Green Building Materials Market size was over USD 423.2 billion in 2023 and is projected to exceed USD 1889.9 billion by the end of 2036, witnessing over 12.2% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of green building materials is estimated at USD 474.8 billion.
The growing environmental pollution is a significant driver for the green building materials market. As concerns about climate change and environmental degradation increase, there is a stronger push towards sustainable construction practices.
Green building materials are designed to minimize environmental impact, reduce energy consumption, and improve indoor air quality. This shift is driven by both regulatory requirements and a growing awareness of the need for sustainable development. For instance, many countries have implemented green building standards such as Leadership in Energy and Environmental Design (LEED) and Building Research Establishment Environmental Assessment Method (BREEAM), which promote the use of eco-friendly materials. Additionally, advancements in technology and increased availability of eco-friendly materials are further fueling the market growth.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
12.2% |
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Base Year Market Size (2023) |
USD 423.2 billion |
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Forecast Year Market Size (2036) |
USD 1889.9 billion |
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Regional Scope |
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Application (Roofing, Flooring, Insulation)
The roofing segment in the green building materials market is poised to capture a revenue share of 50.2% by 2036. The segment growth can be attributed to the surge in the demand for green roofing materials, such as solar roofing systems, green roofs, and cool roofs. According to the Environmental Protection Agency, as compared to conventional roofs, green roofs can lower building energy use by 0.7%, lowering peak electricity demand and resulting in annual savings of USD 0.23 per square foot of the roof's surface. Additionally, government incentives and regulations and growing awareness of the advantages green roofing materials have for the environment, including energy efficiency and a lower carbon footprint are some other factors accelerating the growth of the segment.
End-use (Residential, Non-residential)
The residential segment is estimated to gain a significant green building materials market share during the forecast period. The segment’s expansion can be attributed to the growing number of guidelines and building laws for energy-efficient construction. The segment is expanding due to the rising demand for eco-friendly and energy-efficient homes and by government policies and programs that encourage the use of green building materials in residential construction. For instance, the Energy Conservation (Amendment) Bill, 2022, requires all Indian States and Municipalities to adopt and apply the Energy Conservation Building Code-Residential, also known as Eco-Niwas Sahmita (ENS). The bill constitutes a major commitment to raise cumulative non-fossil fuel energy supply to 50% of national installed capacity and lower emissions intensity of India's GDP by 45% relative to 2005 levels.
Our in-depth analysis of the global market includes the following segments:
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Application |
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End-use |
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North America Market Statistics
Green building materials market in the North America is expected to hold the largest share of 35% by the end of 2036. The market growth in the region is expected on account of the growing construction activities, increasing energy demand, and rising efforts to reduce carbon emissions. Furthermore, there has been a sharp increase in the demand for energy-efficient and environmentally friendly buildings that enhance value while minimizing environmental effects.
The U.S. government has implemented several programs and laws that support environmentally friendly building practices. The use of these construction materials is influenced by tax breaks, incentives, and more stringent energy-efficient building regulations. For instance, the Federal Sustainability Plan launched an ambitious goal to achieve net-zero emissions building by 2045.
In Canada, the growing use of energy-efficient solutions in the residential sector is driving the demand for green building materials. For instance, in 2019, the residential sector's energy efficiency increased by 32%, saving Canadians 440 PJ of energy and USD 8.5 billion in expenses, or USD 47 per household per month.
APAC Market Analysis
Asia Pacific will also encounter huge growth for the green building materials market during the forecast period and will hold the second position owing to the availability of a wide range of green materials such as galvalume panels, linoleum, and fiber cement composites. Furthermore, new industrial buildings, low- and high-rise residential structures, and building retrofits will be the primary drivers of market growth in Asia Pacific.
In China, the growing consumer expenditure on property is promoting the adoption of green and eco-friendly buildings. According to the World Economic Forum, China's 13th Five Year Plan for Building Energy Efficiency and Green Building Development sets ambitious goals for green building construction and refurbishment, including a requirement that 50% of all new urban buildings be certified green buildings.
The growing deployment of strict laws and regulations for green buildings in South Korea is one of the major factors escalating market growth in the region. For instance, South Korea uses the Green Standard for Energy and Environmental Design (G-SEED), a green building certification method in which materials make up 11% of the evaluation criteria.
Market key players face intense competition from regional and global businesses who possess vast supply chains, regulatory expertise, and wide distribution networks. To grow in their current markets, businesses also enter into agreements, buy out competitors, and establish strategic alliances.
Author Credits: Shweta Patidar
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