The term sustainable construction means using renewable and recyclable materials in building new structures, as well as decreasing energy consumption and waste. The major goal of sustainable construction is to reduce the industry’s adverse impact on the environment. It does not end when the building is complete; the building itself should have a reduced impact on the environment all over its lifespan. This means that the design of the building should include elements that have an ongoing positive influence on the environmental impact of the building.
Market scope and structure analysis
Rise in growth of infrastructural development projects, especially in the developing economies, drives the growth of the sustainable construction market to a greater extent. Surge in use of project management technology, eco-friendly building materials, and green manufacturing techniques are few of the ways in which construction is moving toward maintaining an environmental, ecological, and economical sustainability. Sustainable construction, also known as green building, has numerous benefits for not only the environment as a whole but also for builders and their clients to be specific. The reduction in construction waste is also an advantageous side effect in building sustainable buildings. Sustainable materials have found an extensive acceptance in the construction industry for different types of applications such as insulation, roofing, framing, interior finishing, and exterior siding for the residential and non-residential purposes. The demand for sustainable materials is on a constant rise and is anticipated to grow in the forthcoming years as the sustainable materials are effectively replacing the conventional materials and are also being preferred in today's construction industry. However sustainable construction comes at a premium range and the cost is also higher than the demand, despite the contrary exists as the evidence, which limits the market growth.
COVID-19 impact analysis
- COVID-19 pandemic has shut down the production of various products in the sustainable construction industry attributed to the lockdown in countries worldwide. This has hampered the growth of sustainable construction market from the last few months and is likely to continue during 2021.
- COVID-19 has already affected the sales of sustainable construction in the first quarter of 2021 and is anticipated to cause a negative impact on the market growth throughout the year.
- The major demand for sustainable construction was previously noticed from giant manufacturing countries including the U.S., Germany, Italy, UK, and China, which are negatively affected by the spread of the coronavirus, thereby declining the demand for sustainable construction.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on its cash reserves. Sustainable construction manufacturers can afford a full lockdown only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their production activities for several weeks to reduce the expenses. Whereas few players also adopted employee lay-offs to sustain during the COVID-19 health crisis
- Sustainable construction manufacturers are expected to focus on protecting their workforce, operations, and supply chains to respond toward immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce.
Top impacting factors
Numerous type of applications due to their emission reduction potential, building rating systems, strict governmental regulations and emission control standards, and investment on a large-scale by Government and federal agencies are the factors that boost the growth of the market. There is an increase in the demand for green buildings in the industrial sector and is expected to propel due to low operating and maintenance costs. Increased demand for energy-efficient technologies impact the market demand. The segment is anticipated to grow with a significant CAGR during the forecast period. The Southeast Asian region is observing significant growth in applying sustainable construction standards, because of the rise in concerns over environmental deterioration and national energy security in various nations, including Hong Kong, Thailand, Singapore, Malaysia, and Indonesia.
Market trends
- The different growth strategies allow companies to expand their business. Growth can be achieved by practices like adding new locations, investing in customer acquisition, or expanding a product line. For instance, in July 2020, buildings material powerhouse LafargeHolcim launched its ‘green concrete’ in the U.S. The firm also plans to introduce the products to Canada, Latin America and the UK. It is already operating in France, Germany, and Switzerland.
- Collaboration and better communication has wide reach benefits for a business. True collaboration develops competitiveness by enabling better communication and better work-flow between the various components of business like employees, partners, and customers. For instance, in April 2020, PPG made an announcement about the signing of an agreement with Dow to expedite the acceptance of low-carbon technologies. The collaboration emphasizes on developments in anti-corrosion coating materials for steel to provide reduced GHG emissions by offering improved energy efficiency and decreasing high maintenance costs associated with steel infrastructure.
- Similarly, one of the very prominent business strategy is to launch new products with advanced technology. This aims for adoption and brand growth. For instance, Hitachi construction machinery launched new products which are eco-friendly, like battery powered construction machinery, construction machinery with restricted emission, Environment/recycling equipment, low noise construction machinery, and others.
Key benefits of the report
- This study presents the analytical depiction of the sustainable construction industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the sustainable construction market share.
- The current market is quantitatively analysed to highlight the sustainable construction market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed sustainable construction market analysis based on competitive intensity and how the competition will take shape in coming years.
Sustainable Construction Market Report Highlights
| Aspects | Details |
 By Product Type |
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 By Application |
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 By Region |
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 Key Market Players | The Turner Corp.,, Gilbane Building company,, The Whiting- Turner Contracting Company, Alumasc Group Plc,, Florbo International SA,, Clark Group,, Hensel Phelps,, Bauder ltd., |
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