The global green building materials market size was valued at USD 213.10 Billion in 2017, growing at a CAGR of 11.2% over the forecast period. The market is expected to register notable gains fueled by the rising environmental concerns in Europe and North America. In addition, the introduction of advanced products using sustainable and naturally sourced materials is expected to benefit the industry growth.
The industry is expected to facilitate the replacement of materials such as cement and aggregates, which require extensive mining operations for production. Rising usage of naturally available fibrous products such as bamboo and hemp is expected to propel the demand for such products leading to market growth.
Introduction of advanced products such as AirFlow panels and Modular Graywater System to reduce the overall carbon footprints of the buildings is likely to benefit the industry growth. The use of green products and constructions has been found to result improving the overall interior environment whilst maintaining the aesthetic appeal.
North America Green Building Materials Market Size By Application, 2012 – 2022 (USD Billion)
Image Source: Grand View Research
Implementation of lucrative regulatory framework aimed at encouraging the usage of green building products is expected to drive the industry growth. In addition, usage of materials such as recycled concrete and permeable pavements are expected to emerge as the major trends over the forecast period. Furthermore, increasing usage of products such as rammed earth, hempcrete, and recycled plastic is expected to result in a heightened demand for the products.
The industry growth is however expected to remain limited, primarily on account of factors such as varying availability levels of the products which impart a degree of volatility in the overall product price. In addition, the industry has noted multiple green and brownfield investments to promote the products usage. Increasing investments related to the usage of unconventional and niche materials such as mycelium for the production of various building components is expected to benefit the industry growth.
Growing use of composites and stone for the production of building roofs is expected to emerge as the major market trend over the forecast period. In addition, the market for green building materials for structural constructions accounted for a market revenue of 64.9% in 2017, according to Grand View Research, Inc. Abundant availability of the green materials required for the production of structural components is emerged as the primary reason for the high segment share. The segment is also predicted to register fastest gains at a CAGR of 11.4% from 2015 to 2022 driven by increased adoption of such products in industrial and commercial constructions.
Global Green Building Materials Market Share, By Product, 2017 (%)
Image Source: Grand View Research
The use of such products for building interiors is expected to gain traction on account of superior aesthetic appeal. In addition, use of the products for the production of abstract interiors is likely to drive the industry growth over the forecast period.
The demand for green building materials for insulation in buildings realized a revenue of 49.01 Billion in 2017, according to analysts at Grand View Research, Inc. Rising usage of naturally sourced insulations is expected to contribute to the industry growth over the forecast period. In addition, introductions of advanced insulation products such as Roxul AFB evo and Thermafiber Formaldehyde-Free SAFB Batt Insulations by Roxul and Themafiber is expected to fuel the industry growth.
The market in Asia Pacific is expected to realize high gains over the forecast period on account of burgeoning building & construction industry in the region coupled with rising awareness regarding the usage of such products. The growth of the market in Europe and North America is expected to be spurred primarily by the governmental efforts and efforts by the commercial and institutional establishments to gain the LEEDS certification.
The industry exhibits a high level of forward integration with the raw material suppliers involved in the production of construction components, primarily due to limited integration cost and high profit margins. The marketspace is expected to turn highly competitive in the wake of notable adoption of such products, favorable governmental regulations, and presence of a limited number of companies.
The market entry of a number of players is expected to result in an increase in the trade volume of the products which in turn is likely to result in a decreased dominance of the regional players. This is anticipated to result in a decline in the price of the products, further advancing the adoption of such materials.
Name – Karthik Pillai
Educational Qualification – BE., Electrical, Nagpur University | MBA in Power Management, University of Petroleum and Energy Studies
Professional Experience – Karthik currently works as a Team Lead at Grand View Research, with over 4 years of experience in the materials domain.
Area of Specialization – Automotive, Sustainable materials, Renewable energy, Textile & Fiber
Consulting/Domain Expertise – Karthik holds expertise in client interfacing, growth consulting projects, penetration studies, product sales forecasting, and planning & scheduling projects. Furthermore, he has proficiency in formulating extensive investment feasibility analysis in line with client requirements particularly for new market entrants.