November 4, 2024
Green Construction Market

Green Construction Market Materials are Transforming the Industry by Sustainability

The green construction material market comprises products that promote sustainable and eco-friendly construction practices. These materials help reduce the negative environmental impact of buildings, lower carbon emissions, and promote the use of renewable and recycled content. Some examples include engineered wood, recycled content concrete, insulated glazing units, and green mortars and paints. With the need to construct sustainably and address climate change concerns, green construction materials are being widely adopted across residential and commercial projects worldwide.

The global green construction material market is estimated to be valued at US$300 Billion in 2024 and is expected to exhibit a 10% CAGR over the forecast period 2024 to 2031.

Key Takeaways

Key players: Key players in the green construction materials market include Armstrong World Industries, Fletcher Building Limited, LafargeHolcim, Etex Group, and Kingspan Group. These leaders offer a variety of green product solutions and are investing in expanding their portfolios and production capacities.

Growing demand: Rapid urbanization and increasing greenhouse gas emissions from the building sector are driving the Green Construction Market Trends for sustainable construction practices. Various government mandates and industry regulations regarding energy-efficiency are also boosting the adoption of green building materials.

Global expansion: Leading manufacturers are focusing on penetrating emerging economies in regions like Asia Pacific, South America, and Middle East & Africa through partnerships and overseas plants. Moreover, green building certifications are gaining global recognition, thus supporting the expansion of the market across the world.

Market Key Trends

One of the primary trends in the green construction material market is the rising popularity of mass timber products. Mass timber utilizes engineered wood construction for frames, floors, and roofing and has several ecological benefits like carbon sequestration and reduced embodied energy. Mass timber products are lightweight, require less machinery on site, and faster to install than concrete or steel alternatives. With its growing adoption in commercial buildings worldwide, mass timber is transforming the sustainable construction sector.

Porter’s Analysis
Threat of new entrants: Low requirement for new companies to enter the market due to relatively high set-up and capital costs.
Bargaining power of buyers: Buyers have high bargaining power as green construction materials produce have few differentiations.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitute supplies and buyer concentration in certain regions.
Threat of new substitutes: Threat of substitution is moderate as green materials like bamboo and timber can replace some conventional materials.
Competitive rivalry: Intense competition exists among existing players to gain higher market share through product innovation and geographic expansion.

Geographical Regions
North America currently holds the largest share of the global green construction market in terms value, with the United States alone accounting for over 30% share. Europe and Asia Pacific follow North America in market share owing to stringent emission norms and supportive government policies and initiatives promoting sustainable infrastructure development.

The Asia Pacific region is poised to be the fastest growing market for green construction during the forecast period due to rapid urbanization and industrialization in countries such as China and India. Substantial investments by public and private agencies towards green building projects to mitigate adverse environmental impact will drive the demand in the region. Initiatives like Green Building Council in India are aiding market growth.

*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

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