ENERGY RETROFIT MARKET ANALYSIS

Market Challenges And Opportunities

Global Energy Retrofit Market Restraints:

Longer payback period and hidden costs

Technologies employed in energy retrofit systems are still costly due to high R&D expenditures. Furthermore, capital investment is strongly tied to a company’s financial health. Furthermore, the return on investment is slow and may take three to four years. These characteristics prove to be significant market limitations. Hidden expenses are any costs that are not normally included in the company’s economic models. Aside from the core cost of energy retrofit systems, several hidden costs, such as general overhead costs, industry-specific costs associated with the selection of an energy-efficient option, and potential utility loss associated with energy-efficient choices, add up to the total investment required. This raises the cost of energy retrofit solutions even further. The system’s basic overhead expenses include the cost of hiring specialists and the cost of energy audits. The cost of recognizing opportunities, extensive analysis and design, and expenses associated with interruptions and annoyance are all industry-specific costs. The final category, possible utility loss, encompasses issues with safety, working conditions, service quality, and extra maintenance. These charges add up to the entire expenditure, making energy retrofit solutions even more costly. These are some of the biggest roadblocks for many organizations, restricting the market’s growth possibilities.

Stringent challenges in the industry

The change of utility infrastructure enhances the capabilities of the power transmission system, which contributes to the industry’s growth. According to the Energy Economic and Financial Analysis, India requires an investment of around USD 60-70 billion over the next five years to upgrade its grid infrastructure in order to achieve considerable capacity development in the renewable energy industry. The utilities intend to invest in new and replacement infrastructure. Such infrastructure improvements are made in response to rising power consumption, planned electricity production projects, particularly alternate renewable energy sources, which are putting a burden on utilities. As a result, hefty investments and longer payback times pose a significant challenge to the industry. The general overhead cost includes the expense of hiring specialists as well as the cost of energy audits. The cost of discovering opportunities, extensive analysis and design, and the cost of interruptions and annoyance are all industry-specific expenses. The final category, possible utility loss, encompasses issues with safety, working conditions, service quality, and extra maintenance. These expenses add up to the entire investment, making the model even more costly. These problems tend to be important roadblocks for many organisations, resulting in high maintenance costs and lengthy payback periods. As a result, the aforementioned difficulties are projected to represent a challenge and limit overall market growth throughout the forecast period.

Global Energy Retrofit Market Opportunities:

Rapid urbanization and industrialization

Rapid urbanization and industrialization are the opportunities for the global energy retrofit systems market forward. This aspect is assisting in the overall rise of consumer expenditure. Customers have begun to purchase energy retrofit solutions for their homes. This has assisted them in lowering the amount of their power cost. Furthermore, rising consumer awareness of energy retrofit systems is propelling the global energy retrofit systems market forward.