Increasing Environmental Concerns Encourage the Green Buildings Sector

    Green building or sustainable construction is referred to structures that are environmentally responsible and energy efficient throughout its life cycle. Green building practices aim to reduce the environmental impact of a building. Most of the materials used in green buildings such as lumber, recycled metal, fiberglass and mineral wool are renewable and non-toxic in nature. Green buildings use onsite generation of renewable energy through biomass, solar power, hydro power and wind power. These practices make a building reduce its operating energy usage. Furthermore, low energy consumption appliances are used in green buildings to keep the energy costs low. 

    “The global market for green buildings is expected to witness steady growth owing to increasing environmental concerns and stringent government regulations.”

    Most of the green building materials including cellulose and fiberglass are being used in green buildings owing to their superior insulating properties. Methods such as rain water harvesting are adopted in green buildings to conserve reduce wastage of water. Green buildings also seek to reduce wastage of energy and materials thus reducing the overall environmental impact. Green buildings are widely used for residential, commercial and industrial purposes owing to their low operational costs, energy efficiency and low carbon footprint. The global market for green buildings is expected to witness steady growth owing to increasing environmental concerns and stringent government regulations. According to Grand View Research, the growing demand for these components owing to various environmental and economic benefits such as lower water requirements, maintenance cost, and operating costs is expected to drive demand over the forecast period. Green buildings prevent the use of toxic paints containing lead, thereby providing optimum indoor air quality. Furthermore, these products offer abundant natural lighting thereby reducing electricity bills which in turn reduces the overall expenditure. Abundant raw material availability coupled with a large number of manufacturers is expected to cater to the growing demand for green building materials. However, this trend is expected to see new market entrants which in turn are expected to increase industry rivalry that will improve product quality and lower product cost. The raw materials used for manufacturing these components include the use of wood, bamboo, clay, cement, concrete, straw, plaster, paints & coatings and others. Companies such as DuPont, BASF, and PPG Industries are the major raw material suppliers in the market. Also, the market is characterized by the presence of small and medium level enterprises responsible for the supply of raw materials such as wood, bamboo, and clay to manufacturers. In fact, rising consumer awareness regarding benefits of residing in green buildings such as lower maintenance and operating costs is expected to propel demand for these components over the forecast period. Supportive regulations related to the use of these materials in construction coupled with growing construction industry particularly in developing economies are expected to have a positive impact towards market growth. Moreover, the demand for green buildings in industrial sector is expected to grow owing to its low operational and maintenance costs. Growing demand for energy efficient technologies is expected to propel the demand for green buildings in the market. Growing preference for green buildings in residential and commercial sectors is expected to be a major factor driving the growth of the market over the forecast period. However, high material cost is expected to be a major restraint to the market. North America and Europe are major markets for green buildings. The market in this region is characterized by increasing awareness regarding sustainable construction and growing demand for low energy consumption systems. Supportive regulatory policies and building codes in North America favoring the use of these products in the construction and renovation of buildings is expected to drive demand over the forecast period. Furthermore, growing consumer awareness regarding environmental and economic benefits of the products is likely to augment growth. However, Asia Pacific is expected to be the fastest growing region owing to growing industrial sector and rapid urbanization in emerging economies such as India and China. Additionally, increasing industrial pollution coupled with strict environmental regulations in the region is expected to drive the growth of the market in industrial sector.

    Grand View Research