Green Building Materials Market Size (2024 - 2029)

Green Building Materials Market Analysis

The Green Building Materials Market size is estimated at USD 272.05 billion in 2024, and is expected to reach USD 432.79 billion by 2029, growing at a CAGR of 9.73% during the forecast period (2024-2029).

The outbreak of COVID-19 in 2020 and the first half of 2021 significantly affected the global construction sector due to government-imposed bans and restrictions, thereby limiting the growth of the green building materials market. Residential real estate was the worst hit as strict lockdown measures across major cities resulted in the suspension of home registrations and slow disbursements of home loans. However, the sector has been recovering well since these restrictions were lifted. An increase in house sales, new project launches, and an increasing demand for new offices and commercial spaces have been leading the market recovery over the last two years.

• Over the medium term, the potential application of green building materials in energy-efficient buildings is the major driving factor driving the growth of the market studied. Furthermore, there are favorable government policies that support green building construction and ensure standard practices across all construction sectors. These policies are prompting the manufacturers of construction materials to include more green material compositions/systems in their products.
• On the flip side, the high first capital investments for green building construction when compared to conventional buildings is the key factor anticipated to restrain the growth of the market studied over the forecast period.
• Nevertheless, the increasing focus of various economies on achieving carbon neutrality, the declining operation costs of green buildings over time, and the growing trends in recycled construction are likely to create lucrative growth opportunities for the global market soon.
• North America is expected to dominate the market during the forecast period. This dominance is attributed to the high demand for framing, roofing, insulation, and various other applications in the residential, commercial, industrial, and infrastructure sectors.

Green Building Materials Industry Segmentation

Green building materials are defined as materials that are non-toxic, environment-friendly, and sustainable, leading to improved occupancy health, lowered energy cost, and reduced energy consumption. The operating costs of green buildings are lower than that of regular buildings, with 63% lower water usage and 53% lower electricity usage.  

The green building materials market is segmented by application, end-user industry, and geography. By application, the market is segmented into framing, insulation roofing, exterior siding, interior finishing, and other applications. By end-user industry, the market is segmented into residential, commercial, industrial and institutional, and infrastructure. The report also covers the market size and forecasts for the green building materials market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD million).