South East Asia and Australia Green Building Materials Market Expected To Reach $43.3 billion by 2031—Allied Market Research.

According to a new published report by Allied Market Research titled, “South East Asia and Australia Green Building Materials Market by Product Type and Country: Global Opportunity Analysis and Industry Forecast, 2022–2031,”  

The global South East Asia and Australia green building materials market size was valued at $16.8 billion in 2021, and is projected to reach $43.3 billion by 2031, registering a CAGR of 9.9% from 2022 to 2031. 

Green buildings are designed and constructed in such a way that it helps to reduce or helps to eliminate negative impacts on the environment and surroundings. In addition, these buildings help to conserve natural resources and aid the quality of life. 

Factors such as emission reduction potential of green building materials, high asset value of green buildings, growth in public awareness regarding green materials, and increase in demand for such structures among clients drive the South East Asia and Australia green building materials market. In addition, reduction in operating costs and improved worker productivity due to healthy indoor environment supplement the market growth. A wide variety of green building materials are available in the market, including linoleum, galvalume panels, and fiber-cement composites. The demand for green building materials is expected in new low-rise and high residential buildings, retrofits of existing buildings, and new industrial buildings. These factors are predicted to notably contribute toward the market growth. In addition, the initial cost of a building project is about 5-10% of the total allocated budget for the building throughout its lifetime, while the operation and maintenance costs account for 50-80% of this amount. Thus, the maximum value of a building project can be obtained if a client focuses on the operation and maintenance benefits of green construction rather than the high first costs.  

Green buildings enable significant amount of savings of energy, water, and cost, as they reduce the use of energy by eliminating the need for artificial lighting in buildings. Several studies exhibit that high-performance building design reduces the operating costs of a building from 13.6% to 50%. The reduction in electricity and water bills offers significant financial benefits and repays the high initial costs in a short span of time.  

Green roofs improve energy efficiency of building structures, improve air quality, and enhance the aesthetics of urban rooftops. Proper installation of roofs is fundamental for the structural integrity of a building, and thus the choice of roofing materials affects the energy-efficiency of a building. Light colors reflect more energy away from buildings, and thus, are preferred for all types of roofing to reduce the cooling requirement. Steel, slate/stone, and composite materials are used as green materials in roofing. Steel roofing of panels and shingles is preferred in the market, owing to its high recycled content and durability. All these factors are driving the demand of the South East Asia and Australia green building materials market.  

However, high cost concerns, low awareness, and lack of government policies promoting green construction are some of the factors restricting the growth of the South East Asia and Australia green building materials market. 

On the contrary, reduced emission from green building materials is anticipated to offer new growth opportunities in the upcoming period. The building & construction sector accounts for more than two-thirds share of total greenhouse gas emissions across the globe. Thus, there is a great potential for reducing greenhouse emissions by increasing the energy efficiency of buildings and communities. Reductions in greenhouse emissions can be accomplished by construction of new green buildings with low energy consumption and retrofitting of existing buildings.  

The use of recycled-content decking, treated wood, fiber-cement siding, house-wrap, energy conserving windows, sustainable roofing, and thermal doors, while constructing a building structure offers intrinsic advantages, such as low maintenance and operation cost, energy efficiency, durability, and waste reduction over traditional construction techniques. Energy-efficient windows are cost-effective solutions installed to minimize the energy loss caused due to radiation, convention currents, conduction, and air-leakage. These windows reduce the requirement for cooling, artificial lighting, and heating by using a combination of multiple panes, insulated frames, gas fills, window glazes, and tightly sealed edges. 

The South East Asia and Australia green building materials market analysis is segmented on the basis of product type and country. By product type, market is divided into exterior products, interior products, building systems, solar products, and others. On the basis of product type, the solar product segment accounted is anticipated grow at fastest CAGR. The use of energy-efficient equipment conserves energy and saves money. Consumers can avoid buying unnecessarily huge and expensive systems by matching the system with the building requirements. Solar water heating is commercially used to meet domestic hot water needs since a decade. It can work as the primary space heating source in radiant flooring. Solar hot water systems can heat water at a much lower temperature by using radiant heat transfer rather than convective heat transfer.  

By country, it is divided into Singapore, Malaysia, Philippines, Indonesia, Vietnam, Thailand, and Australia. The Philippines country showcased fastest CAGR growth in the forecast period. There are several green building council committees present across Philippines that support the growth of green building construction projects. For instance, The Philippine Green Building Council (PHILGBC) is actively engaged in hosting digital conferences to support the growing demand for green building construction projects and elaborate the advantages associated with use of sustainable construction materials. Moreover, foreign countries and other financial institutions are supporting the growth of green buildings across Philippines that further aim to mitigate climate impact. For instance, International Finance Corporation (IFC) is anticipated to invest $3.4 trillion in Philippines for construction of new green buildings by 2030. This factor is anticipated to offer new growth opportunities in the Philippines green building materials market. 

Key players of South East Asia and Australia green building materials industry include PT Bakrie & Brothers Tbk, Siam Cement Group, Kee Kiong A 2 Z SDN BHD, Aathaworld Sdn Bhd, Interface Inc., PT Modern Panels Indonesia, Brickworks Building Products Ltd., James Hardie Australia Pty Ltd., GreenPan, and CSR Limited. These players have been adopting various strategies to gain higher share or to retain leading positions in the market. 

Vinyl siding is used on the exterior surface of apartment buildings, homes, office parks, assisted living facilities, and other buildings across the globe, owing to availability of a wide variety of architectural designs and surge in acceptance. It provides ease of maintenance, low installation cost, and durability. Vinyl siding and accessories are durable products, offering energy & cost savings, and can be recycled both, pre-use and post use.” 

KEY FINDINGS OF THE STUDY 

• On the basis of product type, the exterior products segment emerged as the leader by acquiring more than 35.0% of the South East Asia and Australia green building materials market share in 2021, and is anticipated to continue this trend during the forecast period. 
• On the basis of country, the Singapore accounted for 29.0% of the South East Asia and Australia green building materials market share in FY2021. 

IMPACT OF COVID-19 ON THE SOUTH EAST ASIA AND AUSTRALIA GREEN BUILDING MATERIALS MARKET 

The South East Asia and Australia green building materials market has been negatively impacted due to the wake of the COVID-19 pandemic, owing to its dependence on the building & construction sector. The increase in risk of infection among the workforce has resulted in delayed construction projects amid the COVID-19 scenario. For instance, according to an article published by CNA, the construction Industry Joint Committee (CIJC) has said that the shortage of manpower may lead to delay in construction projects attributed to workplace safety, and other factors. The decreased purchasing potential of suppliers has also negatively impacted the market amid the COVID-19 scenario.  

Furthermore, the COVID-19 pandemic has led to disruptions in transportation, contractual implications problems, labor shortage, and other factors that together have led the construction sector to witness a downfall. For instance, according to a report published by the Australian Performance of Construction Index (PCI) Survey, the construction activity dropped by 16.3 points to 21.6 points from March 20201 to August 2020.However, emerging geographic scenarios, enhanced domestic supply chain, and strong public investments are projected to drive the growth of South East Asia and Australia green building materials market. For instance, according to an interim report for the 2021 Australian infrastructure plan, the Australian Construction Industry Forum (ACIF) expects the construction industry to return to pre-COVID-19 levels by 2022-23, driven by strong public investments. This is predicted to boost the growth of the South East Asia and Australia green building materials market post-COVID-19 period.