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Green Construction refers to the building structure and the application of processes, which are environmentally sustainable and resource-efficient throughout the building's life-cycle, which includes the processes starting from the building’s planning to its design, construction, operation, maintenance, renovation, and demolition. This requires close cooperation of the contractors, architects, engineers, and the clients at all the stages of the construction project. The green construction practice complements the classical building design concerns that are related to economy, utility, durability, and comfort. In doing so, the three dimensions of sustainability, i.e., planet, people, and profit across the entire supply chain needs to be considered.

The objective of green construction is to reduce the overall impact of the buildings/construction projects on the human health and the environment by following certain principles:

  • Efficiently using energy, water, and other resources
  • Protecting occupant health and improving employee productivity
  • Reducing waste, pollution, and environmental degradation

A 2009 report by the U.S. General Services Administration found 12 sustainably-designed buildings that costs less to operate and have excellent energy performance. In addition, as per U.S. General Service Administration, the occupants were more satisfied with the buildings made under green construction projects as compared to the occupants living in typical commercial buildings, as green construction project’s buildings were eco-friendly.

The global green construction market is expected to witness significant growth during the forecast period (2021–2028). Increasing demand for reduced energy consumption in buildings, rise in the number of infrastructure projects, an increase in industrial and commercial spending, and the growing demand for green buildings, are expected to drive the market demand. 

Stringent legislative policies for energy-efficient buildings significantly drives the manufacturing of sustainable materials. For instance, in June 2020, Environmental ministry of Mexico City, introduced regulations that comprised of new and retrofitted energy-efficiency measures intended to develop a sustainable city by constructing improved buildings thereby decreasing greenhouse gas emissions.

Global Green Construction Market - Impact of Coronavirus (Covid-19) Pandemic

The green construction market was negatively impacted due to COVID-19, owing to the pandemic scenario as several countries were in lockdown. Construction work stopped all across the world, especially in major constructions hubs such as China, India, and Japan. Supply chain disruptions, work stoppages due to measures imposed by government authorities to slow down the spread of the virus, and workforce shortages, further affected the market negatively. Hence, such impact and uncertainties due to the COVID-19 outbreak acted as a stumbling block in the growing demand for green building materials. However, this is expected to be temporary and the green construction market is expected to recover in the coming years.

Green Construction Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2020: US$ 265.7 Bn
Historical Data for: 2017 to 2019 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 11.2% 2028 Value Projection: US$ 602.1 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Mexico and Rest of Latin America
  • Europe: Germany, U.K., France, Italy, Spain, and Rest of Europe
  • Asia Pacific: China, India, Japan, South Korea, and Rest of Asia Pacific
  • Middle East and Africa: GCC Countries, South Africa, and Rest of Middle East & Africa
Segments covered:
  • By Product Type: Exterior Product (Roofing, Windows, Siding, and Doors), Interior Product (Insulation and Flooring), Solar Products, Building Systems, and Others
  • By Application: Residential, Non-Residential (Commercial & Office, Institutional, Industrial, Hospitality & Leisure), and Others 
  • By Region: North America, Europe, Asia Pacific, Latin America, Middle East and Africa
Companies covered:

Alumasc Group Plc, Binderholz GmbH, Bauder Ltd, Forbo International SA, Certain Teed Corporation, The Turner Corp, Clark Group, Gilbane Building Co, Hensel Phelps, The Whiting-Turner Contracting Co.

Growth Drivers:
  • Demand for reduced energy consumption in buildings
  • Rise in infrastructure projects
  • Increased industrial and commercial spending
Restraints & Challenges:
  • Limited awareness about green construction market
  • Lack of government policies related to green construction market
  • Expensive equipment and products

North America held the dominant position in the global green construction market in 2020.

The North American market showed dominance in 2020, this was due to the rising demand for residential houses and increasing number of renovation projects. As per U.S. Green Building Council, the U.S. observed a substantial investment for residential buildings in 2018, which was projected to continue in the upcoming years, thereby promoting the market growth.

The market for Asia Pacific region is expected to grow with a significant CAGR during the period of 2021 to 2028, owing to the high demand from developing countries such as China and India. Increasing disposable income and growing population will also influence the demand for green construction market related products. For instance, in China, due to population growth, the green construction market is gaining importance due to increasing number of people staying in high-rise buildings or multifamily housing that in turn consumes huge amount of energy. To reduce this energy consumption, the Chinese government is focusing on green construction technology.

Figure 1: Global Green Construction Market Share (%), By Region, 2020


In terms of revenue, the residential building application segment dominated the global green construction market in 2020

The residential sector is expected to hold the largest share due to the growing demand for residential buildings, owing to the increase in the global population. The green construction projects help in enhancing the architectural characteristics of a building and improve the air quality for residential owners by adopting green insulation, biodegradable materials, solar power, and cool roofs. For instance, One Bryant Park, in the U.S. is extremely eco-friendly skyscraper relies on LED lights, CO2 monitors, no-water urinals, and self-sufficient power, making it sustainable and clean.

Figure 2: Global Green Construction Market Value (US$ Bn) Analysis and Forecast, 2017 – 2028


The global green construction market size was valued at US$ 265.7 billion in 2020 and is anticipated to reach US$ 602.1 billion by 2028 at a CAGR of 11.4%.

Major players operating in the global green construction market are Alumasc Group Plc, Binderholz GmbH, Bauder Ltd, Forbo International SA, Certain Teed Corporation, The Turner Corp, Clark Group, Gilbane Building Co, Hensel Phelps, and The Whiting-Turner Contracting Co.

Frequently Asked Questions

The global green construction market is expected to reach US$ 602.1 billion by 2028.

The market is expected to witness a CAGR of 11.4% during the forecast period (2021-2028).

Increasing demand for reducing energy consumption in buildings and the rise in infrastructure projects in industrial and commercial sector are expected to boost the market.

The residential sector held the largest share in the market in 2020.

North America region held the largest market share in the market in 2020, accounting for 36% share in terms of value.

Alumasc Group Plc, Binderholz GmbH, Bauder Ltd, Forbo International SA, Certain Teed Corporation, The Turner Corp, Clark Group, Gilbane Building Co, Hensel Phelps, and The Whiting-Turner Contracting Co.

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