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Europe Net-Zero Energy Buildings Market Size, Share, Trends, and Growth Forecasts, 2026-2031 | EPBD Deadlines Propel Market to USD 21.52 Billion

globenewswire.com
JCI Johnson Controls is mentioned positively for its reported energy savings at Aalborg University Hospital, highlighting its capability in integrated retrofit projects and its role in the growing net-zero energy buildings market. HON Honeywell is listed as a key player in the net-zero energy buildings market, but the article does not provide specific details on its performance or outlook within this context. ETN Eaton Corporation plc is identified as a company in the net-zero energy buildings market, but the article does not offer specific sentiment or performance details for the company. TT Trane Technologies plc is listed as a company within the net-zero energy buildings market, but the article does not provide specific sentiment or performance details. CARR Carrier Global Corporation is mentioned as a company in the net-zero energy buildings market, but the article does not provide specific sentiment or performance details.

Europe Net-Zero Energy Buildings Market Size, Share, Trends, and Growth Forecasts, 2026-2031 | EPBD Deadlines Propel Market to USD 21.52 Billion Dublin, Nov. 02, 2026 (GLOBE NEWSWIRE) -- "Europe Net-Zero Energy Buildings - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

The Europe net-zero energy buildings market is projected to grow from USD 10.95 billion in 2025 and USD 11.52 billion in 2026 to USD 21.52 billion by 2031. The market is expected to register a CAGR of 13.31% from 2026 to 2031, supported by zero-emission building requirements, public renovation funding, corporate sustainability commitments, green finance, and increasing demand for energy resilience.

Revised EPBD and Zero-Emission Building Deadlines Accelerate Adoption

The recast Energy Performance of Buildings Directive entered into force on May 28, 2024, with national transposition required by May 29, 2026. The directive is establishing a clearer project pipeline for providers of building design, energy management, commissioning, certification, and retrofit services across Europe.

All new public buildings must qualify as zero-emission buildings from January 1, 2028, while all other new buildings must meet the same standard beginning January 1, 2030. These requirements emphasize very high energy performance and the elimination of on-site fossil-fuel carbon emissions. Germany's proposed Building Modernization Act closely follows the EPBD framework, reinforcing regulatory momentum in one of Europe's largest construction markets.

Public Funding Supports Deep Energy Renovation

European renovation programs are creating substantial opportunities in the net-zero energy buildings market. The Recovery and Resilience Facility allocated more than EUR 80 billion (USD 88 billion), while Cohesion Policy Funds provided EUR 17 billion (USD 18.7 billion) to improve building energy performance between 2021 and 2027.

Despite this support, the European Commission estimates that annual building investment of more than EUR 242 billion (USD 266.2 billion) will be required through 2030. France allocated EUR 7.9 billion (USD 8.7 billion) to building energy renovation in 2025. However, Germany's residential renovation rate remained at 0.7% in 2025, significantly below the 2% rate considered necessary to achieve climate objectives. France and the Nordic countries are better positioned to expand deep retrofit activity due to their more established delivery systems.

High Capital Costs Continue to Restrict Market Growth

Whole-building renovation costs can range from EUR 300 to EUR 500 per square meter (USD 330 to USD 550 per square meter), resulting in payback periods that exceed the planning horizons of many property owners. Financing challenges are particularly significant in owner-occupied and fragmented residential markets.

Residential energy renovation investment in France declined by 22% in real terms between 2022 and 2024 following changes to the MaPrimeRenov subsidy structure. Renovate Europe has proposed a dedicated EU Renovation Loan Facility to provide guarantees for low-interest renovation loans. Owner-occupied homes represent 70% of EU residences but remain underserved by current financial products. Greater access to standardized financing could improve project demand and give suppliers more confidence to expand installation capacity.

Additional market factors include energy cost volatility, which is increasing demand for building energy resilience, and green finance and ESG reporting requirements, which are encouraging net-zero building investment. However, shortages of building physics specialists and retrofit professionals continue to delay projects and constrain delivery capacity.

Commercial Buildings Lead the Europe Net-Zero Energy Buildings Market

Commercial buildings accounted for 44.6% of the Europe net-zero energy buildings market in 2025. Corporate sustainability obligations, investor reporting requirements, and regulatory exposure are accelerating upgrades across office and retail portfolios, particularly in Germany, France, and the United Kingdom.

The EPBD requires member states to address the worst-performing 16% of non-residential buildings by 2030. Residential properties also represent a substantial growth opportunity, although fragmented ownership and limited financing slow investment decisions. Serial renovation using prefabricated facade panels is gaining attention as a way to shorten on-site construction time and reduce costs.

Institutional Buildings Set for Strong Growth

Institutional buildings are forecast to expand at a CAGR of 14.2% from 2026 to 2031. Hospitals, universities, and public-sector property portfolios must upgrade large and operationally complex facilities within defined regulatory deadlines. The January 1, 2028, deadline for new public buildings creates a shorter planning window than that faced by private-sector owners.

Integrated retrofit projects are demonstrating significant energy-saving potential. Johnson Controls reported energy savings of up to 80% at Aalborg University Hospital in Denmark through an integrated retrofit strategy. Institutional projects increasingly favor suppliers capable of combining design, project management, commissioning, and building energy management systems. Industrial buildings remain the smallest of the four building categories, although manufacturing decarbonization plans are supporting new activity across Central Europe.

Key Topics Covered

1 Introduction

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape

4.1 Market Overview

4.2 Market Drivers

4.2.1 Revised EPBD and Zero-Emission Building Deadlines Accelerate Adoption

4.2.2 Renovation Wave Funding Drives Deep Energy Retrofit Activity

4.2.3 Energy Cost Volatility Increases Demand For Building Energy Resilience

4.2.4 Green Finance and ESG Reporting Support Net-Zero Building Investments

4.2.5 Grid-Interactive Buildings Generate Demand Response Revenue Opportunities

4.2.6 Verified Energy Performance Increases Green Building Rental Premiums

4.3 Market Restraints

4.3.1 High Upfront Capital Costs and Long Payback Periods Limit Adoption

4.3.2 Shortage Of Building Physics and Retrofit Professionals Delays Projects

4.3.3 Legacy System Integration Challenges Increase Performance Gap Risks

4.3.4 Cybersecurity, Data Governance, and Interoperability Risks Hinder Smart Building Deployment

4.4 Value and Supply-Chain Analysis

4.5 Regulatory Landscape

4.6 Technological Outlook

4.7 Market Evolution and Adoption Trends

4.8 Key Net-Zero Energy Building Projects

4.9 Porter's Five Forces Analysis

4.9.1 Bargaining Power of Suppliers

4.9.2 Bargaining Power of Consumers

4.9.3 Threat of New Entrants

4.9.4 Threat of Substitutes

4.9.5 Intensity of Competitive Rivalry

5 Market Size & Growth Forecasts (Value, USD)

5.1 By Building Type

5.1.1 Residential

5.1.2 Commercial

5.1.3 Institutional

5.1.4 Industrial

5.2 By Offerings

5.2.1 Solutions (New Net-Zero Energy Building Development, Net-Zero Building Retrofit, Integrated Design & Delivery and Smart Net-Zero Building Solutions)

5.2.2 Services (Architectural & Engineering Design, Construction Services, Commissioning & Certification Services and Consulting Services)

5.3 By Construction Type

5.3.1 New Construction

5.3.2 Renovation

5.4 By Geography

5.4.1 United Kingdom

5.4.2 Germany

5.4.3 France

5.4.4 Italy

5.4.5 Spain

5.4.6 Rest of Europe

6 Competitive Landscape

6.1 Market Concentration

6.2 Strategic Moves

6.3 Market Share Analysis

6.4 Company Profiles (Includes Global Level Overview, Market Level Overview, Core Segments, Financials as Available, Strategic Information, Products & Services, and Recent Developments)

6.4.1 Siemens AG

6.4.2 Schneider Electric SE

6.4.3 Johnson Controls International plc

6.4.4 ABB Ltd.

6.4.5 Honeywell International Inc.

6.4.6 Daikin Industries, Ltd.

6.4.7 Carrier Global Corporation

6.4.8 Trane Technologies plc

6.4.9 Saint-Gobain S.A.

6.4.10 Kingspan Group plc

6.4.11 ROCKWOOL A/S

6.4.12 Bosch Building Technologies

6.4.13 Legrand SA

6.4.14 Mitsubishi Electric Corporation

6.4.15 Eaton Corporation plc

6.4.16 Skanska AB

6.4.17 VINCI Construction

6.4.18 Bouygues Construction

6.4.19 WSP Global Inc.

6.4.20 Belimo Holding AG

7 Market Opportunities & Future Outlook

7.1 White-Space and Unmet-Need Assessment

For more information about this report visit https://www.researchandmarkets.com/r/nvvum4

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