awareness are said to drive these markets.

“Technologies now exist to make net-zero energy feasible at scale,” ABI’s Bonte concludes.

“But the real estate ecosystem must continue collaborating across construction, policy, finance, and technology to make it accessible and attractive for owners globally.”