Green Building Materials Market

Global Green Building Materials Market Size (2024-2029):

The Global Green Building Materials Market was worth USD 420.7 billion in 2023 and is anticipated to reach USD 843.82 billion by 2029 from USD 472.45 billion in 2024. It is predicted to register a CAGR of 12.3% during the forecast period 2024 to 2029.

Current Scenario of the Global Green Building Materials Market

Green building materials have very little negative impact on the environment. Recycled or natural materials are mostly preferred when constructing eco-friendly buildings, which are known as green building materials. These buildings constructed with this material are safe and for the environment and people as the resources used were completely natural or recycled. The prevalence of adopting new changes in constructing buildings to reduce the consumption of energy, electricity, water, and materials. Traditional buildings require high amounts of water, energy, and other non-degradable materials, which has raised concern over the negative impact on the environment for so many years. According to the United Nations Environment Program, in 2022, the construction of buildings is the only reason to release around 33% of energy-related CO2 emissions that cause serious health issues for living beings on the earth. The survey also suggests that it is time to create huge awareness among the public to shift to using green building materials for positive environmental impact as the carbon emissions may double to the existing levels by 2050. 

MARKET DRIVERS

High investment from both public and private organizations in building construction is one of the major factors driving the growth of the green building materials market.

Industries are showing interest in using green building materials to construct buildings with the enormously growing consumer preference for eco-friendly buildings. Building construction projects are mainly aimed at enhancing comfortable living and work spaces and creating healthier and more energy-efficient spaces for people. Government organizations are paying much attention to lower carbon emissions in every possible way, especially in developed and developing countries. World Green Building Council (WGBC) is stepping forward to focus on the reduction of growing carbon emissions due to building construction activities. According to WGBC, the construction of buildings is responsible for releasing only a high amount of global energy-related carbon emissions. It is estimated that the rising world population will surge the demand for the construction of buildings. So, WGBC is aiming to reduce its carbon footprint in construction activities by using net zero operational carbon. By 2030, all the new buildings, infrastructure, and renovations should follow the new technological developments that emit 40% less carbon emissions, according to the World Green Building Council. Also, it aims to completely reduce carbon emissions by 100% by 2050 with the complete adoption of net zero operational carbon. Green building materials play a major role in reaching these goals, which are likely to fuel the market growth rate to the greatest extent. 

People's preference to adopt environmentally friendly buildings that save huge energy costs and enhance their well-being with the features accommodated are prompting the growth rate of the green building materials market. 

MARKET RESTRAINTS

The availability of the raw materials may vary according to the supply chain, which completely fluctuates, and the prices of green building materials, which negatively impact the market's growth rate.

 As people are focusing on adopting new technologies in construction buildings, the demand for green building materials is increasing at a random rate, which may also impede the market share. In addition, the high initial cost of the materials, though they last for a very long life, is slowly hindering the huge growth rate of the green building materials market. 

MARKET OPPORTUNITIES

High investments in building activities in emerging countries like India and China are setting up huge growth opportunities for the market. Real estate services companies have been receiving huge funds for the construction of green buildings in India for the past few years. Along with this, the government's support for the reduction of carbon footprints through funds, especially in construction activities, is a good sign that the green building materials market will grow the forecast period 2024-2029. Rising water scarcity issues with drastic changes in environmental conditions like global warming and others also contribute to the green building materials market share in a positive way. 

MARKET CHALLENGES

One of the major factors that is challenging the growth rate of the green building materials market is the insufficient legislative frameworks by the government authorities to build buildings that are environmentally safe. People in undeveloped countries are less aware of the importance of adopting new changes in construction activities that reduce global environmental pollution. Low per capita income is one of the concerns in these countries regarding developing eco-friendly building activities that are acting as a barrier for the green building materials market's key players to grow. 

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Green Building Materials Market Analysis By Product Type

The exterior and interior product segments are moving parallel, holding the dominant share of the green building materials market. The rise in the number of building renovation activities with the rising stringent norms by the government in a few countries to strictly adopt using green building activities is solely to level up the growth rate of the green building materials market. The penetration of highly advanced technologies and the rising number of building constructions in very little time is fuelling the market share. The prominence of adopting solar products that hugely save the cost of energy in construction activities is likely to promote the growth rate of the green building materials market. 

Global Green Building Materials Market Analysis By Application

Non-residential buildings are taking a top place and leading the largest share of the market. The Commercial & office sub-segment of the non-residential buildings market is anticipated to hold the highest growth rate during the forecast period. High capital investments to construct commercial buildings using the latest technologies in both developed and developing countries are accounted for in leveraging the growth rate of the green building materials market. Government authorities are forced to adopt the new changes in construction activities to reach the aim of zero carbon emissions by 2050, which is a prominent factor for the market growth in the coming years. 

Residential buildings market share is likely to have the highest CAGR by the end of 2029, with the growing affordability of owning new buildings for living space and shaking hands elevating the demand for green buildings in urban areas. 

REGIONAL ANALYSIS

North America's green building materials market share has been gaining huge traction for the past five years. The constantly growing economy in developed countries like the US and Canada is the major factor that has allowed the green building materials market to grow in this region. The US government is investing heavily in the improvement of construction activities that are quietly environment-friendly. The desire to construct eco-friendly buildings with the latest technologies in the US is very high to sustain the usage of energy and water, among other resources used in building construction. The US aims to reach zero carbon emissions by 2035 using different strategies to combat global warming and substantially achieve the carbon neutrality target. The US Environmental Protection Agency (EPA) is greatly promoting environment-friendly buildings by thoroughly checking the process in construction, renovation, alteration, and repair projects that use green building materials, which is ascribed to boost the market's growth rate during the forecast period 2024-2029. 

Following North America, Europe holds the highest share of the green building materials market. High economy and rapidly growing urbanization in developed countries like the UK, Germany, and others are gearing up the growth rate of the Europe green building materials market. A survey report states that around 35% of total greenhouse gas emissions in the EU are from the building sector. EU has already started the renovation of buildings that will be eco-friendly and consume very little energy. It estimates that by 2030, around 35 million buildings will be renovated using green building materials.

Asia Pacific region is gaining huge traction over the growth rate of the green building materials market. The increasing number of people in India and China is the major factor that will help the market to grow. To meet the ongoing demand for construction activities in these countries, government authorities are likely to invest more in green building constructions that eventually boost the growth rate of the green building materials market. According to the US Green Building Council, China ranks first in Leadership in Energy and Environmental Design (LEED). China focuses on launching energy and environmentally effective designs using green building materials. In 2023, China launched around 1563 LEED green building projects. Also, India is moving forward with all the new advancements in construction activities to reduce carbon emissions. 

KEY PLAYERS IN THE GLOBAL GREEN BUILDING MATERIALS MARKET

Companies playing a prominent role in the global green building materials market include Acoustical Surfaces, Inc. (U.S.); Cemex S.A.B. de C.V. (Germany); Cold Mix Manufacturing Corp. (U.S.); GE Sealants and Adhesives, Inc. (U.S.); Green Build Products (I) Pvt. Ltd. (India); Green Fiber, LLC (U.S.); Magicrete Building Solutions Pvt. Ltd. (India); Momentive Performance Materials Inc. (U.S.); National Fiber Technology, LLC (U.S.); Novagard Solutions, Inc. (U.S.); Onekin Green Building Materials Co. Ltd. (China); PPG Industries, Inc. (U.S.); and Others.

RECENT HAPPENINGS IN THE GLOBAL GREEN BUILDING MATERIALS MARKET

• In 2023, Cemex S.A.B. de C.V. signed agreement to supply Vertua Lower-carbon concrete to construct Terminal 2 at Puerto Vallarta’s International Airport in Mexico. This terminal is go to be the one of the sustainable terminal buildings across the Latin America. This terminal project aims to receive certification from the LEED by reducing the carbon emissions through the constructional process in 68,000 square meter. 

DETAILED SEGMENTATION OF THE GLOBAL GREEN BUILDING MATERIALS MARKET INCLUDED IN THIS REPORT

This global green building materials market research report has been segmented and sub-segmented based on product type, application, and region.

By Product Type

• Exterior Products
  1. Windows
  2. Roofing
  3. Doors
  4. Siding
• Interior Products
  1. 1. Floorings
     2. Insulation
• Building Systems
• Solar Products
• Others

By Application

• Residential Buildings
• Non-residential Buildings
  1. 1. Commercial & Office
     2. Institutional
     3. Industrial
     4. Hospitality & Leisure
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa