Green Buildings Market size was valued at USD 782.47 billion in 2024 and is likely to reach USD 2.48 trillion by the end of 2037, expanding at around 9.3% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of green buildings is assessed at USD 840.69 billion.
The growing focus on renewable energy sources worldwide, as well as a development in the concept of green buildingss in some developed and developing regions, has contributed to market growth. Renewable energy consumption has increased by 3% in 2020, according to the International Energy Agency. In 2020, the overall share of renewables in world electricity production has increased to 29%, up from 27% last year.
In addition, governments of developed nations have introduced incentives and policies for the encouragement of green construction, which is also expected to accelerate market growth in the forthcoming years. Furthermore, low maintenance and operational costs of green buildingss, and a rising focus on emission-free construction are projected to offer ample growth opportunities to the green buildings market in the near future.
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
9.3% |
Base Year Market Size (2024) |
USD 782.47 Billion |
Forecast Year Market Size (2037) |
USD 2.48 trillion |
Regional Scope |
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Application (Residential, Non-Residential Buildingss)
The non-residential segment in the green buildings market is anticipated to hold the largest share of about 68% during the forecast period. Rapidly increasing urbanization and the rise in urban populations across the globe are leading to market growth. In 2022, the proportion of urbanized population worldwide has increased to 57 %. It is also due to the growing demand for environmentally friendly and sustainable solutions. In addition, it is now necessary for all construction companies not directly involved in the housing sector to prioritize sustainability design and construction techniques so that they can take advantage of the planet's limited resources. Sustainable business practices are crucial to green buildings, reducing energy consumption, and protecting natural resources throughout the majority of countries. Furthermore, the growing concern over climate change has led to environmentally responsible and sustainable activities which have increased demand for green buildings materials in non-residential buildingss. According to a recent study, 72% of consumers reported buying more eco-friendly products than five years ago. In five years, the number of worldwide online searches for sustainable goods has risen by 71%. In the case of eco-friendly brands, 55% of consumers are willing to pay more.
Product (Exterior Products, Interior Products, Buildings Systems, Solar Products)
Green buildings market from the solar products segment is expected to account for largest revenue share of about 52% over the forecast period. The fact that solar installation is extremely cost efficient, increases access to energy, and reduces the carbon footprint can be accounted for. Furthermore, the investment in photovoltaic panels and their maintenance is regarded as a safe bet that will help to drive future market growth. In 2021, solar power accounted for around 4% of the world's energy supply. That's an increase from 3% in 2020. The total contribution of renewable energies to overall electricity generation was 38%, with the solar sector accounting for 11.5%. Overall, this gives the figure of 4.37%.
Our in-depth analysis of the global green buildings market includes the following segments:
Product |
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Distribution Channel |
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End-Use |
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Application |
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APAC Market Forecast
Green buildings market in Asia Pacific is estimated to account for 32% of the revenue share during the forecast period. The growth of the green buildings market in the Asia Pacific is driven by a number of factors, including growing government support for sustainable buildings practices, increasing concern over climate change, and increased awareness of the advantages of environmentally friendly buildingss. The demand for green buildingss in the region is also expected to rise as a result of its rapidly expanding population and increasing disposable income. Around 2.36 billion people lived in cities in Asia in 2020. Over the next few years, urbanization in Asia is expected to remain high and has been projected to reach a population of around 3.48 billion by 2050.
North American Market Statistics
North America region is predicted to account for 28% share of the global green buildings market during the forecast period. In the region, good infrastructure, heightened awareness about pollution risks and increased disposable income are factors that have contributed to market growth. Moreover, the growing demand for roofing, insulation, framing and a number of other types of residential, industrial, commercial or infrastructure constructions is also increasing. The growing demand for eco-friendly and energy-efficient buildingss that maximize value and minimize environmental impact. Financial benefits, like lower costs of energy, can also be achieved by the use of environmentally friendly buildingss. The growth of the market has also been driven by rising government initiatives.
Amvik systems launched their project named Pinnacle, which is a residential home with over 6,000 sq. ft of living space. The buildings uses ICF walls, concrete floors and solar panels, and eliminate hydro bills and feeds energy back into the grid.
BASF entered into a partnership with GS engineering and construction to jointly develop modular solution for carbon capture. The partners want to develop individual package solutions from standardized elements for customers from all industries in order to remove CO2 from exhaust gases and process it so that it can be further utilized or stored.
Author Credits: Dhruv Bhatia
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