The Green Construction Market is estimated to be valued at US$ 365.35 Bn in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Green construction refers to the practice of reducing the environmental impact of buildings through innovative design, construction, operation, maintenance, and demolition techniques. Green construction focuses on increasing energy efficiency, using renewable resources, reducing consumption of materials and waste generation. Some key types of green construction materials include recycled content materials, regional materials, renewable materials, and materials with low VOC emissions.
Market Dynamics:
nvironmental regulations and climate change policy: Stringent environmental regulations and policies related to climate change are driving growth in the green construction market. Many governments are implementing policies and regulations to reduce carbon footprint from buildings. For example, European Union has adopted a strategy to make all buildings carbon neutral by 2050 that is positively impacting demand for green construction.
Growing consumer awareness: Rising environmental concerns among consumers has increased demand for green buildings. Consumers are now preferring buildings with low carbon footprint, energy and water efficiency, and use of renewable materials. This growing awareness is translating into increased sales of green construction materials and services.
Segment Analysis
The Green Construction Market Size is mainly segmented into exterior products and interior products. The exterior products segment currently dominates the market due to high demand for green roofing and siding materials. This segment is expected to continue its dominance over the forecast period owing to stringent government regulations regarding energy-efficient building designs and materials.
PEST Analysis
Political: Many countries are introducing stringent regulations to mandate the use of sustainable construction materials and energy-efficient building designs. This is expected to drive the demand for green construction.
Economic: The green construction market is expected to benefit from cost savings associated with reduced energy consumption of green buildings over their lifecycle. Increased investment in public infrastructure will also boost market growth.
Social: Population growth and rapid urbanization are increasing the need for resource-efficient building structures. Rising environmental awareness among consumers is further fuelping the adoption of green construction practices.
Technological: Advanced building insulation materials, energy-efficient HVAC systems, green roofing and wall panels are becoming widely available. Use of modern construction project management software is also optimizing material usage and construction processes.
Key Takeaways
The global green construction market size is expected to reach US$ XX Billion by 2030, expanding at a CAGR of 11% over the forecast period. Growth is attributed to stringent government regulations for sustainable infrastructure development worldwide.
Regional analysis: North America currently dominates the market owing to strong government support and high consumer demand in the US and Canada. Asia Pacific is expected to witness the fastest growth over the coming years led by ongoing infrastructure development projects incorporating green construction practices in major economies like China and India.
Key players analysis: Key players operating in the green construction market are Alumasc Group Plc, Binderholz GmbH, Bauder Ltd, Forbo International SA, Certain Teed Corporation, The Turner Corp, Clark Group, Gilbane Building Co, Hensel Phelps, The Whiting-Turner Contracting Co. These players are focusing on developing innovative green building materials to expand their product portfolio.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile
