U.S. Green Building Materials Market Size, Share & COVID-19 Impact Analysis, By Application (Roofing, Flooring, Insulation, and Others), End-use Industry (Residential and Non- Residential), and Country Forecast, 2023-2030

The U.S. green building materials market size was valued at USD 88.2 billion in 2022 and is projected to record a CAGR of 12.7% during the forecast period.

Green building materials are eco-friendly construction products designed to have minimal environmental impact throughout their lifecycle. These materials are often sourced sustainably, manufactured using energy-efficient processes, and are recyclable or biodegradable. Some examples include recycled steel, bamboo, reclaimed wood, and energy-efficient insulation materials. Green buildings aim to create an energy-efficient, environmentally responsible structure and promote a healthier living space.

The increasing demand for green buildings in the U.S. is expected to drive market growth during the forecast period. Green building can be described as creating buildings and pursuing resource and environmentally-conscious construction, operation, design, dismantling, conversion, and maintenance processes. The demand for eco-friendly building materials is increasing as more sustainable materials are used in building green buildings.

Moreover, the rising demand for these materials is becoming popular in many construction projects as they reduce the environmental impact of building materials in terms of installation, manufacturing, transportation, processing, disposal, and recycling. The increasing preference for green building materials over traditional building materials is expected to bolster market growth.

The construction industry was severely affected by COVID-19, which hindered the U.S. market. Moreover, this industry experienced its worst phase in recent decades due to the pandemic. It also experienced consequences such as a shortage of building materials, logistical challenges, and labour shortages in the U.S.

U.S. Green Building Materials Market Trends

Rising Awareness about Environmentally Friendly Practices to Drive Market Growth

Green building materials are known for their energy-efficient properties, such as better insulation and reflective roofing. These features reduce energy consumption in buildings, addressing the growing emphasis on energy efficiency and conservation.

Moreover, the U.S. government has implemented various initiatives and regulations promoting sustainable construction activities. Incentives, tax breaks, and stricter building codes for energy efficiency drive the adoption of this type of building materials.

In addition, there is growing demand from environmentally conscious consumers who prioritize sustainable and eco-friendly living. This demand influences builders and developers to use green materials, meeting consumers' expectations that value sustainability.

Such factors are expected to drive the U.S. market growth during the forecast period.

U.S. Green Building Materials Market Growth Factors

Increasing Renovation and Construction of New Infrastructure to Aid Market Growth

There is growing awareness and emphasis on sustainability and environmental conservation. As a result, both consumers and businesses are increasingly opting for construction materials that have a reduced environmental impact. Green building materials, such as recycled steel, reclaimed wood, and energy-efficient insulation, align with the principle of sustainable construction.

Furthermore, the demand for energy-efficient and environmentally friendly structures has increased. The product often contributes to improved energy efficiency and indoor air quality, aligning with a broader societal shift toward environmentally conscious practices.

Moreover, regarding environmental considerations, economic factors are driving the growth of this market. Long-term cost savings associated with energy-efficient materials and technologies make them attractive for both residential and commercial construction projects. As more property owners recognize the value of sustainable building in terms of reduced operational costs and increased property value, it will drive the demand for the product.

RESTRAINING FACTORS

High Capital Investment Related to the Product May Restrain Market Growth

High capital investment associated with the product is one of the major challenges faced by the market. Green building materials are alternatives to conventional building materials and, therefore, need to be of really good quality. Thus, these materials are quite expensive. In addition, very few companies in the market deal with green buildings and green building policies, as they need expertise on this topic. This significantly hinders the growth of the U.S. green building materials market.

U.S. Green Building Materials Market Segmentation Analysis

By Application Analysis

By application, the market is divided into insulation, roofing, flooring, and others.

 The roofing segment held the largest U.S. green building materials market share in 2022 and dominated the market during the forecast period. Due to the increasing adoption of green roofing materials. Green roofs are gaining traction as nature-based solutions (NBS) to address various environmental and socio-economic issues related to climate change.

The flooring segment is likely to grow significantly during the forecast period. The U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) certification system has significantly influenced the adoption of green building practices. Flooring materials that contribute to LEED points, such as those with recycled content or low VOC (volatile organic compound) emission, are favored in construction projects aiming for LEED certification.

The insulation segment is expected to witness moderate growth during the forecast period as it is an energy-saving measure that provides resistance to heat flow. Naturally, heat flows from a warmer room to a cooler one through the many surfaces in a building, such as ducts, roofs, walls, etc.

By End-use Industry Analysis

In terms of end-use industry, the market is bifurcated into non-residential and residential.

The residential segment is poised to dominate the market during the forecast period owing to the rising number of energy-efficient construction policies and building laws. Growing awareness about the environmental benefits of sustainable building materials and increasing adoption of sustainable building practices in the residential sector are the major factors further driving the growth of this segment.

The non-residential segment is expected to grow significantly during the forecast period due to the increasing need for sustainable and eco-friendly solutions.

List of Key Companies in U.S. Green Building Materials Market

With regard to the competitive landscape, the U.S. market showcases the presence of established and emerging producing companies. The major players include PPG Industries, Inc., BASF SE, Sika AG, Forbo International SA, and E. I. du Pont de Nemours and Company, among others. Industry players are competing in the price and application areas of the product. They are emphasizing product innovation, acquisitions, collaborations, and social marketing.

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:

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

REPORT COVERAGE

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The study report thoroughly examines key factors, such as leading companies, applications, and products. It also provides information on market trends and highlights significant industry advancements. The study includes different variables contributing to the market's growth in recent years. It examines the industry's newest market dynamics, opportunities, historical data, and revenue growth estimates at the country level.

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