Green Construction Market to reach USD 780.72 Bn by 2032 - Coherent Market Insights

The global green construction market, expected to be valued at USD 375.80 billion in 2025, is on a trajectory of rapid expansion. Projections indicate a USD 780.72 billion valuation by 2032, exhibiting a CAGR of 11.0% during the forecast period. The expansion of the green construction industry is driven by increasing regulatory mandates for green building practices, improved consumer awareness of energy-saving measures, and new developments in eco-friendly construction products. Furthermore, increased investment in net-zero buildings, smart infrastructure, and renewable energy used in construction is driving further growth in the market.

Key Market Insights

• In terms of product type, the exterior product segment is expected to account for the highest market share of 33.7% in 2025. Increased demand for sustainable building envelopes, energy-saving solutions, and climate-responsive design is fueling the demand for exterior products like green roofs, high-performance insulation, and energy-efficient building panels that enable energy savings and lower operational costs.
• Based on application, the non-residential segment is anticipated to comprise the largest market share of 55.7% in 2025. Growth in this segment is driven by the increasing adoption of green commercial, institutional, and industrial buildings constructed of sustainable materials, energy efficient systems, and carbon-neutral construction methods.
• Based on region North America is anticipated to lead the global green construction market, capturing 32.3% of the total market share in 2025. This dominance is due to stringent environmental regulations, growing government incentives for green buildings, and mounting investments in sustainable urban development in the U.S. and Canada.

The full report is now available for purchase: https://www.coherentmarketinsights.com/market-insight/green-construction-market-4539

Green Construction Market Report Coverage

Market Dynamics

The green building industry is experiencing considerable growth owing to increase in sustainability focus, strict environmental regulations, and technology innovations in sustainable construction. Increased concern about climate change, combined with incentives from the government and company commitments to environmental, social, and governance (ESG) metrics, are driving interest in energy-efficient, low-carbon, and environmentally responsible construction practices.

In 2024, Stockholm launched the Stockholm Wood City project to develop the world's biggest city constructed wholly from wood. With a completion planned for 2027, the project aims to be sustainable and reduce reliance on high carbon emitting traditional building materials.

Additionally, the incorporation of smart building technology such as AI-based energy management systems, automated climate control systems, and IoT-based monitoring systems is revolutionizing the efficiency and performance of green buildings. The developers and architects are now shifting their attention toward modular construction, biophilic design, and integration of renewable energy, thus making future buildings compatible with sustainability objectives while also improving operational efficiency.

Market Trends

Innovation in Green Construction Materials

Stringent environmental regulations and the global push toward net-zero carbon emissions are driving innovation in green construction materials. Advances in mass timber, carbon-negative concrete, hempcrete, and recycled steel are being rapidly implemented in domestic and commercial buildings. Solar-integrated roofing, energy-efficient glass, and advanced insulation materials are also boosting the sustainability of contemporary building projects.

In July 2021, Holcim launched ECOPlanet, its global line of green cement with a cumulative carbon footprint 30 percent lower than comparable products while delivering equal and better performance in various projects. This company particular operates in countries Germany, Romania, Canada, Switzerland, Spain, France, and Italy and will be distributed across 15 countries with an aim of doubling its market presence by to enable low-carbon construction at scale.

Rise of Net-Zero Buildings and Smart Energy Management

Increased emphasis on energy conservation has given rise to net-zero buildings that produce as much energy as they use from renewable resources like solar panels, wind turbines, and geothermal systems. Such buildings are equipped with high-performance insulation, energy-efficient HVAC systems, and intelligent lighting solutions to reduce energy wastage. The adoption of AI, IoT-based smart meters, and smart energy management systems is further improving building efficiency and carbon footprint reduction by maximizing energy usage in real time. Battery storage systems and grid interaction also enable net-zero buildings to store surplus energy and feed it back into the grid, fostering a more robust and sustainable energy system.

Market Opportunities

Integration of Renewable Energy in Green Building Solutions

Integration of renewable energy sources into building systems is a significant market opportunity in the green building industry. With stricter sustainability regulations and increasing priority to energy efficiency, demand for solar-integrated building materials, energy-generating facades, and smart grid-compatible infrastructure is on the rise.

In July 2024, Kingspan Group plc (Kingspan), a leading developer of high-performance building solutions, and LONGi Green Energy Technology Co., Ltd. (LONGi), a solar technology leader, unveiled a strategic alliance to integrate photovoltaic technology into building products. This breakthrough converts building components into energy-generating elements, lowering operational expenses, making buildings more sustainable, and enhancing design. This move reflects the increasing emphasis on incorporating renewable energy as a central aspect of sustainable construction.

Growth of Sustainable Retrofitting in the Green Building Industry

In addition to new construction, the green building industry is also experiencing great opportunities in the retrofitting of existing buildings. Governments and private sector actors are increasingly making investments in energy-efficient HVAC systems, solar panel installations, and high-performance building envelopes to retrofit existing buildings. This is a trend that indicates a larger industry focus on reducing carbon footprints and optimizing energy use, providing great growth potential for firms that offer sustainable retrofitting solutions.

Analyst’s View

"The green construction market is on a robust growth trajectory, driven by increasing regulatory mandates, technological advancements, and rising consumer demand for sustainable buildings," said Mr. Ramprasad Bhute, a senior analyst. "The integration of AI-driven energy management systems, smart infrastructure, and net-zero building technologies is revolutionizing the industry, enabling energy efficiency, cost savings, and enhanced sustainability.” 

“Additionally, innovations in eco-friendly materials such as carbon-negative concrete, mass timber, and solar-integrated building components are reshaping construction practices, reducing carbon footprints, and enhancing long-term building performance. Governments and private stakeholders are prioritizing sustainable urban development, providing incentives for green buildings and retrofitting existing structures to meet evolving environmental standards.”

“With increasing investments in renewable energy adoption, modular construction, and biophilic design, the green construction sector is set for sustained expansion. As sustainability becomes a core focus for developers and consumers alike, the industry will continue to innovate, driving long-term environmental and economic benefits," he added. 

Recent Developments

In June 2023, Accenture completed its acquisition of Green Domus, a leading Brazil-based sustainability consultancy with experience helping clients design and implement a range of sustainability initiatives with a focus on measurable decarbonization strategies. Green Domus’ decarbonization strategy expertise and two decades of industry experience will further expand Accenture’s Sustainability Services. Green Domus’ team of sustainability professionals will help deliver customized mitigation plans and client solutions to embed carbon data and insights into their decision-making through deep knowledge of sustainability frameworks.

Market Segmentation

• Product Type Insights
  • Exterior Product
    • Roofing
    • Windows
    • Siding
    • Doors
  • Interior Product
    • Insulation
    • Flooring
  • Solar Products
  • Building Systems
  • Others
• Application Insights
  • Residential
  • Non-Residential
    • Commercial & Office
    • Institutional
    • Industrial
    • Hospitality
    • Leisure
  • Others

Regional Insights

• North America
  • S.
  • Canada
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Rest of Latin America
• Europe
  • Germany
  • K.
  • France
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa
  • South Africa
  • GCC Countries
  • Rest of Middle East & Africa