Energy Positive Hotel Construction Market Size, Share & Forecast 2034

Energy Positive Hotel Construction Industry Perspective:

The global energy positive hotel construction market size was worth around USD 410 million in 2024 and is predicted to grow to around USD 31,773 million by 2034, with a compound annual growth rate (CAGR) of roughly 54.5% between 2025 and 2034.       

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Key Insights

• As per the analysis shared by our research analyst, the global energy positive hotel construction market is estimated to grow annually at a CAGR of around 54.5% over the forecast period (2025-2034).
• In terms of revenue, the global energy positive hotel construction market size was valued at around USD 410 million in 2024 and is projected to reach USD 31,773 million by 2034.
• The rising trends of sustainability are expected to drive the energy positive hotel construction market over the forecast period.
• Based on the type, the new construction segment is expected to capture the largest market share over the projected period.
• Based on the application, the urban hotels segment is expected to capture the largest market share over the projected period.
• Based on region, North America is expected to dominate the market during the forecast period.

Energy Positive Hotel Construction Market: Overview

An energy-positive hotel construction is the building of hotels that create more energy than they consume over a defined period, usually a year. These hotels use cutting-edge building techniques that save energy, renewable energy sources such as solar and wind power, eco-friendly materials, and unique architectural styles that promote energy conservation and the use of renewable energy. The goal is to achieve "net-positive energy" status, meaning the hotel generates more renewable energy than it consumes to run its operations. One can use this additional energy to meet operational needs or send it back to the grid for other purposes. Hotels that are energy-positive save money on their electricity bills and help fight climate change by leaving a smaller carbon footprint. They are part of a global trend driven by government incentives, such as tax breaks and subsidies, to promote eco-friendly tourism infrastructure.

Energy Positive Hotel Construction Market Dynamics

Growth Drivers

How do the global sustainability & net-zero commitments drive the energy positive hotel construction market growth?

Net-zero and global sustainability promises are the primary drivers of the energy positive hotel construction market's growth. These promises create significant demand and regulatory incentives for developing in an environmentally friendly way. The increased awareness of climate change and the quest for net-zero carbon emissions are forcing hotel developers to adopt energy-positive designs that generate more renewable energy than they consume. This aligns with global climate goals and what eco-conscious travelers anticipate. People, businesses, and governments all around the world are pushing for carbon neutrality. They want the hospitality industry to reduce its carbon footprint by incorporating solar, wind, and other renewable energy sources into energy-positive hotel designs. Many nations also employ tax breaks, subsidies, and grants to promote sustainable development that gets to net-zero energy or better. This is good for energy-positive hotel projects.

The United Nations says that as of June 2024, 107 countries had made net-zero pledges. These countries are responsible for about 82% of all greenhouse gas emissions. They made these pledges through laws, policy documents like national climate action plans or long-term strategies, or announcements from high-level government officials. Over 9,000 enterprises, 1,000 cities, 1,000 schools, and 600 banks have signed on for the Race to Zero. They all promise to do everything they can to cut world emissions in half by 2030.

Restraints

High initial capital investment impedes market growth

The significant initial capital investment hinders energy positive hotel construction market growth, mainly because it creates financial risk and entry barriers for developers and investors. Because of the emphasis on sustainable materials, renewable energy systems (solar panels, geothermal HVAC), energy-efficient technologies, and certifications, creating an energy-positive hotel costs substantially more than building a typical hotel.

For instance, the building and land acquisition expenditures for a mid-scale sustainable hotel can range from $10 million to $40 million or more, with renewable energy systems costing several hundred thousand dollars each project. Furthermore, higher capital requirements limit access to cheap financing and raise borrowing costs, particularly for smaller hotel developers or those new to sustainable development.

Opportunities

How does the rising development of carbon-positive hotels offer an opportunity for the energy positive hotel construction industry growth?

The energy-positive hotel construction sector offers abundant growth opportunities as more hotels become carbon-positive. This is because travelers want places to stay that are environmentally friendly and go beyond being carbon neutral to actively reduce carbon emissions. Carbon-positive hotels attract clients who care about the environment by offering stays that absorb more carbon than they emit. This makes the hotels more appealing to customers.

For instance, the architecture company Studio Gang built the Populus hotel in Denver in October 2024. The developer boasts it is the "first carbon-positive hotel" in the US. The façade of the 13-story hotel in downtown Denver is one of a kind. It has elliptical windows of varying sizes that resemble the "Aspen eyes" of Colorado's native Aspen tree, Populus Tremuloides.

Challenges

Why do the renewable energy dependence & climatic constraints pose a major challenge to energy positive hotel construction market expansion?

The reliance on renewable energy and the restrictions of the climate make it hard for the energy-positive hotel construction sector to thrive. This is because of factors such as how often and reliably renewable energy is available, and how the climate and seasons change. Solar and wind energy are examples of renewable energy sources that depend on the weather and are not always available. This means that the energy they provide may not always meet the hotel's needs. This makes it hard to maintain a consistent, continuous power supply without using costly energy storage devices.

Also, places with less sunlight, more clouds, or less wind make it harder to generate renewable energy, which makes it harder to reach net-positive energy status, especially in very hot or cold regions. The features listed above are a significant obstacle to the sector's expansion.

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Energy Positive Hotel Construction Market: Report Scope

Energy Positive Hotel Construction Market: Segmentation

The global energy positive hotel construction industry is segmented based on type, application, and region.

Based on the type, the global energy positive hotel construction market is bifurcated into new construction and retrofit & renovation. The new construction segment is expected to capture the largest market share over the projected period. The expansion of eco-tourism and people's desire for green travel options are increasing demand, especially in North America, Asia-Pacific, and Europe, where government incentives and corporate ESG programs are helping the growth. Also, hotels that use energy-positive designs save money on energy bills, which is a tremendous financial incentive for developers and operators who want to make money in the long term.

Based on the application, the global energy positive hotel construction industry is bifurcated into urban hotels, resort and vacation hotels, eco-lodges, business and conference hotels, boutique and luxury hotels, and others. The urban hotels segment holds the major market share. Cities are rapidly expanding, creating a demand for sustainable hotels that appeal to environmentally conscious guests. Urban hotels that implement energy-positive tactics are capitalizing on this trend, resulting in increased occupancy rates and premium pricing.

Energy Positive Hotel Construction Market: Regional Analysis

what factors will help North America dominate the energy positive hotel construction market over the projected period?

The North America region is expected to dominate the energy positive hotel construction market. The region's adoption of sustainability drives market growth. A growing number of hotels in North America are adopting energy-positive strategies, such as using renewable energy, installing energy-efficient HVAC systems, and improving energy efficiency. This aligns with more people seeking eco-friendly places to stay, which leads to higher rates and more people staying.

Also, an increasing number of business clients and consumers are aware of and choose sustainable travel, leading to more bookings and brand loyalty for energy-efficient hotels. Additionally, hotel brands in North America, such as Marriott, Hilton, and Accor, use current technologies, including IoT-based energy monitoring and on-site renewable energy generation, to make their operations more efficient and lower energy expenses, thereby becoming more profitable.

Energy Positive Hotel Construction Market: Competitive Analysis

The global energy positive hotel construction market is dominated by players like:

• Siemens AG
• Johnson Controls International plc
• Schneider Electric SE
• Trane Technologies plc (formerly Ingersoll Rand)
• Honeywell International Inc.
• Daikin Industries Ltd.
• Owens Corning
• SunPower Corporation
• LG Electronics Inc.
• First Solar Inc.
• SustEvo AS

The global energy positive hotel construction market is segmented as follows:

By Type

• New Construction
• Retrofit and Renovation

By Application

• Urban Hotels
• Resort and Vacation Hotels
• Eco-Lodges
• Business and Conference Hotels
• Boutique and Luxury Hotels
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa