Market Trends of North America Green Cement Industry
Residential Construction to Dominate the Market
- Green cement is gaining traction for the construction of green buildings as it is eco-friendly, consumes industrial waste, reduces carbon dioxide emissions, and requires less energy for production.
- In addition, green cement is highly durable and long-lasting and exhibits excellent strength, durability, resilience, crack resistance, high corrosion resistance, and low chloride permeability.
- In the United States, Canada, and Mexico, green residential construction is growing rapidly. The countries have recently launched various residential construction projects focusing on green construction.
- In 2022, GP Vivienda, one of Mexico’s biggest real estate developers and construction companies, built twelve residential complexes across the Monterrey metropolitan area in Nuevo León. The company used 50,000 m3 of green concrete from Holcim, which helped them achieve a carbon dioxide emissions reduction of 30%.
- Moreover, the construction industry has also been growing steadily in Mexico. According to the International Trade Organization, the Mexican construction industry's average annual growth is anticipated to reach 3.1% between 2022 and 2025.
- The Mexican Chamber of Construction Industry announced that the construction industry was estimated to have grown by 6% in 2022. The growth could also increase the confidence of private investors since most projects are expected to be carried out using their funding, thus supporting improvements in investments across the industry in 2023.
- According to the Canada Green Building Council (CAGBC), around 5,145 projects across the country certified by LEED (Leadership in Energy and Environmental Design) were built in the last two decades. Out of these, 362 were ranked in the platinum category, which is the highest LEED status. 57 projects have also attained the CAGBC’s Zero Carbon Building standards. Thus, green construction is a promising market in Canada.
- According to Statistics Canada, the value of building permits for residential buildings in Canada for the first five months of 2023 was USD 32.36 million. In terms of number of dwellings created, the figures stood at 103,895 units. In 2022, the number of dwelling units constructed stood at 277,593 units. Looking at the trends in residential construction in the country, the construction output has been fairly consistent over the past 2 years.
- Courtesy of these developments in the North American region, the demand for green cement from the residential sector will continue to grow in the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
United States to Dominate the Market
- Since United States President Joe Biden signed the Inflation Reduction Act in August 2022, numerous public and private investments were realized in climate solutions, including those focused on the building sector, which accounts for about 40% of global greenhouse gas emissions.
- The bill allocated USD 391 billion toward climate solutions, including new tax credits for residential energy retrofits, energy efficiency rebates, updated building energy codes, and deductions for commercial buildings that reduce their energy consumption.
- The move has brought a positive change to the green construction industry. This will lead to increased consumption of green cement in the country. Moreover, the expansion of the residential and non-residential construction markets will also likely drive the market studied.
- According to the AIA (American Institute of Architects) Construction Consensus Forecast Panel, nonresidential building construction spending expanded to 5.4% in 2022. Further, U.S. expenditure on new private non-residential buildings peaked at over USD 539 billion in 2022. By the end of 2023, all the principal commercial, industrial, and institutional categories were to witness at least reasonably healthy gains.
- Following are some major non-residential construction projects in the United States which are estimated to be completed by 2023 :
- Fontainebleau, Las Vegas - The 67-story hotel, gaming, meeting, and entertainment project construction will include 3,700 hotel rooms, 550,000 square feet of convention and meeting space, as well as dining, gaming, retail, and experiences focused on health and wellness.
- Amazon HQ2 - The first phase of the new Amazon HQ2 office space at National Landing, which began in January 2020, will be completed by 2023.
- According to the US Census Bureau, in the past 5 years, from 2018 to 2022, the total value of construction increased by almost 40%, with residential construction accounting for more than a 60% increase in the total value of construction.
- The total value of residential construction in 2022 was USD 927 billion, an increase of 14.6% over 2021. The total value of non-residential construction in 2022 was USD 921 billion, an increase of 9% over 2021.
- Consequently, the growing construction industry in the United States is going to add to the demand for green cement over the forecast period.
Get Analysis on Important Geographic Markets
Download Sample
