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The green-roofs market is estimated to grow at a CAGR of 12.18% between 2022 and 2027. The size of the market is forecast to increase by USD 8,106.69 million. The growth of the market depends on several factors, including a reduction in global warming due to green roofs, better management of rainwater runoff flow, and supporting policies.
This report extensively covers market segmentation by application (residential, commercial, and industrial), product (extensive and intensive), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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The reduction in global warming due to green roofs is notably driving the eco-friendly green roofs market growth, although factors such as increased initial costs and long payback periods may impede the market growth. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Green-Roofs Market Driver
The reduction in global warming due to green roofs is notably driving eco-friendly green roofs market growth. Plants that are grown on top of buildings to reduce temperatures on roofs and decrease ambient temperature are called green roofs. Due to this temperature control effect, green roofs can help reduce the emissions of greenhouse gases from air conditioning.
An urban heat island is an effect in which cities have increased temperatures than that of the surrounding suburban or rural areas due to the lack of lakes and trees in cities. Green roofs add plants on roofs where most of the radiation from the sun can be absorbed, thus decreasing the urban heat island effect. These benefits are identified by various governments, which results in the development of supportive policies for the adoption of green roofs. Thus, the adoption of green roofs in both commercial and residential buildings is increasing. Hence, these factors will boost the global market growth during the forecast period.
Significant Green-Roofs Market Trend
The integration of green-roof and solar photovoltaic systems is an emerging trend in the market growth. Green roofs and solar photovoltaic systems are integrated with the aim of minimizing emissions of greenhouse gases and ensuring the sustainable development of buildings. The integration of these systems ensures enhanced functions and effectiveness through cooling and shading effects. Photovoltaic panels protect the plants from excessive sun and evaporation of water that boosts the growth of plants, and cooling through evapotranspiration of green-roof plants, ensures increased efficiency of photovoltaic panels.
Countries like Germany, Switzerland, and Austria in Europe have started implementing these roofs. Although the installation of this roof is complex, vendors like ZinCo and Bauder provide green roofs with integrated solar photovoltaic systems. Thus, such factors will spur the growth of the global eco-friendly green roofs market during the forecast period.
Major Green-Roofs Market Challenge
The increased initial costs and long payback periods are major challenges impeding market growth. On average, the initial cost of green roofs can be three times the cost of conventional roofs. However, green roofs save costs throughout their lifespan, thereby providing a return on investment for the owner of the building. Moreover, in some countries, vendors are yet to achieve economies of scale due to the decreased demand for green roofs. Thus, the installation costs of green roofs are high in these countries.
The payback period of green roofs is estimated to be up to almost 40 years, which is a major disadvantage for many builders. Sometimes these costs are paid by tenants through increased rents, which can decrease the occupancy of the building. In cities where municipal corporations are focused on creating affordable housing, mandating green roofs can increase rents, thus restricting the corporation from achieving its objectives. Thus, such factors are likely to impede the growth of the global market during the forecast period.
Key Green-Roofs Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Green-Roofs Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Apex Green Roofs Inc. -The company focuses on providing roofing, siding, and sheet metal services and installation. The key offerings of the company include green roof solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, robust, tentative, and weak.
The market share growth by the residential segment will be significant during the forecast period. Green roofs are installed on small to medium-sized residential properties. They are increasingly being used in residential buildings as they have low maintenance costs, have twice the lifespan owing to reduced exposure to elements of the weather, and enable the process of evapotranspiration from plants and the soil medium, which keeps the surface of roofs cool when compared with conventional roofs. Another important incentive for residential buildings to have green roofs are energy savings on air conditioning.
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The residential segment was valued at USD 5,211.82 million in 2017 and continued to grow until 2021. In the residential sector, most people have limited incentives to invest in green roofs. However, builders and construction companies can provide green roofs as an amenity to residents who are willing to spend on the property. Examples of these properties can be condominiums, especially in urban and suburban areas, which can add to the aesthetic value of the property for residents. Countries like Toronto, and Canada, have a bylaw that mandates the installation of green roofs on residential properties.
This law provides grants for up to USD 100 per square meter for retrofitting green roofs on residential and other properties. Some cities have regulations that exempt residential buildings from mandatorily having green roofs. Examples of these mandates are in Vancouver, Canada, where mandatory green roofs are required for multi-family apartments but not for single-family homes. Thus, such mandating of green roofs in the residential segment in some developed countries will spur the growth of the global market through the residential segment during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to vendors is Europe. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Europe was the largest geographical segment of the global market in 2022 and will continue to remain the largest segment during the forecast period. Europe has four megacities and one big urban area. Moscow, London, Paris, and Berlin are the megacities in Europe, and the metropolitan area Rhine-Ruhr is the big urban area. These megacities witness the urban heat island effect and stormwater runoffs, and green roofs are potential solutions for these problems. Furthermore, green roofs also reduced pollution in Tirana, a city in Albania.
Germany is a leading country in Europe, and green roofs are common because of the presence of various institutions and standard guidelines for the installation of green roofs. For instance, Germany has an association named the Deutsche Dachgartner Verband e. V. (DDV), which has been involved in activities such as networking between municipal authorities and providing newsletter services, seminars, lectures, and workshops on green roofs since the 1980s. It also establishes regulations along with the Forschungsgesellschaft Landschaftsentwicklung Landschaftsbau (FLL), an organization dedicated to environmental research. In 2018, DDV merged with Fachvereinigung Bauwerksbegrunung (FBB) to form the Bundesverband GebaudeGrun (BuGG), a federal-level organization for the development of green buildings. Therefore, such factors will fuel the regional market growth during the forecast period.
The outbreak of COVID-19 in 2020 had an adverse impact on the regional market. However, with the launch of COVID-19 vaccines and large-scale vaccination drives in late 2020, lockdowns were lifted, and sales channels and distribution networks resumed their operations, which helped the market recover its growth trajectory in 2021. Also, the EU infrastructure sector witnessed a nearly 1.5% growth in November 2021. Therefore, such factors will drive the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Green-Roofs Market Scope |
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Report Coverage |
Details |
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Page number |
159 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12.18% |
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Market growth 2023-2027 |
USD 8,106.69 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
8.67 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 33% |
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Key countries |
US, Canada, Japan, Singapore, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Apex Green Roofs Inc., Axter Ltd., Bauder Ltd., Bender GmbH and Co. KG, Columbia Green Technologies, ecospaces LLC, Intrinsic Landscaping Inc., LiveRoof LLC, Onduline Group SAS, Optigrun international AG, RENOLIT SE, Sempergreen BV, Sika AG, Sky Garden Ltd., Skyland USA, SKYSPACE Green Roofs, SOPREMA SAS, Vegetal i.D. Inc., Vitaroofs International Inc., and ZinCo GmbH |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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