The global green building materials market is estimated at USD 199.9 billion. The market is expected to grow at an increase of 9 percent during the forecast time. The market was impacted by COVID-19. Because of the pandemic situation, some nations were forced to go into lockdown. Construction was stopped around the globe, with a particular focus on the major construction hubs such as China, India, and Japan. In the supply chain, there were disruptions and shutdowns as a result of the measures implemented by government officials to stop transmission of this virus, and workforce shortages caused by illnesses and preventative quarantines adversely affected the construction industry. Therefore, the negative effects and uncertainties arising from the COVID-19 outbreak served as an obstacle in the market demand and the increasing usage of green building products. However, this is believed to be temporary and the market will improve in the coming years.
- In the near term, there is a growing demand for energy-efficient buildings, growing demand for insulation as well as favorable policies of the government for green buildings are fueling the market’s expansion.
- On the other hand, the high capital expenditure in comparison to conventional buildings and the effect of COVID-19 on the marketplace will likely slow the expansion of the market.
- The lower costs of sustainable buildings as time passes and growing awareness of recycled construction will bring opportunities to the market in the coming years.
- North America dominated the market all over the world, thanks to governments’ efforts and regulations that make it mandatory to use green building materials as well as a higher level of awareness in the general public.
Scope of the Report
Green building materials can be described as non-toxic materials and improve the health of the occupants at low cost and help conserve energy. Green building operations are less expensive than regular buildings and use the use of 63% less water and 53% lower electricity use. The green building materials market is divided into types and applications, the end-user industry, and geographical regions. Based on type, the market is divided into structural, exterior, internal and other kinds. Based on application the market is classified into framing roofing external siding, internal finishing, and various other applications. The end-user industries market is divided into residential commercial, institutional, and other industries that are used by end-users. The report also covers estimates and the size of the green building materials market in 15 countries in major regions. For each segment, forecasts and market sizing were calculated in terms of values (USD million)
Key Market Trends
Residential Segment to Witness Strong Growth
- The construction of green buildings in the residential construction industry is growing because of the increasing amount of building regulations and guidelines that demand energy-efficient buildings. This has led to a demand for environmentally friendly and energy-efficient products used in residential construction.
- The increasing awareness of the public and the rising levels of income and the increasing demand for green building materials as well as the rising trend of energy-efficient structures for high-rise residential homes and townships are likely to increase the green building materials market over the next years.
- Many kinds of green construction materials are growing in popularity in residential structures due to the growing demand for materials that are energy efficient and water-resistant, as well as durable as well as easy to keep. The green building material is rapidly being used across Canada, Germany, the United States, and other western European and Scandinavian countries.
- In the Asia-Pacific region, nations like China and India have been faced with environmental pollution issues that have caught the attention of government officials to take action in this direction. In addition, power shortages in developing countries, such as India, South Korea, Sri Lanka, and others will likely push the idea of green building design to increase daylight harvesting.
- However green building materials industry in North America and Europe is well-known and well-known. So, increasing construction projects for renovation in North America and recovering the construction industry in Europe are expected to increase further the use of green building materials during the next few years.
- According to the report for 2019 from the US Green Building Council, LEED-certified homes have increased 19% over the past year and are now at a record with around 500,000 single-family and multi-family and affordable housing LEED-certified units across the globe and more than 400,000 units throughout the United States.
- These factors are all likely to drive up demand for the green building materials market in the coming time.
North America Region to Dominate the Market
- It is believed that the North American region dominated the market share of the world. Construction is growing in the region because of the increased house prices as well as a surge of renovations.
- Different government initiatives and requirements, including Leadership in Energy and Environmental Design (LEED), Green Building Certification as well as incentives for green housing, and so on. They have driven the construction of green structures across the region.
- In 2019, the United States witnessed noticeable investment in residential construction during the year 2019. In addition throughout the United States, the Leadership in Energy and Environmental Design (LEED) registrations are growing steadily and reached 69,006 in the year 2019.
- Similar to Canada, Toronto and Vancouver are becoming hot spots for construction, driven by a rising real property market. Developers are hoping for high returns on investments in Canada, specifically in high-density residential construction projects.
- Based on the Canada Green Building Council (CaGBC) that the Canadian green building sector could add USD 150 billion in GDP in 2030 while reducing greenhouse emission (GHG) to 53 million tonnes as compared to levels in 2018 and is predicted to boost the demand for green construction materials for building greenhouses.
- Mexico has also witnessed an increase in demand for housing, due to this reason, the country is also attracted by the significant amount of investment being made in construction.
- In January of 2019, IDB Invest, a private sector company of the Inter-American Development Bank (IDB) Group has granted an in-country currency financing program that was worth $150 million (Mexican pesos) to Process, the Mexican company Process to help finance land acquisition, development and the commercialization of homes for middle- and low-income families across the country.
- In 2020 the COVID-19 pandemic adversely affected construction activity within the area. Many construction activities were shut down to stop the spread of this virus. The situation is predicted to improve in 2021, which will drive the market being studied in the forecast time.
- Thus, the favorable developments for this sector of the North American construction industry are likely to drive the demand for construction materials that are green during the forecast time.
The green building materials market is not fully consolidated. Some of the main players in the market are BASF SE, DuPont, Sika AG, Owens Corning as well as Kingspan Group, among others.
- The month of August 2020 was the time that Owens Corning announced a new line of products called FOAMULAR-NGX (Next Generation Extruded). The exclusive blowing agent used in this brand-new collection of extruded Polystyrene (XPS) foams provides an increase of 90% in the global warming capacity (GWP) without sacrificing performance.
- In July 2020 In July 2020, Nexii Building Solutions, a Canadian sustainable construction firm, Nexii Building Solutions, announced a series of new manufacturing facilities throughout North America. Two large-scale factories will be constructed in Canada One in Alberta and one located in Toronto, Ontario, while the third plant is planned for Pennsylvania, United States. In total, the three plants will amount to CAD 75 million of investment for the production of Nexii’s eco-friendly construction technologies.
- The partnership was announced in May of 2020. SmartLam North America and RedBuilt announced their partnership to offer cross-laminated Timber (CLT) items and services for architects engineers, contractors, and architects for projects that utilize the well-known mass timber construction technology. RedBuilt will be the sole distributor for SmartLam CLT in the Pacific Northwest, West Coast, and Southwest that includes 9 States: California, Oregon, Washington, Idaho, Nevada, Arizona, New Mexico, Utah, and Montana.