Green Building Materials Market Size, Share & Trends Analysis Report By End-use (Residential, Commercial, Industrial), By Product (Exterior Products, Interior Products, Building Systems, Solar Products), By Region, And Segment Forecasts, 2025 - 2030

Green Building Materials Market Trends

The global green building materials market size was valued at USD 26.6 billion in 2024 and is anticipated to grow at a CAGR of 10.4% from 2025 to 2030. The growth is driven by rising awareness regarding climate change, government regulations encouraging sustainable construction practices, and an increasing demand for energy-efficient buildings. Moreover, advancements in building technologies, such as energy-efficient systems, smart building solutions, and renewable materials, such as cross-laminated timber, enhance the sustainability and efficiency of construction projects, thereby favoring market growth.

The market is expected to experience robust growth driven by the escalating need for sustainable building practices. As climate change intensifies, there is a growing emphasis on reducing carbon footprint and enhancing energy efficiency in the construction sector. This shift aligns with global initiatives promoting sustainable development, which is likely to increase investments in green building materials.

Advancements in technology are paving the way for innovative materials that offer improved performance & functionality and attract stakeholders to the market. According to an article published by the World Economic Forum in September 2024, innovative building practices and materials are adept at reducing carbon emissions, as buildings contribute to nearly 40% of global energy-related emissions. Homebuyers and tenants increasingly seek properties that reduce utility costs and contribute positively to the environment.

Strategic partnerships and collaborations within the construction industry are anticipated to play a pivotal role in shaping the future of the green building materials market. Companies can leverage each other's strengths, share resources, and innovate more effectively. This collaborative approach is expected to enhance product offerings and improve supply chain efficiencies, making sustainable materials accessible across various construction sectors.

Product Insights

The exterior products segment dominated the market with the largest revenue share of 36.4% in 2024 due to the increased environmental awareness and demand to construct energy-efficient buildings. Exterior products provide long-term economic benefits by reducing energy costs and enhancing the durability of buildings. Innovations in materials, including transparent wood and hydroceramics, significantly improve performance and functionality, offering strength, durability, and thermal resistance. An article published by ArchDaily in October 2022 stated that Terracom specializes in Exterior Insulation Finishing Systems (EIFS) in the construction industry and helps improve energy efficiency in older buildings, reduce carbon footprints, and enhance air quality by minimizing condensation and dampness.

The solar products segment is expected to grow at the fastest CAGR over the forecast period, driven by technological advancements in solar technology. The increasing awareness regarding climate change and the need for sustainable energy sources are expected to drive the demand for solar products, which help reduce reliance on fossil fuels and lower carbon emissions. Innovations in solar technology, including improved photovoltaic panels and energy storage solutions, have enhanced the efficiency and effectiveness of solar systems, making them more appealing for construction projects.

End-use Insights

The residential end use segment dominated the market with the largest revenue share of 54.0% in 2024. This is attributed to the increasing demand for eco-friendly resources by homeowners and ongoing innovations in technology and materials. Thermochromic, photovoltaic, and chromogenic smart materials enhance sustainability and energy efficiency in residential construction projects. Furthermore, green building materials help homeowners achieve long-term cost savings with reduced energy bills and lower maintenance costs.

The commercial end use segment is expected to grow significantly at the fastest CAGR over the forecast period, driven by government regulations such as stricter building codes that promote sustainable materials and encourage compliance with energy efficiency standards. For instance, in September 2024, the U.S. Green Building Council collaborated with various organizations to focus on enhancing energy efficiency, reducing carbon emissions, and supporting sustainable infrastructure development. This emphasizes the importance of federal support for green building initiatives to address climate change and improve public health through better building practices in the commercial sector.

Regional Insights

The North America green building materials market held the largest revenue share of 31.2% in 2024. This is attributed to the demand for sustainability and energy efficiency, driven by increased consumer awareness and environment-friendly construction practices. In addition, the commercial sector in the region has experienced growth with companies such as Holcim and PPG Industries, Inc., recognizing the long-term cost savings and environmental impacts associated with sustainable building practices. For instance, in March 2024, Holcim introduced ECOAsh, an ash product derived from landfill materials, which is part of its commitment to sustainability and low-carbon construction. It enhances cement and concrete applications, helping reduce the carbon footprint of building materials while promoting the recycling of industrial byproducts.

U.S. Green Building Materials Market Trends

The U.S. green building materials market dominated North America with the largest revenue in 2024, driven by the demand for sustainable construction practices as more individuals prioritize eco-friendly living and seek to reduce their environmental impact. Government initiatives, such as tax incentives and stricter building codes to promote energy efficiency, also encourage the adoption of green materials in construction projects. Furthermore, the focus on reducing greenhouse gas emissions and improving indoor air quality is prompting builders and developers to incorporate sustainable materials into their designs, further supporting the growth of the green building materials market.

Asia Pacific Green Building Materials Market Trends

The Asia Pacific green building materials market is expected to grow at the fastest CAGR over the forecast period. This can be attributed to rapid urbanization and population growth, which creates a high demand for sustainable construction solutions to address environmental concerns. Government initiatives and regulations promoting eco-friendly practices further encourage the adoption of green materials. Countries such as China, India, and Japan implement strict building codes and offer incentives for sustainable construction. In addition, increasing consumer awareness regarding the health benefits associated with green buildings is driving demand for materials that improve indoor air quality and the overall well-being of occupants.

The China green building materials market dominated Asia Pacific with the largest revenue share in 2024. This growth is attributed to urbanization and the surging demand for energy-efficient buildings, as the construction sector accounts for a large portion of the country's energy consumption and emissions. For instance, BASF emphasizes using environment-friendly products, such as MasterSeal waterproofing systems, concrete industrial flooring, and fine stone insulation systems, which enhance energy efficiency and reduce maintenance costs while meeting stringent sustainability standards such as DGNB and LEED.

Europe Green Building Materials Market Trends

The Europe green building materials market is expected to grow at the fastest CAGR over the forecast period. This can be attributed to various government initiatives, including a report by the European Environment Agency (EEA), which emphasizes smart renovations using sustainable building materials to enhance the sustainability of Europe’s housing sector significantly. The housing sector in Europe currently contributes to over 30% of the region’s environmental footprint, thereby promoting the need to renovate existing buildings to improve energy efficiency and climate resilience.

Key Green Building Materials Company Insights

The global green building materials market is driven by several key companies, including Amvic Inc.; PPG Industries, Inc.; Alumasc Group plc; BASF; Binderholz GmbH; GreenPatch (Cold Mix Manufacturing Corp.); and Owens Corning.

• Amvic Inc. specializes in manufacturing environmentally friendly building materials, particularly expanded polystyrene (EPS) products. The company offers innovative solutions, such as insulated concrete forms and radiant heat flooring, which enhances energy efficiency and sustainability in residential and commercial construction, aligning with the growing demand for green building materials.

• PPG Industries, Inc. specializes in paints, coatings, and specialty materials. The company focuses on creating energy-efficient solutions, such as UV/EB-curable coatings and sustainably advantageous products, that enhance the durability and lifespan of structures, contributing to reduced environmental impact in both residential and commercial construction.

 Recent Developments

• In September 2024, BASF partnered with Takazuri to develop sustainable construction solutions in East Africa. This partnership focuses on climate resilience and utilizing locally sourced post-consumer materials through Takazuri's Climatile technology. This collaboration aims to create durable building products that improve indoor temperature, enhance solar reflectance, and support rainwater harvesting while addressing the growing demand for eco-friendly construction amid rising plastic waste.

Green Building Materials Market Report Scope

Global Green Building Materials Market Report Segmentation

This report forecasts revenue growth of the global green building materials market and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global green building materials market report based on product, end-use, and region:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Exterior Products

  • Interior Products

  • Building Systems

  • Solar Products

  • Others

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Residential

  • Commercial

  • Industrial

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

  • Asia Pacific

    • India

    • Japan

    • China

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • Saudi Arabia