Net-zero energy buildings worldwide will experience significant expansion in the coming years

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Dominique Bonte

The count of net-zero energy buildings worldwide will experience significant expansion in the coming years, according to a new report from global technology intelligence firmĀ ABI Research.

Driven by climate imperatives, policy support, and maturing technologies, the market is forecasted to grow at a 29% Compound Annual Growth Rate (CAGR) through 2027.

“With buildings accounting for over one-third of global energy consumption, the real estate sector is under mounting pressure to embrace net-zero,” explains Dominique Bonte, Vice President, End Markets at ABI Research. “Governments, corporations, and society at large recognize the pivotal role buildings play in reducing emissions and energy use.”

Despite currently representing just 0.023% of global buildings, the net-zero segment is gaining strong momentum. The report projects over 5,500 commercial and residential net-zero buildings globally by 2027, up from 1,200 in 2022. While still a niche, this growth signals the accelerating transition toward high-performance real estate.

The evolution is enabled by progress across renewable energy, efficiency software, and sustainable materials. Solar photovoltaics, geothermal heating, and battery storage make onsite zero-carbon energy generation achievable. Digital twin systems and building management software from companies such asĀ Siemens,Ā Schneider Electric, andĀ UniversĀ optimize performance. Carbon-storing materials and circular construction techniques reduce lifecycle impacts.

Regions leading the net-zero building charge include North America, Western Europe, and progressive urban centers in Asia Pacific. Supportive policies, technology leadership, and climate awareness drive these markets.

Upfront, net-zero buildings carry a 5-19% premium for commercial and 5-15% for residential. However, the investment pays back over decades of operations through dramatically lowered utility and maintenance costs. Demonstrating positive value impacts for owners and occupants remains a priority.

“Technologies now exist to make net-zero energy feasible at scale,” Bonte concludes. “But the real estate ecosystem must continue collaborating across construction, policy, finance, and technology to make it accessible and attractive for owners globally.”

These findings are from ABI Researchā€™sĀ Ā From Energy-Efficient to Net-Zero BuildingsĀ application analysis report.Ā This report is part of the companyā€™sĀ Smart BuildingsĀ researchĀ service, which includes research, data, andĀ ABI Insights.Ā Based on extensive primary interviews,Ā Ā Application AnalysisĀ reports present an in-depth analysis of key market trends and factors for a specific technology.

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