Environment

Top 30 Companies Accelerating Decarbonization in Global Homes and Buildings Industry

Digital Tools and Business Model Reinvention are Keys to Success for Decarbonization Strategies

INDUSTRY
Environment

RELEASE DATE
06-Aug-2024
REGION
Global
DELIVERABLE TYPE
Market Research

RESEARCH CODE
PFMF-01-00-00-00
SKU
EN_2024_904
Yes
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Top 30 Companies Accelerating Decarbonization in Global Homes and Buildings Industry
Published on: 06-Aug-2024 | SKU: EN_2024_904

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Buildings account for approximately 35% of global energy consumption and contribute about 40% of global carbon dioxide (CO2) emissions. Reducing these emissions is crucial for mitigating climate change and achieving international climate targets. Beyond environmental imperatives, decarbonizing buildings offers substantial economic benefits, including lower operational costs through energy efficiency, increased property values, and compliance with stringent regulations, which can lead to financial incentives and avoided penalties.

Increasingly demanding and complex regulations and legislations will drive the trend toward sustainability. This trend could accelerate with the stronger push for smart cities, presenting a significant opportunity for the buildings market to position itself as a driver of sustainability management.

As a result, an influx of companies offers solutions to promote decarbonization and sustainability in the built environment. In this study, Frost & Sullivan identifies the top 30 best practitioners that contribute toward decarbonization, climate change, and sustainability of buildings. The study period is 2023–2024.

Author: Melvin Leong

The Impact of the Top 3 Strategic Imperatives on the Homes and Buildings Industry

 

Transformative Megatrends

Why

  • Buildings account for approximately 35% of global energy consumption and contribute about 40% of the global carbon dioxide (CO2) emissions.
  • Consequently, governments strive to promote sustainability practices to support overall decarbonization in the buildings industry.

Frost Perspective

  • To reduce energy consumption and emissions, participants across the buildings industry value chain will need to adopt decarbonization measures.
  • Participants will need to invest in technologies, including digital applications, to support sustainable practices and partner with relevant industry leaders or experts in sustainability solutions.
  • A push to achieve climate goals and adhere to the United Nations (UN) Sustainable Development Goals (SDGs) will accelerate the decarbonization of homes and buildings.

 

Disruptive Technologies

Why

  • Disruption, innovation, and market upheaval are creating urgency for digital transformation, proposition, and service needs, with an overall goal of achieving sustainability.
  • This trend calls for product and service innovation, new value propositions, and future business models.

Frost Perspective

  • The buildings industry will accelerate adoption of decarbonization solutions and new business models in the next 1 to 2 years.
  • Sustainability in buildings is evolving beyond environmental performance. Increasingly, demand will drive complex regulations and legislation geared toward sustainability.
  • This trend could accelerate with the stronger economy in early months, presenting a significant opportunity for the buildings market to position itself as a driver of sustainability management.

 

Industry Convergence

Why

  • Industry convergence is crucial for collaboration among buildings industry participants, digital technology providers, and sustainability experts.
  • Collaborating will help them develop sustainable buildings and circularity in buildings’ operation and maintenance practices.

Frost Perspective

  • Market participants should emphasize clean and efficient energy usage, with the default adoption of reuse, recycling, and repurposing.
  • Companies should also redevelop all product and service value propositions with a renewed focus on a low-carbon future.
  • Companies could promote a circular economy in all supply chains and localize them as much as possible.
  • Market participants should also create a sustainability agenda for building components’ product design and services, construction methods, day-to-day operations, and the end of the life cycle.

 

Scope of Analysis

Geographic Coverage Global (Asia-Pacific [APAC], Europe, North America, Rest of World)
Study Period 2023–2024
Base Year 2023
Forecast Period 2024
Monetary Unit US Dollars

 

  • Frost & Sullivan segments the homes and buildings industry into 6 key markets, namely lighting; critical building equipment; smart building management; facility management; smart homes; and construction management. The following slide offers details on these segments.
  • The objective of this study is to identify and present the top 30 companies that excel in decarbonization propositions in the homes and buildings industry. Decarbonization is commonly defined as a method or strategy to reduce or eliminate carbon emissions.
  • For example, the homes and buildings industry contributes about 35% to 40% of carbon emissions annually, and this figure needs to be reduced..

 

Segmentation

Homes and Buildings

  • Lighting

    • Light-emitting Diode (LED)
    • Lighting Controls
    • Smart Street Lighting and Smart Lamp Poles
    • Emergency Lighting
    • Horticulture and Aquaculture Lighting
  • Critical Building Equipment
    • Low Voltage Switchgear (LVSG)
    • Heating, Ventilation, and Air Conditioning (HVAC)
    • Indoor Air Quality
    • Fire Safety (Detection and Suppression)
    • Electronic Security
    • Elevators and Escalators
  • Smart Building Management
    • Building Automation System (BAS)
    • Building Energy Management System (BEMS)
    • Workplace Analytics
  • Facility Management
    • Single Services
    • Bundled Services
    • Integrated Facility Management (IFM)
  • Smart Homes
    • Home Energy Management
    • Home Automation and Controls
    • Home Safety and Security
    • Home Entertainment
    • Health and Wellness
  • Construction Management
    • Building Information Modelling (BIM) and Digital Twin
    • Construction Management Software

 

Growth Drivers

Driver
Technological innovation in energy storage solutions enhances grid flexibility and enables higher integration of renewable energy sources.
Innovation in material science leads to the development of low-carbon building materials and construction techniques, reducing embodied carbon in buildings.
Climate resilience strategies, such as green infrastructure and passive design principles, mitigate risks from extreme weather events and enhance building durability.
Data-driven analytics and machine learning (ML) algorithms optimize building performance and identify opportunities for energy savings.
Circular design principles promote the reuse, recycling, and repurposing of building materials and components while reducing waste and carbon emissions associated with construction and demolition.
Integration of decentralized energy systems, such as microgrids and distributed energy resources, enhances resilience and reliability in buildings.

 

Growth Restraints

Restraint
High upfront costs of green building materials and energy-efficient technologies may pose financial barriers.
Dependence on intermittent renewable energy sources may pose challenges for grid stability and reliability, especially without adequate storage solutions.
Regional differences in climate, building codes, and energy infrastructure may require customized approaches to decarbonization, adding complexity to implementation.

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top 3 Strategic Imperatives on the Homes and Buildings Industry

Scope of Analysis

Segmentation

How You Can Leverage This Research—Reader-based View

Top 30 Decarbonization Best Practitioners

Growth Metrics

Growth Drivers

Growth Restraints

Forecast Considerations

Revenue Forecast by Segment

Revenue Forecast Analysis

Decarbonization Initiatives by Homes and Buildings Industry Participants—Analysis Methodology

Decarbonization Initiatives by Homes and Buildings Industry Participants—Analysis Methodology (continued)

Summary of Top 30 Companies with Decarbonization Best Practices

Summary of Top 30 Companies with Decarbonization Best Practices (continued)

Summary of Top 30 Companies with Decarbonization Best Practices (continued)

Summary of Top 30 Companies with Decarbonization Best Practices (continued)

ABB

AECOM

Bosch

Carrier

Cemex

Cisco

Daikin

Danfoss

Dow

Eastman

Eaton

Google

Hilti

Holcim

Honeywell

Johnson Controls

Kingspan Group

KONE

Legrand

Microsoft

Mitsubishi Electric

Owens Corning

Saint-Gobain

Schneider Electric

Siemens

Signify

Tesla

Toshiba

Trane Technologies

Zumtobel Group

Growth Opportunity 1: Government Support to Expedite Decarbonization

Growth Opportunity 1: Government Support to Expedite Decarbonization (continued)

Growth Opportunity 2: Circular Economy Investment for Competitive Advantage

Growth Opportunity 2: Circular Economy Investment for Competitive Advantage (continued)

Growth Opportunity 3: Net Zero Buildings with Carbon Neutral Operations

Growth Opportunity 3: Net Zero Buildings with Carbon Neutral Operations (continued)

Growth Opportunity 4: Business Model Reinvention to Back Decarbonization Plans

Growth Opportunity 4: Business Model Reinvention to Back Decarbonization Plans (continued)

Growth Opportunity 5: Digital Tools to Improve Building Operations and Applications

Growth Opportunity 5: Digital Tools to Improve Building Operations and Applications (continued)

Best Practice Recognition

Frost Radar

Benefits and Impacts of Growth Opportunities

Next Steps

Take the Next Step

List of Exhibits

Legal Disclaimer


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