US Zero Energy Buildings Market Research Report: By Equipment (HVAC System, Lighting, Walls & Roofs, Others) and By Application (Residential, Non-residential) - Forecast to 2035

US Zero Energy Buildings Market Overview

As per MRFR analysis, the US Zero Energy Buildings Market Size was estimated at 4.51 (USD Billion) in 2023. The US Zero Energy Buildings Market Industry is expected to grow from 6(USD Billion) in 2024 to 75 (USD Billion) by 2035. The US Zero Energy Buildings Market CAGR (growth rate) is expected to be around 25.811% during the forecast period (2025 - 2035).

Key US Zero Energy Buildings Market Trends Highlighted

The US Zero Energy Buildings market is experiencing significant trends driven by an increasing focus on sustainability and energy efficiency. One of the key market drivers is the heightened awareness of climate change and the need for sustainable construction practices. Government initiatives, such as the Department of Energy's efforts to promote zero energy building standards, are encouraging developers and builders to integrate renewable energy technologies into their projects.

Additionally, both federal and state policies are providing incentives that support the growth of zero energy buildings. There are emerging opportunities within this market as the demand for energy-efficient solutions continues to rise. As more organizations and homeowners recognize the long-term cost benefits and environmental impact of zero energy buildings, the market is expected to attract investments.

Furthermore, advancements in smart technology and energy storage systems are making it easier to design and implement zero energy buildings, thus opening new avenues for growth. Recent trends indicate a shift in consumer preferences towards homes and buildings that contribute positively to the environment. Developers are increasingly looking to include features such as solar panels, better insulation, and advanced HVAC systems in their projects.

The market is also witnessing collaborations between public and private sectors, allowing for knowledge sharing and innovation. With the ongoing support from government agencies and the private sector’s increasing commitment to sustainable development, the zero energy building trend in the US is set to expand as more stakeholders join the movement towards achieving energy independence and reducing carbon footprints.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Zero Energy Buildings Market Drivers

Government Incentives and Regulations

The United States federal government has been increasingly promoting sustainable construction practices through various incentives and regulatory measures. Organizations such as the U.S. Department of Energy (DOE) and the Environmental Protection Agency (EPA) have introduced tax credits, rebates, and grants for the construction of Zero Energy Buildings (ZEBs). According to the DOE, implementing energy-efficient practices can lead to a reduction in energy costs by approximately 30% to 50% compared to conventional buildings.

Furthermore, the Energy Policy Act enables substantial deductions for energy-efficient improvements. This robust government backing not only catalyzes the US Zero Energy Buildings Market Industry but also sets a standard that encourages developers and builders to prioritize energy-efficient designs, thereby contributing to projected market growth.

Increasing Utility Costs

Rising energy prices in the United States are significantly driving the demand for Zero Energy Buildings. The U.S. Energy Information Administration (EIA) has reported an approximate increase of 20% in residential electricity prices over the last decade, creating a pressing need for energy-efficient construction. As more homeowners and businesses seek to reduce their long-term energy costs, Zero Energy Buildings, which promise net-zero energy consumption through efficiency and renewable energy solutions, are becoming increasingly attractive.

The growing concern related to utility costs plays a pivotal role in nudging the US Zero Energy Buildings Market Industry towards exponential growth.

Technological Advancements in Construction

Innovation in construction technologies is propelling the US Zero Energy Buildings Market Industry forward. Recent advancements in Building Information Modeling (BIM), energy-efficient materials, and renewable energy systems have made it significantly easier and cost-effective to design and construct Zero Energy Buildings. According to the National Renewable Energy Laboratory (NREL), new technologies have enhanced the energy efficiency of buildings by up to 50%.

As construction firms adopt these cutting-edge technologies, they can achieve higher standards of sustainability, which appeals to a growing segment of environmentally conscious consumers and investors seeking to make meaningful contributions to climate change mitigation.

Consumer Awareness and Demand for Sustainability

There is a notable shift in consumer preferences toward sustainable living solutions. Surveys indicate that a majority of American consumers, about 70%, are willing to pay a premium for sustainable features in new homes, according to the National Association of Realtors. This increasing awareness and demand for sustainable building practices are catalyzing growth in the US Zero Energy Buildings Market Industry.

As more consumers prioritize eco-friendly living, the willingness to invest in Zero Energy Buildings, which offer not only environmental benefits but also potential savings on utility bills, aligns perfectly with their values.

US Zero Energy Buildings Market Segment Insights

Zero Energy Buildings Market Equipment Insights

The Equipment segment within the US Zero Energy Buildings Market plays a crucial role in the overall functionality and efficiency of energy-conscious buildings. This segment encompasses a range of technologies that contribute significantly to energy savings, sustainability, and occupant comfort. The HVAC System is fundamental, as it helps regulate temperature and air quality in zero energy buildings, ensuring that they maintain a balance between energy consumption and energy production.

Given the increasing need for energy-efficient climate control solutions, advancements in HVAC technologies, including smart thermostats and energy recovery ventilation systems, have become vital in modern building design. Lighting, another critical aspect of the Equipment market, is increasingly leaning towards energy-efficient systems such as LED lighting, which significantly reduces electricity consumption while enhancing adaptability to various tasks and environments.

Innovations in smart lighting technologies, which can adjust based on occupancy and natural light, also serve to improve both energy performance and user experience in these buildings. Walls and roofs are equally important in the context of energy efficiency within zero energy buildings, as they provide insulating properties that can reduce thermal loss and energy demand.

The adoption of advanced materials and designs, such as cool roofs and high-performance insulation, contributes to the overall effectiveness of these buildings in maintaining energy neutrality. Other segments of the Equipment market also encompass various ancillary technologies and systems, which, while not as prominently discussed, are essential for comprehensive energy management.

These technologies and solutions can include energy monitoring systems, renewable energy integration components, and even water conservation systems that further enhance the sustainability of zero energy buildings. As the US regulatory framework increasingly supports green building practices, and with growing public awareness about sustainability, the demand for equipment within the US Zero Energy Buildings Market continues to gain momentum.

Market growth factors include government incentives aimed at reducing carbon footprints, stricter building codes, and heightened expectations from consumers for efficient and eco-friendly living spaces. The trends in this segment reflect a broader movement towards achieving net-zero energy consumption and improving indoor environmental quality, reinforcing the significance of each component within the Equipment market. Market statistics show that investments in these technologies are projected to increase as more stakeholders recognize their value in creating a sustainable future.

Properly functioning and efficient equipment is not merely beneficial but essential for the realization of zero energy buildings in the United States.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Zero Energy Buildings Market Application Insights

The Application segment of the US Zero Energy Buildings Market is crucial for understanding its growth dynamics and market behavior. This segment is primarily divided into Residential and Non-residential applications, which cater to distinct energy efficiency needs and standards. Residential buildings are witnessing increased interest due to government incentives and the growing emphasis on sustainable living practices among homeowners.

Meanwhile, Non-residential projects, including commercial and institutional establishments, often dominate in scale and energy efficiency requirements, thereby driving significant innovations in energy management systems. This segmentation reflects the diverse applications of zero energy buildings and highlights the importance of tailored solutions to meet specific energy goals.

Recent government initiatives further emphasize energy-efficient infrastructure, contributing to the heightened demand for zero energy buildings. The US Zero Energy Buildings Market is thus shaped by strong growth in both sectors, with residential adoption focusing on energy savings and comfort, while non-residential applications prioritize sustainability and regulatory compliance.

As awareness around environmental impact escalates, the potential for growth in this segment becomes increasingly significant, facilitating investments and developments leading to enhanced market outcomes.

US Zero Energy Buildings Market Key Players and Competitive Insights

The US Zero Energy Buildings Market has been witnessing steady growth, driven by increasing consumer awareness about sustainability and energy efficiency. This market encompasses buildings designed to produce as much energy as they consume, creating a balance that significantly reduces their environmental impact. Competitive insights within this sector reveal a dynamic landscape where various industry players are striving to provide innovative solutions to meet the demands of energy-efficient construction and retrofitting.

The motivation for businesses operating within this market often stems from both regulatory frameworks aimed at reducing greenhouse gas emissions and a growing preference among consumers for eco-friendly options. As awareness and technologies advance, companies in this market are leveraging various strategies to capture a share of this expanding segment, cultivating partnerships, and enhancing their product portfolios.

National Grid has carved out a significant presence in the US Zero Energy Buildings Market through its commitment to providing clean energy solutions. The company's strengths lie in its extensive expertise in utility services and advocacy for energy-efficient practices. National Grid operates through various initiatives aimed at advancing the construction of zero energy buildings by offering rebates, incentives, and educational programs to contractors and builders.

This engagement not only supports the development of sustainable infrastructure but also attracts a diverse clientele seeking to upgrade their energy systems. National Grid facilitates collaboration across sectors, harnessing technology to create effective energy management solutions and positioning itself as a leader in promoting zero-energy construction nationwide.

Key Companies in the US Zero Energy Buildings Market Include:

• National Grid


• Interface


• Sierra Club


• Lendlease


• United Technologies


• Johnson Controls


• P2S Engineering


• Trane Technologies


• American Electric Power


• Energy Star


• Stantec


• Honeywell


• Siemens


• Schneider Electric

US Zero Energy Buildings Market Industry Developments

The US Zero Energy Buildings Market has seen significant advancements recently, with a strong push towards sustainability and energy efficiency. Companies like Trane Technologies and Johnson Controls have been actively developing technologies that enhance building performance, while National Grid has focused on integrating renewable energy sources into their operations. The Sierra Club has been advocating for policies that support the transition to zero energy buildings, which is being recognized as a critical component in achieving climate goals.

In a notable merger, Lendlease announced its acquisition of a leading engineering firm in August 2023, strengthening its capabilities in sustainable architecture. Additionally, Stantec has been expanding its portfolio in zero-energy projects, reflecting a growing trend towards environmentally responsible design. The Energy Star program has also seen renewed focus from American Electric Power, increasing efforts to certify energy-efficient buildings.

Over the last two to three years, the market value from companies, including Schneider Electric and Siemens, has significantly increased due to rising demand for energy-efficient solutions and regulations pushing for lower carbon emissions across the construction sector. Increasing investments and innovation in zero energy technologies have positioned the US as a leader in the global zero energy buildings movement.

US Zero Energy Buildings Market Segmentation Insights

Zero Energy Buildings Market Equipment Outlook

• HVAC System


• Lighting


• Walls & Roofs


• Others

Zero Energy Buildings Market Application Outlook

• Residential


• Non-residential

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	4.51(USD Billion)
MARKET SIZE 2024	6.0(USD Billion)
MARKET SIZE 2035	75.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	25.811% (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	National Grid, Interface, Sierra Club, Lendlease, United Technologies, Johnson Controls, P2S Engineering, Trane Technologies, American Electric Power, Energy Star, Stantec, Honeywell, Siemens, Schneider Electric
SEGMENTS COVERED	Equipment, Application
KEY MARKET OPPORTUNITIES	Increased government incentives, Rising energy efficiency awareness, Advances in renewable technology, Growing green building certifications, Enhanced building automation systems
KEY MARKET DYNAMICS	Technological advancements in construction, Government incentives and policies, Rising energy efficiency awareness, Increasing demand for sustainability, Integration of renewable energy sources
COUNTRIES COVERED	US