The global green construction market has experienced immense growth and is anticipated to expand during the forecast period. Green construction is the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a life cycle of a building, from siting to design, construction, operation, maintenance, renovation, and deconstruction. This practice expands and complements the classical building design concerns of economy, utility, durability, and comfort. Moreover, sustainable materials selection is a crucial component of green construction, emphasizing the use of environment-friendly sourced materials. This helps minimize the carbon footprint associated with transporting materials and reduces the overall environmental impact of construction.
Market scope and structure analysis
Green construction significantly reduces the environmental impact of buildings by conserving resources, minimizing waste, and decreasing carbon emissions. This helps combat climate change, protect natural habitats, and conserve water and energy. The demand for green construction is expected to increase significantly during the forecast period due to the advantages, such as environmental benefits, energy efficiency, cost savings, improved indoor air quality, and enhanced aesthetics & comfort.
Report Metric | Details |
Market Size Available for Year
| 2022-2032 |
Base Year Considered
| 2022 |
Forecast Unit Period
| 2023-2032 |
Forecast Unit
| Value (USD) |
Segments Covered
| Product Type, Application Region |
Regions Covered
| North America, Europe, Asia-Pacific, LAMEA |
Companies Covered
| Alumasc Group PLC, Binderholz GmBH, Bauder Ltd., Forbo International S.A., Certain Teed Corporation, The Turner Corp., Clark Group, Gilbane Building Company., Hensel Phelps Construction, The Whiting-Turner Contracting Company. |
Covid-19 impact analysis
- The coronavirus has affected the import and export of construction materials, thereby disrupted the supply chain and hampered the green construction market growth.
- Travel prohibitions around the globe have affected the green construction industry. Thus, the supply and demand for green construction projects were almost halted throughout the globe.
- Green construction manufacturing companies located in China are the major sufferers of the virus outbreak, owing to the lockdown and unavailability of logistics in the region.
- The major hindrance to the global green construction market came from the orders of home quarantine by respective governments, which has led to the discontinuance of green construction projects.
- Lockdown imposed by the government impacted the construction sector as many of the construction projects had been halted or postponed.
Top impacting factors
The industry is driven by the increase in awareness regarding the environment, growth in government infrastructure investment, government support, subsidies, and compulsions, and improving affordability. Green construction features designs and energy-efficient technologies to reduce energy consumption for cooling, lighting, heating, and other services. Moreover, governments and regulatory bodies have introduced building codes and standards that promote energy efficiency and sustainable construction practices. In addition, incentives such as tax breaks and grants are often provided to developers who incorporate green features. The long-term operational and maintenance costs are generally lower due to energy and water savings while the initial construction cost of green buildings might be slightly higher. This cost-effectiveness is a significant driving factor. Consumers have increasingly valued environment-friendly and healthy living spaces. However, the limited availability of green materials and the dearth of skilled labor for efficient operation of green construction are the restraining factors that hinder the growth of the green construction market. Contrarily, collaborations between governments, private sector entities, and non-profit organizations drive the development of large-scale green construction projects that have a positive impact on communities and the environment. This is expected to create lucrative opportunities for the growth of the green construction market during the forecast period.
Market Trends
In February 2021, the World Green Building Council (WorldGBC) announced four new companies as signatories to its net zero carbon buildings commitment. The companies are Siemens AG, CDL, Charter Hall, and NEO. Similarly, on November 2021, the U.S. based Green Canopy and NODE signed an agreement to merge to create Green Canopy NODE, SPC. The aim of the merger is to establish green and vertically integrated development, contracting, and fund management company.
In April 2023, the Confederation of Real Estate Developers Associations of India (CREDAI) planned to build around 400,000 green housing units across India.
Green Construction Market Report Highlights
| Aspects | Details |
 By Product Type |
|
 By Region |
|
| By Product Type |
|
 By Application |
|
| By Region |
|
Loading Table Of Content...
