The green building materials market was estimated at more than USD 190 billion in 2021, and the market is projected to register a CAGR of over 8. 8% during the forecast period. The market was negatively impacted due to COVID-19.
New York, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Green Building Materials Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06360521/?utm_source=GNW
Due to the pandemic, all the major ecomonies have imposed lockdowns and the construction activities have witnessed a huge downfall globally. With supply chain disruptions, work stoppages due to measures imposed by governmental authorities to slow the spread of the virus have negatively affected the market. Hence, such impact and uncertainties due to the COVID-19 outbreak acted as a stumbling block in demand and growing use of green building materials. However, this is expected to be temporary, and the market is expected to recover in the coming years.
In the short term, increasing demand for energy-efficient buildings, increasing demand for insulation, and favorable government policies for green buildings are driving the market’s growth.
On the flip side, high capital investment when compared to conventional buildings and the impact of COVID-19 on the market are likely to hinder the growth of the studied market.
The declining cost of green buildings over time and increasing awareness about recycled construction are likely to provide opportunities for the studied market during the forecast period.
North America dominated the market across the world, with government efforts and regulations to mandate the usage of green building materials and greater awareness among the population.
Key Market Trends
Residential Segment to Witness Strong Growth
Green building construction in the residential sector is increasing due to the rising number of building regulations and policies mandating energy-efficient structures. This has created a market for environment-friendly and energy-conserving materials used in residential construction.
In the Asia-Pacific region, countries such as China and India have already been facing environmental pollution-related problems, which has grasped the attention of governments to take the initiative in this regard.
The Indian government has provided initiatives like the Green Rating for Integrated Habitat Assessment (GRIHA) to promote green buildings. It has mandated for all central government and PSU buildings to get at least 3-star ratings under GRIHA, thus boosting the demand for market studied.
Green building materials are majorly becoming popular in Germany, the United States, and other western European and Scandinavian countries such as Austria, Switzerland etc..
According to Green Building Information Gateway (GBIG), in Austria, there are more than 229 green buildings, where 138 are certified by BREEAM, 89 by LEED, 40 by DGNB and rest among others. Furthermore, the government is encouraging more investments and subsidiaries for development of more such buildings.
Furthermore, the U.S. Green Building Council (USGBC) has named Hesse as the top state in Germany with the highest number of LEED certified green buildings. Hesse is home to nearly 3 million GSM (grams per square meters) of building space comprising 95 LEED certified projects. Following very closely is Bavaria with 66 LEED certified projects comprising 1.3 million GSM of building space.
All such factors are likely to increase the demand for green building materials over the forecast period.
North America Region to Dominate the Market
The North American region dominated the global market share. The construction sector has been witnessing growth in the region due to increased demand for houses and a rise in renovation projects.
Various government efforts and regulation mandates, such as Leadership in Energy and Environmental Design (LEED), Green Building Certification, subsidies for green housing projects, etc., have been driving the construction of green buildings in the region.
In 2020, according to the U.S. Green Building Council (USGBC), 1,171 projects have been certified with LEED certification for green guildings in United States with 281.05 million GSF land.
Similarly, in Canada, Toronto and Vancouver have become a hotspot for construction, propelled by a hot real estate market. Developers have been looking forward to good returns on investment in the country, particularly with high-density residential projects.
According to Canada Green Building Council (CaGBC) report, with the government investment and proactive policy, green building could achieve 1.5 million jobs, eliminate 53 million tonnes of carbon, and grow the economy by USD 150 billion in GDP by 2030.
Within a decade, green buildings have resulted into 4.9 million CO2e tonne reduction in greenhouse gas emissions along with energy savings of 25.5 million eMWh which is enough to power 867,000 homes in Canada for a full year.
Hence, such favorable trends in the North American construction industry are expected to continue driving the demand in the green building materials market over the forecast period.
The green building materials market is partially consolidated, Some of the major players in the market include BASF SE, DuPont, Sika AG, Owens Corning, and Kingspan Group, among others.
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