Green Building Materials Market Analysis

Definition of Market/Industry:

Green building materials are an environmentally friendly solution as they are produced from recyclable products. Green building materials are ideal construction materials as they help in conserving non-renewable resources and also reduce environmental impact. Moreover, green building materials are a durable and energy-efficient solution that makes them suitable for creating various infrastructure.

The global green building materials market is estimated to be valued at US$ 259.41 million in 2021 and is expected to exhibit a CAGR of 10.5 % over the forecast period (2021-2028).

Recent Developments:

• 7^th April 2021 lafarge Egypt a member of LafargeHolciam group has developed an ecolabel cement for the first time in Egypt .This new product of the company comply with the green criteria of the company and lowers the carbon footprint and recycled content.
• 17^th November 2020, UK based Lhoist group has developed ‘Tradical Hemcrete’which is used for the construction of the walls, in the renovation of old buildings or as an insulating material which is low energy cost in use and recyclable.
• 15^th January 2020,A Newer type of wood is developed which is called as’uh wood ‘which is used as a new building material which could be helpful for reducing GHG(greenhouse gas )

North America held dominant position in the global green building materials market in 2020, accounting for 35.1 % share in terms of value, followed by Europe and Asia Pacific respectively.

Figure 1. Global Green Building Materials Market Share (%), by Region, 2020

Drivers:

The growing shift towards green building is expected to drive the market growth of green building materials. For example, increasing activities by North America Commission for replacing conventional materials with green building technology is fueling the market growth. According to the Coherent Market Insights analysis, regions such as the U.K., Singapore, and the UAE accounted for over 50.0% of green building activities. Also, growing renovation and construction of new infrastructure is again propelling the demand for green building materials across all these regions.

Increasing Federal support for high performance and sustainable construction is augmenting the market growth. For instance, in January 2006, federal agencies signed a memorandum regarding their leadership in high performance and sustainable building construction. According to the memorandum, the agencies will be implementing the guidelines set by the EO (Executive Order) 13423 regarding the green building concept in their new constructions as well as major renovations. The act further aims to implement the same guidelines in at least 15.0% of the existing constructions and leases by the fiscal year 2015. 

Market Opportunities

Increasing retrofits and renovations across developing and developed countries is projected to offer lucrative market opportunities over the forecast period. For example, the U.K. has a large number of old infrastructure such as office complexes, school buildings, etc. This is expected to create potential market opportunities for the key players located in the Europe region. Thus growing retrofits and renovations is projected to propel the market growth.

Rising awareness regarding recycled construction is expected to offer profitable market opportunities over the forecast period. Increasing government rules and regulations to mandate the use of green building materials is again expected to foster market growth. The growing construction of green building in residential areas due to the growing demand for energy-efficient structures is further propelling the market growth of the green building materials over the forecast timeframe. 

Green Building Materials Market Report Coverage

Report Coverage	Details
Base Year:	2020	Market Size in 2021:	US$ 286.65 Mn
Historical Data for:	2017 to 2020	Forecast Period:	2021 to 2028
Forecast Period 2021 to 2028 CAGR:	10.5%	2028 Value Projection:	US$ 576.61 Mn
Geographies covered:	Region: North America ,Europe, Asia Pacific, Rest of the world
Segments covered:	By Application: Farming ,Insulation ,Roofing, Exterior siding ,Interior fin ,Other By End-user: Public facilities, education ,Commercial and Industrial, Healthcare R&D centres, Residential ,others
Companies covered:	Alumasc Group Plc, Amvik Systems, BASF SE, Bauder Limited, Binderholz GmbH, CertainTeed Corporation, E. I. du Pont de Nemours and Company, Forbo International SA., Interface Inc., Kingspan Group plc, Lafarge, and Lhoist UK Ltd/Tradical
Growth Drivers:	Rapid growth in construction sector increasing adoption of advanced construction materials
Restraints & Challenges:	High cost Slowdown of economy due to Covid-19 impact

Market Trends

Interior green building materials is gaining traction in the market. The advantage such as superior aesthetics, enhanced lighting, and improved indoor air quality offered by interior materials is augmenting the market growth. Moreover, interior materials are also beneficial in controlling humidity and enable better control over air quality. All these factors are projected to foster the market growth of the green building materials over the forecast timeframe.

Growing agreement and partnership between the key players for promoting the use of green building materials is expected to support the market growth over the forecast period. For instance, in October 2020, The Confederation of Indian (CII) Industry's Indian Green Building Council (CII - IGBC) signed a memorandum of understanding (MoU) with the National Real Estate Development Council (NAREDCO) to accelerate the green buildings movement in India.

Figure 2. Global Green Building Materials Market Share (%), By Application, 2020

Key Takeaways of the Graph:

The insulation held dominant position in the market and accounted for 21.4% share in the global green building materials market in 2020. The segment is expected to reach US$ 164.85 million in 2028

• Insulating your house with cellulose insulation is quite cheap and environmentally friendly as well. This method is especially suited for the insulation of walls (timber frame construction), floors and roofs. The cellulose insulation is blown in, and it has an insulation value that is comparable to the one of rock wool.
• Cork is a versatile material that is perfectly suitable to insulate roofs, floors and walls. Cork can be produced in the shape of granules (expanded cork granules) or boards. This material possesses great thermal and damp-proof properties. Moreover, it lasts very long
• Eco friendly sheep’s wool insulation -Nowadays, one applies sheep’s wool quite frequently. Unfortunately, it is not the cheapest insulation material. Nevertheless, it has got excellent insulating and air-purifying capacities. Sheep’s wool is entirely recyclable, vapour-permeable and moisture-regulating too.

Market Restraints

High cost and various factors associated with market penetration is expected to restrict product demand. This is projected to hamper the market growth of green building materials.

The impact of COVID-19 on the market and the high capital investment required as compared to conventional buildings is expected to hinder the market growth of the green building materials.

Competitive Section:

Company Names 

1. Alumasc Group Plc
2. Amvik Systems
3. BASF SE
4. Bauder Limited
5. Binderholz GmbH
6. CertainTeed Corporation
7. E. I. du Pont de Nemours and Company  
8. Forbo International SA
9. Interface Inc.
10. Kingspan Group plc
11. Lafarge
12. Lhoist UK Ltd/Tradical

Recent Development

In May 2019, BASF announced the sale of $3 Billion construction chemicals arm