Buildings are responsible for 40% of energy consumption and 36% of CO2 emissions in the EU. Sweden andDenmark are cold climatic countries with strong demand for space heating and hot water in the residentialsector. Large section of the detached houses in these countries are built more than 30 years ago and needrefurbishment. Despite of huge energy saving potentials with deep renovation of these houses, there existsseveral challenges in realizing those saving potentials. This paper evaluates the market for deep renovation ofsingle-family houses in these two Nordic countries using PEST and SWOT analysis. Comparative analysisbetween two countries will help to understand the common and country specific drivers and barriers and todevelop strategic recommendation in accordance.