Green Building Materials Market Overview, 2024-29

Adoption of green building materials is rising dramatically as more and more countries place a premium on energy efficiency, sustainability, and environmental stewardship when it comes to building methods. Green construction materials are those that follow an ecologically conscious lifetime, starting with extraction and manufacture and continuing through installation, use, disposal, or recycling. They provide advantages, including less of an influence on the environment, more energy efficiency, better indoor air quality, and less resource use. This market includes a broad range of materials, such as low-emission materials, sustainable woods, water-saving fixtures, energy-efficient insulation, and recycled and recovered goods.

Driven by a growing awareness of climate change, resource scarcity, and the need for more sustainable building solutions, governments, corporations, and individuals are increasingly embracing green building materials. Policymakers worldwide are implementing regulations, standards, and incentives to promote the use of environmentally friendly materials in construction projects. This includes green building certifications, energy efficiency codes, tax incentives, and subsidies aimed at encouraging the adoption of sustainable building practices. Moreover, the desire to reduce operating costs, enhance occupant health and well-being, and meet evolving consumer preferences is propelling the demand for green building materials. Building owners, developers, and occupants are increasingly prioritising energy-efficient, non-toxic, and environmentally friendly materials that contribute to healthier indoor environments and lower long-term maintenance costs. This shift in consumer behaviour and market demand is driving innovation and investment in the development of new, sustainable building materials and technologies. Furthermore, the global construction industry's rapid growth and urbanisation are fueling the demand for green building materials. As populations grow and cities expand, there is a pressing need for sustainable infrastructure and buildings that can accommodate this growth while minimising environmental impact. Green building materials offer a way to address these challenges by providing environmentally responsible alternatives to conventional construction materials, reducing carbon emissions, and conserving natural resources.

According to the report “Global Green Building Materials Market Outlook, 2029,”, the market is anticipated to cross USD 580 Billion by 2029, increasing from USD 322.48 Billion in 2023. The market is expected to grow at a 10.69% CAGR by 2024-29. Green construction materials are in high demand as people become more conscious of environmental problems, including pollution, resource depletion, and climate change. Sustainability is becoming a top priority for companies, governments, and consumers and they are looking for ecologically friendly building materials.

Growing concerns about indoor air quality and occupant health drive demand for green building materials that minimise exposure to harmful chemicals and pollutants. Materials with low volatile organic compound (VOC) emissions and improved indoor air quality contribute to healthier indoor environments, enhancing occupant well-being. Furthermore, green building materials often offer long-term cost savings through energy efficiency, reduced maintenance requirements, and operational savings. Building owners and developers are attracted to materials that help lower utility bills, decrease maintenance costs, and improve the overall return on investment. Businesses and organisations seek to differentiate themselves and enhance their brand reputation by adopting sustainable building practices. Using green building materials demonstrates a commitment to environmental stewardship and sustainability, appealing to environmentally conscious consumers and stakeholders. Government incentives, subsidies, and policies play a significant role in driving demand for green building materials. Measures such as tax credits, grants, and rebates encourage investment in sustainable construction practices and incentivize the use of environmentally friendly materials. Rapid urbanisation and population growth increase the demand for infrastructure and buildings. Green building materials offer sustainable solutions to accommodate urban expansion while minimising environmental impact, driving their adoption in construction projects worldwide.

Market Drivers

• Environmental Awareness: Growing environmental awareness and concerns about climate change, resource depletion, and pollution have fueled demand for green building materials. Stakeholders across the construction industry, including developers, architects, and consumers, are increasingly prioritising sustainability and seeking environmentally friendly alternatives to traditional materials. Green building materials offer benefits such as reduced carbon footprints, energy efficiency, and conservation of natural resources, aligning with broader sustainability goals and driving market growth.
• Health and Well-being:The emphasis on health and well-being in built environments has emerged as a significant driver of the global green material market. Building occupants are increasingly aware of the impact of indoor air quality, exposure to toxins, and the overall health implications of the built environment. Green building materials, such as low-VOC paints, formaldehyde-free insulation, and natural, non-toxic finishes, promote healthier indoor environments by minimising harmful emissions and enhancing indoor air quality. The focus on occupant health and well-being has led to greater demand for green materials that support healthier living and working spaces, driving innovation and market expansion in the green building sector.

Market Challenges

• Availability and Supply Chain Issues: One of the significant challenges facing the global green material market is the availability and complexity of the supply chain. Green building materials often require sourcing from renewable or sustainable sources, which can be limited in availability or subject to fluctuations in supply. Additionally, the production and distribution of green materials may involve multiple stakeholders and processes, leading to challenges in ensuring consistent quality, quantity, and delivery timelines. Supply chain issues such as transportation constraints, raw material shortages, and logistical complexities can impact the availability and accessibility of green materials, hindering market growth and adoption.
• Resistance to Change: Resistance to change within the construction industry and among stakeholders is another key challenge for the global green material market. Despite the growing awareness of sustainability issues and the benefits of green building materials, there can be a reluctance to adopt new practices, technologies, or materials due to various factors. These may include concerns about higher upfront costs, perceived risks or uncertainties associated with green materials, a lack of awareness or understanding, and resistance to changing traditional construction practices. Overcoming resistance to change requires concerted efforts to educate stakeholders, demonstrate the value proposition of green materials, address misconceptions, and incentivize adoption through policy measures, financial incentives, and market-driven initiatives.

Based on type, the market can be categorised by structural, exterior, interior, or others. Furthermore, based on end users, the market can be categorised as residential or non-residential.

Interiors contribute to the market, and buildings' interior environmental quality (IEQ) is becoming more and more important due to worries about the comfort, productivity, and health of their occupants. Interior green construction materials are becoming more and more in demand since they improve air quality and general occupant well-being. Examples of these materials include low-VOC (volatile organic compound) paints, formaldehyde-free furniture, and sustainable flooring solutions. Growing consumer awareness of environmental issues, health concerns, and sustainability is influencing purchasing decisions, including for interior building materials.

Consumers are seeking products that align with their values, opting for eco-friendly, non-toxic, and sustainable options for their homes and workplaces, thus driving demand for interior green materials. Furthermore, the non-residential market is growing globally; governments are enforcing strict laws and providing incentives to encourage the use of sustainable building techniques in non-residential structures. Green building strategies and materials are being incorporated into non-residential buildings by developers, architects, and building owners thanks to green building certification programmes, energy efficiency regulations, tax incentives, and subsidies. Growing awareness among consumers, tenants, and building occupants about the environmental and health benefits of green buildings is driving demand for sustainable non-residential structures. Businesses, governments, and institutions are increasingly seeking out green-certified buildings and spaces due to their lower operating costs, improved occupant health and productivity, and positive brand image. This demand is pushing developers and builders to use green building materials in non-residential construction to meet market preferences and differentiate their properties.

Based on application, the market can be categorised by roofing, insulation, framing, flooring, interior, and other applications.

Flooring contributes to the market, and the need for sustainable and environmentally friendly flooring materials is rising as people become more conscious of environmental problems. Compared to conventional materials like vinyl and carpeting, green flooring solutions like bamboo, cork, linoleum, recycled tile, and reclaimed wood are made of renewable resources and have less of an adverse effect on the environment. Flooring alternatives that minimise resource depletion, decrease emissions, and promote healthier interior environments are becoming more and more important to consumers, architects, and builders.

Flooring materials can have a significant impact on indoor air quality, as they can emit volatile organic compounds (VOCs) and other harmful chemicals. Green flooring materials are often manufactured using low-VOC or no-VOC adhesives, finishes, and sealants, reducing indoor air pollution and creating healthier indoor environments. This focus on indoor air quality is particularly important in commercial buildings, healthcare facilities, schools, and residential spaces where occupants spend significant amounts of time indoors. Green flooring materials are often chosen for their durability and longevity, which contribute to sustainability by reducing the need for frequent replacements and minimising waste. Materials such as bamboo and hardwood are known for their strength and resilience, while options like porcelain tile and natural stone offer exceptional durability and require minimal maintenance. Investing in durable flooring materials can result in cost savings over the lifecycle of a building and reduce the environmental footprint associated with flooring maintenance and replacement.

Based on the report, the five regions covered in the report include North America, Europe, Asia Pacific, South America, the Middle East, and Africa.

Asia Pacific is a growing market. Rapid urbanisation is occurring in the Asia-Pacific region as more people choose to live in cities. Construction activities have surged as a result of this trend, encompassing the creation of infrastructural, commercial, and residential developments. Sustainable development and green building techniques are becoming more and more important as cities grow in order to solve resource consumption issues, address environmental concerns, and lessen the negative environmental effects of urbanisation. Governments across the Asia-Pacific region are implementing policies, regulations, and incentives to promote sustainable construction practices and green building certification programs.

These initiatives aim to encourage developers, builders, and architects to adopt green building materials and technologies, improve energy efficiency, reduce greenhouse gas emissions, and enhance overall environmental performance in the built environment. Incentives such as tax credits, grants, and subsidies for green building projects further drive the adoption of sustainable building materials in the region. Increasing awareness of environmental issues, climate change, and resource depletion is influencing consumer preferences, corporate sustainability strategies, and industry standards in the Asia-Pacific region. Consumers, businesses, and governments are becoming more conscious of the environmental impact of construction materials and are seeking alternatives that are environmentally friendly, energy-efficient, and socially responsible. Green building materials offer sustainable solutions that align with these values and contribute to a more environmentally sustainable built environment.

The market for green building materials will expand even more as a result of major market players spending heavily in R&D to expand their product lines. In addition, market participants are launching new products, entering into contracts, acquiring companies, increasing investments, and working with other organizations, among many other significant market changes, in an effort to expand their global footprint. In order to expand and survive in a market that is becoming increasingly competitive and growing, competitors in the green building materials industry must offer products at an affordable price.

For instance, in October 2022, A significant provider of building solutions and material circularity in the UK, Wiltshire Heavy Building Materials was acquired by Holcim. The green building materials market in the United Kingdom will benefit from Holcim's increased market position thanks to this acquisition. in August 2022, A manufacturer and distributor of external building materials in Canada and the US, Kaycan, was purchased by Saint-Gobain. With this acquisition, Saint-Gobain increased its market dominance in light and sustainable building, taking over as the dominant siding provider in Canada and broadening its vinyl product line across the United States with complementing solutions in aluminum and engineered wood.

• October 2022: Holcim acquired Wiltshire Heavy Building Materials, one of the leading companies providing building solutions and material circularity in the United Kingdom. This acquisition will strengthen Holcim's market presence in the United Kingdom's green building materials market.
• August 2022: Saint-Gobain acquired Kaycan, a manufacturer and distributor of exterior building materials in Canada and the United States. Saint-Gobain strengthened its global leadership in light and sustainable construction with this acquisition, becoming the leading player for sidings in Canada and expanding its vinyl offering across the United States with complementary solutions in aluminum and engineered wood.
• January 2022: Binderholz GmbH acquired the UK-based sawmill group, BSW Timber Ltd, which is a subsidiary of the Austrian Binderholz Group. BSW Timber Ltd produces more than 1.2 million cu. m of sawn timber per annum. This acquisition made Binderholz GmbH the largest sawmill and solid wood processing company in Europe.
• 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.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year:2029

Aspects covered in this report

• Green Building Materials market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Structural
• Exterior
• Interior
• Others

By End Users

• Residential
• Non-Residential

By Applications

• Roofing
• Insulation
• Framing
• Flooring
• Interior
• Other Applications

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Green Building Material industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.