Global Green Building Materials Market Analysis by Market Players, Share, SWOT and Size Forecast to 2025


The market for green building materials is expected to witness a CAGR of around 10.5% during the forecast period, 2018-2025.

Buildings presently account for a third of worldwide emissions, and green buildings and projects are an important part of the fight for environmental sustainability. Green building refers to the next-generation construction technology intended to reduce carbon emissions at no or very little cost. The concept focuses on preserving the natural environment around a site while facilitating construction that fulfills its basic purpose while optimizing the usage of resources such as energy, water, and raw materials in buildings. Numerous economic and environmental gains that are driving robust adoption of green building construction across the world include operational cost savings, added operating value, optimization of life cycle economic performance, better air and water quality, and biodiversity enhancement. 

Green building materials are employed in the construction industry to address various environmental challenges including anomalous climate change, natural resource depletion, atmospheric pollution, contamination of freshwater resources, and loss of biodiversity. Eco-friendly nature, durability, and energy efficiency of green building materials make them ideal for use in designing of residential and non-residential buildings.

Emission Reduction Potential of Green Building Materials

• Building and construction sector accounts for more than two-thirds of total greenhouse gas emissions across the globe. Thus, there is great potential for reducing greenhouse emissions by enhancing the energy efficiency of buildings and communities. Reductions in greenhouse emissions can be accomplished by the construction of new green buildings with low energy consumption and retrofitting of existing buildings.

Growing Demand for Insulation

• Building insulation and roofing solutions are witnessing increased investments in research and production backed by venture capital funding. Efforts are underway to replace plastic foams with renewable solutions based on agricultural byproducts, and sheep’s wool. 

The green building materials market is currently being catalyzed by a growing demand for structures with low greenhouse gas emissions. In addition, the reduced operational and maintenance costs provided by the construction of new green buildings due to less energy consumption is further stimulating the demand for these materials. Some of the popular materials used in the construction of green buildings are bamboo, hempcrete, straw bales, mycelium, wood, rammed earth, timbercrete, grasscrete, recycled plastic, etc.

Various government efforts and regulation mandates, such as Leadership in Energy and Environmental Design (LEED), Green Building Certification, subsidies for green housing projects, etc., have been driving the construction of green buildings in the market.

Many of the materials necessary for building green come with a higher price tag. For example, if a LEED-certified building sustains damage following a storm, property owners should expect to pay more to retain its energy-efficient LEED status than it might cost to replace the building to non-LEED specifications. Other factors that have the potential to increase the cost to rebuild are the fact that green building materials are harder to come by and replacement parts could be limited by geographic location.

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The green building materials market is segmented on the basis of product type, application, and geography. Based on product type, the market is categorized into exterior products, interior products, building systems, solar products, and others. Others include structural products and permeable pavement. According to the application, the green building materials market is classified into residential buildings and non-residential buildings. The non-residential segment includes commercial & office, institutional, industrial, hospitality, and leisure.

Materials that are required for construction, there manufacturing, transportation, actual use in construction and after construction, a large amount of energy utilized. That form of energy is called as Embodied Energy. Secondly, there is a good trend to use various green building materials in building construction. It will definitely help to make a building as Green Building. Production of Green material generally involves these types of material which are conventional, recyclable, waste products. 

Energy conscious and eco-friendly development hold the key potential to significantly reduce thermal loads and electricity use in commercial buildings. Low embodied energy materials conserve energy and limit Green House Gases (GHG) emissions thus limiting the impact on the environment.

Solar power products saw explosive growth, driven by the increasing installation of rooftop based solar power modules connected to electricity distribution systems. Going forward, favorable tax incentives and a strong interest in the use of renewable energy sources will promote demand for LEED-eligible solar power products. 

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The green building construction sector in North America and Europe is already widely popular. Thus, growing renovation projects in North America and recovering construction industry in Europe are likely to further increase the consumption of green building materials. 

The United States witnessed noticeable investment for residential construction in 2018, and the trend is expected to remain the same in the near future. Similarly, in Canada, Toronto and Vancouver have become a hotspot for construction, propelled by a hot real estate market. 

The substantial growth in the construction sector increased the demand for construction products in Europe. The construction products such as products for siding, trim, flooring, roofing, and others are generally used in each construction to protect infrastructure from climate and energy challenges.

In the Asia-Pacific region, countries, such as China and India, have already been facing environment pollution-related problems, which has grasped the attention of governments to take initiative in this regard. Moreover, power shortage problems in developing nations, like India, South Korea, Sri Lanka, and others, are likely to promote the concept of green building construction to promote daylight harvesting. This growth of the market in APAC can be attributed to emerging nations such as China and Japan. The situational awareness systems market in APAC is at a developing stage and the ongoing development in this region makes it a lucrative and high-potential market.

Some of the major players in this market are CEMEX, Kingspan Group Plc., BASF SE, Saint Gobain, Owens Corning, Lafarge, Binderholz Gmbh, E. I. Dupont De Nemours & Co., Rockwool International, Sika Group.


David Garrision

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