Green Building Materials Market is Estimated to Witness High Growth Owing to Increasing Government Support & Regulations and Greater Eco-friendly Mindset
The Green Building Materials Market is estimated to be valued at USD 400.74 billion in 2024, exhibiting a CAGR of 12.1% over the forecast period of 2024-2031. The market is witnessing high growth owing to increasing government support through policies and regulations promoting the use of green building materials. Many countries have implemented strict norms and standards to reduce the environmental impact of construction activities. Furthermore, there is a greater eco-friendly mindset among consumers who prefer green alternatives for a sustainable future.
The green building materials market is driven by increasing government support through favorable policies and regulations for green construction. Many nations have formulated strict guidelines and norms to minimize the carbon footprint of the building industry. For instance, the European Union has introduced the Energy Performance of Buildings Directive to promote energy efficiency in buildings. Additionally, growing environmental consciousness among consumers has boosted the demand for sustainable construction materials. Individuals are more inclined towards green alternatives to curb pollution and support environmental protection.
Increasing environmental awareness and sustainability efforts among consumers
One of the major drivers for the growth of the green building materials market is the rising environmental awareness among consumers. People are increasingly concerned about climate change and the impact of traditional construction materials on the environment. They want to reduce their carbon footprint and choose more sustainable options for their homes. Using green building products allows consumers to contribute to the cause of environmental protection. Several studies have shown that eco-friendly attributes are increasingly influencing purchasing decisions, especially for millennial home buyers. With sustainability gaining prominence worldwide, more consumers will opt for green materials in the coming years.
Stringent government regulations regarding energy efficiency in buildings
Governments across the world are imposing stricter rules and guidelines to promote sustainability in the construction sector. For example, various countries in Europe and regions in the U.S. have mandated the use of energy-efficient products for new residential and commercial construction projects. Eco-labels and certification standards like LEED also specify the share of green materials required. This has compelled building material manufacturers to shift their portfolio towards eco-friendlier options. Many local authorities provide tax benefits and subsidies to projects using sustainable products. Such policy interventions are encouraging the wider adoption of green building materials to meet regulatory compliance. With environmental protection rising up the policy agenda, more stringent laws can be expected over time.
Higher costs of green building materials compared to conventional products
One major challenge restraining faster market growth is the higher prices of green building materials compared to traditional alternatives. Eco-friendly products often involve additional manufacturing expenses which gets passed on to customers. Though prices are gradually coming down with technological advancements and mass production, they are still relatively costlier for most buyers. This is a major purchase consideration, especially in cost-sensitive construction markets. Support in the form of tax credits and rebates can help address the issue to some extent. However, premium costs are likely to remain a hindrance until green solutions achieve substantial economies of scale.
Lack of consumer awareness about benefits
Despite growing interest, there remains insufficient awareness among a large section of consumers about the various environmental and economic advantages of green building materials. People are not fully cognizant of their long-term performance, energy savings potential, and health impact. Contractors and builders also lack comprehensive knowledge about appropriate green product selection and installation techniques. More communication is needed regarding their tangible benefits like lower maintenance costs, better indoor air quality, and higher resale value of eco-friendly homes. Concerted marketing efforts by industry and governments can help address this information gap to further propel demand.
Rising focus on green retrofits of existing buildings
With the global building stock projected to double by 2060, retrofitting existing infrastructure provides a massive opportunity for green materials. Most buildings today are not energy-efficient and offer scope for upgrades. To meet sustainability targets, many governments offer financial incentives for green retrofit projects. This is encouraging the replacement of older products with eco-friendly alternatives like cool roof coatings, recycled insulation, and energy-efficient windows. The retrofits market is expected grow significantly as sustainability retrofits gain prominence. Material manufacturers can boost offerings catering to the specific needs of retrofitting activity.
Potential for cross-sectoral applications
While green building materials are primarily used in the construction industry currently, their various properties allow applications across multiple sectors. For example, renewable and recycled materials find increasing usage in automotive, aerospace and packaging industries for their lightweight and durable characteristics. Bamboo, a fast-growing building material, is also used in textiles, paper and consumer goods. With R&D, several eco-friendly construction products have potential for new applications that can dramatically expand market revenues. By developing innovative multi-sectoral uses, manufacturers can tap new revenue streams and faster market penetration of green materials.
Link - https://www.coherentmarketinsights.com/market-insight/green-building-materials-market-259
Key Developments
- In April 2024, the Navrattan Group, a prominent Indian conglomerate, announced plans to launch a new eco-friendly cement product called 'Green cement' in the Indian market soon.
- In April 2021, Lafarge Egypt developed and launched an ecolabel cement product for the first time in the Egyptian market.
- In November 2020, Lhoist Group developed a new product called Tradical Hemcrete.
- In May 2020, SmartLam and RedBuilt announced a partnership to supply CLT products and solutions to architects, engineers, and contractors.
Key Players
Alumasc Group Plc, Amvik Systems, BASF SE, Bauder Limited, Binderholz GmbH, CertainTeed Corporation, E. I. du Pont de Nemours and Company, Forbo International SA., Interface Inc., Kingspan Group plc, Lafarge, Lhoist UK Ltd, Wienerberger AG, LG Hausys Ltd., RedBuilt LLC, PPG Industries, Inc., and BASF SE
