Green Building Market Outlook:
Green Building Market size was valued at USD 700.96 billion in 2025 and is expected to reach USD 1.79 trillion by 2035, expanding at around 9.8% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of green building is evaluated at USD 762.78 billion.
The green building market is experiencing a shift due to the rising regulatory standards, corporate sustainability targets, and consumer awareness and expectations towards sustainable buildings. As the regulatory environment becomes increasingly stringent in regions worldwide, market players are embracing innovative solutions and environmentally friendly building materials to maintain their competitiveness. In October 2024, the European Bank for Reconstruction and Development (EBRD) provided a EUR 5 million loan to Shunkhlai Holding to refurbish its headquarters in Mongolia to create more sustainable offices. The initiative also helps to improve the decarbonization of the construction industry in Mongolia and provides a best practice model to implement commercial deep retrofitting. These are some of the trends that have been observed and are in line with the global shift towards carbon neutrality in both emerging and developed markets.
Additional impetus is being created through integrated material efficiency standards, digital building intelligence, and life cycle-oriented emission control measures. The London Energy Transformation Initiative set an embodied carbon budget of 600 kgCO2e/m2 in 2024, which has become a bar for sustainable construction in most cities around the world. Through the promotion of low-emission materials and resource-efficient renovation solutions, the initiative contributes to spreading circular design values. This move is in line with EU-wide decarbonization initiatives and raises material innovation to a competitive advantage factor in the construction supply chain. There is a growing focus on green buildings not only as sustainable investments but as essential drivers of climate transition strategies.
