Natural and Organic Foods and Beverages in the U.S., 4th Edition
Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting
1. Get more info on this report!
Energy-Efficient Home Renovations Market, Part 2: Appliances &
Lighting
August 1, 2009
Green building is no longer just a fad; in fact, energy-efficient remodeling and
renovating is one of the few aspects of the U.S. construction business that still holds a
positive outlook in the midst of the economic turmoil in 2009.
The U.S. residential construction market was $363 billion in 2008, down 41% from its
high of $620 billion in 2006. The home renovations market was $188 billion in 2008,
down 18% percent from 2007. But SBI estimates that the home energy efficiency
renovations market in the U.S. was $21 billion in 2008; down only 13% percent from
2007’s $24 billion.
Remodeling to improve a home’s energy efficiency instead of buying a new home has
become a preferred option in today’s market. In fact, the National Association of Home
Builders found that 32% of home builders also provided remodeling services in 2008.
Homeowners are still seeing the benefits of improving their home’s energy efficiency
even in the economic instability of 2009. With energy consciousness shooting to the
forefront of the media during the 2008 oil price peak, the Propane Education &
Research Council has found 80% of homeowners are now concerned about the energy
efficiency of their homes.
Home builders and remodelers have been quick to provide remodeling services that are
focused on energy conservation and green building practices; as an example, 85% of
remodelers surveyed by the National Association of Home Builders in 2008 used
energy-efficient windows on the majority of their projects. Retailers and manufacturers
of building projects, residential builders and remodelers, and even state and federal
organizations now have to be able to provide knowledgeable energy conservation
expertise to succeed in their business.
Home energy efficiency analysis now uses a ‘whole building’ approach, affecting
all categories of building materials, from windows and doors to insulation to
completely eliminating air leaks. To fully embrace this view, this report looks at
the impact energy-efficient building products are having on the renovations
2. market in a number of categories:
Part I explores the market for energy-efficient doors and windows, caulking
and weather stripping, and insulation used in home renovation projects.
Part II examines the energy-efficient appliance and lighting markets for
home remodeling.
Part III looks at energy-efficient heating and cooling systems and the
growing trend of energy-efficient roof renovations.
Report Methodology
Report data were obtained from government sources, including the U.S. Department of
Commerce, U.S. Census Bureau, U.S. Department of Housing and Urban Development
and ENERGY STAR; trade associations such as the National Association of Home
Builders (NAHB), and the National Association of the Remodeling Industry (NARI);
research organizations such as the American Council for an Energy-Efficient Economy
(ACEEE) and Harvard University’s Joint Center for Housing Studies (JCHS); websites
of home improvement contractors, manufacturers and dealers, industry analysts and
print and online business and trade journals.
Consumer demographics and spending trends derive from data compiled by Simmons
Market Research Bureau, New York, NY. Trends and recent developments in the
industry come directly from personal interviews with key players in manufacturing and
sales of energy-efficient building products and discussions with knowledgeable insiders
of associations such as the National Association of Home Builders.
What You’ll Get in This Report
Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting provides a
concise, focused look on the world of whole home energy-efficient renovations as it
exists today, and shows where the market is moving towards in the next five years. The
report highlights key players in the industry and pinpoints ways current and prospective
competitors can capitalize on recent trends and spearhead new ones. No other market
research report provides both the comprehensive analysis and extensive data that
Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting offers. Plus,
you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables
and graphs.
How You’ll Benefit from this Report
If your company is already doing business in green home renovations or remodeling
specializing in energy efficiency, or is considering making the leap, you will find this
report invaluable as it provides a comprehensive package of information and insight not
offered in any other single source. You will gain a thorough understanding of the current
market for all aspects of energy-efficient renovations, as well as projected markets and
3. trends through 2013.
This report will help:
Marketing managers identify market opportunities and develop targeted
promotion plans for homeowners looking to renovate to reduce their utility costs.
Research and development professionals stay on top of competitor initiatives
and explore demand for current energy efficiency remodeling trends and new
emerging energy-efficient construction products.
Advertising agencies working with clients in the banking, retail and construction
industries develop messages and images that compel homeowners to migrate
towards energy-efficient products when considering home renovations.
Business development executives understand the dynamics of the market and
identify possible partnerships.
Information and research center librarians provide market researchers, brand
and product managers and other colleagues with the vital information they need
to do their jobs more effectively.
Additional Information
Market Insights: A Selection From The Report
Imports & Exports of Residential Lighting Products
Unlike with appliances, residential lighting fixture imports have been dominated by
imports from China for years, with 75% of imports to the U.S in this category in 2008.
Even Mexico was a distant second with 11% of the residential lighting fixture imports to
the U.S.
China is also the largest producer of CFLs in the world; the China Association of
Lighting Industry states that in 2006 China was responsible for 70% of world CFL
production. China was responsible for 87% of all fluorescent light imports to the U.S. in
2008 according to U.S. trade data, with 86% of those imports being of the screw in
(Edison) type of light bulb and the rest using the pin type sockets. SBI estimates that
85% of the CFLs sold in the U.S. in 2008 were imported from China.
Imports of CFLs have grown prodigiously since 2002 with a CAGR of 24% from 2002 to
2008, but are now on the wane. CFL imports in 2008 saw a 14% drop in number
compared to 2007 and a further 34% drop in the first quarter of 2009 compared to first
quarter 2008. As an interesting side note, Canada dominates imports of the 1.2 meter
4. straight fluorescent tubes commonly found in commercial buildings the way China
dominates CFL imports to the U.S.
In the News
Government Funding of Energy Efficiency Programs Generates Growth in $21
Billion Energy-Efficient Home Remodeling Market
New York, August 26, 2009 - Supporting energy efficiency as a way to decrease U.S.
dependency on foreign fuels and reduce greenhouse gases moved to center stage in
2009. In the one year alone, the Obama administration has provided more money to
advance energy efficiency programs across the board than in the last 10 years
combined. Going into 2010, portions of this vast sum of energy efficiency money will
also be matched by each state, further growing the pool of available funds for the
initiative.
This huge surge of funding supports the U.S. energy-efficient home renovations market
in a big way, according to Energy-Efficient Home Renovations Market, Part 2:
Appliances & Lighting by leading industrial market research publisher SBI. The report
cites the Congressional Budget Office’s (CBO) expectations that the newly available
funding will generate an estimated $6 billion in remodeling work by the end of 2010, all
of which is energy efficiency related according to the provisions of the funding.
SBI projects the energy-efficient home renovations market, which reached an estimated
$21 billion in 2008, to experience a compound annual growth rate (CAGR) of 15% from
2009 to 2013, growing 50% faster than the U.S. renovations market as a whole.
Ultimately, SBI forecasts energy-efficient renovations will total $35 billon and progress
from claiming 12% of the overall home renovations market to 15% in the five years to
2013.
Growth in two prominent product segments, energy-efficient appliances and lightening,
is expected to mirror the overall energy-efficient home renovations market. SBI projects
that both segments will achieve a CAGR of about 13% for the five-year forecast period.
“With remodeling to improve a home's energy efficiency over buying a new home
emerging as the preferred option in today's market, more and more homeowners will
undoubtedly take advantage of the benefits of the tax credits offered by the stimulus
plan for installations of energy-efficient appliances and lighting,” says Shelley Carr,
publisher of SBI.
Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting is the
latest installment in a three part series. The report highlights two specific home
improvement product segments: energy-efficient appliances and lighting fixtures
(including bulbs). Along with analyzing the economic factors affecting the energy-
efficient home remodeling market, the report explores the trends that are driving
5. renovations and examines the market potential of energy-efficient home renovations in
the U.S. through to 2013.
The remaining reports in the Energy-Efficient Home Renovations series are available
throughout 2009. Published in July, Part 1 explores the market for energy-efficient doors
and windows, caulking and weather stripping, and insulation used in home renovation
projects. Part 3, scheduled to publish later this year, explores energy-efficient heating
and cooling systems and the growing trend of energy-efficient roof renovations.
About SBI
SBI (Specialists in Business Information) publishes research reports in the industrial,
energy, building/construction, automotive/transportation and packaging markets. SBI
also offers a full range of custom research services.
TABLE OF CONTENTS
Chapter 1: Executive Summary
Scope of This Report
Methodology
The Market
The U.S. Energy-Efficient Home Renovations Market
Figure 1-1: Energy-Efficient Residential Renovations Market, 2003-2008 (in
billion $)
Energy-Efficient Product Segments for the Renovations Market
Forecast
Figure 1-2: Residential Energy-Efficient Renovations Market Forecast, 2009-
2013 (in billion $)
Figure 1-3: Residential Energy-Efficient Appliance and Lighting Renovations
Market Forecast, 2009-2013 (in billion $)
Measuring Energy Efficiency
Prescriptive Energy Efficiency Programs
Table 1-1: Summary of Energy-Efficient Appliance and Lighting Programs, 2009
Home Energy Efficiency Auditing for Renovations
Home Performance Programs
Financial Programs
State Energy Efficiency Renovation Incentives
Figure 1-4: Utility Funding for Energy Efficiency Programs, 2008
Government Assistance Programs
Financial Benefits of Energy-Efficient Home Renovations
Trends
Figure 1-5 :NAHB Remodeling Market Index & JCHS Leading Indicator for
Remodeling Activity, 2002-2009
Consumers Want More Green!
6. Appliance Remodeling Trends
Residential Lighting Trends
DIY and Pro
Remodeling Industry Suffers from Unprofessional Image
The Future for Energy Efficiency Remodelers
DIY Versus Pro by Product Segment
Demographics
Appliance Renovation Demographics
Energy-Efficient Lighting Demographics
Manufacturers & Retailers
Appliance Manufacturers
Residential Lighting and Lighting Fixture Manufacturers
Retailers
Chapter 2: The Market
Scope of This Report
Methodology
A Note on the American Housing Survey
Defining Energy-Efficient
Energy-Efficient Appliances
Energy-Efficient Lighting
The Residential Construction Industry
The U.S. Housing Construction Market
Figure 2-1: Residential Construction Value Put in Place, 2002-2008 (in billion $)
The U.S. Home Renovations Market
Figure 2-2: Residential Renovations Market, 2001-2008 (in billion $)
The U.S. Energy-Efficient Home Renovations Market
Figure 2-3: Energy-Efficient Residential Renovations Market, 2003-2008 (in
billion $)
The U.S. Appliance Market
Table 2-1: U.S. Residential Appliance Market, 2002-2008 (in thousand units)
The Energy-Efficient Appliance Market for Existing Homes
Figure 2-4: Energy-Efficient Residential Appliance Renovations Market, 2003-
2008 (in billion $)
Figure 2-5: Breakdown of Energy-Efficient Appliance Market for Existing Homes,
2008
The U.S. Residential Lighting Market
Table 2-2: U.S. Residential Light Fixture and Compact Fluorescent Bulb Market,
2002-2008 (in million $)
The Energy-Efficient Residential Lighting Renovations Market
Figure 2-6: Energy-Efficient Residential Lighting Renovations Market, 2003-2008
(in million $)
Imports & Exports of Appliances
Table 2-3: U.S. Imports & Exports of Appliances, 2002-2008 (in million $)
Imports & Exports of Residential Lighting Products
Table 2-4: U.S. Imports & Exports of Residential Light Fixtures and Compact
Fluorescent Bulbs, 2002-2008 (in million $)
7. Forecast
Figure 2-7: Residential Energy-Efficient Renovations Market Forecast, 2009-
2013 (in billion $)
Energy-Efficient Home Renovations Product Segment Forecasts
Figure 2-8: Residential Energy-Efficient Appliance and Lighting Renovations
Market Forecast, 2009-2013 (in billion $)
Chapter 3: Measuring Energy Efficiency
Independent Product Testing Organizations
Association of Home Appliance Manufacturers
Table 3-1: AHAM Appliance Standards, 2009
National Institute of Standards and Technology
Table 3-2: ENERGY STAR Lighting Efficacy Testing Standards, 2009
Prescriptive Energy Efficiency Programs
ENERGY STAR
Figure 3-1: ENERGY STAR Program Aided vs. Unaided Consumer Awareness,
2001-2008
Consortium for Energy Efficiency
Energy Efficiency Standards of Residential Appliances
Energy Efficiency Standards of Residential Refrigerators & Freezers
Table 3-3: Energy-Efficient Refrigerator & Freezer Criteria, 2009
Energy Efficiency Standards of Residential Dishwashers
Table 3-4: Energy-Efficient Dishwasher Criteria, 2009
Energy Efficiency Standards of Residential Clothes Washers
Table 3-5: Energy-Efficient Clothes Washer Criteria, 2009
Energy Efficiency Standards of Water Heaters
Table 3-6: Energy-Efficient Water Heater Criteria, 2009
Energy Efficiency Standards of Residential Lighting Fixtures
Table 3-7: Energy-Efficient Residential Light Fixture Criteria, 2009
Energy Efficiency Standards of Compact Fluorescent Bulbs
Table 3-8: Energy-Efficient Compact Fluorescent Bulb Criteria, 2009
New Energy Efficiency Lighting Standards
Table 3-9: Energy-Efficient Residential Solid-State Lighting Criteria, 2009
Home Energy Efficiency Auditing for Renovations
Energy Efficiency Auditor Certifications
Table 3-10: State Level Home Energy Auditor Certification Programs, 2009
Self-Auditing Programs
Home Performance with ENERGY STAR
Home Performance Energy Auditing is a Fragmented Market
Home Performance Energy Efficiency Rating Programs
The RESNET HERS Index
Home Environmental Rating Programs That Include Energy Performance
The Future of Home Energy Rating
Chapter 4: Financial Programs
ARRA Providing $20 Billion for Energy Efficiency
Federal Energy Efficiency Renovation Incentives
The ARRA Residential Tax Credits
8. Future Federal Energy Efficiency Legislation
State Energy Efficiency Renovation Incentives
Figure 4-1: Utility Funding for Energy Efficiency Programs, 2008
Energy Efficiency Home Renovation Programs by State
Table 4-1: State & Utility Incentives for Whole Home Residential Energy
Efficiency Renovations, 2009
Table 4-2: State & Utility Incentives for Appliance Energy Efficiency Renovations,
2009
Table 4-3: State & Utility Incentives for Lighting Energy Efficiency Renovations,
2009
Government Assistance Programs
Housing and Urban Development Programs
Financial Benefits of Energy-Efficient Home Renovations
Figure 4-2: Breakdown of Residential Energy Usage, 2006
Appliance Energy Savings
Table 4-4: ENERGY STAR Qualified Residential Appliance Energy & Water
Savings per Year, 2009
Lighting Energy Savings
Chapter 5: Trends
Remodeling Indexes Look Grim
Figure 5-1: NAHB Remodeling Market Index & JCHS Leading Indicator for
Remodeling Activity, 2002-2009
Government Now Much More Interested in Energy Efficiency
State Level Residential Energy Efficiency Awareness
Table 5-1: ACEEE State Energy Efficiency Ranking, 2008
Green Remodeling Trends
Consumers Want More Green!
The Holy Grail of Energy Efficiency: Zero-Energy Homes
The Downside of Increased Energy Efficiency Awareness: Greenwashing
Energy Efficiency Remodeling for the Future
Energy Efficient Appliance Trends
Smart grid to monitor/control appliance use
Self-Testing of Appliances Leads to ENERGY STAR Label Abuse
Expanding Energy Efficiency Appliance Categories
Changing Water Heater Purchasing Decision Making
Energy-Efficient Light Fixture Trends
The Fixtures of the Future
Table 5-2: Lighting for Tomorrow Finalists, 2008
The Future is Bright for Solid-State Lighting
Decorative Light Strings Market Trends
Table 5-3: U.S. Imports & Exports of Decorative Light Strings, 2002-2008 (in
million $)
Compact Fluorescent Bulb Trends
The Growth of CFL Marketing Campaigns
Death by Legislation: The End of Light Bulb Manufacturing in the U.S.?
9. Table 5-4: Countries with Non-Directional Light Bulb Energy Efficiency
Legislation, 2009
A Tarnished CFL Image: Recycling is Essential
Chapter 6: DIY and Pro
The Remodelers View of the Market
Remodeling is a Heavily Fragmented Market
Remodeling Industry Suffers from Unprofessional Image
Figure 6-1: Customer Willingness to Hire the Same Remodeler, 2008
Energy-Efficient Remodeling High on Remodelers’ Lists
Figure 6-2: Frequency of Energy Efficiency Products Commonly Installed by
Remodelers, 2001-2008
The Future for Energy Efficiency Remodelers
Dishwasher & Water Heater Installations
Figure 6-3: Percentage of Pro Dishwasher & Water Heater Installations, 2001-
2008
Light Fixture Installations Favor the DIY Homeowner
Figure 6-4: Percentage of Pro Light Fixture Installations, 2004-2008
Chapter 7: Demographics
Note on Experian Simmons Market Research Bureau Consumer Data
Energy-Efficient Appliance Demographics
Figure 7-1: Age of Major Appliances as Percentage of U.S. Households, 2005
ENERGY STAR Appliance Sales Constant Throughout the U.S.
Figure 7-2: ENERGY STAR Qualified Appliances Sales Share by Region, 2007
ENERGY STAR Appliance Ownership Demographics
Table 7-1: ENERGY STAR Appliance Ownership Demographics, 2005
Water Heater Demographics
Energy-Efficient Lighting Demographics
Table 7-2: Demographic Indicators and Resistors of Purchasing CFLs Most in the
Previous 12 Months, 2008 (Index)
Bedrooms, Bathrooms and Kitchens, Oh My!
Table 7-3: Estimated CFL Household Saturation by Room, 2008
Energy-Efficient Lighting Fixture Demographics
Table 7-4: Top Demographic Indicators and Resistors of Purchasing Lighting
Fixtures in the Previous 12 Months, 2008 (Index)
Chapter 8: Manufacturers & Retailers
Appliance Manufacturers
Whirlpool
Overview
Performance & Products
Table 8-1: Whirlpool Appliance Products, 2009
General Electric
Overview
Performance & Products
Table 8-2: General Electric Appliance & CFL Products, 2009
A. O. Smith
Overview
10. Performance & Products
Table 8-3: A. O. Smith Water Heater Products, 2009
CFL and Lighting Fixture Companies
TCP
Overview
Performance & Products
Table 8-4: TCP Lighting Products, 2009
Acuity Brands
Overview
Performance & Products
Table 8-5: Acuity Brands Residential Light Fixture Products, 2009
Retailers
Sears
Overview
Performance
The Home Depot
Overview
Performance
Figure 8-1: Home Depot World Revenue, FY2005-2009(in billions of dollars)
Lowe’s
Overview
Performance
Figure 8-2: Lowe’s World Revenue, FY2004-2008 (in billions of dollars)
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