According to a new report published by Allied Market Research, titled, " South East Asia and Australia Green Building Materials Market by Product Type and Country: Opportunity Analysis and Industry Forecast, 2021-2030," the South East Asia and Australia green building materials market size was valued at $15.3 billion in 2020, and is projected to reach $38.5 billion by 2030, growing at a CAGR of 9.7% from 2021 to 2030.
Building that is 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 aids the quality of life. Utilization of solar energy, use of energy efficiently, reduction of pollution, re-utilization of products, improved indoor air quality, and utilization of building materials that are non-toxic are some of the criteria that make green buildings.
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.
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.
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 effectiveness of these windows varies based on factors including climate, placement of window in a home design, and window direction. Existing windows can be made more efficient by reducing air leakage through caulking, i.e., adding weather-stripping material around edges of windows. This factor is anticipated to create remunerative opportunities for the expansion of the South East Asia and Australia green building materials market in the coming future.
The South East and Australia green building materials market is segmented on the basis of product type and country. By product type, the market is segregated into exterior products, interior products, building systems, solar products, and others. The exterior products type dominated the South East and Australia green building materials market in terms of revenue in 2020, with over one-third of the total share. This is attributed to the fact; new imitation slate materials have been introduced to prolong shelf life of roofs than asphalt or other shingles and are available at a low cost compared to real slate. They accurately reproduce the appearance and texture of slate, and require no structural reinforcement, owing to their lightweight.
By country, the South East and Australia green building materials market is studied across Singapore, Malaysia, Philippines, Indonesia, Vietnam, Thailand, and Australia. The Singapore country dominated the global market in terms of revenue in 2020, with over two-seventh of the total South East Asia and Australia green building materials market share. This is attributed to the fact, several schemes and development plans have been adopted in Singapore to support the growth of green building construction.
For instance, BCA green mark scheme was formed in 2005 which supported the growth of green building sector since 2005 and has attracted several stakeholders in the country for adoption of new green buildings.
Key players operating in the South East and Australia green building materials market include PT Bakrie & Brothers Tbk, Siam Cement Group, Kee Kiong (A2Z) SDN BHD, Aathaworld Sdn Bhd, Interface Inc., PT Modern Panels Indonesia, Brickworks Building Products Ltd., James Hardie Australia Pty Ltd., GreenPan, and CSR Limited.
The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. 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. Moreover, several green building materials manufacturers in South East Asia and Australia have either shut down or shrank their operations which in turn have resulted in supply chain disruptions. Also, different raw materials for producing green building materials are purchased or hired from other enterprises. 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 has 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.
Key findings of the study
- The solar product type is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 10.8% from 2021 to 2030.
- The Philippines country is anticipated to register the highest CAGR of 11.8% during the forecast period.