Green Building Materials Market Trends

Growth Drivers

• Rapid shift towards green buildings: The shift towards green buildings is driving the demand for green building materials, supported by regulatory frameworks, technological innovations, and growing consumer and investor interest. Favorable government policies and consumer demand for sustainable living are leading to the growing preference for materials that have a minimized environmental impact. A major factor in the increased demand for energy-efficient buildings is the use of sustainable building materials like solar panels and insulation, which lower energy usage. For instance, the European Union’s Green Deal aims to make Europe the first climate-neutral continent by 2050, promoting green building practices.

• Better indoor air quality: Green building materials improve indoor air quality and have a good environmental impact while improving building performance. Also, green building materials are free of impurities, particularly volatile organic compounds (VOC), which are present in indoor air and pose a risk to the health of inhabitants, including cancer. Therefore, green building materials can reduce health risks by, for instance, developing fewer hazardous chemicals and limiting the use of PVC.
• Increasing demand for energy-efficient construction materials: Green building materials allow the manufacturers to recycle the waste materials used in the construction instead of using new raw materials. Also, compared to conventional materials, green building materials on the other hand consume less energy, are biodegradable, and can be decomposed effortlessly. Therefore, green building materials use less energy, water, and natural resources, produce less trash, or none (zero discharge), and are healthier for the occupants.

Challenges

• Fluctuating price of raw materials: The availability of materials and the increased demand from end-use industries are expected to cause price fluctuations, which will limit market expansion. Due to the long-term advantages of green buildings, the adoption of these materials comes with a significant upfront investment cost. Furthermore, it is anticipated that the residential construction sector will be curtailed in many nations due to diminishing per capita income. This is anticipated to impede the construction industry's adoption of green building materials.

• Lack of standardization and certification: Different industries may have different standards for what qualifies as a green material, which makes it challenging for professionals and consumers to make wise decisions. The establishment of globally recognized certifications and standards is essential to establishing a coherent framework that supports decision-making and guarantees the legitimacy of green building materials. Therefore, this factor may hamper the growth of green building materials market.