Green Buildings Market Size & Share, by Product (Exterior Products, Interior Products, Buildings Systems, Solar Products); Distribution Channel (Offline, Online); End-Use (Roofing, Flooring, Insulation); Application (Residential, Non-Residential Buildingss) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2036

  • Report ID: 3509
  • Published Date: Nov 03, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2036

Green Buildings Market size is expected to cross USD 1948 Billion by the end of 2036, growing at a CAGR of 10% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of green buildings was over USD 470 Billion. The growing focus on renewable energy sources worldwide, as well as a development in the concept of green buildingss in some developed and developing regions, has contributed to market growth. Renewable energy consumption has increased by 3% in 2020, according to the International Energy Agency. In 2020, the overall share of renewables in world electricity production has increased to 29%, up from 27% last year.

In addition, governments of developed nations have introduced incentives and policies for the encouragement of green construction, which is also expected to accelerate market growth in the forthcoming years. Furthermore, low maintenance and operational costs of green buildingss, and a rising focus on emission-free construction are projected to offer ample growth opportunities to the green buildings market in the near future.


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Green Buildings Sector: Growth Drivers and Challenges

  • Growing Concern about the Environment- Most governments in the world are passing rules and regulations that require developers and contractors to use eco-friendly materials and solutions in their buildingss. This factor is a major driver of the growth of the green buildings market. As more and more people learn of the ecological benefits of sustainable construction, the market for environmentally friendly buildingss is increasing. This type of buildings uses less energy and water, generates lower waste, and has a smaller carbon footprint than traditional buildingss. The fact that the installation of solar equipment is highly economical, increases energy access and reduces carbon emissions can be taken into account. In addition, green buildingss can have beneficial effects on the health and well-being of those living in them. Compared to conventional buildingss, environmentally friendly buildingss can reduce energy consumption by 30% to 40%. A 20-30% reduction of water consumption can be achieved by green buildingss.
  • Rising Awareness and Adoption of Green Buildings Materials- In the construction and buildings sector, around 3 billion tonnes of materials are consumed each year or 40 % of global consumption. On a worldwide level, the use of sustainable buildings materials and products leads to increased conservation of depleting non-renewable resources. In addition, the environmental impact of transport, extraction, processing, installation, manufacture, recycling or reuse of these construction industry feedstocks may be reduced by integrating sustainable buildings materials into design and construction projects. The growth of the market is expected to be driven by increased demand for these materials in construction and buildings activities.
  • Growing Demand for Energy-Efficient Buildingss- Another driving factor for the green buildings market is an increase in demand for energy-efficient buildingss. An increasing demand for energy saving buildingss is triggered by the rising cost of energy and the need to become an independent source of energy. With a view to reducing energy consumption and minimizing waste, sustainable buildingss will lead to considerable cost savings on electricity bills.

Challenges

  • Price Fluctuation will Impede Market Expansion- The green buildings market growth is expected to be restrained by fluctuations in materials prices, which are driven by their availability and increased demand from end-use industries. It is more expensive for these materials to be used in construction compared with conventional buildings materials. Depending on a number of factors, such as finish, fittings or designs, their costs may differ. The use of these materials results in a huge early investment cost, which is owned by the long-term benefits of eco-design buildingss. Moreover, construction activity in the residential sector is expected to be restricted due to a reduction in per capita income in some countries. This is likely to lead to a reduction in product adoption in the construction sector.
  • The high initial cost of construction is one of the main market barriers to green buildingss.
  • The growth of the market is expected to be hampered by obstacles in terms of the construction of environmentally friendly buildingss.

Green Buildings Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 10%

Base Year Market Size (2023)

 ~ USD 470 Billion

Forecast Year Market Size (2036)

 ~ USD 1948 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Green Buildings Segmentation

Application (Residential, Non-Residential Buildingss)

The non-residential segment in the green buildings market is anticipated to hold the largest share of about 68% during the forecast period. Rapidly increasing urbanization and the rise in urban populations across the globe are leading to market growth. In 2022, the proportion of urbanized population worldwide has increased to 57 %. It is also due to the growing demand for environmentally friendly and sustainable solutions. In addition, it is now necessary for all construction companies not directly involved in the housing sector to prioritize sustainability design and construction techniques so that they can take advantage of the planet's limited resources. Sustainable business practices are crucial to green buildings, reducing energy consumption, and protecting natural resources throughout the majority of countries. Furthermore, the growing concern over climate change has led to environmentally responsible and sustainable activities which have increased demand for green buildings materials in non-residential buildingss. According to a recent study, 72% of consumers reported buying more eco-friendly products than five years ago. In five years, the number of worldwide online searches for sustainable goods has risen by 71%. In the case of eco-friendly brands, 55% of consumers are willing to pay more.

Product (Exterior Products, Interior Products, Buildings Systems, Solar Products)

Green buildings market from the solar products segment is expected to account for largest revenue share of about 52% over the forecast period. The fact that solar installation is extremely cost efficient, increases access to energy, and reduces the carbon footprint can be accounted for. Furthermore, the investment in photovoltaic panels and their maintenance is regarded as a safe bet that will help to drive future market growth. In 2021, solar power accounted for around 4% of the world's energy supply. That's an increase from 3% in 2020. The total contribution of renewable energies to overall electricity generation was 38%, with the solar sector accounting for 11.5%. Overall, this gives the figure of 4.37%.

Our in-depth analysis of the global green buildings market includes the following segments:

Product

  • Exterior Products
  • Interior Products
  • Buildings Systems
  • Solar Products

Distribution Channel

  • Offline
  • Online

End-Use

  • Roofing
  • Flooring
  • Insulation

Application

  • Residential
  • Non-Residential Buildingss

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Green Buildings Industry - Regional Synopsis

APAC Market Forecast

Green buildings market in Asia Pacific is estimated to account for 32% of the revenue share during the forecast period. The growth of the green buildings market in the Asia Pacific is driven by a number of factors, including growing government support for sustainable buildings practices, increasing concern over climate change, and increased awareness of the advantages of environmentally friendly buildingss. The demand for green buildingss in the region is also expected to rise as a result of its rapidly expanding population and increasing disposable income. Around 2.36 billion people lived in cities in Asia in 2020. Over the next few years, urbanization in Asia is expected to remain high and has been projected to reach a population of around 3.48 billion by 2050.

North American Market Statistics

North America region is predicted to account for 28% share of the global green buildings market during the forecast period. In the region, good infrastructure, heightened awareness about pollution risks and increased disposable income are factors that have contributed to market growth. Moreover, the growing demand for roofing, insulation, framing and a number of other types of residential, industrial, commercial or infrastructure constructions is also increasing. The growing demand for eco-friendly and energy-efficient buildingss that maximize value and minimize environmental impact. Financial benefits, like lower costs of energy, can also be achieved by the use of environmentally friendly buildingss. The growth of the market has also been driven by rising government initiatives.

Research Nester
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Companies Dominating the Green Buildings Market

top-features-companies
    • BASF SE
      •  Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Saint Gobain
    • Binderholz GmbH
    • E.I. du Pont de Nemours and Company
    • Forbo International SA
    • Alumasc Group Plc
    • Amvik Systems
    • Interface Inc.
    • Kingspan Group plc
    • Interface Inc.

In the News

Amvik systems launched their project named Pinnacle, which is a residential home with over 6,000 sq. ft of living space. The buildings uses ICF walls, concrete floors and solar panels, and eliminate hydro bills and feeds energy back into the grid.

BASF entered into a partnership with GS engineering and construction to jointly develop modular solution for carbon capture. The partners want to develop individual package solutions from standardized elements for customers from all industries in order to remove CO2 from exhaust gases and process it so that it can be further utilized or stored.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 3509
  • Published Date: Nov 03, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Growing emphasis on renewable energy resources across the world and rising development of green buildings concept in developed and developing regions are the major factors driving the growth of the green buildings market.

The market size of green buildings is anticipated to attain a CAGR of 10% over the forecast period, i.e., 2024-2036.

The major players in the market are Bauder Limited, Binderholz GmbH, E.I. du Pont de Nemours and Company, Forbo International SA, Alumasc Group Plc, Amvik Systems, Interface Inc., Kingspan Group plc, and others.

The non-residential segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Green Buildings Market Report Scope
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