The green building materials market is expected to register at a CAGR of 8.91% during the projected period of 2024-2029.
There has been significant growth in the global green building materials market owing to imperative factors such as an increase in environmental awareness followed by the rising need for sustainable construction practices. Various types of green building materials are gaining popularity such as fiber cement siding, bamboo, fly ash, thermally modified wood, and recycled plastic among others in the residential and construction industries due to their energy efficiency, durability, and even moisture resistance. The residential sector, on the other hand, is expected to witness significant growth when it comes to the green building materials market as it is regarded to be the major end-user industry for green building materials. In this regard, there are factors as well, such as the increasing awareness and affinity towards green building materials and the government regulations favoring the continuous increase in the use of these materials in the end-user sector.
Over the years, green building materials have turned out to be energy-efficient, which makes them an ideal choice when it comes to the construction sector, thereby driving the growth of the market. The growth of the green building materials market is further driven by regulatory support, growing consumer awareness, and the economic viability of these materials. Governmental policies in support of green building construction ensure the standard practices across all construction sectors. Furthermore, companies operating in the market are increasing their investments in research and development activities and improving product quality to meet consumer requirements.
As of June 2021, the CII-IGBC and the IIA signed an agreement to boost green building methods in the area of architectural planning and design. Consumers and developers are increasingly prioritizing eco-friendly materials to reduce the environmental impact of construction projects. Green cement aligns with this trend by offering superior thermal insulation and fire resistance properties, making it a preferred choice for building projects.
The insulation segment by application is expected to be the fastest-growing segment in the green building materials market, driven by its significant role in enhancing energy efficiency and sustainability in buildings. Cellulose, cotton, fiberglass, and mineral wool are some of the insulation materials that play a very essential role in controlling the heat flux through walls and roofs, hence contributing to the energy efficiency of buildings. This segment is expanding at a very fast pace owing to the rising demand for energy-efficient green buildings that is gaining importance, especially in both residential and non-residential construction industry.
Energy efficiency is the factor that is creating growth for this market, accompanied by the government’s backing. To keep warmth in during winter or out during summer, buildings need proper insulation, and it is done by using insulation materials. This energy conservation characteristic is engaging to builders as well as consumers because it helps save energy and money. Additionally, many governments are offering incentives and regulations to promote the use of energy-efficient materials, including insulation. These policies encourage the adoption of green building practices, which in turn drive the demand for insulation materials.
Additionally, there is a growing awareness regarding the use of eco-friendly materials. Insulation materials made from natural fibers or recycled materials align with this trend, as they are less hazardous and more eco-friendly. This shows that there is constant invention and innovation of new technologies in insulation materials, making them perform better and be environmentally friendly. For instance, new insulation products are being developed that are more effective at reducing heat transfer while also being more sustainable.
The North American region is expected to dominate the green building materials market during the forecast period, driven by several key factors. In North America, the high level of consumption of green buildings across all types of construction activities is regarded to be the primary factor that is driving the growth of the green building materials market. The Leadership in Energy and Environmental Design (LEED) rating system is considered highly essential and is most commonly used in the green building rating system across the world, especially in the United States. LEED-certified system provides a framework that is efficient, cost-saving, and carbon-saving towards the formulation of green building materials. According to the USGBC, in 2021, Mexico recorded the 9th position globally in terms of square feet (sq.ft) of the LEED certification with 47 LEED green building projects representing more than 955,000 gross square meters (GSM) of space. Furthermore, over the years, Mexico also certified 531 LEED projects, totaling nearly 11 million GSM.
According to the US Energy Information Administration, in 2021, the residential and commercial sectors consumed more than 10 quadrillion Btu (3.1 trillion kWh) in 2019 and 11.6 quadrillion Btu (3,36 trillion kWh) in 2021, thus accounting for 28% of the overall end-use consumption in the United States. The high energy demand for electricity from buildings has been frequently seen to be very high, and the US government, in this regard, formulated plans to transform the majority of the homes in the lower-income demographics to make them part of the energy-efficient structures and moderate the country’s bills.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR of 8.91% from 2024 to 2029 |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2024 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered |
|
| Companies Covered |
|
| Regions Covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Customization Scope | Free report customization with purchase |
The green building materials market is segmented and analyzed as follows: