Green Building Materials Market size is anticipated to reach over USD 610 billion by 2028, according to a new research report by Global Market Insights Inc.
The construction sector, primarily residential & commercial, accounts for roughly 76% of the electricity usage and constitutes about 40% of the U.S. energy use along with Greenhouse Gas (GHG) emissions. This necessitates the reduction in energy consumption in buildings to meet the national energy & environmental challenges and reduce the expenditures of building owners & tenants. Green buildings in various cases have positively impacted the environment as they primarily generate energy or increase biodiversity. Various government regulations, which are aimed at constructing more green buildings, will fuel the green building materials market.
The cost associated with green building materials is one of the primary causes that is negatively influencing the market growth in line with developed economies is more, compared to emerging economies as locally sourced products in the former costs more. Moreover, builders must convince homeowners and property owners regarding the benefits of green materials, thereby making the full implementation of green building materials in the construction industry a challenging factor. However, the growing benefits of utilizing green building materials will drive the market expansion.
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The interior segment to gain attention among market players
The green interior materials segment is expected to exceed nearly USD 202 billion by 2028. There is a growing demand for green building materials for aesthetically appealing interiors in various construction projects. Various materials are currently utilized for this purpose such as coco tiles, bamboo, reclaimed wood, etc. To minimize carbon footprints and reduce the level of carbon dioxide in the atmosphere, there is a growing urgency in choosing materials that are carbon neutral and do not contribute to the increasing CO2 levels. The use of wood as a material in building interiors and other construction projects will propel the green building materials market.
Browse key industry insights spread across 230 pages with 227 market data tables & 25 figures & charts from the report, “Green Building Materials Market Size, By Type (Structural, Interior, Exterior), By Application (Framing, Insulation, Roofing, Exterior & Interior Finish), By End-user (Residential, Commercial Offices & Buildings, Institution), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2022 – 2028”, in detail along with the table of contents:
The insulation segment to foster industry demand
The insulation application is predicted to cross around USD 185 billion revenue by 2028. In various commercial and institutional buildings, sustainability is becoming a growing concern. Proper insulation helps in achieving high energy efficiency, material durability, occupant comfort, and helps in maintaining the internal temperature of the building. The property value and the quality of the construction depend on the proper insulation of the buildings. Green insulation materials not only help in maintaining energy-efficient insulation but are also good for the environment.
The institution segment will showcase sustainable growth
The institution segment valued at about USD 20 billion in 2021. The growing educational hubs globally will boost the green building materials market revenue. Currently, various institutions are being constructed using green building materials, which helps these buildings in being energy-efficient and economical. The use of green building materials is increasing in the construction of institutions. Governments around the world are also encouraging institutions to adopt green building materials. Furthermore, the added advantage of energy efficiency and cost-saving is driving the industry statistics.
Asia Pacific to witness strong growth
The Asia Pacific green building materials market is likely to generate USD 195 billion revenue by 2028. Rising construction activities in the region, primarily in China, India, and Vietnam are fueling the regional market value. The growing urban population has resulted in the building of more energy-efficient buildings, which can reduce the environmental impacts and carbon footprints. Growing government initiatives toward the development of green buildings will augment the market.
The green building materials market is competitive owing to the presence of numerous industry players who are working on enhancing their product qualities and making sure that they meet the government standards. Companies are adopting various strategies, such as mergers & acquisitions, expanding their distribution channels, investing in research & development activities, to enhance revenue generation.
For instance, in November 2021, Sika AG signed a definitive agreement to acquire MBCC Group, previously known as BASF Construction Chemicals, from Lone Star Funds, a global private equity firm, for USD 5.95 billion.