The global green building materials market size was estimated at USD 192.3 billion in 2016, growing at a CAGR of 11.2% over the forecast period. Expanding construction activities and increasing government initiatives for the implementation of environmental-friendly and energy-efficient building standards is expected to drive growth.
Green building materials offer lower carbon footprint, thus reducing the impact of global warming. In addition, such installations are easy to maintain and consume less water during hardening. Growing demand for such materials owing to various monetary and environmental benefits as anticipated to propel the industry growth over the forecast period.
The demand from construction sector is expected to rise as the developers and consumers in North America lay high emphasis on cost-saving, environmental-friendly, and energy-efficient structures. Growth in the industry is also aided by the recovery in construction activity as demand for residential and commercial projects rebounds.
Increasing government focus on energy-efficiency and green buildings as a stimulus against recent global energy crisis is expected to influence the industry. Rising energy costs and elevation of the green building standards are the primary industry drivers. However, uneven enforcement of energy regulation and highly price-sensitive consumers may hamper the growth.
The industry exhibits low bargaining power of suppliers owing to the easy availability of raw materials and a large number of suppliers present in the industry. The manufacturers in the market opt for direct supply of product to the consumers or application industries. However, expansion on global scale by major companies has led to the existence of third-party distributors.
Structural products accounted for largest product segment, accounting for over 60% of total market share. This product segment is expected to grow at a CAGR of 11.4% over the forecast period owing increased efforts to reduce carbon emissions and provide superior durability at a lower cost.
Interior materials are estimated to be the second largest market on account of rising consumer awareness regarding the environmental benefits such as superior aesthetics, enhanced lightning, and improved indoor air quality. In addition, low cost of such products have assisted substitution of conventional products.
Insulation is estimated to be the largest application segment, which is expected to reach USD 85.9 billion by 2022, owing high levels of energy conservation. Increasing construction activities in the residential and commercial sector are expected to aid the growth of this segment in the forecast period.
Roofing emerged as the second largest application, followed by framing. Growing popularity of non-toxic recycled rubber roofing owing to its weather-resistance and superior durability is expected to drive the demand for such products in roofing applications.
North America is estimated to be the largest market for green building materials, accounting for over 35% of the total market share in 2016. This trend is expected to continue in the foreseeable future owing to the building codes and favorable policies regarding use of such products in the construction industry, coupled with increasing renovation activities.
Asia Pacific is expected to witness a CAGR of 12.0% over the forecast period, owing to the growing residential construction sector in the region. Paris climate agreement signed by India and China in order to restrain the climate change, coupled with increasing infrastructure development in the economies is expected to drive the demand for green building materials in the region.
The market exhibits a growing forward integration by raw material suppliers due to rising demand and high profit margins. In addition, the supportive regulations, various certifications and building codes are expected to promote the market growth, which is expected to result in an increase in the number of new entrants.
Regional dominance of key companies is expected to decrease owing to growing demand for imports. This trend is expected to continue over the next few years and is likely to propel the market growth. In addition, development of advanced products in the industry is expected to result in an increased adoption which is further expected to benefit the market.
This report forecasts revenue growth at global, and regional levels and provides an analysis on latest industry trends in each of the sub-segments from 2012 to 2022. For the purpose of this study, Grand View Research has segmented the global green building materials report on the basis of product, application, and region:
Product Outlook (Revenue, USD Billion, 2012 - 2022)
Application Outlook (Revenue, USD Billion, 2012 - 2022)
Regional Outlook (Revenue, USD Billion, 2012 - 2022)
Rest of the World
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