Net Zero Energy Buildings NZEBs Market Report 2025 (Global Edition)

Global Net Zero Energy Buildings NZEBs Market Report 2025 Market Size Split by Type (• HVAC System, • Lighting, • Walls & Roofs, • Others), by Application (• Residential, • Non-residential...

Net Zero Energy Buildings NZEBs Market Report Description

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The zero energy buildings (ZEB) market has been experiencing significant growth, driven by increasing demand for sustainable, energy-efficient building solutions. Leading market players have been making strategic efforts to enhance their product and solution offerings, strengthen their competitive positions, and contribute to the broader industry’s growth. Through research and development (R&D) activities, new product launches, strategic mergers and acquisitions, collaborations, and investments, these companies are continually innovating and expanding their presence in the zero energy buildings market. Their efforts are primarily focused on energy management, automation, and building control systems, aiming to meet the growing demand for zero-energy buildings that contribute to sustainability goals and energy-efficient construction practices.
General Electric (GE) is one of the major players at the forefront of technological innovation in the zero-energy building sector. The multinational conglomerate, headquartered in Boston, Massachusetts, operates across multiple industries including energy, aviation, and healthcare. GE’s commitment to sustainability is evident in its efforts to design and provide long-term energy-efficient solutions. In 2021, General Electric partnered with the National Renewable Energy Laboratory (NREL) to develop and test an advanced heating, ventilation, and air conditioning (HVAC) system specifically designed for zero-energy buildings. This collaboration is expected to result in the creation of an innovative HVAC solution that significantly reduces energy consumption, minimizes greenhouse gas emissions, and improves indoor air quality, aligning with the rising demand for eco-friendly building systems.
Similarly, Honeywell International Inc., a global player with a strong presence in building technologies, safety, and productivity solutions, has also made significant strides in the zero-energy buildings market. Headquartered in Charlotte, North Carolina, and operating in over 70 countries, Honeywell is actively developing sophisticated solutions that enhance building energy efficiency. In January 2022, Honeywell launched its Smart Building Solutions to cater to the growing demand for energy-efficient and sustainable buildings. (Source: https://www.iotworldtoday.com/iiot/honeywell-launches-smart-building-platform)  This suite of technologies includes intelligent HVAC systems, energy management systems, networked sensors, and analytics platforms, all aimed at optimizing building performance and sustainability. Honeywell’s smart building solutions are designed to reduce energy consumption while maximizing comfort and operational efficiency, providing building owners and operators with powerful tools to reduce their carbon footprint and operating costs.
Siemens and Schneider Electric are other significant players shaping the competitive landscape of the zero-energy buildings market. Siemens, a German multinational in the fields of automation, electrification, and digitalization, has also been heavily investing in sustainable building technologies. Siemens launched "Building X" in 2022, a suite of open AI-enabled solutions designed to optimize building management and energy consumption. This modular and scalable platform helps to streamline operations, enhance energy efficiency, and reduce carbon emissions, which are essential for the widespread adoption of zero-energy buildings. The integration of AI and digitalization into building management processes marks a significant advancement in how energy-efficient buildings are designed, constructed, and operated.
Schneider Electric, a leader in energy management and automation, is another key player making significant contributions to the zero-energy buildings industry. The company launched its EcoStruxure for Buildings solution, which combines energy management, automation, and digital services to optimize building performance. The platform enables the monitoring, analysis, and optimization of energy consumption in real-time, helping buildings to operate at near-zero or zero-energy levels. By integrating advanced analytics, smart technologies, and energy-efficient design principles, Schneider Electric’s solutions are enabling buildings to significantly reduce their environmental impact while improving operational efficiencies.
In conclusion, the zero-energy buildings market is highly competitive, with major players like General Electric, Honeywell International, Siemens, and Schneider Electric leading the charge in developing cutting-edge solutions that promote energy efficiency and sustainability. Through strategic partnerships, technological innovations, and investments in research and development, these companies are positioning themselves as leaders in the transition toward zero-energy buildings. As governments and industries increasingly prioritize sustainability and energy conservation, these market leaders will continue to drive growth in the sector, helping to meet global energy efficiency goals and reduce carbon emissions.
 

Top Companies Market Share in Net Zero Energy Buildings NZEBs Industry: (In no particular order of Rank)

• • Kingspan Group plc (Ireland)
• • Canadian Solar (Canada)
• • Johnson Controls International (Ireland)
• • Daikin Industries (Japan)
• • AGC (Japan)
• • Schneider Electric (France)
• • Trane (Ireland)
• • SunPower Corporation (U.S.)
• • Honeywell International (U.S.)
• • Sage Electrochromics (U.S.)
• • IES ( (India)
• • Solatube International (U.S.)
• • General Electric (US)
• • Siemens (Germany)
• • Solatube International Inc (US)
• • Saint-Gobain (France)
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Which Region Dominates the zero energy buildings Market in 2025?

The North American market for net-zero energy buildings (ZEB) held a significant share of the global market in 2023, driven by growing awareness of climate change and the pressing need for sustainable and resilient urban development. As climate change continues to lead to more frequent and extreme weather events such as floods, wildfires, and hurricanes, North American communities are increasingly recognizing the importance of incorporating sustainability into their infrastructure. Local governments, city planners, and developers are prioritizing green and resilient building designs to reduce energy consumption, lower carbon emissions, and prepare for future climate risks. This shift in urban planning is fostering greater adoption of net-zero energy buildings as they not only reduce the environmental footprint but also enhance the overall resilience of communities.
The United States, in particular, is leading the North American ZEB market, accounting for the largest share. The country has made significant strides in the development and implementation of energy-efficient buildings. For Instance, the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE), which introduced the ANSI/ASHRAE Standard 228-2023, a comprehensive framework for evaluating zero energy and zero carbon buildings. (Source: https://www.techtarget.com/searchdatacenter/definition/ASHRAE)  This new standard aims to provide a clear path for architects, engineers, and developers to design buildings that meet net-zero energy and carbon emission goals. By introducing such standards, the U.S. is pushing the industry forward in terms of setting benchmarks and ensuring uniformity across the construction sector, making ZEBs more accessible and attainable across various states.
In addition to the regulatory framework, the U.S. government has supported the growth of net-zero energy buildings through financial incentives and grants. Programs such as the Department of Energy’s “Zero Energy Ready Home” initiative encourage developers to construct homes that are designed to generate as much energy as they consume, ultimately contributing to the nation’s decarbonization goals. For Instance, the “Living Building Challenge,” a certification program that has helped advance net-zero designs across the U.S. By adopting cutting-edge technologies and sustainable building practices, these homes serve as examples for developers and builders nationwide. (Source: https://living-future.org/wp-content/uploads/2022/05/18-0910-Specification-Guidebook-FINAL-1.pdf) 
Several leading companies are also contributing to this growth. For instance, General Electric and Siemens are offering advanced solutions that enable energy efficiency in buildings. These solutions range from energy-efficient HVAC systems to smart lighting and renewable energy sources such as solar panels. Similarly, Honeywell International has developed integrated building management systems to optimize energy consumption in commercial buildings, ensuring that they meet the strict standards set for net-zero performance.
In conclusion, the North American market for net-zero energy buildings is thriving due to heightened awareness of climate risks, the introduction of new building standards, and increasing government support. With initiatives like ASHRAE’s new framework and programs such as “Zero Energy Ready Home,” the U.S. is setting the stage for widespread adoption of ZEBs, paving the way for a more sustainable and resilient built environment. The trend is expected to continue with further innovations and regulations that will drive growth in this sector, positioning North America as a leader in the global transition toward energy-efficient construction.
 

Which Region is Expanding at the Fastest CAGR?

The Asia Pacific region’s net-zero energy buildings (NZEB) market is set to experience significant growth in the coming years, driven by rapid urbanization, economic development, and a growing awareness of environmental sustainability. As countries like China, India, and Japan continue to undergo large-scale urbanization, the demand for energy increases, putting substantial pressure on energy grids and exacerbating environmental concerns. This has led to heightened awareness about sustainable urban development, with governments actively pursuing solutions to minimize the environmental impact of new construction and infrastructure development. As a result, the shift towards net-zero energy buildings is becoming a key strategy in mitigating the energy consumption and carbon emissions associated with urbanization. The adoption of NZEB principles not only addresses the environmental impacts of urban growth but also aligns with the broader global agenda to combat climate change and reduce carbon footprints.
In particular, countries like China and India are witnessing rapid economic growth, which is fueling an increased demand for energy in both residential and commercial sectors. This surge in energy consumption, coupled with the pressing need to address environmental sustainability, is driving the implementation of zero-energy building strategies. Governments in these countries are enacting policies and setting standards to promote energy efficiency in the building sector. For example, China has introduced energy-saving standards for buildings as part of its broader efforts to curb emissions and reduce the energy intensity of the economy. Additionally, the government has made significant investments in renewable energy, such as solar power, which supports the integration of renewable energy systems in new buildings. As these regions continue to develop, the adoption of net-zero energy building designs is becoming essential for meeting both energy demands and environmental goals.
Australia, a leader in sustainable building practices within the region, is projected to see significant growth in its NZEB market over the forecast period. One of the key drivers behind this growth is the increasing emphasis on green building certifications, such as Green Star and NABERS (National Australian Built Environment Rating System). These certifications serve as a benchmark for sustainability, recognizing and rewarding building developers and owners for adopting energy-efficient technologies and sustainable design principles. The Green Star certification, for instance, covers various aspects of environmental performance, including energy use, indoor environmental quality, and water efficiency, encouraging developers to meet high standards for sustainability. NABERS, on the other hand, is a performance-based rating system that measures a building's actual operational performance in terms of energy and water use, indoor environmental quality, and waste management. (Source: https://new.gbca.org.au/green-star/rating-system/) The availability of these certifications not only provides tangible incentives for developers to invest in NZEB technologies but also boosts the marketability of these properties, which are increasingly in demand by environmentally conscious tenants and investors.
The strong push for sustainable building practices in Australia is supported by government policies and initiatives, such as the Australian Government’s Clean Energy Finance Corporation (CEFC), (Source: https://www.cefc.com.au/about-us/who-we-are/about-us/) which provides financial support for projects that contribute to reducing greenhouse gas emissions. Moreover, Australia’s commitment to its international climate goals, including the Paris Agreement, is further incentivizing the development of net-zero energy buildings as part of the country’s broader efforts to combat climate change.
In conclusion, the Asia Pacific NZEB market is set to experience rapid growth, driven by the twin forces of urbanization and environmental sustainability. Countries like China and India are adopting energy-efficient building standards to meet their growing energy demands while addressing climate change, while Australia is leading the way with its emphasis on green certifications and government-backed financial incentives. As these regions continue to prioritize sustainability in urban development, the demand for net-zero energy buildings is expected to surge, positioning the Asia Pacific region as a key player in the global push towards sustainable, energy-efficient buildings.

The current report Scope analyzes Net Zero Energy Buildings NZEBs Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

Net Zero Energy Buildings NZEBs Market Analysis

By Type
The zero energy buildings (ZEB) market can be broadly divided into several key segments, including HVAC systems, lighting, walls & roofs, and others, each contributing to the overall functionality and energy efficiency of the buildings. Among these, the HVAC systems segment holds the largest market share and is expected to rise at a compound annual growth rate (CAGR) of XX% during the forecast period. HVAC systems are crucial for maintaining a comfortable and healthy indoor environment by regulating temperature, airflow, and humidity, which are essential in achieving zero-energy or near-zero-energy performance in buildings. As governments and regulatory agencies worldwide continue to implement stringent energy efficiency criteria, modern HVAC systems equipped with advanced air filtration, ventilation, and monitoring technologies are becoming a priority in new and retrofitted net-zero buildings. For instance, global players like Daikin Industries Ltd and Johnson Controls are leading the way in providing cutting-edge HVAC solutions that support the transition to zero-energy buildings. Daikin’s Variable Refrigerant Flow (VRF) systems, for instance, allow for precise temperature control and efficient energy use, making them an ideal solution for zero-energy buildings. (Source: https://www.daikinmea.com/en_us/knowledge-center/vrf-systems-explained.html) Additionally, regulatory frameworks, such as the European Union’s Energy Performance of Buildings Directive (EPBD), promote the adoption of high-performance HVAC systems to minimize energy consumption and reduce greenhouse gas emissions.
In addition to HVAC systems, the lighting segment also holds substantial market share in the ZEB industry. During the projection period, the lighting sector is expected to experience significant growth as a result of advancements in smart lighting technologies. Smart lighting systems, which adjust brightness levels based on occupancy and natural light availability, are increasingly being adopted in zero-energy buildings. These systems not only enhance energy efficiency but also improve the quality of light and occupant comfort, thereby aligning with the goals of net-zero energy buildings. For Instance, Philips Lighting (now Signify), which offers a range of intelligent, energy-efficient lighting solutions. Their connected lighting systems enable real-time monitoring and management of energy use, helping buildings meet their sustainability goals. These innovations in lighting systems are increasingly becoming a key component in achieving energy efficiency and sustainability in buildings, thus driving the growth of the lighting segment within the ZEB market.
The walls and roofs segment also plays a critical role in the performance of net-zero energy buildings, contributing significantly to the building's overall energy consumption profile. This segment includes advanced insulation materials, energy-efficient windows, and reflective roofing technologies that help reduce heat loss or gain, ensuring that the energy required for heating or cooling is minimized. During the projected period, the walls and roofs segment is expected to see steady growth, driven by innovations in insulation materials and sustainable building designs. Companies like Owens Corning and Kingspan Group are at the forefront of providing high-performance insulation solutions that contribute to reducing energy consumption in buildings. These materials not only improve energy efficiency but also enhance the comfort and durability of the buildings, making them essential for the successful implementation of net-zero energy designs. Furthermore, building envelopes equipped with solar-reflective materials or green roofs are gaining popularity in urban areas as part of sustainable construction initiatives, further promoting the growth of this segment.
Within the broader market, the 'others' segment, which includes renewable energy technologies and energy storage systems, is also contributing to the market’s expansion. Although it does not dominate as heavily as HVAC or lighting, the integration of renewable energy sources such as solar photovoltaic (PV) panels and wind turbines is crucial for achieving net-zero energy performance. Moreover, energy storage systems such as batteries are becoming increasingly important in enabling buildings to store excess renewable energy for use during non-peak hours. Companies like Tesla and SolarEdge Technologies are leading the way in providing solar energy solutions and energy storage systems that enhance the self-sufficiency of net-zero energy buildings. These technologies, while still a relatively small portion of the overall market, are expected to grow rapidly as renewable energy adoption continues to rise.
In conclusion, the zero energy buildings market is driven by the demand for more efficient and sustainable building systems. Among the key segments, HVAC systems dominate, contributing the largest market share due to their crucial role in maintaining indoor comfort and energy efficiency. Lighting and walls & roofs follow as substantial contributors, with innovations in smart technologies and advanced materials helping to drive the growth of these sectors. Furthermore, the integration of renewable energy systems and energy storage solutions is becoming increasingly important, though it is still a smaller portion of the market. As the push for sustainability and energy efficiency continues to grow, the ZEB market is poised for further expansion, with key players like Daikin, Johnson Controls, Philips, Owens Corning, and Tesla leading the way in technological innovation and market development.
 

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By Application
The zero energy buildings (ZEB) market can be broadly divided into two major segments: residential and non-residential applications. Among these, the residential segment accounts for the largest market share, holding XX% of market revenue, which translates to approximately $XX billion. This dominance is attributed to the increasing awareness and demand for sustainable, energy-efficient residential buildings. As concerns about climate change, rising energy costs, and environmental sustainability continue to grow, homeowners, builders, and developers are increasingly adopting zero-energy building concepts. These residential buildings focus on reducing energy consumption, lowering utility bills, and minimizing carbon footprints. Key technologies driving this shift include high-performance insulation, energy-efficient windows, solar panels, and renewable energy systems, all of which help achieve zero or near-zero energy performance. Companies such as Tesla and SunPower are leading the way in providing residential solar solutions, while manufacturers like Owens Corning and Kingspan are pushing the envelope in advanced insulation technologies. In addition, the rise of smart home technologies is making it more feasible for homeowners to monitor and control their energy use efficiently, contributing to the increasing popularity of net-zero homes. This growing focus on sustainability, coupled with advancements in renewable energy solutions, has allowed the residential sector to dominate the market, and it is expected to continue growing rapidly at a high compound annual growth rate (CAGR) during the forecast period.
While the residential sector leads in market share, the non-residential segment is projected to grow at the fastest CAGR in the coming years. Governments worldwide are implementing stringent energy efficiency standards and building codes for commercial and institutional buildings, which is driving the adoption of zero-energy building practices in the non-residential sector. The increasing focus on sustainability, corporate social responsibility, and regulatory requirements has led commercial property developers to embrace net-zero energy strategies in order to reduce operational costs and comply with environmental standards. Moreover, governments are offering financial incentives, tax rebates, and grants to encourage the adoption of zero-energy technologies and solutions in non-residential buildings. For instance, in the United States, programs like the Energy Star certification and the Green Building Incentive Program are actively encouraging commercial developers to implement energy-efficient technologies. (Source: https://www.energystar.gov/buildings/save-energy-commercial-buildings/finance-projects/energy-efficiency-programs#:~:text=Find%20utilities%20and%20statewide%20program%20sponsors%20that%20run,of%20technical%20assistance%20and%20financial%20incentives.%20Updated%20semi-annually. The Bullitt Center in Seattle is recognized as one of the greenest commercial buildings in the world. This office building features energy-efficient systems such as advanced HVAC technologies, solar panels, and rainwater harvesting systems that contribute to its zero-energy status. Additionally, companies like Schneider Electric and Siemens are providing integrated solutions that combine energy management systems, smart building technologies, and energy storage to help non-residential buildings achieve net-zero energy performance. These government-driven initiatives, along with the growing push for sustainability and energy efficiency, position the non-residential segment for rapid growth in the zero-energy building market.
In conclusion, the zero-energy buildings market is experiencing significant expansion, with the residential segment holding the largest market share and expected to grow steadily. The widespread adoption of zero-energy concepts in residential buildings is driven by technological advancements in solar energy, insulation materials, and smart home technologies, alongside the rising demand for sustainable living. However, the non-residential sector is anticipated to grow at the fastest pace, supported by stringent regulations, financial incentives, and increasing government policies aimed at reducing greenhouse gas emissions. Both segments are crucial for the market's overall growth, with the residential sector continuing to dominate and the non-residential sector poised for rapid expansion due to favorable regulatory and financial support.
 

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Author's Detail

Manoj Phagare

Senior Research Analyst at Cognitive Market Research

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• Worked on several market, industry & business research projects, on various models such as Syndicated, Custom, Subscriptions and Consults
• Proficient in secondary research and familiar with all paid research databases
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