Green Building Materials Market Size

Green Building Materials Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The market for green building materials is poised to grow at a significant rate, with the current market worth $397.16 billion in 2024 and set to reach $998.41 billion by 2032. This translates to a robust CAGR of 12.2 percent for the forecast period. The main driving force for this market is the increasing demand for sustainable building practices, owing to regulations and the growing demand for eco-friendly products. The governmental regulations in the various countries have pushed the construction companies to adopt green building materials as a matter of necessity. The market is also being driven by the technological advancements in material science, such as the development of energy-efficient insulating materials and the use of recycled materials. This has made it easier for companies like BASF, Saint-Gobain, and Owens Corning to come up with new products for this market. Strategic initiatives, such as expansion of product portfolios and investment in green technology, are also driving the growth of this market. The construction industry has been focusing on sustainable building practices, which is boosting the green building materials market.

Regional Market Size

Regional Deep Dive

Green building materials are experiencing a growing demand across various regions. This growth is mainly attributed to the increasing awareness about the environment, the increasing regulatory pressure, and the trend towards sustainable building practices. Across North America, Europe, Asia-Pacific, the Middle East and Africa (MEA), and Latin America, the demand for eco-friendly building materials is stoked by government initiatives, technological advancements, and the growing preference for energy-efficient buildings. Each region has its own characteristics, influenced by the local regulations, the economic conditions, and the culture of the country towards sustainable building practices.

North America

• Green building materials are in great demand in the United States. The LEED certification program is gaining ground, and projects in the city are especially on the rise.
• Cross-laminated timber, recycled steel, and other sustainable materials are being used in new constructions. The International Code Council (ICC) is promoting their use in the United States by helping to update the building codes.
• The growing use of green materials is encouraged by the government, which offers tax incentives for energy-efficient renovations.

Europe

• By 2050, the Green Deal aims to make Europe climate-neutral. The countries that have made the most progress in this respect are Germany and Sweden.
• In Milan, the Bosco Verticale, an architectural innovation, a tree-covered building, has inspired a whole new architectural trend.
• In Europe, the Energy Performance of Buildings Directive (EPBD) sets higher energy performance standards and drives the use of green building materials in new buildings.

Asia-Pacific

• China has set a goal to reduce carbon emissions, and the government has made huge investments in green buildings. Shenzhen has even required new public buildings to use green materials.
• In the creation of smart cities in countries like Singapore, a great many new developments in the field of construction have been developed. City Developments is the most important company in this field.
• The government’s promotion of energy-efficient building materials through the Top Runner programme has had a strong impact on the market.

MEA

• Vision 2021 places great emphasis on sustainable development, a trend that has led to an increased use of green building materials in projects such as the Dubai Sustainable City, which aims to be a model for sustainable living.
• National industrial development and logistics program: a sustainable building material to meet the goals of Vision 2030.
• A change in regulations, such as the introduction of green building codes in the Middle East and Africa (MEA) region, is expected to drive demand for green building materials in the construction sector.

Latin America

• The Green Building Council of Brazil has been promoting sustainable building practices and the use of green materials in urban development projects, especially in Sao Paulo.
• Projects such as the Green Roofs in Mexico City, which are promoting urban livability and raising the awareness of local building contractors of green building materials, are a good example of this.
• Governmental regulations aimed at reducing the carbon footprint are encouraging the use of eco-friendly materials. In Chile, for example, regulations are being introduced to encourage sustainable building.

Did You Know?

“The market for green building materials is expected to reach $ 500 billion by 2027, driven by the growing demand for sustainable construction practices.” — Research and Markets

Segmental Market Size

The Green Building Materials Division plays a crucial role in the building industry, focusing on sustainable materials that minimize the impact on the environment. This market is currently growing, driven by the growing awareness of consumers and stricter regulations on reducing the carbon footprint. The Green Building Council of the United States, for example, encourages the use of eco-friendly materials, and this is reflected in the demand for such materials in both the residential and commercial construction industries.

The demand for energy-saving buildings is rising, and technological developments are improving material performance. In the meantime, the products have reached the stage of a large-scale introduction. Some of the most advanced companies are Interface and Kingspan. These companies manufacture materials for floor coverings, wall claddings, ceilings, roofs, and walls. The Bullitt Center in Seattle is an exemplary project in the use of green materials. The market is influenced by legislation on sustainable building and the global sustainable building initiative. The use of recycled materials and biocomposites are shaping the development of this market.

Future Outlook

The Green Building Materials Market is estimated to grow at a CAGR of 12.2 per cent from 2024 to 2032, from $397.16 billion to $998.41 billion. The growth is driven by the growing importance of sustainable development, energy efficiency and the reduction of the carbon footprint in construction. The use of green building materials will be increasingly used in residential and commercial buildings. According to the forecasts of the Green Building Council, by 2032 green building materials will represent more than 50 per cent of the materials used in new buildings.

Technological developments such as the development of new materials such as bio-based composites and new insulating materials will further increase the market's potential. In addition, the development of smart building systems combining energy-saving materials with IoT systems will create new opportunities for market players. The growing circular economy and the growing demand for recycled materials will also shape the future of the green building materials market. The market is expected to develop rapidly as the market players in the entire supply chain recognize the long-term economic and environmental benefits of sustainable building.