Global Green Building market is expected to register a high CAGR during the forecast period.
The growth of the green building market has been driven by a variety of factors, including government policies and regulations, rising energy costs, and increased public awareness of environmental issues. Many countries have launched regulations or incentives to encourage the development of green buildings, such as tax credits, grants, and building codes that require higher energy efficiency standards. In addition to government policies, many businesses and consumers have also embraced the green building movement. For example, many companies are seeking to reduce their environmental footprint by building or renovating their facilities to be more energy-efficient and sustainable. Consumers are also increasingly interested in living and working in buildings that are healthier and more environment-friendly.
The green building market encompasses a wide range of building types, from residential homes to commercial office buildings to industrial facilities. While the initial cost of building a green building may be higher than a traditional building, the long-term cost savings in energy and water bills, as well as improved health and productivity of occupants, often make green buildings a worthwhile investment.
Government Regulations and Initiatives for Green Building
Government policies and regulations related to global green building vary by country, but some common examples include
- Building codesMany countries have building codesthat require new construction to meet certain energy efficiency andenvironmental standards. For example, the European Union has set energyperformance standards for new buildings and many US states have adopted theInternational Energy Conservation Code (IECC) as part of their building codes.
- Green buildingcertificationGovernments may offer incentives or require buildings to obtaincertification from organizations such as LEED (Leadership in Energy andEnvironmental Design) or BREEAM (Building Research Establishment EnvironmentalAssessment Method). For example, the government of Singapore offers financialincentives for buildings that achieve the green mark certification.
- Energy efficiencystandardsGovernments may set energy efficiency standards for buildings,appliances, and lighting. For example, the European Union has set minimumenergy efficiency standards for buildings and the US Environmental ProtectionAgency has set standards for Energy Star certification.
- Renewable energyincentivesGovernments may offer incentives for the installation of renewableenergy systems such as solar panels or wind turbines. For example, Germany'sRenewable Energy Sources Act requires utilities to purchase renewable energy ata fixed price, which has helped to spur the growth of the country's solarindustry.
- Green procurementpoliciesGovernments may require public buildings and infrastructure projectsto meet certain environmental standards, such as energy efficiency orsustainable materials. For example, the US federal government has adopted theGuiding Principles for Sustainable Federal Buildings, which require newconstruction and major renovations to meet green building standards.
- Overall, governmentpolicies and regulations can play a significant role in promoting the growth ofthe green building market by setting standards, providing incentives, andcreating a level playing field for sustainable building practices.
Green building practices aim to reduce the negative impact of buildings on the environment by promoting the use of renewable resources, reducing waste and pollution, and increasing energy efficiency. This can be achieved using sustainable materials, energy-efficient designs, and renewable energy sources such as solar and wind power.
As a result, governments, developers, and investors are increasingly adopting green building practices, and many countries have launched regulations and incentives to promote sustainable construction. For example, in the United States, the Leadership in Energy and Environmental Design (LEED) certification system is a widely recognized standard for green building design and construction.
The growth of the green building market has also been driven by the economic benefits of sustainable construction. Green buildings can reduce operating costs through lower energy and water usage, which can lead to significant savings over time. Additionally, green buildings often have higher property values and are more attractive to tenants, which can provide a competitive advantage in the real estate market.
Overall, the increased public awareness of environmental issues has been a driving force behind the growth of the green building market across the globe, as people seek more sustainable and eco-friendly options in all aspects of life, including the construction and operation of buildings.
High Cost of Green Building Materials
Green building material is expensive than theirconventional counterparts because the production of green materials may involvemore expensive or complex manufacturing processes or sourcing of sustainablematerials, which can drive up the cost of production.
Moreover, the demand for green building materials is still relatively low compared to conventional materials, which means that economies of scale have not yet fully developed. As demand increases, production costs may decrease.
Some green building materials may have a longer lifespan or require less maintenance, which can offset their initial cost over time.
Increase in Demand for Green Infrastructure
There has been an increase in the demand for green infrastructure in recent years due to a growing awareness of the benefits it provides. The demand for green infrastructure is likely to continue growing as more people become aware of its benefits and as the impact of climate change becomes more apparent. Governments, businesses, and individuals will need to work together to develop and implement green infrastructure solutions that meet the needs of communities while protecting the environment. Green infrastructure can help manage stormwater runoff, reducing the risk of flooding and improving water quality. This is particularly important in urban areas where traditional infrastructure such as sewers and drainage systems may be overwhelmed during heavy rainfall events. Green infrastructure can also provide economic benefits, such as increasing property values, attracting tourism, and creating jobs in areas such as landscaping and horticulture.
Some of the recent developments are
- CEMEX launched the firstGreen Financing Framework in the building materials sector in 2022. This would expandthe company's focus on sustainable finance and creating a more sustainableworld.
- Invesco Ltd., a globalasset management firm announced the addition of the Invesco MSCI Green BuildingETF to its market-leading, thematic environmental ETF suite (GBLD).
Market Segmentation
Company Profiles
Some of the major players in the Green Building market include Alumasc Group Plc, Bauder Ltd., Binderholz GmBH, Certain Teed Corporation, Forbo International SA, Clark Group, The Turner Corp., Hensel Phelps, Gilbane Building Co., and The Whiting-Turner Contracting Co.
| Attribute | Details |
| Base Year | 2022 |
| Historical Years | 2018 – 2021 |
| Estimated Year | 2023 |
| Forecast Period | 2024 – 2028 |
| Quantitative Units | Revenue in USD Billion and CAGR for 2018-2022 and 2023E-2028F |
| Report Coverage | Revenue forecast, company share, competitive landscape, growth factors, and trends |
| Segments Covered | By Product Type By Application By Region |
| Regional Scope | Asia-Pacific, North America, Europe, Middle East & Africa, and South America |
| Country Scope | China, Japan, India, Australia, South Korea, United States, Canada, Mexico, United Kingdom, Germany, France, Spain, Italy, Israel, Turkey, Saudi Arabia, UAE, South Africa, Brazil, Argentina, Colombia |
| Key Companies Profiled | Alumasc Group Plc, Bauder Ltd., Binderholz GmBH, Certain Teed Corporation, Forbo International SA, Clark Group, The Turner Corp., Hensel Phelps, Gilbane Building Co., and The Whiting-Turner Contracting Co. |
| Customization Scope | 10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
| Pricing and Purchase Options | Avail of customized purchase options to meet your exact research needs. Explore purchase options |
| Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request) |
