U.S. Carbon-Sequestering Building Materials Market - By Material Technology, Building Component, End Use Sector, Construction Type, Industry Analysis, Share, Growth Forecast 2025 - 2034

U.S. Carbon-Sequestering Building Materials Market Size

The U.S. carbon-sequestering building materials market was estimated at USD 3.9 billion in 2024. The market is projected to grow from USD 4.3 billion in 2025 to USD 12 billion by 2034, registering a CAGR of 12.1% during the forecast period, according to Global Market Insights Inc.

• The U.S. carbon-sequestering building materials market is driven by a combination of federal policies, technological advancements, and increasing demand for sustainable construction practices. Government initiatives, such as the Inflation Reduction Act and state-level green building codes, are key drivers promoting the adoption of carbon-sequestering materials. These policies aim to reduce greenhouse gas emissions and encourage the use of eco-friendly materials in construction projects. Additionally, tax incentives and grants for sustainable building practices further support market growth.
   
• Technological advancements in carbon-sequestering materials, including bio-based and mineral-based solutions, have significantly improved their performance and cost-effectiveness. Innovations such as carbon-negative concrete, biochar-enhanced insulation, and advanced carbon-capture technologies are gaining traction among construction firms. These developments not only enhance the materials' carbon-sequestration capabilities but also make them more competitive compared to traditional building materials.
   
• Rising awareness of climate change and the environmental impact of conventional construction materials is another critical factor driving market growth. Architects, developers, and consumers are increasingly prioritizing sustainability in construction projects. The growing adoption of green building certifications, such as LEED and WELL, further incentivizes the use of carbon-sequestering materials. This trend is expected to continue, with demand for sustainable construction solutions increasing over the forecast period.
   
• Economic factors also contribute to the market's expansion. The declining costs of carbon-sequestering materials, driven by economies of scale and technological advancements, make them more accessible to builders. Additionally, the rising costs associated with carbon emissions and potential penalties encourage the adoption of low-carbon alternatives.
   
• California leads the U.S. market due to its stringent environmental regulations and large-scale adoption of green building practices. Texas is the fastest-growing state, driven by rapid urbanization and increasing investments in sustainable construction projects.
   

U.S. Carbon-Sequestering Building Materials Market Trends

The construction industry in the United States is increasingly prioritizing sustainability, driven by stringent environmental regulations and a societal shift towards eco-consciousness. This trend has led to heightened demand for carbon-sequestering building materials that reduce the overall carbon footprint of construction projects. Developers and architects are opting for innovative materials that actively capture and store CO2 aligning with the United States' climate goals and green building standards such as LEED certification. This shift is fostering innovation in material formulations and encouraging the adoption of new construction methodologies.
 

Emerging technologies, including bio-based and mineral carbonation methods, are revolutionizing the development of carbon-sequestering building materials. Companies are investing in research to create more efficient, cost-effective, and durable materials that can actively absorb carbon during manufacturing or use. These technological advancements not only enhance environmental benefits but also improve the structural performance of building materials, making them more attractive to a broad range of stakeholders.
 

The evolving regulatory landscape in the United States, with stricter building codes and incentives for low-carbon construction, is significantly influencing market growth. Policies such as tax credits for green building materials and mandates for carbon reduction in construction projects are encouraging manufacturers to innovate and scale up production of carbon-sequestering materials. This regulatory push is expected to accelerate market adoption and foster a competitive environment for sustainable building solutions.
 

Modern consumers and property developers in the United States are increasingly valuing sustainability and environmental responsibility. This shift in customer expectations is driving demand for buildings that not only meet energy efficiency standards but also incorporate materials that actively sequester carbon. As awareness grows, the market is witnessing a preference for transparent, verifiable carbon sequestration claims, prompting companies to adopt standardized testing and certification processes.
 

The adoption of digital tools such as Building Information Modeling (BIM) and life cycle assessment software is enabling stakeholders to better evaluate and optimize the carbon sequestration potential of building materials. These technologies facilitate transparent tracking of carbon savings, support sustainable design decisions, and enhance market confidence in the efficacy of carbon-sequestering materials. As digital integration becomes more prevalent, it will further accelerate innovation and adoption in this segment.
 

U.S. Carbon-Sequestering Building Materials Market Analysis

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Based on material technology, the market is segmented into bio-based carbon storage materials, timber and engineered wood products, hemp-based materials (such as hempcrete, hemp insulation panels, hemp-lime composites), mycelium composites, cattail (typha) materials, mineral-based carbon capture materials, bio-concrete and carbon-capturing concrete, biochar-enhanced materials, carbon fiber composites, hybrid and advanced materials, wood-mycelium composites, plant-based carbon fiber systems, and multi-material integrated solutions. Among these segments, timber and engineered wood products are projected to grow from approximately USD 1.3 billion in 2024, reflecting a compound annual growth rate of around 12.3% through 2034, driven by increasing demand for sustainable, low-carbon building materials and advancements in engineered wood technologies.
 

• The timber and engineered wood products segment is a significant driver in the U.S. carbon-sequestering building materials market due to their high carbon storage capacity, structural advantages, and continuous innovations that enhance durability, ease of installation, and overall performance. Technological advancements in engineered wood, such as cross-laminated timber (CLT) and glulam, have improved product versatility and safety, making them increasingly popular in sustainable construction. Growth is further supported by favorable pricing trends stemming from manufacturing efficiencies and expanding supply chains, although competition from alternative low-carbon materials remains a challenge.
   
• Bio-based carbon storage materials, including bio-concrete and biochar-enhanced products, are gaining momentum due to their innovative ability to capture carbon during production and use. These materials appeal to environmentally conscious builders and developers but face challenges related to scalability, long-term performance validation, and higher upfront costs. Addressing these issues through technological advancements and cost reductions will be crucial for wider adoption.
   
• Mycelium composites and cattail (typha) materials are emerging as eco-friendly alternatives, offering benefits such as insulation properties and biocompatibility. However, their broader market adoption is constrained by the need for further development to enhance mechanical strength, durability, and cost competitiveness compared to traditional materials. Continued research and development are essential to unlock their potential in the construction sector.
   
• Mineral-based carbon capture materials, such as mineral carbonation products, utilize established technology but must demonstrate cost competitiveness and seamless integration with existing construction practices to expand their market share. While their performance benefits are acknowledged, economic and logistical challenges remain significant barriers.
   
• Hybrid and advanced materials, including carbon fiber composites and multi-material solutions, offer superior performance, lightweight properties, and customization options that appeal to high-end construction projects. However, their higher production costs and complexity can limit mass market adoption. Innovations aimed at reducing costs and simplifying production processes will be critical to increasing their market penetration.
   

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In the U.S. market, the building components market is segmented into structural components, foundation and basement systems, load-bearing walls and columns, floor and ceiling systems, building envelope systems, interior systems, and infrastructure components. Among these, structural components hold the largest revenue share, accounting for approximately 29.5% of the total market in 2024 and is projected to grow at a CAGR of over 11.9% from 2025 to 2034. This dominance is attributed to the critical role structural elements play in ensuring building stability and safety, coupled with the rising demand for sustainable and innovative structural solutions that incorporate carbon-sequestering materials. The growth trajectory reflects ongoing technological advancements, the integration of eco-friendly materials, and the emphasis on resilient construction practices across the U.S. construction industry.
 

• Structural components in the U.S. are experiencing rapid growth due to innovations in sustainable and high-strength materials such as engineered timber and fiber-reinforced composites. These materials enhance durability and environmental performance, aligning with the industry’s shift towards eco-friendly construction. However, high manufacturing and installation costs, along with the need for specialized expertise, pose challenges to widespread adoption. The increasing demand for resilient structures in earthquake-prone and climate-affected regions further fuels growth, but market penetration is sometimes limited by traditional construction practices and price sensitivity.
   
• The foundation and basement systems segment in the U.S. is expanding due to technological advancements in waterproofing, soil stabilization, and insulation solutions that extend building lifespan and improve energy efficiency. Innovations such as chemical grouts and composite materials provide superior performance, but the high costs associated with these advanced systems can restrict adoption, especially in cost-sensitive regions. Additionally, installation complexities and varying soil conditions across the U.S. influence growth, requiring tailored solutions that can increase project timelines and expenses.
   
• Growth in load-bearing walls and columns in the U.S. is driven by the adoption of modular, prefabricated, and lightweight materials that reduce construction time and labor costs. These innovations enable faster project completion and greater design flexibility, appealing to modern construction demands. Challenges include ensuring compatibility with diverse architectural designs and maintaining structural integrity over time. Price fluctuations of raw materials like steel and concrete also impact the cost-effectiveness of these components, influencing overall market dynamics.
   
• The U.S. market for floor and ceiling systems is propelled by innovations in lightweight, insulating, and soundproofing materials that support energy efficiency and occupant comfort. Modular and customizable solutions are gaining popularity, especially in commercial and residential sectors. Nonetheless, price competition from traditional materials and concerns over long-term durability can hinder adoption. Additionally, integrating smart technologies for automated controls and enhanced performance presents both opportunities and technical challenges.
   
• Building envelope systems in the U.S. are increasingly integrating smart, energy-efficient materials such as dynamic insulation and reflective coatings that optimize thermal performance and reduce energy consumption. The trend towards sustainable building certifications accelerates demand. However, higher initial costs and the need for specialized installation techniques can act as barriers. Compatibility with existing structures and regulatory standards also influence market growth, requiring ongoing innovation to balance performance with affordability.
   
• Interior systems in the U.S. are evolving with eco-friendly finishes, modular partitions, and advanced insulation solutions that improve indoor air quality and energy efficiency. The focus on aesthetics combined with sustainability drives innovation, but durability and maintenance costs of new materials can pose challenges. Moreover, rapid changes in interior design trends demand adaptable solutions, which can increase complexity and costs for manufacturers and consumers alike.
   
• Infrastructure components in the U.S. are expanding with durable, low-maintenance, and environmentally sustainable materials designed for urban development projects. Innovations such as corrosion-resistant metals and recycled composites support infrastructure longevity and sustainability goals. However, challenges include scaling these advanced materials for large infrastructure projects and aligning with regional standards and regulations. Cost and supply chain considerations also influence the pace of adoption in this segment, despite the growing emphasis on resilient urban infrastructure.
   

In the U.S. carbon-sequestering building materials market, based on the end use sector, the market is segmented into residential buildings, commercial buildings, industrial buildings, and public infrastructure. The residential buildings segment holds a market size of USD 712.1 million in 2024 and is expected to grow at over 11.4% CAGR through 2034. The residential buildings segment is primarily driven by increasing urbanization, a rising demand for sustainable and energy-efficient homes, and advancements in carbon-sequestering construction technologies that improve insulation and durability. These factors contribute to the sector’s growth, although high initial costs and strict regulatory requirements present challenges that could impact rapid market expansion.
 

• The commercial buildings sector in the U.S. carbon-sequestering building materials market benefits from ongoing modernization efforts, including the adoption of smart building technologies and carbon-sequestering materials designed to enhance occupant comfort and operational efficiency. Despite these opportunities, the sector faces pricing pressures and the need for scalable, cost-effective solutions to meet the demands of large-scale projects, which can influence the pace of growth.
   
• Industrial buildings in the U.S. are distinguished by the demand for high-performance, durable, and carbon-sequestering materials capable of withstanding harsh environmental conditions. Innovation in construction methods and materials is a key driver here, although fluctuating raw material prices and the necessity for rapid construction processes pose challenges that could affect sector growth.
   
• Public infrastructure projects in the U.S. are propelled by government investments aimed at developing sustainable and resilient infrastructure using carbon-sequestering materials. However, bureaucratic delays, budget constraints, and lengthy approval processes can hinder project implementation. The sector’s growth is also influenced by the emphasis on innovative, cost-effective solutions that meet public safety and environmental standards while reducing carbon emissions.
   

In the U.S. market, the construction type is segmented into new construction and renovation and retrofitting. New construction held approximately 60.7% of the total market in 2024 and is projected to grow at a CAGR of over 8.9% from 2025 to 2034.
 

• The new construction segment in the U.S. is driven by ongoing urban development, infrastructure expansion, and the rise in residential and commercial projects. These factors create a consistent demand for innovative building materials and technologies. Growth in this segment is further supported by the adoption of advanced construction methods that enhance efficiency, safety, and sustainability. However, challenges such as high initial costs and extended project timelines may hinder the adoption of new construction solutions.
   
• Renovation and retrofitting account for the remaining market share, focusing on upgrading existing structures to comply with modern standards for energy efficiency, safety, and performance. Key drivers in the U.S. include aging infrastructure, stricter regulatory requirements, and the growing emphasis on sustainable upgrades. While renovation projects often encounter challenges like structural complexity, limited space, and higher per-project costs, advancements in lightweight and adaptable materials are facilitating retrofitting efforts. Pricing dynamics in this segment are shaped by the demand for cost-effective solutions that integrate seamlessly into existing structures, prioritizing performance improvements with minimal disruptions.
   

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California dominated the U.S. carbon-sequestering building materials market with around 34.7% share and generated USD 338.4 million revenue in 2024. The market is driven by ongoing urban development projects and technological advancements in carbon sequestration methods.
 

• Texas’s market is experiencing a CAGR of approximately 11.5% till 2034, fueled by its focus on eco-friendly construction initiatives and a high rate of adoption of innovative building materials. The state’s emphasis on renewable energy integration and sustainable urban planning further boosts demand for carbon-sequestering materials, especially in residential and commercial sectors.
   
• With a CAGR of about 11.8% through 2034, New York’s market growth is mainly driven by its strong real estate and construction sectors adopting green building solutions. The state’s proactive policies supporting environmental sustainability and advancements in material technology contribute to steady expansion in the region.
   
• Florida’s market is growing at a CAGR of over 10.2% till 2034, supported by government incentives for sustainable construction and increased adoption of carbon-reducing materials in new projects. The region’s focus on renewable energy and green infrastructure development also plays a significant role.
   
• Illinois exhibits a CAGR of approximately 11.4% up to 2034, with growth driven by urbanization and modernization efforts in Chicago and neighboring metropolitan areas. The increasing emphasis on energy-efficient buildings and green certifications encourages the adoption of carbon-sequestering building materials.
   
• The combined market in Pennsylvania and Illinois expanding at a CAGR of around 11% till 2034, largely due to state-led initiatives promoting sustainable urban development, green building standards, and innovative construction techniques. The region’s focus on eco-conscious infrastructure investments supports this growth trajectory.
   
• Georgia’s market is experiencing a CAGR near 10.3% till 2034, driven by technological innovation and a focus on sustainable manufacturing practices. The state’s investment in research and development of new carbon-sequestration materials further bolsters its market expansion.
   
• Collectively, the remaining states are observing a CAGR of approximately 11.5% from 2025 to 2034, influenced by national policies, increased environmental awareness, and a growing trend toward sustainable construction across the United States. These regions are gradually adopting carbon-sequestering solutions, supported by governmental incentives and technological advancements.
   

U.S. Carbon-Sequestering Building Materials Market Share

The U.S. carbon-sequestering building materials industry is experiencing robust growth, driven by the increasing demand for sustainable construction solutions. Key players in this market include CarbonCure Technologies, LP Building Solutions, Heidelberg Materials, Solidia Technologies, Hempitecture, CleanFiber, Terra CO2 Technology, Blue Planet Systems, CarbonBuilt, Fortera, Carbo Culture, Sublime Systems, Ecovative, Prometheus Materials, and Brimstone. The top 7 companies—CarbonCure Technologies, LP Building Solutions, Heidelberg Materials, Solidia Technologies, Hempitecture, CleanFiber, and Terra CO2 Technology—collectively account for approximately 48.7% of the market share. These companies leverage their expertise, innovative technologies, and strong distribution networks to meet the growing demand for eco-friendly building materials in the U.S. market.
 

• CarbonCure Technologies: CarbonCure leads in carbon-sequestering concrete solutions, utilizing CO2 injection technology to reduce the carbon footprint of concrete production. The company collaborates with concrete producers and government agencies to expand its market presence and address the rising demand for sustainable construction materials.
   
• LP Building Solutions: LP Building Solutions focuses on engineered wood products that provide sustainable alternatives to traditional building materials. The company invests in R&D to enhance product performance and durability while maintaining environmental sustainability. Its extensive distribution network strengthens its position in the U.S. market.
   
• Heidelberg Materials: Heidelberg Materials leverages acquisitions and collaborations to expand its footprint in sustainable construction. The company prioritizes R&D to develop high-performance carbon-sequestering materials that comply with evolving regulatory standards. Its focus on digital manufacturing and supply chain optimization enhances its competitive edge.
   
• Solidia Technologies: Solidia specializes in low-carbon cement and concrete solutions, utilizing an innovative curing process that reduces CO2 emissions while improving product performance. The company collaborates with construction firms and regulatory bodies to promote its sustainable solutions across the U.S. market.
   
• Hempitecture: Hempitecture develops hemp-based building materials, including hempcrete and insulation products, catering to the growing demand for eco-friendly construction. The company emphasizes regional manufacturing and supply chain efficiency to strengthen its market position.
   
• CleanFiber: CleanFiber produces cellulose insulation from recycled materials, offering a sustainable alternative to traditional insulation products. The company’s commitment to innovation and environmental stewardship enables it to address unmet needs in the U.S. construction market.
   
• Terra CO2 Technology: Terra CO2 Technology develops low-carbon cement alternatives that reduce greenhouse gas emissions. The company’s focus on scalability and cost-effectiveness positions it as a leader in the sustainable building materials market. Terra CO2 actively partners with construction firms to expand its reach.
   
• Blue Planet Systems: Blue Planet Systems specializes in carbon capture and utilization technologies, producing carbon-sequestering aggregates for concrete. The company’s innovative approach integrates sustainability into construction materials, addressing the growing demand for eco-friendly solutions.
   
• CarbonBuilt: CarbonBuilt focuses on carbon-sequestering concrete solutions that utilize industrial waste streams. The company’s proprietary technology reduces CO2 emissions while enhancing product performance. Strategic collaborations with construction firms and government agencies bolster its market presence.
   
• Fortera: Fortera develops innovative cement alternatives that significantly reduce carbon emissions. The company’s focus on cost-competitive solutions and scalability enables it to meet the increasing demand for sustainable construction materials in the U.S. market.
   
• Carbo Culture: Carbo Culture specializes in biochar-based carbon-sequestering materials. The company emphasizes R&D and strategic partnerships to position itself as a pioneer in sustainable building solutions, addressing unmet market needs.
   

U.S. Carbon-Sequestering Building Materials Market Companies

Major players operating in the U.S. carbon-sequestering building materials industry are:

• CarbonCure Technologies
• LP Building Solutions
• Heidelberg Materials
• Solidia Technologies
• Hempitecture
• CleanFiber
• Terra CO2 Technology
• Blue Planet Systems
• CarbonBuilt
• Fortera
• Carbo Culture
• Sublime Systems
• Ecovative
• Prometheus Materials
• Brimstone
   

CarbonCure: CarbonCure injects recycled CO2 into concrete during mixing where it mineralizes as calcium carbonate, permanently storing CO2 while improving concrete strength and enabling reduced cement content. The company operates globally with thousands of projects across North America, Europe, and Asia-Pacific.
 

SLP Building Solutions : LP Building Solutions manufactures carbon-negative engineered wood products including SmartSide siding, TechShield radiant barrier, and structural solutions from 21 plants globally. 91% of their 2024 sales represented carbon-negative products with ASTM-verified Environmental Product Declarations.
 

Heidelberg Materials : Heidelberg Materials operates the world's first large-scale carbon capture and storage facility at Brevik, Norway, producing evoZero - the first carbon-captured net-zero cement. The facility captures 400,000 tonnes CO2 annually, enabling net-zero cement production across their full portfolio.
 

Solidia Technologies: Solidia Technologies produces CO2-cured cement and concrete that permanently mineralizes CO2 during curing, achieving up to 70% lifecycle CO2 reduction. Their technology uses existing equipment and enables 24-hour strength development compared to 28 days for traditional concrete.
 

Hempitecture : Hempitecture manufactures carbon-sequestering hemp-based building materials from their Jerome, Idaho facility with five U.S. distribution centers. Their products include HempWool insulation, PlantPanel rigid boards, and hempcrete systems that sequester ~9 tons CO2 per acre during hemp growth.
 

U.S. Carbon-Sequestering Building Materials Industry News:

• In April 2025, The EPA issued the first Class VI Underground Injection Control permits in Texas to Oxy Low Carbon Ventures LLC for three geologic CO2 sequestration wells in Ector County, approximately 14 miles from Odessa. The project will store approximately 722,000 metric tons of CO2 per year at depths of ~4,400 feet on former ranch land.
   
• In December 2024, The EPA issued four Underground Injection Control Class VI well permits to Carbon TerraVault JV Storage Company Sub 1, LLC (a subsidiary of California Resources Corporation) - marking the first Class VI permits in California. The permits authorize construction of four deep injection wells in the Elk Hills Oil Field west of Bakersfield, with planned injection of ~1.5 million metric tons of CO2 per year for 26 years into the Monterey Formation at depths exceeding 1 mile
   

The U.S. carbon-sequestering building materials market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue (USD Billion) and (Units) in volume from 2021 - 2034 for the following segments:

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Market, By Material Technology

• Bio-based carbon storage materials
• Timber and engineered wood products
• Hemp-based materials (hanfsteine, hanfbauplatten, hanfkalkstein)
• Mycelium composites
• Cattail (typha) materials
• Mineral-based carbon capture materials
• Bio-concrete and carbon-capturing concrete
• Biochar-enhanced materials
• Carbon fiber composites
• Hybrid and advanced materials
• Wood-mycelium composites
• Plant-based carbon fiber systems
• Multi-material integrated solutions

Market, By Building Component

• Structural components         
• Foundation and basement systems  
• Load-bearing walls and columns       
• Floor and ceiling systems      
• Building envelope systems    
  • External wall systems (including integrated insulation)
  • Roofing systems (including insulation)
  • Window and door frames
• Interior systems         
  • Non-load-bearing partitions
  • Interior finishes and panels
  • Flooring systems
• Infrastructure components   
  • Transportation infrastructure elements
  • Utility infrastructure components

Market, By End Use Sector

• Residential buildings 
  • Single-family houses
  • Multi-family buildings
  • Social housing projects
• Commercial buildings
  • Office and administrative buildings
  • Retail and hospitality
  • Educational and healthcare facilities
• Industrial buildings    
  • Manufacturing and production facilities
  • Warehouses and logistics centers
  • Specialized industrial structures
• Public infrastructure 
  • Transportation infrastructure
  • Utilities and energy infrastructure
  • Public and municipal buildings

Market, By Construction Type

• New construction      
  • Greenfield residential projects
  • New commercial developments
  • New infrastructure projects
• Renovation and retrofitting  
  • Energy efficiency upgrades
  • Structural renovations
  • Heritage building restoration

The above information is provided for the following states:

• Key trends
• California
• Texas
• Florida
• New York
• Pennsylvania
• Illinois
• Ohio
• Georgia
• Rest of U.S.