Building-to-Grid Market Set to Surge to $148B by 2034

Published October 14, 2025

Buildings account for nearly 40 percent of global electricity consumption, and for decades, they have been treated as passive energy consumers. That is now changing. A new report from Allied Market Research forecasts that the building-to-grid (B2G) technology market will grow from 54.9 billion dollars in 2024 to 147.8 billion dollars by 2034, expanding at an impressive compound annual growth rate of about 10.5 percent. This rapid growth signals a major shift in how buildings interact with the power grid, enabling them to act as flexible, intelligent assets. Companies such as NZero, which specialize in real-time energy data tracking and carbon intelligence, are well positioned to help accelerate this transformation by connecting building operations with grid flexibility and decarbonization goals.

Understanding Building-to-Grid (B2G)

Building-to-Grid, or B2G, refers to the integration of buildings into the larger energy ecosystem through two-way communication with the grid. This concept allows buildings not only to consume energy but also to store, manage, and supply it back to the grid when needed. B2G systems rely on a mix of advanced technologies, including sensors, automated controls, distributed energy resources (DERs), and intelligent software platforms. Key components include:

Smart sensors and Internet of Things (IoT) devices for real-time energy monitoring
Building energy management systems (BEMS/BMS) for optimization and load control
On-site generation and storage, such as rooftop solar and battery systems
Demand response capabilities to reduce or shift energy use during peak times
Integration software to ensure interoperability with utilities and DER aggregators

The transition from passive consumption to interactive energy management is redefining how facilities operate. Buildings are increasingly seen as grid-responsive participants capable of balancing energy supply and demand dynamically.

Market Growth and Key Drivers

According to Allied Market Research, the B2G technology market’s value is projected to climb from 54.9 billion dollars in 2024 to 147.8 billion dollars by 2034, representing a compound annual growth rate of around 10.5 percent. This growth is fueled by several interrelated trends that are reshaping the global energy landscape:

Expansion of distributed energy resources such as solar PV, wind, and electric vehicle (EV) infrastructure
Broader adoption of demand response programs and grid modernization initiatives
Advances in artificial intelligence, automation, and predictive analytics
Growing investments in digital infrastructure and smart grid technology

North America and Europe are expected to lead the market, supported by progressive energy efficiency regulations, while the Asia-Pacific region will likely experience rapid adoption driven by urbanization and the electrification of new building stock.

Practical Use Cases and Applications

B2G technologies enable a variety of high-impact applications that improve both building performance and grid reliability. Among these use cases are:

Peak shaving and load shifting to lower utility costs and support grid stability
Automated demand response for commercial and industrial facilities
Energy storage integration for backup and time-of-use optimization
AI-based load prediction and emissions reduction modeling

For example, commercial buildings equipped with B2G systems can reduce operational costs by automatically responding to grid signals that indicate when to increase or decrease power use. AI-driven optimization software plays a crucial role in managing these interactions efficiently.

NZero’s capabilities align closely with the evolution of B2G systems. Through real-time utility and carbon data tracking, NZero empowers building operators to manage energy performance with precision. Its platform reduces the man hours needed to collect and verify emissions data while also supporting third-party assurance and regulatory compliance, including standards like California’s SB 253 and SB 261. By linking operational data to grid flexibility and sustainability outcomes, NZero helps bridge the gap between energy management and carbon accountability.

Barriers and the Road Ahead

Despite strong growth potential, several challenges still need to be addressed before B2G systems achieve mainstream adoption. These include:

Lack of standardized communication protocols between building systems and grid operators
Interoperability issues among equipment, software, and utility platforms
Regulatory uncertainty and uneven incentives across regions
Concerns about data privacy and cybersecurity

To overcome these challenges, industry stakeholders must collaborate on open standards, flexible market frameworks, and scalable technologies. Governments can accelerate progress through clear policy signals that reward grid-interactive performance. Data transparency will also play a pivotal role in enabling credible verification of energy and emissions outcomes.

NZero’s approach to precise, verified data positions it as an important player in this transition. By providing high-quality insights into building energy and emissions performance, platforms like NZero can help unlock the financial and environmental value of B2G integration.

Conclusion: From Efficiency to Flexibility

The building-to-grid market represents one of the most promising frontiers in the clean energy transition. As buildings evolve from static consumers to dynamic energy resources, the integration of intelligent controls, data platforms, and distributed assets will redefine both operational efficiency and sustainability. With the market projected to exceed 147 billion dollars by 2034, the case for investment in B2G capabilities is stronger than ever. NZero’s expertise in energy and carbon data management provides a foundational layer for organizations seeking to participate in this new era of interactive, data-driven energy systems.