Product Code: 48069
The market for green building materials is expected to witness a CAGR of around 10% during the forecast period. The major factors driving the growth of the market studied are the growing demand for energy-efficient buildings, increasing demand for insulation, and favorable government policies for green buildings. On the flip side, high capital investment when compared to conventional buildings and the impact of COVID-19 on the market are likely to hinder the growth of the studied market.
- The declining cost of green buildings over time and increasing awareness about recycled construction are likely to provide opportunities for the studied market, during the forecast period.
- North America dominated the market across the world, with government efforts and regulations to mandate the usage of green building materials and greater awareness among the population.
Key Market Trends
Residential Segment to Witness Strong Growth
- Green building construction in the residential sector is increasing, due to the rising number of building regulations and policies mandating energy-efficient structures. This has created a market for environment-friendly and energy conserving materials used in residential construction.
- With the growing public awareness and rising income levels, the use of green building materials and the growing trend of energy-efficient structures in high-rise residential buildings and townships are likely to further boost the demand for green building materials in the coming years.
- In the Asia-Pacific region, countries, such as China and India, have already been facing environment pollution-related problems, which has grasped the attention of governments to take initiative in this regard. Moreover, power shortage problems in developing nations, like India, South Korea, Sri Lanka, and others, are likely to promote the concept of green building construction to promote daylight harvesting.
- On the other hand, the green building construction sector in North America and Europe is already widely popular. Thus, growing renovation projects in North America and recovering construction industry in Europe are likely to further increase the consumption of green building materials over the forecast period.
- According to the World Bank, the construction industry expenditure in 2020 is likely to witness a growth of about 4.2% from 2019. This, in turn, is likely to increase residential construction.
- All such factors are likely to increase the demand for green building materials over the forecast period.
North America Region to Dominate the Market
- North American region dominated the global market share. The construction sector has been witnessing growth in the region, due to increased demand for houses, and rise in renovation projects.
- Various government efforts and regulation mandates, such as Leadership in Energy and Environmental Design (LEED), Green Building Certification, subsidies for green housing projects, etc., have been driving the construction of green buildings in the region.
- The United States witnessed noticeable investment for residential construction in 2018, and the trend is expected to remain the same in the near future.
- Similarly, in Canada, Toronto and Vancouver have become a hotspot for construction, propelled by a hot real estate market. Developers have been looking forward to good returns on investment in the country, particularly with high-density residential projects.
- Mexico has also been witnessing high housing demand, for which, the country is attracting noticeable investment into construction.
- For instance, in January 2019, IDB Invest, a private sector institution of the Inter-American Development Bank (IDB) Group, granted a local currency financing program for MXN 150 million (Mexican pesos) to the Mexican company Procsa, in order to finance for land acquisition, development and commercialization of housing for low and middle income families in the country.
- Hence, such favorable trends in the North American construction industry is expected to continue driving the demand for green building materials market over the forecast period.
The green building materials market is partially consolidated, Some of the major players in the market include BASF SE, DuPont, Black Mountain Insulation Limited, Owens Corning, and Kingspan Group PLC, amongst others.
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Table of Contents
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Increasing Demand for Energy-efficient Buildings
- 4.1.2 Favorable Government Policies for Green Buildings
- 4.1.3 Growing Demand for Insulation
- 4.2 Restraints
- 4.2.1 High Capital Investment Compared to Conventional Buildings
- 4.2.2 Impact of COVID-19 on the Market
- 4.3 Industry Value Chain Analysis
- 4.4 Porters Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION
- 5.1 Type
- 5.1.1 Structural
- 5.1.2 Exterior
- 5.1.3 Interior
- 5.1.4 Others
- 5.2 Application
- 5.2.1 Framing
- 5.2.2 Insulation
- 5.2.3 Roofing
- 5.2.4 Exterior Siding
- 5.2.5 Interior Finishing
- 5.2.6 Others
- 5.3 End-user Industry
- 5.3.1 Residential
- 5.3.2 Commercial
- 5.3.3 Institutional
- 5.3.4 Others
- 5.4 Geography
- 5.4.1 Asia-Pacific
- 22.214.171.124 China
- 126.96.36.199 India
- 188.8.131.52 Japan
- 184.108.40.206 South Korea
- 220.127.116.11 Rest of Asia-Pacific
- 5.4.2 North America
- 18.104.22.168 United States
- 22.214.171.124 Canada
- 126.96.36.199 Mexico
- 5.4.3 Europe
- 188.8.131.52 United Kingdom
- 184.108.40.206 France
- 220.127.116.11 Germany
- 18.104.22.168 Italy
- 22.214.171.124 Rest of Europe
- 5.4.4 South America
- 126.96.36.199 Brazil
- 188.8.131.52 Argentina
- 184.108.40.206 Rest of South America
- 5.4.5 Middle-East and Africa
- 220.127.116.11 Saudi Arabia
- 18.104.22.168 South Africa
- 22.214.171.124 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 Black Mountain Insulation Limited
- 6.4.2 BASF SE
- 6.4.3 Binderholz GmbH
- 6.4.4 CERTAINTEED.
- 6.4.5 IsoHemp
- 6.4.6 DuPont
- 6.4.7 Interface Inc.
- 6.4.8 Kingspan Group
- 6.4.9 ElementalGreen
- 6.4.10 Chengdu Onekin Green Building Materials Co. Ltd
- 6.4.11 Owens Corning
- 6.4.12 REDBUILT
- 6.4.13 Sika AG
- 6.4.14 Soben International (Asia Pacific) Ltd.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Declining Cost of Green Buildings Over Time
- 7.2 Increasing Awareness about Recycled Construction