While the global recession that began in 2008 slowed the growth of the construction market in Asia Pacific, the region's buildings sector remains the most dynamic in the world. Since buildings account for a large portion of national energy consumption, most of the governments in the Asia Pacific region have taken steps to promote energy management and energy efficiency in both new construction and existing buildings.
According to a recent report from Navigant Research, national governments across the region are driving the energy efficiency market with green building design guidelines, the introduction of new energy efficiency technologies, and funding schemes to assist retrofit projects in commercial buildings.
"With about 40% of the world's building stock, Asia Pacific represents a major portion of global real estate," said Eric Bloom, principal research analyst with Navigant Research. "Growing concerns about air pollution in Chinese cities, in particular, is expected to further drive investment in energy efficiency technologies to reduce China's demand for coal-based electricity. Due largely to aggressive government policies, the market for energy efficient buildings is expected to double in the next 8 years, reaching nearly US$92 billion in annual revenues by 2022."
The largest segment of the energy efficient buildings market in Asia Pacific today is advanced lighting, where light-emitting diodes (LEDs) offer efficient and long-lasting alternatives for commercial buildings. China, Japan, South Korea, and Taiwan are the manufacturing centers for LED lighting applications, semiconductors, and components, not only for Asia Pacific, but also for the world. Navigant Research said it expects that the commercial buildings sector in the region will experience a significant increase in the adoption of these products in the coming years.