Energy Efficient Windows Market Size, Share & Trends Analysis Report By Operating Type (Awning, Casement, Double-hung, Fixed, Hopper, Sliding), By Glazing Type (Double Glazing, Triple Glazing, Others), By Component (Frame, Glass, Hardware), By End-User (Residential, Non-Residential), By Construction Type (New construction, Renovation & reconstruction) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Energy Efficient Windows Market Size

The global energy efficient windows market size was valued at USD 21.32 billion in 2023 and is expected to reach from USD 23.08 billion in 2024 to USD 43.69 billion by 2032, growing at a CAGR of 8.3% over the forecast period (2024-32). 

The increasing cost of energy is a significant driver for the adoption of energy-efficient windows. These windows help reduce heating and cooling costs by improving insulation and minimizing energy loss, making them an attractive option for both residential and commercial property owners.

Energy-efficient windows have double or triple-paned glazing that is filled with air, argon, or krypton to minimize heat loss from the building's interior. Preventing air from leaving the room through windows reduces the need for artificial air conditioning and keeps the room at a consistent temperature. An energy-efficient window is primarily made up of a window frame, glass that may or may not have specific coatings applied to it, such as low emissivity (Low-E) coating, and additional hardware, such as spacers and hinges. Additionally, the solar heat gain coefficient (SHGC), which gauges how much solar heat is let in through the window, and the U-factor, which gauges the window's insulating capacity, are the two key metrics used to gauge the window's energy efficiency.

By blocking the airflow between the inside and outside of the building, energy-efficient windows lower a building's need for air conditioning and energy usage. Up to 15% of the annual air conditioning costs can be saved by installing energy-efficient windows. Thus, this encourages the market for energy-efficient windows to increase. In addition, governments now propose policies for minimizing families' carbon footprint due to the increasing awareness about environmental sustainability brought on by the recognition of climate change. Contrastingly, the high cost of energy-efficient window products and high installation costs of the energy-efficient windows is a significant barrier to the market's expansion for these products.

Energy Efficient Windows Market Growth Factors

Lower energy and air conditioning costs along with the awareness regarding environmental sustainability

Traditional windows with single or double clear glass panes are inefficient for changing climates in various regions and throughout the seasons. These windows enable the transfer of heat between buildings' interior and exterior. As a result, the heaters and air conditioners operate for extended periods, consuming more energy and increasing energy costs. The overall energy used for household heating and cooling increases by 25% to 30% due to heat gain and heat loss through windows. The energy-efficient windows, on the other hand, are specifically made to create a barrier to prevent heat and air transfer to the outside environment. As a result, the cost of air conditioning is decreased.

According to the US Department of Energy, Energy Star-certified windows can save annual energy costs by up to 15%, or USD 71 to USD 105, depending on the type of window and the location where it is put. As a result, the market for energy-efficient windows is expanding due to the decline in energy and air conditioning expenditures. Additionally, the windows' leaks and drafts cause a loss of heat during the winter and cool air during the summer, which ultimately raises the cost of electricity.

• For instance, according to Environmental Defense of Canada, the equipment used for building cooling, heating, and lighting contributed over 25% of the total greenhouse gas detected in Ontario. As a result, the carbon footprint grows and fuels climate change. However, there has been a significant increase in public knowledge of environmental sustainability and climate change mitigation strategies. To lessen temperature loss, the current windows have been replaced. The global market is growing due to rising environmental consciousness.

Restraining Factors

High initial costs

Cost is the main barrier to installing energy-efficient windows. Installation of new, energy-efficient windows could cost 10% to 15% more than installing standard windows.

• For instance, triple-glazed windows are around 20% more expensive than double-glazed windows. This raises the overall cost of building construction or refurbishment. The customer will ultimately be responsible for covering the increase in the construction's base cost, which may influence them to choose standard windows rather than spend too much on them. Therefore, the market's expansion is hampered by the high initial installation cost of energy-efficient windows.

Market Opportunities

The increasing governmental initiatives

Due to the increase in energy demand, there has been an increase in the necessity for installing energy-efficient solutions. However, it is anticipated that the implementation of these energy-efficient technologies will be expensive. Additionally, the government has launched specific measures to address this issue that is anticipated to accelerate the adoption of energy-efficient alternatives. Authorized governmental entities have begun to provide tax incentives, rebates, and loans for certified items depending on the state or operating regions. This encourages people to purchase qualifying windows.

• For instance, Environmental Defense of Canada is giving customers who install brand-new windows with the Energy Star designation an incentive of USD 500 per window, up to a maximum of USD 5000. Furthermore, during the forecast period, such government initiatives are anticipated to open up lucrative potential prospects for the global market.

Regional Analysis

North America: Dominant region with 7.7% growth rate

North America is forecasted to command the regional energy efficient windows market while expanding at a CAGR of 7.7%. Due mainly to the region's high adoption rate of energy-efficient windows, the leading producers concentrate on the North American market. Many businesses, including Andersen Corporation, Jeld-Wen Holding, Inc., Marvin, Masco Corporation, PGT Innovation, Inc., and Cornerstone Building Brands, manufacture energy-efficient windows in the United States. Additionally, these businesses are present in Minnesota, Arizona, North Carolina, Michigan, and Florida for manufacturing. For various end users in North America, these manufacturers hope to offer a wide selection of energy-efficient windows as well as service and sales support.

Intense research & development is being done in the energy-efficient window technology due to the increase in the installation of energy-efficient windows. These developments provide users with the ideal remedy. In this location, businesses are currently offering highly sophisticated, energy-efficient windows. In the past several years, these businesses have introduced numerous new products for various window types based on the operating style, glazing style, and end users to diversify their product offerings and draw in more customers with various options. A lot of new manufacturing facilities are also being built. Several showrooms are situated in significant cities to reach out to the customer and physically present the products.

Europe will presumably hold USD 11,719 million, expanding at a CAGR of 8.85%. In Europe, governments have put strict environmental protection regulations into effect. To decrease non-renewable energy sources, businesses are developing innovative technology. Additionally, cutting-edge machinery is being developed to minimize costs associated with operating building spaces. Energy-efficient windows have improved efficiency and focus on performance. Furthermore, prominent players with a substantial regional presence include Deceuninck Group, VKR Holdings A/S, and Rehau, among other large manufacturers, all whose headquarters are in Europe. Such elements favorably impact the global market growth in Europe.

Energy Efficient Windows Market Segmentation Analysis

By Operating type

Based on the operating type, the segments are awning, casement, double-hung, fixed, hopper, and sliding. The awning section will presumably hold the largest share, expanding at a CAGR of 9.11%. Awning windows allow air to enter from the right, left, or bottom by opening outward. Awning windows are popular in the market for energy-efficient windows because of their straightforward operation. Since they may be mounted high on walls, these windows provide the highest level of privacy. Additionally, these windows offer good light and air circulation. Awning windows are also less expensive than other varieties.

The sliding section will hold the second-largest share. Windows that slide move down a track. It is simple to open and close these windows. Sliding-type windows are popular in the market for energy-efficient windows because they are simple to open and close. These windows require very little upkeep and are highly durable and energy efficient. Due to their ease of use, sliding windows are also less expensive.

By Glazing type

Based on the glazing type, the segments are double glazing, triple glazing, and others. The double-glazing section is predicted to have the most significant shareholding, expanding at a CAGR of 9.2%. Double-glazing windows have two layers of glass sandwiched between two layers of gas or air. When compared to single-glazed units, this produces approximately twice as much insulation. Double-glazed windows have an airtight design that creates a thermal barrier that prevents the movement of both incoming and departing heat or air. Lower power expenses result from the extremely little energy required to cool or heat the area.

The triple glazing section will hold the second-largest share. Windows with triple glazing have three layers of glass with an air or gas layer sandwiched in between. With their airtight design, triple-glazed windows create a thermal barrier that prevents the movement of both incoming and departing heat or air. Lower power expenses result from the extremely little energy required to cool or heat the area. The air between the three panes and an airtight seal reduce condensation on the windows.

By Component type

Based on the component, the segments are frame, glass, and hardware. The frame section is forecasted to hold the largest share, expanding at a CAGR of 7.95%. The windows' glass is held in place by frames. The windows' durability is increased by the frames. Depending on the material, the frame characteristics alter. The frames must be non-corrosive, weatherproof, and have minimal maintenance. Furthermore, during the projection period, the sale of energy-efficient windows will increase due to the raw materials used to create frames with improved physical characteristics, including anti-rust and their ability to tolerate extremely high temperatures.

The glass section will hold the second-largest share. The type of glass used in windows is a high cost in the market for energy-efficient windows. The best material for retaining heat inside or outside of windows is glass.

• For instance, Rehau introduced a brand-new design called SKYFORCE in November 2019 that may be coupled with French glass windows. Thus, during the projected period, the market for energy-efficient windows would rise due to the adoption of improved materials in glass.

By End users

Based on the end-user, the segments are residential and non-residential. The residential section is estimated to advance at a CAGR of 8.9% and hold the largest share. Residential windows that are energy efficient are utilized in private homes or societies. Awning, casement, double-hung, and sliding windows can all be placed for residential applications. For residential buildings, awning, casement, and sliding are the most frequently chosen types. Population growth and increased consumer knowledge of energy-efficient windows encourage the construction of more homes, improving the residential market for energy-efficient windows.

The non-residential section will hold the second-largest share. Non-residential infrastructures will have a lot of windows installed. Using energy-efficient windows in non-residential buildings reduces heat loss. Additionally, energy-efficient windows reduce the amount that is spent on electricity bills. Additionally, specific windows with double or triple glazing keep outside noise from penetrating the structure. These are the main elements fueling the market expansion for non-residential windows that are energy efficient.

Recent Developments

• February 2024 -Alpen High-Performance Products (Alpen) announced that it will maintain its position as the top-ranked company in Energy Star's efficiency ratings for high-performance windows for the foreseeable future, with another victory in 2024. The Fixed High- and Low-Profile Picture Windows from Alpen occupy the top two positions in the ranking. Near the top of the list, Alpen's operable fiberglass Zenith series also received the Energy Star "most efficient" grade.
• February 2024 - Anlin Windows & Doors, a brand under PGT Innovations (NYSE: PGTI), announced that they are bringing two new items to its array of operating styles that are designed for energy efficiency, comfort, and beauty when it returns to the NAHB International Builders' Show (IBS) in Las Vegas, Nevada this year.