Energy-Efficient Window Market

Global Energy-Efficient Window Market Forecast

• Energy-efficient window market size projected to jump from US$13.7 Bn in 2023 to US$20.7 Bn in 2030
• Market revenue poised to experience a CAGR of 6.1% over 2023 - 2030

Quick Report Digest

1. Rising customisation and aesthetics are the key trends anticipated to fuel the energy-efficient window market growth. Furthermore, Energy-efficient window alternatives are becoming increasingly customisable by manufacturers to accommodate a wide range of architectural styles and design preferences. This movement dispels the myth that energy efficiency means sacrificing beauty, making these windows more aesthetically pleasing to a wider variety of customers.
2. Another major market trend expected to fuel the energy-efficient window market growth is the rapidly growing integration of renewable energy technologies. Renewable energy technologies are becoming more and more popular to incorporate into windows. Using transparent solar cells to produce electricity while preserving visibility is one way to achieve this, as is building solar panels right into the window frame.
3. A lack of knowledge about the advantages of energy-efficient windows may hamper the market's ability to expand. Many customers are unaware of these windows' potential for long-term savings and environmental benefits.
4. In 2023, the double-glazing category dominated the industry. Double glazing is frequently required in tall structures because of the increased exposure to external elements, which makes energy efficiency and insulation crucial. It aids in preserving constant interior temperatures and adds to high-rise buildings' overall energy savings.
5. Regarding market share for energy-efficient windows globally, the glass segment is anticipated to dominate. Inert gases such as argon or krypton are frequently used in the area between double or triple windows to minimise heat conduction and increase insulation. Their ability to improve thermal performance impacts the demand for these gases in energy-efficient window systems.
6. In 2023, the residential buildings category controlled the market. Some energy-efficient windows are equipped with UV-blocking coatings to prevent damage from ultraviolet light. This shields artwork, flooring, and interior furnishings from fading and damage brought on by extended exposure to the sun.
7. The North American region is anticipated to account for the largest share of the global energy-efficient window market, owing to the varied climate of North America, ranging from bitterly frigid winters to sweltering summers. Energy-efficient windows are ideally suited to meet the various energy requirements of buildings in this area because of features like multi-pane designs and low-emissivity coatings.
8. The market for energy-efficient windows is expanding in Asia Pacific because many Asia Pacific countries are developing large-scale infrastructure, including smart cities, infrastructure, and residential and commercial complexes. These initiatives present significant chances to incorporate energy-efficient windows.

A Look Back and a Look Forward - Comparative Analysis

Windows can react to occupancy levels when they are integrated with IoT sensors. Windows can modify lighting and ventilation depending on real-time occupancy data to optimise energy consumption in spaces with different usage patterns. The smart system can be configured to change window settings for the best thermal comfort and interior air quality based on information from sensors that measure temperature, humidity, and quality of air.

The market witnessed staggered growth during the historical period 2018 - 2023. Energy efficiency requirements and building codes were introduced and modified by governments at different levels. These laws required energy-efficient windows installed in newly constructed and renovated buildings, setting the stage for a more sustainable building industry.

Efforts to encourage builders, companies, and homeowners to invest in energy-efficient technologies, such as windows, have included offering tax credits, rebates, and financial incentives. These financial aid programs were designed to lessen the initial obstacles to installing energy-efficient windows.

Windows and other building components can be centrally controlled due to integration with BAS. Automated control systems optimise energy use by modifying window characteristics according to user choices or predefined conditions in the coming years. Additionally, energy-efficient window settings can be predicted by machine learning algorithms through the analysis of previous data.

AI-powered systems can adjust to shifting circumstances and pick up on user behavior to continuously improve energy efficiency. Furthermore, energy-saving windows can result in automated reports on energy savings from smart devices. This function is useful for proving that energy efficiency certifications and standards are being met during the next five years.

Key Growth Determinants

• Growing Adoption Across Non-Residential Sector

Commercial buildings, including businesses, hotels, hospitals, schools, and airports, are examples of non-residential structures that incorporate energy-efficient windows. Buildings that are large are constructed with energy conservation in mind. Because these structures are also designed to break even over time, choosing energy-efficient windows is wise.

The need for green buildings in commercial construction is rising as economies grow. The demand for these buildings has recently increased in European and North American nations. Because more schools and hospitals are being built in developing nations, the market for energy-efficient windows in the non-residential end-use sector is expanding.

• Increasing Focus on Sustainability

The preferences of consumers and industry players have changed due to heightened knowledge of environmental issues, climate change, and the need for sustainable operations. Because they use less energy, produce fewer greenhouse gas emissions, and encourage environmentally friendly building techniques, energy-efficient windows help address these issues.

International pledges, and agreements to cut carbon emissions, including the Paris Agreement, have pushed governments and businesses to prioritise energy efficiency in building. Energy-efficient windows are essential to achieving these objectives by reducing the energy used in buildings.

As a result of growing environmental consciousness, consumers are actively looking for sustainable products. People are looking for methods to make their homes and workplaces more environmentally friendly, which has increased demand for energy-efficient windows.

• Technological Advancements

The invention and widespread use of vacuum-insulated windows constitute a notable technological breakthrough. Compared to conventional double-pane windows, VIG dramatically reduces heat transmission and improves overall thermal efficiency by generating a vacuum between the glass panes.

Developments in frame materials enhance the total energy efficiency of windows. Fiberglass, vinyl, and composite materials offer better insulating qualities, less thermal bridging, and increased durability than traditional window frame materials.

 Although windows with two panes have traditionally been common, triple and quadruple glazing has become more popular due to technical developments. Innovative gas fills, and extra glazing layers improve insulation and energy efficiency even more in different climes.

Major Growth Barriers

• High Initial Costs

Compared to conventional windows, energy-efficient windows usually cost more upfront. The upfront cost of buying and installing these windows may be a turnoff for builders, developers, or homeowners on a tight budget.

Although energy-efficient windows save money over the long run by lowering energy bills, certain stakeholders could be reluctant to purchase because they want to know how long it will take to recover the original cost. Potential purchasers who put short-term financial reasons first can be turned off by the apparent payback period.

• Complex Installation Process

Energy-efficient window installation frequently calls for specific expertise and abilities. Because these windows require a certain level of expertise, less labour may be available, which could result in higher labour costs and installation delays.

Smart glass and intricate glazing systems are two examples of cutting-edge technologies that may be used in energy-efficient windows. Technical know-how is needed to ensure proper installation, and the market's need for qualified installers may prevent these windows from being widely used.

Key Trends and Opportunities to Look at

1. Rising Smart Glass Integration

Smart glass can dynamically control the amount of heat and light that enters a building. To maximise the use of natural light and minimise the need for artificial lighting and HVAC systems, users can modify the transparency or tint of the glass in response to changing climatic circumstances.

Energy savings are made possible by smart glass's capacity to adjust to outside conditions, such as the amount of sunshine and the surrounding temperature. Smart glass lowers dependency on heating and cooling systems, resulting in lower energy usage and cheaper utility costs by automatically adjusting its transparency.

2. Increasing Focus on Net-Zero Energy Buildings

Net-zero energy buildings aim to generate as much energy as they use in a specific amount of time. Energy-efficient windows are essential to this goal by minimising heat transfer and lowering the demand for artificial heating and cooling.

The focus on net-zero energy design encourages the utilisation of building materials with improved thermal performance. Advanced glazing technologies and insulation elements in energy-efficient windows meet this criterion and enhance the building envelope's thermal performance.

3. Increasing Renovation and Retrofitting Projects

Existing buildings that might not adhere to current energy efficiency regulations are a sizable component of the global building stock. Renovation and retrofitting projects provide the chance to replace these buildings with energy-efficient windows and enhance overall energy performance.

Improving energy performance is possible through building renovations or retrofits. Windows with higher energy efficiency are essential to retrofit projects that aim to increase energy efficiency because they improve thermal comfort, limit heat transfer, and provide superior insulation.

How Does the Regulatory Scenario Shape this Industry?

Over the last three years, a model energy code that numerous US jurisdictions have used, the International Energy Conservation Code (IECC), has been created and maintained by the ICC. Energy-efficient window design and installation are impacted by rules in the IECC about building envelope efficiency.

The DOE is key in establishing energy efficiency guidelines for various items, including windows. Under the DOE's ENERGY STAR program, consumers may choose items that fulfill high-performance standards and get specifications for energy-efficient windows. Energy Performance of Buildings Directives (EPBD) and other directives from the EU have set energy performance requirements for buildings.

Due to these criteria, high-performance windows are used in new construction and renovations, which impact the market for energy-efficient windows. The National Fenestration Rating Council (NFRC) is a non-profit organisation based in the United States that sets standards for classifying and assessing the energy efficiency of windows, doors, and skylights. Customers and manufacturers can evaluate and compare energy-efficient goods consistently thanks to NFRC ratings.

Fairfield’s Ranking Board

Top Segments

1. Primacy of the Double Glazing Category Intact

The double-glazing segment dominated the market in 2023. Double glazing is a popular choice for windows and doors in residential constructions. Because of its capacity to offer better thermal insulation, less heat is lost or gained, making interior spaces more comfortable and resulting in lower energy costs.

Office buildings, retail stores, and hospitality establishments are among the commercial buildings where double glazing is a common window choice. Reducing the need for excessive heating or cooling and fostering a cozy resident environment improves energy efficiency.

Furthermore, the single-glazing category is projected to experience the fastest market growth. Preserving the original architectural characteristics and aesthetic appeal is frequently the goal when renovating or restoring historic structures.

Single glazing may be employed to recreate the original feel and appearance of the building's windows in such circumstances. Single glazing might be considered adequate for basic insulation in mild climates where drastic temperature swings are not a major concern, eliminating the need for more sophisticated energy-efficient measures.

2. Glass to be the Material of Choice

In 2023, the glass category dominated the industry. Glass surfaces are coated with translucent, thin, low-E coatings. They let in visible light while reflecting infrared radiation, improving the thermal performance of windows. Due to their ability to reduce heat transfer and increase energy efficiency, Low-E coatings are in high demand.

An energy-efficient window will typically have numerous layers of glass, spaced between by a spacer and filled with an insulating gas (such as argon or krypton). Enhancing insulation, lowering heat absorption or loss, and adding to overall energy savings are the benefits of double or triple glazing.

The frame category is anticipated to grow substantially throughout the projected period. The purpose of thermally broken frames is to reduce heat transfer between a building's outside and interior.

Because thermal breaks lessen heat transfer through the frame and enhance energy efficiency, there is a significant demand for these breaks, usually composed of materials with poor thermal conductivity.

3. Residential Buildings Maintain the Leading Position in Demand Generation

The residential buildings segment dominated the market in 2023. Sound insulation is enhanced by energy-efficient windows using numerous panes, gas fills, and innovative glazing technologies. This gives homeowners a calmer and more serene living environment, especially in residential locations with outside noise.

Modern safety features are frequently included in the construction of energy-efficient windows. Homeowners can increase the security of their properties with additional locking systems, laminated glass, and reinforced frames.

The commercial buildings category is expected to experience the fastest growth within the forecast time frame. Windows and other energy-efficient improvements increase a building's appeal to potential occupants. Energy-efficient windows are a selling feature for commercial property owners looking to draw in eco-aware tenants and raise tenant satisfaction.

Commercial structures prioritising sustainability, such as those that employ energy-efficient windows, project a positive corporate image and show social responsibility. Clients, consumers, and investors who respect ecologically responsible business practices may find this appealing.

Regional Frontrunners

North America’s Revenue Contribution Maximum

North America is expected to dominate the market. In North America, state and federal laws about energy efficiency are well-established. These rules encourage using windows and other energy-efficient building materials, which helps create a positive market environment. Several North American governments provide tax breaks, rebates, and incentives to promote energy-efficient technologies.

Financial assistance for installing energy-efficient windows encourages consumers and companies to make these purchases. North American building regulations, such as the US's International Energy Conservation Code (IECC) and comparable codes in Canada, provide strict guidelines for energy efficiency. The market is growing because of compliance with these rules, which increases demand for high-performance windows.

Growth of High-Rise Structures in Housing and Commercial Sectors Drives Asia Pacific

Asia Pacific is expected to be the fastest-growing region. The Asia Pacific area is rapidly becoming more urbanised, driving building activity. The market for energy-efficient windows is significant in urban regions because of the prevalence of high-rise buildings, and commercial complexes, which drive developers and homeowners to look for sustainable building solutions.

The growing middle-class populations in several Asia Pacific countries are driving the need for higher living standards. The expanding middle class's goals align with energy-efficient windows, which improve thermal comfort, and save on energy costs.

Fairfield’s Competitive Landscape Analysis

A few multinational corporations dominate the majority of the market for energy-efficient windows. The top companies are developing new products and improving their distribution networks to increase their global footprint. Moreover, Fairfield Market Research expects more consolidation over the coming years.

Who are the Leaders in Global Energy-Efficient Window Space?

1. Andersen Corporation
2. JELD-WEN, Inc.
3. PPG Industries, Inc.
4. YKK Corporation
5. Schüco International
6. Milgard Manufacturing, Inc.
7. Saint-Gobain S.A.
8. BMC Stock Holdings, Inc.
9. Ply Gem Holdings, Inc.
10. Deceuninck NV
11. VELUX Group
12. Masco Corporation

Significant Industry Developments

New Product Launch

• May 2023: Andersen Windows announced that its 400 Series windows have won the ENERGY STAR® Most Efficient Windows Award. These windows can help homeowners save up to 30% on their energy expenses and are among the most energy-efficient windows available.
• April 2023: The new Solar Eclipse window range from Marvin Windows and Doors was introduced. The solar-powered tint on these windows can help save energy expenses by up to 30%.
• February 2022: Stormsure Express is a line of coloured timber windows that Jeld-Wen introduced. The window offers a large assortment of 36 different design possibilities that differ in size and arrangement. Furthermore, Stormsure Express comes in six of Jeld-Wen's most well-known hues.

Distribution Agreement

• March 2023: The acquisition of Milgard Windows & Doors was announced by Pella Corporation. Due to this acquisition, Pella will become a prominent supplier of energy-efficient windows in the US, which will broaden its product offering.
• January 2020: The acquisition of Continental Building Products was announced by Saint-Gobain S.A. The corporation increased its geographic reach in North, East, and Southeast America because of this acquisition.

An Expert’s Analysis

Demand and Future Growth

The use of energy-efficient windows is being pushed by regulatory organisations' stringent energy performance requirements and building rules. There is a growing need for high-performance window solutions because compliance with these criteria is typically required.

Furthermore, collaboration with ESCOs opens doors for companies in the energy-efficient window industry. ESCOs are experts at putting energy-saving measures into practice; thus, collaborating with them can result in integrated packages considering a building's whole energy requirements. However, the energy-efficient window market is expected to face considerable challenges because of the complex installation process.

Supply Side of the Market

According to our analysis, the US and Canada account for large market shares, particularly in the case of high-performance windows and glazing technologies. Prominent players include Jeld-Wen, Pella, and Andersen Corporation.

A vast range of window styles and materials are available from US manufacturers, meeting various residential and commercial needs. This covers high-tech solutions like triple-pane windows and cutting-edge materials like composite frames. Due to its sizable construction sector and economic emphasis, China is a significant producer.

Nonetheless, South Korea and Japan are notable for their cutting-edge products and technologies. Key stakeholders include businesses like YKK AP, Asahi Glass, and LIXIL. Canada is home to some of North America's most stringent energy regulations, including provincial and territorial codes and the National Building Code of Canada (NBC). These guidelines drive the adoption of EEWs in new and existing buildings by imposing minimum energy performance standards on windows.

The National Fenestration Rating Council (NFRC), or Energy Star criteria are met by more than 80% of windows sold in Canada, according to the Canadian Window & Door Manufacturers Association (CWDMA). The high percentages indicate this substantial dedication to energy efficiency in the Canadian market.

Global Energy-Efficient Window Market is Segmented as Below:

By Glazing Type:

• Single Glazing
• Double Glazing
• Misc

By Component:

• Glass
• Frame
• Hardware

By Application:

• Residential Buildings
• Commercial Buildings
• Industrial Buildings

By Geographic Coverage:

• North America 
  • U.S. 
  • Canada 
• Europe 
  • Germany
  • U.K.
  • France
  • Italy
  • Turkey
  • Russia
  • Rest of Europe 
• Asia Pacific 
  • China
  • Japan
  • South Korea
  • India
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America 
  • Brazil 
  • Mexico 
  • Argentina
  • Rest of Latin America 
• Middle East & Africa  
  • GCC 
  • South Africa
  • Egypt
  • Nigeria
  • Rest of Middle East & Africa