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Country Benchmarking: Climate Change Remodels the Buildings Industry in Asia-Pacific

  • August 2014
  • -
  • Frost & Sullivan
  • -
  • 128 pages

Summary

Table of Contents

Buildings Hold the Key Answers to Combat Climate Change

This research service discusses the role of the buildings industry in fighting climate change in Asia-Pacific. Climate change is believed to cause the severe weather occurrences that cause disruptions and losses to socio-economic activities. Affected industries include the buildings industry. Buildings consume a considerable amount of electricity that is largely generated from fossil fuel. Many countries are already striving to increase their dependence on renewable energy and at the same time promote the use of energy-efficient building fittings and equipment, and energy management solutions. Various efforts and initiatives are being introduced by the buildings industry with the aim to reduce the dependency on fossil fuel for electricity generation.

Executive Summary—Key Takeaways
1 The key focus of the buildings industry will be energy efficiency. High-profile buildings will need to be green and energy efficient in the long term and be able to withstand severe weather conditions.
2 Property developers are already embracing green features in their property development projects. Competitors in the property development and building construction market are focusing on sustainable green buildings.
3 With the assumption that electricity prices remain constant, consumers’ expenditure on electricity will rise and their bills are likely to be aggravated by the higher consumption due to the effects of climate change.
4 Asia-Pacific shows various levels of development in the greening of the buildings industry. China and India hold promise due to their sheer market size, but Singapore presents solid opportunities due to its green buildings ambitions.
5 The key impact of climate change on the buildings industry is higher net consumption of electricity. It is expected to be % higher than consumption under normal circumstances. This is due to higher cooling and heating loads required for climate change adaptation.

Definitions
Climate Change (CC)
It refers to the change in weather conditions caused directly or indirectly by human activities that affect the characteristics and properties of the global atmosphere. Climate change is observed over comparable timeframes and it may be interchangeably referred to as global warming.

Buildings Industry
The buildings industry includes markets such as building construction, green buildings, and smart buildings. The markets may encompass equipment markets (for example, automation hardware and software, lighting, and air-conditioning), and/or services markets (design, construction, and operation). The industry excludes equipment and services related to site remediation, environmental assessment, and civil and structural engineering.

CAGR
Compound annual growth rate (CAGR) is the year-over-year growth rate of a market size or investment over a specified period of time.

Geography
Unless otherwise specified, Asia-Pacific in this document refers to Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, and Thailand.

Market Size / Market Revenue
Unless otherwise indicated in this study, market size refers to the sales revenue of products and services within the markets mentioned in this study. It excludes book revenue or revenue uncollected from current and future contracts.

CC Market Size or Use for CC
Similar to the above definitions, it is the market size of products and services that are used to adapt or mitigate climate change. It is referred to as ‘CC (climate change) market’ or ‘Use for CC’ in this study, and it may include, but not limited to the following subsegments:
-Energy-efficient lighting, and heating and cooling equipment
-Green building construction materials
-Building energy management systems

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