Green Building Materials Market Size, Share & Industry Analysis, By Application (Roofing, Flooring, Insulation, and Others), By End-use Industry (Residential and Non-Residential), and Regional Forecast, 2024-2032

The global green building materials market size was valued at USD 422.27 billion in 2023 and is projected to grow from USD 474.21 billion in 2024 to USD 1,199.52 billion by 2032, exhibiting a CAGR of 12.3% during the forecast period. North America dominated the green building materials market with a market share of 32.05% in 2023. Moreover, the green building materials market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 289.50 billion by 2032, driven by increasing demand for roofing, insulation, framing, and various other residential, industrial, commercial, and infrastructure applications. 

Green building materials are used to construct an eco-friendly building structure. Using these materials endorses the conservation of decreasing non-renewable resources internationally. Integrating green materials into building projects helps to reduce the environmental impacts linked with the extraction, transportation, fabrication, processing, installation, recycling, reuse, and disposal of these source materials. These benefits make green building materials the best alternatives to conventionally used construction materials.

In addition, the growing preference for green building materials over traditional construction materials will spur the market growth. The materials benefit by reducing carbon footprints, thus allowing a reduction in global warming. As these materials are energy-efficient and environment-friendly, they are easy to maintain and save money. These benefits make them an ideal material of choice compared to traditional construction materials.

Moreover, the growing demand for these materials is becoming popular in several construction projects as they reduce the environmental impact of building materials related to manufacturing, installation, processing, transportation, recycling, and disposal. The growing preference for these materials over traditional building materials is anticipated to drive the growth of the market.

Furthermore, governments in developed countries implemented policies and incentives to boost green construction, which is expected to increase the demand for green building materials over the forecast period. “Green buildings” are not just a concept that can save the world, as they can make our world safer, healthier, and richer.

The COVID-19 pandemic restricted the transportation of people and materials and severely affected the supply chains of construction manufacturers in 2020. The global construction sector witnessed consequences, such as shortages of construction materials, logistical challenges, shortage of workers, and uncertainty leading to the suspension or cancellation of construction activities. However, with the declining impact of the pandemic and government initiatives to normalize the economies, the construction industry stabilized in a few years. Hence, the market witnessed a rise since 2021.

Green Building Materials Market Trends

Rising Awareness and Adoption of Green Building Materials to Boost Market Growth

Construction and building activities consume 3 billion tons of raw materials annually, or 40% of global consumption. The use of sustainable building materials and products promotes the conservation of dwindling, non-renewable resources on an international level. Additionally, integrating sustainable building materials into construction and building projects can reduce the environmental impact of transporting, extracting, processing, installing, manufacturing, disposing, recycling, and reusing these construction industry feedstocks. The growing demand for these materials in building and construction activities will likely drive the market growth.

Green Building Materials Market Growth Factors

Growing Shift Toward Green Buildings to Drive the Market

According to the International Energy Agency, in 2023, operations in infrastructures accounted for 30% of global final energy consumption and 26% of global energy-related emissions. Of these, 8% were direct emissions in buildings, and 18% were indirect emissions from the production of heat and electricity used in buildings. The concept of sustainable construction includes and integrates a variety of approaches during the design, construction and procedure of building projects. The use of green materials and products characterizes one significant strategy in the design of a building. Green materials are majorly composed of renewable resources. These materials are environmentally responsible. Hence, using such materials will help reduce greenhouse emissions.

Green building materials comprise wood, straw hemp concrete, recycled plastic, ferrock, mycelium, straw bales, bamboo rammed earth, wood concrete, and grass concrete. The aim of using these materials is to create energy-efficient structures that help maintain the ecological balance in nature. These materials improve the efficiency and sustainability of a building structure during construction, design, renovation, and maintenance. These materials are very energy efficient and are produced from renewable waste sources. Using environment-friendly building materials can solve various environmental problems such as contamination of freshwater resources, air pollution, depletion of natural resources, loss of biodiversity, and anomalous climate change. These advantages make green building materials the best alternative to traditionally used construction materials.

The growing demand for green buildings is anticipated to boost the growth of the market during the forecast period. Green building is the discipline of designing structures and applying procedures from site selection to construction, design, operation, service, dismantling, and conversion that are resource-efficient and ecologically responsible. As sustainable materials are used to construct green buildings, the demand for green building materials is increasing.

For instance, according to a report by CBRE India, a commercial real estate services and investment company, in April 2022, green building received much attention over the past five years. During that time, the supply of green-certified buildings increased by 37%, adding 78 million square feet of certified inventory. Hence, the increasing demand for green buildings boosts the market growth.

RESTRAINING FACTORS

Price Fluctuation will Impede Market Expansion

Fluctuations in the prices of materials owing to their availability and higher demand from end-use industries are anticipated to restrain the market growth. These materials are more expensive than traditional building materials. Their costs may vary depending on several factors such as finishes, fittings, and designs. The use of these materials leads to high initial investment costs, which are owed to the long-term benefits of green buildings. Further, declining per capita income in some countries is expected to restrain construction activity in the residential sector. This is expected to hinder product adoption in the construction industry.

Green Building Materials Market Segmentation Analysis

By Application Analysis

Roofing Segment to Lead owing to Increasing Product Use in Construction

Based on application, the market is segmented into roofing, flooring, insulation, and others.

Roofing is anticipated to remain the largest segment during the forecast period owing to the rising adoption of green roofing materials. Green roofs are gaining importance as Nature-based Solutions (NBS) to counteract several environmental and socio-economic problems associated with climate change. Urban settlements are gaining interest in global development as they account for 55% of the world’s population and are projected to increase to 68% by 2050. Urban settlements comprise suburbs, cities, and towns. The sustainable development of urban settlements depends on their growth. The New Urban Agenda and the 2030 Sustainable Development Goals support cities’ engagement toward sustainability.

The flooring segment will witness significant growth during the forecast period. Green flooring is made from sustainable materials and through a sustainable process that decreases demands on ecosystems throughout its life cycle. This includes production, harvesting, use, and disposal. Green flooring is believed to create healthier and safer buildings and guarantee a future for traditional producers of renewable resources, on which many communities depend. In addition, eco-friendly options often create a healthier environment for everyone who works or lives in the building.

The insulation segment is to witness moderate growth during the forecast period as it refers to an energy-saving measure that provides resistance to heat flow. Naturally, heat flows from a warmer to a cooler space through many surfaces of a building such as ducts, walls, roofs. Insulating a home can reduce heat loss in buildings in cold weather or climate and excess heat in warmer weather or climate.

By End-use Industry Analysis

Residential Segment to Dominate the Market due to High Adoption of Green Buildings

Based on end-use industry, the market is segmented into residential and non-residential.

The residential segment is expected to dominate during the forecast period due to increasing number of guidelines and building laws for energy-efficient construction. The preference for green buildings is increasing in the residential sector. This has created a market for energy-efficient and eco-friendly building materials. The rising awareness of the environmental benefits of sustainable building materials and the growing adoption of sustainable building practices in the residential sector are the key factors fueling the market growth of this segment. In addition, the growing demand for energy-efficient and eco-friendly homes and government regulations and initiatives to promote the use of eco-friendly building materials in the residential sector are likely to drive the green building materials market growth.

The non-residential segment is anticipated to grow significantly during the forecast period owing to the increasing need for eco-friendly and sustainable solutions. Additionally, it has become essential for non-residential construction companies to prioritize sustainable design and construction techniques to make good use of our planet's finite resources. In most countries, promoting sustainable business practices is vital for green building, saving energy, and protecting natural resources. Moreover, growing concern about global warming led to environmentally friendly and sustainable activities, which increased the demand for green building materials in non-residential buildings.

REGIONAL INSIGHTS

North America held the largest green building materials market share in 2023 due to its increasing demand for roofing, insulation, framing, and various other residential, industrial, commercial, and infrastructure applications. The growing demand for eco-friendly and energy-efficient buildings that maximize value and minimize environmental impact. Green buildings can also lead to financial benefits such as lower energy costs. Rising government initiatives have further driven the market growth.

Asia Pacific is the fastest-growing market in terms of CAGR. A wide range of green materials, including galvalume panels, linoleum, and fiber cement composites are used in the market. Factors such as new low and high-rise residential buildings, retrofits of existing buildings, and new industrial buildings are likely to drive the market's growth during the forecast period.

In Europe, the market is anticipated to witness significant growth during the forecast period owing to supportive government initiatives. For instance, the EU Energy Performance of Buildings Directive (EPBD) promotes the use of eco-friendly building materials. The presence of key companies further contributes to the growth of the market in the region. In addition, there is rising awareness of the environmental benefits of green materials as well as strict building regulations and codes that promote the use of these materials in the region.

Meanwhile, Latin America and the Middle East & Africa will register a moderate growth rate during the forecast period due to rising residential & commercial buildings. General construction work consumes excessive raw materials, energy, and water, generates huge amounts of waste and potentially harmful atmospheric emissions. As a result, key players in the region are under pressure to construct eco-efficient and green buildings while reducing their overall environmental impact.

List of Key Companies in Green Building Materials Market

Strategic Planning Adopted by Companies to Strengthen their Market Share

The global market is fragmented, with key players operating in the industry being BASF SE, PPG Industries, Inc., E. I. du Pont de Nemours and Company, Sika AG, and Forbo International SA.

Market participants fiercely compete with international and regional players with extensive distribution networks, regulatory know-how, and suppliers. In addition, companies sign contracts, make acquisitions, and form strategic partnerships with other market leaders to expand their existing markets.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Germany)


• PPG Industries, Inc. (U.S.)


• E. I. du Pont de Nemours and Company (U.S.)


• Sika AG (Switzerland)


• Forbo International SA (Switzerland)


• Owens Corning (U.S.)


• REDBUILT (U.S.)


• CERTAINTEED (U.S.)


• HOLCIM (Switzerland)


• Kingspan Group (Ireland)

KEY INDUSTRY DEVELOPMENTS:

• January 2022: Binderholz GmbH, a subsidiary of the Austrian Binderholz Group, acquired BSW Timber Ltd. The company manufactures more than 1.2 million m3 of sawn timber annually. With this acquisition, Binderholz GmbH became Europe's largest sawmill and solid wood processor.


• April 2021: Lafarge Egypt, a member of LafargeHolcim, introduced Ecolabel cement for the first time in Egypt. This new product meets the company's green criteria and reduces the carbon footprint.


• November 2020: The U.K.-based Lhoist, involved in the manufacturing of lime-based products, developed a product called Tradical Hemcrete that is recyclable and consumes less energy. Tradical Hemcrete is a mixture of hemp wood, water, and lime. Tradical Hemcrete is used to construct walls and renovate old buildings as an insulation material.


• May 2020: RedBuilt and SmartLam North America have partnered to supply Cross Laminated Timber (CLT) solutions and products to engineers, contractors, and architects for projects using the popular mass timber building technology. RedBuilt will serve as the exclusive distributor of Smart Lam CLT on the West Coast, Pacific Northwest, and Southwest.

REPORT COVERAGE

The research report provides detailed market analysis and focuses on crucial aspects such as leading companies and end-users. In addition, it offers insights into industry trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years. It further includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the latest market dynamics and opportunities.

Report Scope & Segmentation