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    US Energy Retrofit Systems Market

    ID: MRFR/E&P/14399-HCR
    100 Pages
    Snehal Singh
    October 2025

    US Energy Retrofit Systems Market Research Report By Product (Envelope, LED Retrofit Lighting, HVAC Retrofit, Appliances) and By Application (Residential, Non-Residential) - Forecast to 2035

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    US Energy Retrofit Systems Market Infographic
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    US Energy Retrofit Systems Market Summary

    The US Energy Retrofit Systems market is projected to grow from 35 USD Billion in 2024 to 75 USD Billion by 2035.

    Key Market Trends & Highlights

    US Energy Retrofit Systems Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 7.17 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 75 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 35 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of energy-efficient technologies due to increasing regulatory support is a major market driver.

    Market Size & Forecast

    2024 Market Size 35 (USD Billion)
    2035 Market Size 75 (USD Billion)
    CAGR (2025-2035) 7.17%

    Major Players

    A.O. Smith, Lennox International, Pacific Gas and Electric, Duke Energy, CenterPoint Energy, Vectren, Johnson Controls, Trane Technologies, Energy Solutions, Rheem Manufacturing, Xcel Energy, Honeywell, Siemens, Schneider Electric

    US Energy Retrofit Systems Market Trends

    The US Energy Retrofit Systems Market is witnessing a significant shift driven by increasing energy efficiency regulations and consumer awareness of sustainable practices. Government initiatives, such as the Energy Independence and Security Act, emphasize the need for reducing energy consumption in existing buildings, pushing homeowners and businesses to adopt retrofit solutions. The focus on environmental sustainability is a key market driver, encouraging investments in technologies that optimize energy use.

    Additionally, partnerships between public and private sectors can lead to innovative solutions in the retrofit space. The increasing emphasis on reducing carbon footprints and enhancing indoor air quality is steering demand towards energy retrofit systems that deliver not just efficiency but also improved occupant well-being. Therefore, the US Energy Retrofit Systems Market is poised for growth as stakeholders align their strategies with evolving consumer preferences and regulatory frameworks.

    Market Segment Insights

    US Energy Retrofit Systems Market Segment Insights:

    US Energy Retrofit Systems Market Segment Insights:

    Energy Retrofit Systems Market Product Insights

    Energy Retrofit Systems Market Product Insights

    The Product segment of the US Energy Retrofit Systems Market plays a pivotal role in enhancing energy efficiency and improving the sustainability of buildings across the region. Within this segment, various technologies and solutions are tailored to optimize energy consumption and reduce greenhouse gas emissions. Envelope solutions are crucial, as they encompass insulation and weatherization processes aimed at minimizing heat loss and improving indoor climate control, thus leading to significant energy savings.

    On the other hand, LED Retrofit Lighting has emerged as a highly sought-after solution due to its long lifespan, low energy consumption, and reduced maintenance costs, making it a favorite among both commercial and residential sectors in the US.HVAC Retrofit systems also represent a key element within this market, addressing the need for more efficient heating, ventilation, and air conditioning solutions, which are vital for comfort while also contributing to lower energy bills.

    As for Appliances, the integration of energy-efficient devices into homes and businesses not only meets regulatory standards but also aligns with the growing consumer demand for greener solutions. With increasing government incentives and regulations focused on sustainability, the demand for these energy retrofit solutions is expected to grow, fueled by both environmental concerns and economic benefits.Overall, the Product segment serves as the backbone for the US Energy Retrofit Systems Market, reflecting a trend towards greater energy efficiency and environmental responsibility while offering significant opportunities for innovation and development in the coming years.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Energy Retrofit Systems Market Application Insights

    Energy Retrofit Systems Market Application Insights

    The US Energy Retrofit Systems Market is poised for significant growth across various applications, which include both Residential and Non-Residential sectors. As energy efficiency becomes increasingly vital in the United States, the implementation of retrofit systems is evolving to accommodate a diverse range of structures and usage.

    The Residential sector is particularly crucial, driven by homeowners seeking to reduce energy costs and improve comfort, aligning with government initiatives aimed at promoting energy-efficient practices to combat climate change.On the other hand, the Non-Residential sector also plays a pivotal role, as businesses strive to comply with regulations and enhance sustainability with modernized energy solutions. Market research indicates that both segments experience growth due to rising energy prices, the adoption of smart technologies, and available incentives from federal and state programs.

    Furthermore, the integration of renewable energy sources and advancements in building technologies continue to present lucrative opportunities in these segments, empowering both residential and commercial stakeholders to invest in energy-efficient retrofitting.As these sectors evolve, they contribute significantly to the overall momentum of the US Energy Retrofit Systems Market, showcasing their combined potential for driving sustainability and economic efficiency.

    Get more detailed insights about US Energy Retrofit Systems Market Research Report - Forecast to 2035

    Key Players and Competitive Insights

    The US Energy Retrofit Systems Market is characterized by rapid advancements in technology and an increasing focus on energy efficiency and sustainability among consumers and businesses. This market is becoming highly competitive, driven by the need to reduce energy consumption, lower operational costs, and comply with stringent environmental regulations. Companies in this sector are innovating their products and services to meet the growing demands for energy-efficient systems that not only minimize energy waste but also provide cost savings over time.

    Key players are continually seeking strategic partnerships, collaborations, and acquisitions to enhance their competitive position and expand their market reach, aiming to capture a larger share of the burgeoning demand for energy retrofit solutions across various sectors.A.O. Smith has established itself as a significant player within the US Energy Retrofit Systems Market, known for its commitment to creating high-efficiency water heating and storage systems. The company benefits from a strong brand reputation and a broad portfolio of products that cater to both residential and commercial applications. Its focus on innovation allows A.O.

    Smith to deliver cutting-edge solutions that enhance energy savings for consumers. The company's extensive distribution network and solid relationships with contractors and distributors bolster its market presence, enabling it to respond effectively to customer needs and industry trends. A.O. Smith's strengths lie in its research and development capabilities, allowing for the introduction of advanced products that adhere to energy efficiency standards while also enhancing user convenience.Lennox International operates prominently within the US Energy Retrofit Systems Market by offering a wide range of heating, ventilation, and air conditioning (HVAC) solutions.

    The company is recognized for its various energy-efficient products, including central air conditioners, heat pumps, and smart thermostats, that cater to both residential and commercial sectors. Lennox International's strong commitment to sustainability is evident in its continuous investment in innovations aimed at minimizing environmental impact while maximizing energy efficiency. The company maintains a robust market presence through a well-established distribution channel and strong partnerships with contractors. Its strategic mergers and acquisitions have further strengthened its competitive advantage, expanding its product line and technological expertise, thus ensuring it remains a leader in energy retrofit solutions.

    Key Companies in the US Energy Retrofit Systems Market market include

    Industry Developments

    Recent developments in the US Energy Retrofit Systems Market have been prominently influenced by key players such as A.O. Smith, Lennox International, Duke Energy, and Johnson Controls, focusing on energy efficiency improvements and sustainability initiatives. In September 2023, Honeywell announced a partnership with Pacific Gas and Electric to implement retrofitting projects aimed at reducing emissions and lowering energy costs for residential sectors. Furthermore, in August 2023, Xcel Energy unveiled a new program to incentivize energy retrofitting in commercial buildings, reflecting a growing emphasis on green energy solutions.

    In recent years, mergers and acquisitions have shaped the landscape; in July 2023, Trane Technologies acquired a small energy service company to enhance its retrofit offerings, while in May 2022, Schneider Electric expanded its portfolio by acquiring a technology firm focusing on energy management systems. Such acquisitions have had a significant impact on market valuation, contributing to a robust growth trajectory as companies leverage strategic collaborations to enhance service offerings in Retrofit Systems. Additionally, the Biden Administration's initiatives to increase energy efficiency in federal buildings have further energized the market, fostering an environment conducive to renovation dynamics across the US.

    Market Segmentation

    Outlook

    • Residential
    • Non-Residential

    Report Scope

    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 29.02(USD Billion)
    MARKET SIZE 2024 35.0(USD Billion)
    MARKET SIZE 2035 75.0(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 7.174% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED A.O. Smith, Lennox International, Pacific Gas and Electric, Duke Energy, CenterPoint Energy, Vectren, Johnson Controls, Trane Technologies, Energy Solutions, Rheem Manufacturing, Xcel Energy, Honeywell, Siemens, Schneider Electric
    SEGMENTS COVERED Product, Application
    KEY MARKET OPPORTUNITIES Incentives for energy efficiency upgrades, Smart home technology integration, Growing regulatory compliance requirements, Rising consumer awareness and demand, Expansion of sustainable financing options
    KEY MARKET DYNAMICS growing energy efficiency awareness, increasing regulatory incentives, rising utility costs, technological advancements in retrofitting, availability of financing options
    COUNTRIES COVERED US

    FAQs

    What is the projected market size of the US Energy Retrofit Systems Market in 2024?

    In 2024, the US Energy Retrofit Systems Market is expected to be valued at 35.0 USD Billion.

    What is the expected market growth rate from 2025 to 2035?

    The expected compound annual growth rate (CAGR) for the US Energy Retrofit Systems Market from 2025 to 2035 is 7.174%.

    What will the total market value be by the year 2035?

    The total value of the US Energy Retrofit Systems Market is anticipated to reach 75.0 USD Billion by 2035.

    Which product segment will have the largest market share in 2024?

    In 2024, the Envelope product segment is expected to hold the largest market share, valued at 10.5 USD Billion.

    What is the market size of the LED Retrofit Lighting segment in 2035?

    The LED Retrofit Lighting segment is projected to have a market size of 17.8 USD Billion in 2035.

    Who are the key players in the US Energy Retrofit Systems Market?

    Major players in the market include A.O. Smith, Lennox International, and Trane Technologies among others.

    What challenges does the US Energy Retrofit Systems Market currently face?

    Challenges include regulatory changes and evolving customer demands in the energy sector.

    What opportunities exist for growth in the US Energy Retrofit Systems Market?

    Opportunities arise from increasing demand for energy efficiency and technological advancements in retrofit solutions.

    What will the HVAC Retrofit product segment be valued at in 2035?

    The HVAC Retrofit segment is expected to be valued at 19.0 USD Billion by 2035.

    How is the Appliances segment expected to perform by 2035?

    The Appliances segment is projected to have a market value of 16.1 USD Billion in 2035.

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