A Green Buildings Market will grow at highest pace due to rising environmental consciousness
A Green Buildings Market will grow at highest pace due to rising environmental consciousness
Blog Article
The green buildings market involves the construction and design of residential and commercial buildings utilizing processes that are environmentally responsible and resource-efficient throughout a building's life-cycle, from siting to design, construction, operation, maintenance, renovation, and demolition. Green buildings are designed to reduce the overall impact of the built environment on human health and the natural environment by efficiently using energy, water, and other resources; protecting occupant health; and reducing waste, pollution and environmental degradation. Green buildings incorporate sustainable site planning, water savings, energy efficiency, materials selection, and indoor environmental quality.
The green buildings market is estimated to be valued at USD 565.33 Bn in 2024 and is expected to reach USD 1,060.50 Bn by 2031, growing at a compound annual growth rate (CAGR) of 9.4% from 2024 to 2031.
Key players operating in the green buildings market are Saint-Gobain, Owens Corning, DuPont, Kingspan Group, Lafarge, BASF SE and Knauf Insulation.
The rising environmental consciousness among consumers and stringent government regulations regarding emission standards are driving the demand for Green Buildings Market. Renewable energy alternatives and improved insulation are making buildings more energy-efficient.
Technological advancements such as self-generating and self-sufficient buildings are gaining popularity. Smart glass, energy-efficient lighting and ventilation, green roofs and rainwater harvesting systems are enhancing sustainability. Increased automation and integration of IoT solutions are optimizing resource usage.
Market Trends
Sustainable retrofitting of existing structures is gaining momentum to reduce their carbon footprint. Renovations include measures like installing solar panels, upgrading insulation and switching to LED lighting.
Modular and prefabricated construction using cross-laminated timber, structural insulated panels and steel framing are accelerating the green building process. This supports efficient design, waste reduction and speedy assembly.
Market Opportunities
Rapid urbanization in developing nations presents opportunities to incorporate green building practices from the start. Sustainable townships can optimize land, water and energy usage.
Green mortgages and financing options are encouraging homeowners to invest in renewable energy systems and efficiency upgrades. Incentive schemes promote largescale adoption of green technologies.
Impact of COVID-19 on Green Buildings Market Growth
The green buildings market has witnessed changes in growth trends due to the COVID-19 pandemic. During the pre-COVID times, the market was growing at a steady pace due to rising environmental awareness and implementation of stringent regulations regarding energy-efficient buildings. However, the outbreak has negatively impacted the short-term growth prospects.
The construction activities were halted completely during the lockdown phases in most countries to contain the virus spread. This disrupted the supply chains and created labor shortages. The market players faced challenges in acquiring raw materials and components. It also led to project delays and cancellations. With growing economic uncertainties, the investments slowed down significantly from both private and public sources.
Despite short-term declines, experts believe that the long-term drivers remain intact for green building projects. Sustainable infrastructure will play a vital role in revival plans of different economies. Also, the pandemic has highlighted the importance of utilizing resources efficiently and building resilience. Hence, in the post-COVID period, governments as well as corporates are expected to incentivize and promote green construction activities even more.
Geographical Regions with Highest Green Buildings Market Value
Currently, Europe accounts for the largest share of the global green buildings market due to strict implementation of energy-efficient norms and supportive policies. Countries like Germany and United Kingdom have set ambitious sustainability targets and are progressively shifting towards green building concepts.
North America also captures a substantial portion of the total market value led by the US. Presence of leading solution providers, higher investments in commercial green buildings, and tax benefits for adopting green strategies are driving growth.
Asia Pacific is anticipated to emerge as the fastest growing regional market in the forthcoming years. This is attributed to the rapid urbanization, strong government backing for green initiatives, and execution of projects under national agendas like Smart Cities Mission in India.
Fastest Growing Regional Market for Green Buildings
Among all geographical regions, the green buildings market is expected to witness the highest CAGR in the Asia Pacific region over the forecast period. Countries in Southeast Asia like China, India present immense opportunities due to rising construction spending, increased awareness, and flexible regulations regarding use of green materials and renewable solutions. South Korea and Japan are also implementing strict standards and energy codes to reduce environmental footprint of cities and industrial infrastructures.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)