Based on recent market research carried out by FMI, the Green Building Materials Market is expected to grow at 11.2% during the forecast period. In 2023, the value is anticipated to be at USD 334 billion. The figures are expected to surpass USD 962 billion by 2033.
Key factors which might propel the growth are:
The goal of limiting greenhouse emissions can be achieved by constructing new green buildings that have less energy expenditure. The concept of the sustainable building combined with new design, operation, and production strategies is going to play a vital role in the overall growth of the market.
The paradigm shift towards renewable greenhouse materials and environmentally safe building materials is the market's key driving factor. The importance of green building materials lies in their greater design flexibility, low maintenance,energy conservation, and frequently varying space configuration.
Other products likeeco-friendly wooden housesandgreen board insulationin houses are examples of new market dynamics driving sales. Developed countries and their governments have launched programs, subsidies, and incentives to push the market and spread awareness about the alternative way of construction.
Innovation and new-generation advanced technologies backed with research and development programs are likely to change the dynamics of the market. Key products in this category aregreenhouse sheathing, green bubbleinsulation, and othernatural insulation for houses.The governments are trying to limit carbon emissions and manage waste.
Other key contributors to green building materials are increased energy demand and awareness about energy conservation. The rising use of renewable products made from scratch is also expected to drive growth.
FMI’sgreen building materials market reportexplains that the challenge for the market is the high cost of these materials. User awareness around the new innovative building material is low, and the user also lacks knowledge about the benefits of using green building materials. Another challenge for the global market is slow construction activities in multiple developed countries because of the dense urbanization.
North America is the dominant market for green building materials, and it is likely to hold the most significant portion of the forecast period. Factors that fuel the growth are increased spending on new construction projects, and renovation activities likenatural insulation for homesin older buildings.
Green building materials are in the trend because of their environmentally friendly properties and these are being used in massive projects on a large scale. The use of these materials in small commercial structures is also a trend.
| Attributes | Value |
|---|---|
| Market Value (2022) | USD 298 billion |
| Market Expected Value (2023) | USD 334 billion |
| Market Forecast Value (2033) | USD 962 billion |
| Market Expected CAGR (2023 to 2033) | 11.2% |
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Green building materials have been in demand since the time the world understood the seriousness of surging pollution. Leaders across the globe started adopting solutions that could assist in tackling the menace of rising pollution. The adoption of green building materials also ensures that operating cost drastically comes down.
However, the application rate of these materials suffered a slump because of the COVID-19 pandemic, which led to the temporary suspension of all vital activities. This was followed by a supply chain disruption because of the escalating tensions between Russia and Ukraine. This has led to a reduction in the anticipated CAGR as compared to the historical CAGR. The historical CAGR for the market was 13.8%, while the anticipated CAGR is 11.2%.
Short Term (2023 to 2026): During this period, the market might witness a resurgence after a brief hiatus. Owing to the resumption of many infrastructural activities, the sales of green building materials are expected to surge. Proactive measures from governments worldwide to control emissions are also expected to surge market growth.
Medium Term (2026 to 2029): During this period, there might be an increase in the sales of green cement. Widespread urbanization coupled with continuous infrastructure upgradation is expected to surge the demand for green cement. Investors would be looking for robust and eco-friendly alternatives to protect their buildings from calamities in countries like Japan, South Korea, and others.
Long Term (2029 to 2033): With the widespread adoption of green building materials, the manufacturers would be making use of the latest technologies to improve their capabilities. Apart from that, there might be an increase in the production of green building materials.
There are limitations to the market, like high-cost concerns and multiple market barriers. The split incentive is a massive barrier in green building construction. End-user behavior that doesn’t allow them to invest a high amount in a new concept is another factor that restricts the market’s overall growth.
The end users who rent a house or take it on a lease restrict the building to get reconstructed. Around 32% of households and 40% of commercial buildings are rented or leased. Moreover, a lack of awareness regarding the existence of such materials is also expected to impede the market growth.
Principal Consultant
The global green building materials market trends are mapped around every region that may contribute positively during the forecast period. These involve top investment pockets that display the scope for various segments.
The marketing campaign is shifted towards blogs, vlogs, Instagram, and natural building magazines. These vlogs and blogs guide the user through the benefits of green building materials that help them find the segment as per their use. Canada Green Building Council report tells how the government, under its proactive policies, counters the misinformation spreaders about green building materials.
| Region | North America |
|---|---|
| Country | United States |
| CAGR (2023 to 2033) | 10.9% |
| Region | Europe |
|---|---|
| Country | United Kingdom |
| CAGR (2023 to 2033) | 10.2% |
| Region | Asia Pacific |
|---|---|
| Country | China |
| CAGR (2023 to 2033) | 10.5% |
| Region | Asia Pacific |
|---|---|
| Country | Japan |
| CAGR (2023 to 2033) | 9.6% |
| Region | Asia Pacific |
|---|---|
| Country | South Korea |
| CAGR (2023 to 2033) | 8.9% |
The United States government has been taking several initiatives to reduce carbon emissions. In August 2022, the United States government signed the inflation reduction act, which was all about the adoption of low-carbon materials for civil projects. Under this bill, the government announced a massive amount of USD 5 billion to accelerate construction, which involves the application of green building materials.
| Attributes | Details |
|---|---|
| United States Market Expected Size (2033) | USD 340.8 billion |
| United States Market Absolute Dollar Growth | USD 220.2 billion |
| CAGR % 2017 to 2022 | 13.4% |
The government had also invested USD 4 billion to implement the scheme of affordable housing. This would allow FEMA’s building materials program to provide funding for green building materials and net-zero energy projects.
The investors based out in the United Kingdom are counting upon the low operating cost and high energy optimization offered by eco-friendly building materials. This coupled with the ability to consume low power is something that has hooked the attention of the builders. The green construction industry in the United Kingdom was valued at USD 54,560 million in 2021 and is expected to surge by 21%.
| Attributes | Details |
|---|---|
| United Kingdom Market Expected Size (2033) | USD 40.5 billion |
| United Kingdom Market Absolute Dollar Growth | USD 25.2 billion |
| CAGR % 2017 to 2022 | 12.4% |
Businesses are making use of concrete, which is way more robust and sustainable than concrete. For instance, LocalGlobe led the USD 8 million pour into the application of concrete, which is one of the most sought-after green building materials.
China is among the world’s fast-growing economies. This led to the establishment of rapid urbanization in the region. To control carbon footprints, the government and manufacturers are adopting green building materials. As per the government’s low carbon plan, more than 90% of China’s commercial building owners plan to have at least one zero-energy building in the next ten years.
| Attributes | Details |
|---|---|
| China Market Expected Size (2033) | USD 69 billion |
| China Market Absolute Dollar Growth | USD 43.7 billion |
| CAGR % 2017 to 2022 | 13% |
The government is also making provisions to attract foreign players to the market. Factors like the development of energy-saving, high-strength, and high-performance materials along with the availability of cheap labor might attract lots of foreign funds.
Japan has been consistently affected by natural disasters, like tsunamis. Owing to this, several builders are choosing green building materials. The adoption of these materials ensures that the stormwater run-off reduces, as a result of which the least damage occurs. Moreover, public health also improves due to excellent air quality.
| Attributes | Details |
|---|---|
| Japan Market Expected Size (2033) | USD 56.4 billion |
| Japan Market Absolute Dollar Growth | USD 33.9 billion |
| CAGR % 2017 to 2022 | 11.9% |
In June 2021, the Japan government announced the green growth strategy, for which a green innovation fund of USD 15 billion was allocated. Apart from that, even the Tokyo Metropolitan Assembly announced that all the buildings in Tokyo should be enhanced with solar panels by April 2025. Such moves are expected to expand the sales of green building materials in Japan.
South Korea ranks sixth in the production of steel in the world. Steel also happens to be one of the most crucial green building materials. The excess availability of steel in the region is expected to drive market growth. The ability to be recycled, and to possess the same strength even after recycling makes steel a highly preferred construction material in South Korea.
| Attributes | Details |
|---|---|
| South Korea Market Expected Size (2033) | USD 33.2 billion |
| South Korea Market Absolute Dollar Growth | USD 19 billion |
| CAGR % 2017 to 2022 | 10.5% |
The South Korean government launched the Green New Deal in July 2020, wherein nearly USD 94.5 billion was invested. Under this plan, 230,000 energy-saving buildings are to be constructed. The establishment of these buildings is expected to surge the demand for green building materials in South Korea.
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| Segment | Type |
|---|---|
| Attributes | Structural |
| CAGR (2017 to 2022) | 13.6% |
| CAGR (2023 to 2033) | 11% |
| Segment | Application |
|---|---|
| Attributes | Roofing |
| CAGR (2017 to 2022) | 13.2% |
| CAGR (2023 to 2033) | 10.8% |
The structural type is expected to be the dominant segment during the forecast period. This involves products like green fiberglass insulation and environmentally friendly ceiling tiles.The reason behind this excessive growth is its use as an energy-efficient and cost-effective building material.
Other factors that give a push to the global market are rising private investment to develop and adopt green building materials. These can be used for residential and commercial spaces. Moreover, this segment provides the much-required strength over the foundation, which help the buildings overcome any kind of natural disaster.
The roofing segment is expected to hold the dominant market share during the forecast period. The key factors behind the segment’s growth are that it is an essential aspect of multiple residential and community construction projects.
The roofs protect the inhabitants from extreme climatic conditions like sunlight, snow, wind, etc. The roofs also assist in maintaining a more energy-efficient home, because of which the consumption pattern remains regulated. In today’s scenario, then green building materials aid in thermal insulation as well, which increases reliability.
The burning of Portland cement at high temperatures leads to an increased emission of greenhouse gases. To address this concern, the start-ups have created biologically grown limestone, that could potentially make cement production carbon negative.
Ecovative: The start-up has been specializing in developing structures using mycelium. The products developed by them can replace unsustainable products of the building industry. Ecovative, in collaboration with The Living Studio and ARUP developed Hy-Fi pavilion, which was built as an installation. In March 2021, Ecovative raised USD 60 million in its Series-D funding round. This round raised Ecovative’s total capital to USD 100 million.
The key players operating in the market are formulating strategies, specifically to reduce the emission of greenhouse gases. The manufacturers are entering into collaborations with communities that provide solutions for reducing the emission of these gases. In July 2022, DuPont committed to setting science-based targets for reducing the emissions of greenhouse gases.
Key Developments in the Market:
| Company | DuPont |
|---|---|
| Description | DuPont believes in providing science-enabled, sustainable solutions for its customers, always managing the business to protect the environment. The company is all about preserving resources for future generations. From its first gunpowder mill to the current day products and services, the company has shaped industrial safety practices. |
| Company | PPG Industries |
|---|---|
| Description | The company believes in viewing every day as an opportunity to make a remarkable difference in the communities. The paints, coatings, and specialty materials manufactured by the company protect items ranging from airplanes to bridges, and consumer electronics. The company believes in entering into a partnership to drive sustainable innovations, which drives mutual value. |
| Company | RedBuilt |
|---|---|
| Description | RedBuilt is headquartered in Boise, United States operates four manufacturing plants, five design centers, and a country-wide technical sales team. RedBuilt has the image of being the premier supplier of commercial-grade structural solutions. The company has been assisting its associates with education, job training, and overall career plans. With a high emphasis on safety, RedBuilt’s customer-centric professionals are committed to providing valuable solutions. |
Other key companies profiled: BASF SE and IsoHemp
The market is valued at USD 334.0 billion in 2023.
DuPont and BASF are the leading market players in the market.
The market is estimated to be worth USD 962.0 billion by 2033.
Implementation of environmental regulations is likely to fuel the market.
From 2017 to 2022, the market registered a CAGR of 13.8%.
1. Executive Summary | Green building materials market 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Type 5.1. Structural 5.2. Interior 5.3. Exterior 5.4. Others 6. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Application 6.1. Framing 6.2. Insulation 6.3. Roofing 6.4. Interior & Exterior Finishing 7. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By End-user 7.1. Residential 7.2. Commercial Offices & Buildings 7.3. Institution 8. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. Middle East and Africa 9. North America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 13. Middle East and Africa Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. Dupont de Nemours, Inc. 16.2. BASF SE 16.3. PPG Industries, Inc. 16.4. RedBuilt 16.5. IsoHemp 16.6. Binderholz GmbH 16.7. Interface Inc. 16.8. Novagard Solutions 16.9. Kingspan Group 16.10. Acoustical Surfaces Inc. 16.11. Sika AG 16.12. Owens Corning 16.13. Bauder GmbH 17. Assumptions & Acronyms Used 18. Research Methodology
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