Green Construction Market is Anticipated to Witness High Growth Owing to Rising Environment Concerns

Author : Leena Shedmake | Published On : 04 Mar 2024

Green construction refers to the practice of increasing the efficiency of construction and design processes to reduce resource consumption, minimize waste, and ensure maximum building performance after completion of the project. Some of the green construction techniques include using eco-friendly construction materials such as natural paints and pigments, recycled wood, bamboo, and natural stone. It also involves adopting energy-efficient equipment and renewable energy sources including solar panels and geothermal heat pumps for lighting, heating, ventilation, and air conditioning (HVAC). The rising need to reduce environmental impact and generate construction waste has propelled the demand for green building practices globally.

The Global green construction market is estimated to be valued at US$ 420.89 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024 to 2030.

 

Key Takeaways

 

Key players operating in the green construction market are JVC Kenwood Corporation, Tait Ltd., Thales Group S.A., Nokia Networks B.V., Raytheon Company, RELM Wireless Corporation, Airbus DS Communications, Inc., Motorola Solutions Inc., Harris Corporation & Hytera US Inc. These players are focusing on adopting organic and inorganic growth strategies such as new product launches, partnerships, and acquisitions to strengthen their positions in the market.

 

Some of the key opportunities in the green construction market include rising investments in sustainability initiatives by public and private organizations, growing demand for net-zero energy buildings to reduce carbon footprint, and increasing funding and incentives by governments for green infrastructure development.

 

The green construction market is expanding globally with companies focusing on emerging economies in Asia Pacific, Middle East, and South America. Countries such as China, India, UAE, and Brazil are witnessing significant construction activities and implementing stringent regulations to promote sustainable building practices, which is creating new revenue avenues for market participants.

 

Market Drivers

 

Stringent government regulations regarding energy efficiency in buildings: Growing environmental concerns have compelled governments across the world to introduce stringent norms and policies mandating the use of sustainable construction materials and technologies in new builds. Non-compliance can result in heavy penalties, driving adoption of green building practices.

 

Rising energy costs and need for cost savings: Green Construction Market Demand techniques such as cool roofs, efficient lighting and HVAC systems, and on-site power generation using renewable sources help save on long-term energy costs for builders and occupants. This is a major driver for stakeholders to invest in green construction.

 

Market Restraints

 

High initial costs: Retrofitting an existing building or developing new green infrastructure requires higher upfront investments in advanced insulation materials, renewable energy integration, sustainable ventilation, etc. This increases project costs.

 

Lack of consumer awareness: Limited awareness among property owners and end-users regarding the long-term environmental and financial benefits of green buildings acts as a restraint on the market growth.

 

Segment Analysis

The green construction market has various segments based on type which includes exterior products and interior products. Exterior products form the dominating sub segment owing to their wide applications in roofs, walls and others. Major construction activities focuses on exterior components which drives the demand for green exterior products.

 

The interior products segment includes recycled & energy efficient floors, green and sustainable insulation, acoustic insulation and others. Though the demand is increasing for interior green products, exterior segment dominates currently.

 

Global Analysis

Regionally, Europe dominates the global green construction market currently with over 30% share due to stringent regulations and initiatives towards green buildings in countries like Germany, UK and France. Asia Pacific registers the fastest growth during the forecast period attributed by increased construction spending on green infrastructure in developing economies like China and India. North America accounts for a significant share and is expected to grow at a steady rate backed by development of low carbon buildings and rehabilitation of existing buildings. Latin America and Middle East & Africa show promising growth opportunities by the end of forecast period due to growing environmental awareness and sustainable construction activities in the regions.

 

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