Zero-Energy Building (ZEB) Market Size, Share, Growth, and Industry Analysis, By Type (Lighting, Walls & Roofs, HVAC Systems, Others) By Application (Commercial, Residential) Regional Forecast From 2025 To 2034

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ZERO-ENERGY BUILDING (ZEB) MARKET OVERVIEW

The global Zero-Energy Building (ZEB) Market size stood at USD 52.85 billion in 2025, growing further to USD 347.81 billion by 2034 at an estimated CAGR of 23.29% from 2025 to 2034.

The United States Zero-Energy Building (ZEB) Market size is projected at USD 17.6324 billion in 2025, the Europe Zero-Energy Building (ZEB) Market size is projected at USD 12.33634 billion in 2025, and the China Zero-Energy Building (ZEB) Market size is projected at USD 16.04675 billion in 2025.

A zero-energy building, also referred to as a zero net energy building (ZNE building), net-zero energy building (NZEB), or net zero building, is one that has zero net energy usage, which means that the quantity of energy used by the building annually is approximately equivalent to the amount of renewable energy generated on the location, or in other interpretations by renewable energy sources somewhere else. Therefore, compared to equivalent non-ZNE buildings, these structures produce fewer greenhouse gasses overall. There are occasions when they do utilize non-renewable energy and emit greenhouse gasses, but there are other times when they offset that by reducing energy use and greenhouse gas output elsewhere. There are various sub sectors of the Zero-Energy Building (ZEB) sector, including Lighting, HVAC Systems, Walls & Roofs, and others

For a variety of reasons, the zero-energy building (ZEB) industry is expanding. Growing worry over changing climate and the requirement to reduce emissions of greenhouse gasses is one of the causes. Government regulations and policies are also helping to promote this business. Additionally, the market is expanding as a result of consumers, businesses, and organizations becoming more aware of and demanding sustainable structures.

KEY FINDINGS

COVID-19 IMPACT

Stop in Construction Work Temporarily Impeded the Market’s Expansion

The COVID-19 pandemic had a detrimental effect on the market for zero-energy buildings since it caused a stop in construction work across several nations, which might have temporarily impeded the market's expansion. Governments all across the world have enacted policies and stimulus packages to help their economies recover. Some of these programmes provided money and incentives for eco-friendly construction projects and renewable energy initiatives that would help the ZEB market.

LATEST TRENDS

Improvements in Energy-Efficient Construction Materials aid in Lowering the Energy Consumption of Buildings

Significant progress has been made in the creation of energy-efficient construction materials, which aid in lowering the energy consumption of buildings. Illustrations of these materials are insulated concrete blocks and structural insulated panels. In addition, advanced building automation technologies, smart grid technology, and storage systems for energy are allowing complexes to produce and retain their own energy.

• Passive House designs delivering up to 80% energy savings compared to conventional buildings are scaling into larger structures like offices and hospitals.

• Embodied energy remains critical—only 5% of new UK homes achieved an ‘A’ EPC rating, indicating energy performance challenges even in high-efficiency designs.

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ZERO-ENERGY BUILDING (ZEB) MARKET SEGMENTATION

By Type

According to type, the market can be segmented into Lighting, Walls & Roofs, HVAC Systems and Others

By Application

Based on application, the market can be divided into Commercial and Residential

DRIVING FACTORS

Growing Environmental Concerns and Rising Government Regulations are Expanding the Sector

The sector is expanding on account of the need to minimize greenhouse gas emissions and global warming. ZEBs are regarded as one of the best methods for lowering energy use and emissions from residences, which are a major source of greenhouse gasses. in addition, governments all across the world are encouraging the use of zero-energy building (ZEB) through regulations and incentives including tax credits, loans, and subsidies for energy-efficient structures. Many nations have adopted laws and policies to promote the development of energy-efficient structures as well as their retrofitting, and many have set high goals for decreasing energy use and emissions.

Increasing Demand for Sustainable Buildings is Giving Rise to Technologically Advanced Building Materials

Buildings that are sustainable are becoming more and more popular with customers, companies, and organizations. Buildings that are energy-efficient are being built and retrofitted as a top priority by many businesses as they make commitments to lessening their negative environmental effects. Zero-energy building (ZEB) are becoming increasingly practical and affordable as a result of developments in building materials, technology, and sources of renewable energy including solar and wind power. Building automation technology, smart grid technologies, and storage systems for energy are getting more advanced, allowing buildings to produce and retain their own energy.

• California’s policy mandates (new residential zero‑net‑energy by 2020, commercial by 2030) directly accelerate construction of ZEBs.

• In 2025, Asia‑Pacific adoption of ZEB solutions is projected to grow by 28%, spurred by urbanization and green building initiatives.

RESTRAINING FACTORS

Limited Availability of Skilled Labor and Lack of Awareness act as Obstacles in the Expansion of the Industry 

It could be challenging to get widespread acceptance since designers, contractors, and developers might not be conscious of or comprehend the advantages of ZEBs. Additionally, it is difficult to find qualified experts with expertise in designing and constructing ZEBs. Developing, designing, and building ZEBs may become difficult as a result. These factors might hinder the zero-energy building (ZEB) market growth during the anticipated period.

• The high initial capital requirement for PV and solar technologies continues to deter widespread implementation.

• Inconsistent regulations and limited awareness of ZEB benefits hinder market penetration, as highlighted by policy variability and knowledge gaps.

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ZERO-ENERGY BUILDING (ZEB) MARKET REGIONAL INSIGHTS

Implementation of Laws to Promote Development of Energy-Efficient Structures is Propelling the Regional Market

In terms of zero-energy building (ZEB) market share, North America was in first place regionally as of 2021. Promoter and implementer of energy-efficient construction laws and regulations, North American nations have been at the forefront. Numerous nations in the region have established challenging goals for cutting energy use and emissions, and they have also implemented laws and incentives to promote the development of new energy-efficient structures and their retrofitting. Furthermore, this region has a long history of using renewable energy, primarily solar and wind which makes it easier to incorporate these sources into structures.

KEY INDUSTRY PLAYERS

Key Players Focus on Technological Advances to Appeal to a Wider Range of Customers

There are numerous major players who are participating in the zero-energy building (ZEB) industry. These important stakeholders are working to create and put into practise technological advances, construction and design techniques, and funding strategies to increase the viability, affordability, and accessibility of ZEBs to a larger variety of customers. In order to encourage the utilization of their products and remain ahead of their rivals, the participants also engage in other forms of promotion.

• Integrated Environmental Solutions (IES) Limited – Recognized among leading firms in market dynamics.

• Altura Associates, Inc. – Listed as a significant player in the net‑zero energy buildings sector.

List of Top Zero-Energy Building (ZEB) Companies

• Integrated Environmental Solutions (IES) Limited
• Altura Associates, Inc.
• CertainTeed
• SHIMIZU CORPORATION
• Mitsubishi Electric Corporation
• Johnson Controls International plc
• Daikin Industries Ltd.
• Siemens AG

REPORT COVERAGE

This report covers the zero-energy building (ZEB) market. The CAGR expected to be in during the forecast period, and also the USD value in 2022 and what it is expected to be in 2028. The effect COVID-19 had on the market in the beginning of the pandemic. The latest trends taking place in this industry. The factors that are driving this market as well as the factors that are restraining the growth of industry. The segmentation of this market based on type and applications. The region leading in the industry and why they will continue to do so during the forecast period. Further, the key market players, what all is being done by them to stay ahead of their competition as well as retain their market positions. All these details are covered in the report.