Green Building Materials Market Analysis Europe, North America, APAC, Middle East and Africa, South America - US, Germany, China, France, Japan - Size and Forecast 2024-2028

Green Building Materials Market Size 2024-2028

The green building materials market size is forecast to increase by USD 363 billion, at a CAGR of 15.67% between 2023 and 2028.  The market's growth depends on various factors, notably the escalating demand for energy-efficient green buildings driven by environmental concerns and regulations promoting green technology and sustainability. Green buildings offer numerous benefits such as reduced operating costs, improved indoor air quality, and enhanced occupant health and productivity, further fueling market expansion. Additionally, rapid urbanization and rising disposable income levels contribute to the growing preference for sustainable construction practices. As cities continue to expand and populations concentrate in urban areas, the importance of green buildings as well as zero-energy buildings in mitigating environmental impact and conserving resources becomes increasingly apparent. Thus, the market's trajectory is intricately linked to the imperative of sustainable development and the pursuit of environmentally responsible building solutions. Our market report examines historic data from 2018 - 2022, besides analyzing the current market scenario.

What will be the Green Building Materials Market Size During the Forecast Period?

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Market Definition 

Green building materials refer to construction materials that are durable and recyclable and are used in the construction of highly energy-efficient buildings. The application of green building materials in construction helps in improving indoor air quality and resource conservation and provides many other benefits.

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Green Building Materials Market Dynamics

In the realm of construction projects, the environmental impact of extraction, fabrication, and disposal of building materials has gained significant attention. The shift towards environment-friendly solutions has led to the rise of the market. These materials, including wool, recycled materials, Terrazzo, recycled concrete, stucco, stone, rubber-based materials, and ashcrete, are resource-efficient and ecologically responsible. Green buildings, designed with sustainability in mind, utilize these green-certified materials in their construction. The flooring segment and insulation segment are major beneficiaries of this trend, with energy-saving measures and the residential segment driving demand. Green housing, a key component of sustainable development in urban settlements, is a significant market for these eco-friendly products. Manufacturers are continually innovating to create sustainable processes and new green-certified materials to meet the growing demand for environmentally conscious construction.

The green building materials market forecast shows a significant increase driven by sustainable practices. As per the green building materials market growth analysis, rising environmental concerns are propelling demand. Additionally, green building trends emphasize eco-friendly materials, reinforcing a positive green building market outlook for the future. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market Driver

The rising need for energy-efficient green buildings is notably driving market growth. Green buildings have multiple benefits. The surge in urban population and economic growth have driven up energy demand, putting pressure on non-renewable energy sources. This situation calls for energy efficiency in the construction industry, particularly in the development of energy-efficient buildings. Sustainability and energy conservation are key priorities in today's consumer awareness-driven market. Green buildings offer water conservation, pollution reduction, and health benefits, making them increasingly popular.

Further, market segments include residential, commercial, and infrastructure sectors. Energy-efficient building materials, such as exterior siding and interior finishing, are essential product lines. Consumer spending is on the rise as businesses and homeowners seek to reduce energy consumption and carbon emissions, adhere to environmental regulations, and capitalize on the health benefits of green buildings. Construction techniques that harness natural energy are also gaining traction. Such factors are expected to drive the market growth during the forecast period. 

Significant Market Trends

The advancements in insulation materials are an emerging green building materials market trend. The market has witnessed significant growth in recent years, with a focus on energy conservation and sustainability in the residential and commercial sectors. Consumer awareness and the demand for energy-efficient buildings have driven the market, leading to innovations in insulation materials such as spray foam and extruded polystyrene (XPS) foam. Water conservation and pollution reduction are also key considerations, with manufacturers offering low-emission blowing agents to address environmental concerns.

Additionally, the market is segmented into the residential, commercial, and infrastructure sectors, with product lines including exterior siding, interior finishing, and insulation. Health benefits and consumer spending are also important factors, as are construction techniques and carbon emissions. The industrial sector is also adopting such materials to reduce energy consumption and address environmental issues. Such factors are expected to shape green building materials market trends during the forecast period. 

Major Market Challenge

The high initial cost of green buildings is a major challenge hindering green building materials market growth. The market is driven by the growing demand for energy conservation and sustainability in construction. Consumer awareness regarding the health benefits and pollution reduction associated with energy-efficient buildings is on the rise. In the residential sector, there is an increasing trend towards water conservation and the use of natural energy sources. The commercial, infrastructure, and industrial segments are also investing in such materials to reduce carbon emissions and address environmental issues. Market segmentation includes product lines such as exterior siding and interior finishing.

Moreover, the high initial cost of green buildings, including increased A and E design time, modeling costs, and integration of sustainable practices, can be offset by long-term energy savings and public awareness campaigns. Construction techniques continue to advance, making energy-efficient buildings more accessible to small and medium enterprises. Consumer spending is expected to continue growing as the benefits become more widely recognized. These factors are expected to impede the growth of the market in the forecast period.

Market Segmentation by Application, End-User, Geography

Application Analysis

The market share growth by the insulation segment will be significant during the forecast period. Insulation reduces energy consumption, increases comfort, reduces noise, and prevents condensation issues in buildings. Adequate and properly installed green insulation provides major benefits, including both financial and comfort improvements, to homeowners. 

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The insulation segment was valued at USD 43.70 billion in 2018. Green insulation offers numerous advantages, including energy reduction, enhanced comfort, noise reduction, and prevention of condensation issues in buildings. Properly installed and adequate green insulation not only improves financial aspects but also enhances the comfort of homeowners. Additionally, green insulation made from sustainable materials contributes to improved overall energy efficiency, aligning with various green building ratings systems such as Northwest ENERGY STAR Homes, Built Green, and LEED for homes. Common green insulation materials include cellulose, spray foam insulation, rock wool, and fiberglass. The wide range of benefits provided by green building insulation materials increases their relevance and is expected to drive growth in this segment during the forecast period.

End-User Analysis 

Based on end-user analysis residential segment holds the largest market share. The residential sector of the market is set for significant growth, driven by increasing homeowner awareness and demand for sustainable materials. Green building materials have a low environmental impact across their lifecycle, contributing to carbon emission reduction, resource conservation, and improved indoor air quality. They find applications in roofing, insulation, flooring, HVAC systems, and more, offering benefits such as energy savings, reduced maintenance costs, and increased property value. The popularity of green materials in homes is fueled by climate change concerns and government incentives like tax benefits. Innovations, including bio-based and recycled materials, and the integration of smart technologies further propel market growth. With these factors in play, the residential segment is expected to expand in the market throughout the forecast period.

Region Analysis

Europe is estimated to contribute 35% to the growth of the global market during the projection period.
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.

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Europe plays a significant role in the market, driven by its strong commitment to sustainability and eco-friendly practices. The region's focus on energy-efficient buildings, driven by ambitious targets to reduce energy consumption and greenhouse gas emissions, has propelled the demand for sustainable materials. Europe offers a diverse range of green building products, including recycled steel, bamboo, straw, and earth, as alternatives to traditional materials with high carbon footprints like concrete and steel. Sustainable insulation materials like cellulose and sheep wool have gained popularity. Government policies and regulations, along with stringent sustainability standards set by the EU, have further promoted the use in the region.

Key Companies

Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

• Kingspan Group Plc- The company offers green building materials for florrig and insulated panels.

The green building materials market analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 

American Hydrotech Inc., ANDERSEN Corp., BASF SE, Bauder Ltd., Binderholz GmbH, Compagnie de Saint Gobain, DuPont de Nemours Inc., Foam Holdings Inc., Forbo Management SA, Holcim Ltd., Interface Inc., Koch Industries Inc., LX Hausys Ltd, Owens Corning, PPG Industries Inc., REDBUILT, Sika AG, Standard Industries Inc., and The Alumasc Group plc

With an optimistic green building materials market forecast, the sector is set to thrive. The green building materials market growth analysis highlights a surge in eco-conscious construction. Evolving green building trends and sustainable innovations bolster the promising green building market outlook. Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The green building materials market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Application Outlook 
  • Insulation
  • Roofing
  • Interior finishing
  • Framing
  • Exterior siding
  • Others
• End-User Outlook 
  • Residential
  • Non-residential
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst overview

In the realm of sustainable construction, the market holds significant importance. This market encompasses a wide range of products, including those made from renewable or recycled resources, and those that contribute to energy efficiency and reduced environmental impact. Some key components of this market include insulation materials like cellulose, mineral wool, and polystyrene, as well as building frames made from wood, steel, and concrete. Additionally, the market offers a variety of flooring options such as cork, bamboo, and recycled rubber. Furthermore, the market includes paints and coatings with low or no volatile organic compounds (VOCs), and roofing materials like green roofs and solar panels. The use of these materials not only contributes to the reduction of carbon footprint but also promotes healthier indoor environments. The market is projected to grow at a steady pace due to increasing awareness and regulations regarding sustainable construction practices.

Further, the market is experiencing a surge in demand as environmental impacts of traditional construction methods become increasingly apparent. Environmentally friendly manufacturing processes are prioritized by construction manufacturers aiming to minimize their carbon footprint. From designing structures to constructing green-certified buildings, every aspect emphasizes sustainable processes and energy-saving measures.

Additionally, recycling plays a pivotal role, with materials like reclaimed wood and recycled steel gaining popularity. Moreover, green roofing materials are sought after for their ability to reduce heat absorption and mitigate urban heat island effects. Compliance with guidelines and building laws ensures adherence to energy-efficient construction standards. Further, as awareness grows, consumers and businesses alike are investing in energy-efficient solutions, driving innovation in the green building materials sector. This trend not only benefits the environment but also promotes healthier and more resilient communities.

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What are the Key Data Covered in this Green Building Materials Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, Middle East and Africa, and South America
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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