In today's rapidly evolving global landscape, marked by decarbonization, urbanization, and digital transformation, Frost & Sullivan recognizes the imperative for firms to redefine their fundamental purpose. There is a growing awareness of the significance of the value creation of climate change mitigation across all stakeholders, including consumers, employees, suppliers, and policymakers. This consciousness has led to an increased emphasis on adhering to environmental standards.
Businesses at the forefront of implementing climate actions have embraced a holistic approach that acknowledges the interrelation of all stakeholders. They integrate environmental considerations into their strategies, operations, and reporting practices transparently, fostering trust across stakeholder groups. By prioritizing climate change, these businesses deliver direct and indirect benefits to all stakeholders, such as sustainable profitability, enhanced employee morale, responsible supply chains, and positive community outcomes.
Conversely, failure to effectively address environmental concerns can lead to value erosion for organizations. Despite recognizing the importance of climate change mitigation, many organizations are still navigating their decarbonization journey, struggling with challenges in implementation and communication. Balancing near-term profitability with climate action responsibilities proves to be a common struggle for firms, as they aim to align monetary objectives with sustainability goals. Additionally, effectively communicating climate action progress remains difficult, which hinders the translation of actions into trust among stakeholders.
Frost & Sullivan employs a rigorous evaluation framework to assess the top 50 companies in the homes and buildings industry based on their progress in climate action, leveraging published environmental metrics. The Climate-smart Performance Index (CSPI) is a comprehensive evaluation tool that Frost & Sullivan has developed to assess and rank companies based on their climate action efforts and sustainability practices within the homes and buildings industry. The CSPI provides stakeholders, including investors, policymakers, and consumers, with valuable insights into the environmental performance and climate resilience of companies operating in this industry.
Climate-smart solutions in the built environment encompass hardware, software, and services designed to mitigate the environmental impact of buildings and infrastructure while promoting decarbonization in the face of climate change. Innovations that reduce carbon emissions, enhance energy efficiency, and optimize building performance define this market. This analysis provides market size and forecasts for climate-smart solutions with 2023 as the base year and a forecast period between 2024 and 2030.
Author: Anirudh Bhaskaran
Revenue Forecast
The revenue estimate for the base year 2023 is $174.97 billion, with a CAGR of 12.4% for the study period 2023–2030.
The Impact of the Top 3 Strategic Imperatives on the Climate-smart Solutions Industry
Innovative Business Models
Why
- Traditional business models often prioritize short-term profits over long-term sustainability. Climate-smart solutions require innovative business models that align financial success with environmental responsibility.
- These models can facilitate the adoption of renewable energy, circular economy practices, and sustainable supply chains, driving economic growth while minimizing ecological impact.
Frost Perspective
- Frost & Sullivan recognizes that traditional business models are increasingly unsustainable in the face of climate change. By fostering innovation in business models, organizations can unlock new revenue streams, enhance brand reputation, and gain a competitive edge in the market.
- Frost & Sullivan advocates for strategic partnerships with business model innovation that drives climate initiatives and prioritizes sustainability while delivering tangible business benefits.
Disruptive Technologies
Why
- Conventional technologies contribute significantly to carbon emissions and environmental degradation. Climate-smart technologies, such as renewable energy sources, energy-efficient solutions, and digital solutions, are essential for transitioning toward a low-carbon economy.
- These technologies enable businesses to reduce their carbon footprint and enhance operational efficiency.
Frost Perspective
- Frost & Sullivan emphasizes the critical role of disruptive technologies in driving the transition to a low-carbon economy. Through its research and analysis, Frost & Sullivan has identified climate-smart technologies that can revolutionize the homes and buildings industry and accelerate decarbonization efforts.
Transformative Megatrends
Why
- Megatrends in the homes and buildings industry are essential for achieving a sustainable and net-zero built environment.
- Industry participants must embrace relevant megatrends to implement strategic initiatives that address pressing challenges related to climate change mitigation, resource optimization, and reduced carbon emissions.
Frost Perspective
- Megatrends that leading and emerging participants have recently leveraged to align their portfolios to accelerate growth include urbanization, digitalization, decarbonization, electrification, energy transition, and demographic change.
Scope of Analysis
| Market Definition | Climate-smart solutions in the built environment encompass hardware, software, and services designed to mitigate the environmental impact of buildings and infrastructure while promoting decarbonization in the face of climate change. Innovations that reduce carbon emissions, enhance energy efficiency, and optimize building performance define this market |
|---|---|
| Base Year | 2023 |
| Study Period | 2023–2030 |
| Forecast Period | 2024–2030 |
| Industry Segments |
|
| Geographic Scope | Global* - North America - Europe - Asia-Pacific - Rest of the World |
Segmentation
Climate-smart Solutions in the Built Environment:
Climate-smart Building Management
This segment includes hardware, software, and services that drive energy efficiency and overall performance optimization in buildings. The components considered for market sizing and forecast include fault detection and diagnostics, predictive maintenance, energy optimization, remote monitoring, and digital twins.
Climate-smart Home Energy Management
This segment includes the hardware and software that mainly drives energy efficiency in homes. The products considered for market sizing and forecast include smart thermostats and home energy management systems.
Climate-smart Building Systems
This segment primarily includes energy-efficient products and services that deliver direct energy savings to customers. The products and services considered for market sizing and forecast include heat pumps, smart lighting, and IoT-enabled heating, ventilation, and air conditioning (HVAC) services.
Growth Drivers
- Increasing awareness of the impacts of climate change drives demand for climate-smart solutions that mitigate greenhouse gas (GHG) emissions.
- Rapid advancements in sustainable climate controls systems and smart infrastructure technologies provide innovative solutions for reducing carbon footprints and improving sustainability in construction and operation.
- Governments’ stringent environmental regulations and decarbonization targets will increase the adoption of climate-smart technologies and practices in the built environment.
- There is a growing recognition of the importance of resilience planning prompts investments in climate-smart infrastructure and building designs.
Growth Restraints
- The high upfront costs of implementing climate-smart solutions can deter customers and investors.
- Complex decision-making processes involving multiple stakeholders with differing priorities can lead to delays and inefficiencies in implementing climate-smart solutions, particularly in high-value mega infrastructure projects.
- Resistance to change and cultural norms within the industry can impede the adoption of climate-smart solutions, requiring education, creating awareness, and incentives to overcome.
- Ambiguous market conditions and an uncertain economic climate could shift the priority away from creating a sustainable built environment.
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the Climate-smart Solutions Industry
How to Leverage This Research?
Scope of Analysis
Segmentation
Growth Metrics
Growth Drivers
Growth Restraints
Forecast Considerations
Revenue Forecast
Revenue Forecast by Market Segment
Revenue Forecast Analysis
Scope of Analysis
Industry Segmentation for CSPI Assessment
CSPI Assessment Framework
CSPI Category Score Definitions
CSPI Research Methodology
CSPI Research Methodology (continued)
CSPI Research Methodology (continued)
CSPI Grading and Description
Top 50 Climate-smart Best Practitioners
Top 50 Climate-smart Best Practitioners (continued)
Top 50 Climate-smart Best Practitioners (continued)
Lighting: Top 10 Climate-smart Best Practitioners
CBE: Top 10 Climate-smart Best Practitioners
Smart Infrastructure: Top 10 Climate-smart Best Practitioners
Construction Management: Top 10 Climate-smart Best Practitioners
Facility Management: Top 10 Climate-smart Best Practitioners
Climate Action: Top 50 Climate-smart Best Practitioners
Pollution: Top 50 Climate-smart Best Practitioners
Water: Top 50 Climate-smart Best Practitioners
Circular Economy: Top 50 Climate-smart Best Practitioners
Biodiversity: Top 50 Climate-smart Best Practitioners
Siemens
Signify
ABB
Havells
Kone
Oracle
Hexagon
Legrand
Schneider Electric
Zumtobel Group
Dormakaba
Autodesk
Mitie
Hubbell
Dassault Systemes
Johnson Controls
Samsung
Crompton Greaves Consumer Electricals (CGCEL)
Aveva
JLL
Assa Abloy
Fagerhult
Honeywell
Carrier
Trane
Wipro Lighting
ams-OSRAM
Daikin
Otis
ISS
Resideo
Panasonic
Eaton
Azbil Corporation
Cushman & Wakefield
Bosch
Sodexo
Trimble
Acuity Brands
Emerson
CBRE
Aramark
Glodon
ABM Industries
Masco Corporation
Compass
Nemetschek Group
Bentley Systems
Emcor Global
Procore
Growth Opportunity 1: Net-zero Energy Homes
Growth Opportunity 1: Net-zero Energy Homes (continued)
Growth Opportunity 2: Building Electrification
Growth Opportunity 2: Building Electrification (continued)
Growth Opportunity 3: AI-driven Climate-smart Solutions
Growth Opportunity 3: AI-driven Climate-smart Solutions (continued)
Best Practice Recognition
Frost Radar
Benefits and Impacts of Growth Opportunities
Next Steps
Take the Next Step
List of Exhibits
Legal Disclaimer
List of Figures- Climate-smart Solutions: Growth Metrics, Global, 2023
- Climate-smart Solutions: Growth Drivers, Global, 2024–2030
- Climate-smart Solutions: Growth Restraints, Global, 2024–2030
- Climate-smart Solutions: Revenue Forecast, Global, 2023–2030
- Climate-smart Solutions: Revenue Forecast by Segment, Global, 2023–2030
- Homes and Buildings: CSPI Score Structure, Global, 2023
- Homes and Buildings: CSPI Score Process, Global, 2023
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| Deliverable Type | Market Research |
|---|---|
| Author | Anirudh Bhaskaran |
| Industries | Environment |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Climate-Smart Companies |
| Keyword 2 | Low-Carbon Economy |
| Keyword 3 | Environmental Assessment |
| List of Charts and Figures | Climate-smart Solutions: Growth Metrics, Global, 2023~ Climate-smart Solutions: Growth Drivers, Global, 2024–2030~ Climate-smart Solutions: Growth Restraints, Global, 2024–2030~ Climate-smart Solutions: Revenue Forecast, Global, 2023–2030~ Climate-smart Solutions: Revenue Forecast by Segment, Global, 2023–2030~ Homes and Buildings: CSPI Score Structure, Global, 2023~ Homes and Buildings: CSPI Score Process, Global, 2023~ |
| Podcast | No |
| WIP Number | PFN1-01-00-00-00 |
Environmental Assessment of the Top 50 Climate-smart Companies Accelerating the Low-carbon Economy in the Built Environment
Embracing Climate-smart Solutions with Low-carbon Innovation is Vital to Unlock Climate Intelligence-driven Growth
15-Jul-2024
Global
Market Research