Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Green Building Materials Market size is poised to increase from USD 471.65 billion in 2024 to USD 2.16 trillion by 2037, exhibiting a CAGR of more than 12.4% during the forecast period, between 2025 and 2037. Currently in 2025, the industry revenue of green building materials is estimated at USD 512.59 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.
Green Building Materials Sector: Growth Drivers and Challenges
Growth Drivers
- Rapid shift towards green buildings: The shift towards green buildings is driving the demand for green building materials, supported by regulatory frameworks, technological innovations, and growing consumer and investor interest. Favorable government policies and consumer demand for sustainable living are leading to the growing preference for materials that have a minimized environmental impact. A major factor in the increased demand for energy-efficient buildings is the use of sustainable building materials like solar panels and insulation, which lower energy usage. For instance, the European Union’s Green Deal aims to make Europe the first climate-neutral continent by 2050, promoting green building practices.
- Better indoor air quality: Green building materials improve indoor air quality and have a good environmental impact while improving building performance. Also, green building materials are free of impurities, particularly volatile organic compounds (VOC), which are present in indoor air and pose a risk to the health of inhabitants, including cancer. Therefore, green building materials can reduce health risks by, for instance, developing fewer hazardous chemicals and limiting the use of PVC.
- Increasing demand for energy-efficient construction materials: Green building materials allow the manufacturers to recycle the waste materials used in the construction instead of using new raw materials. Also, compared to conventional materials, green building materials on the other hand consume less energy, are biodegradable, and can be decomposed effortlessly. Therefore, green building materials use less energy, water, and natural resources, produce less trash, or none (zero discharge), and are healthier for the occupants.
Challenges
- Fluctuating price of raw materials: The availability of materials and the increased demand from end-use industries are expected to cause price fluctuations, which will limit market expansion. Due to the long-term advantages of green buildings, the adoption of these materials comes with a significant upfront investment cost. Furthermore, it is anticipated that the residential construction sector will be curtailed in many nations due to diminishing per capita income. This is anticipated to impede the construction industry's adoption of green building materials.
- Lack of standardization and certification: Different industries may have different standards for what qualifies as a green material, which makes it challenging for professionals and consumers to make wise decisions. The establishment of globally recognized certifications and standards is essential to establishing a coherent framework that supports decision-making and guarantees the legitimacy of green building materials. Therefore, this factor may hamper the growth of green building materials market.
Green Building Materials Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
12.4% |
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Base Year Market Size (2024) |
USD 471.65 billion |
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Forecast Year Market Size (2037) |
USD 2.16 trillion |
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Regional Scope |
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Green Building Materials Segmentation
Application (Roofing, Flooring, Insulation)
The roofing segment in the green building materials market is poised to capture a revenue share of 50.2% by 2037. 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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Customize this ReportGreen Building Materials Industry - Regional Synopsis
North America Market Statistics
North America industry is predicted to account for largest revenue share of 35% by 2037. 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.
Companies Dominating the Green Building Materials Landscape
- BASF SE
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- PPG Industries, Inc.
- E.I.du Pont De Nemours and Company
- Sika AG
- Heidelberg Materials
- Lafarge Egypt
- Forbo International SA
- HOLCIM
- Alumasc Group plc
- Bauder Ltd.
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.
In the News
- In November 2023, Heidelberg Materials made the first carbon-capped net-zero cement available to consumers in Europe under the evoZero brand. By using carbon capture and storage technology at the Heidelberg Materials facility in Brevik, Norway, evoZero achieves a net-zero footprint without the need for credits produced outside the company's value chain.
- In April 2021, Lafarge Egypt, a subsidiary of LafargeHolcim Group, announced the launch of EcoLabel cement in Egypt. The newly introduced products meet the company's eco-friendly standards, which include recycled components and a reduced carbon footprint.
Author Credits: Shweta Patidar
- Report ID: 6372
- Published Date: Mar 19, 2025
- Report Format: PDF, PPT
