The green construction market was valued at US$ 265.7 Billion in 2020 and is expected to surpass US$ 602.1 Billion by 2028, registering a CAGR of 11.4% during the forecast period (2021-2028), according to the Green Construction Market Report, By Product Type (Exterior Product (Roofing, Windows, Siding, and Doors), Interior Product (Insulation and Flooring), Solar Products, Building Systems, and Others) By Application (Residential Buildings, Non-Residential (Commercial & Office, Institutional, Industrial, Hospitality & Leisure), and Others), By Region (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa), published by Coherent Market Insights.
The global green construction industry is driven by the increased construction activity in developing countries such as India and China, by the ongoing trends of energy conservation and high energy performance products. Also, the market is driven by the R&D sector that enables the research team to enhance the performance of the materials required for green construction. The industry for green construction is governed by several laws and regulations listed by the environmental protection agencies and the governments across the globe. For instance, in India, the green building code is a combination of codes and standards regulated by the state by-laws, National Building Code, Energy Conservation Building Code (ECBC), and the norms set by the ratings programs such as Leadership in Energy and Environmental Design-India (LEED-India), the standards and guidelines put down for the residential sector by the Indian Green Building Council (IGBC), TERI-GRIHA, and other official bodies.
On the other hand, the high energy consumption of the construction products during manufacturing and the application process are expected to hamper the expansion of the green construction industry. The market players are aiming to invest in research and development to design new products with low cost and superior quality to tap into consumer demand.
For instance, a concrete alternative called Ferrock is created with steel dust or ferrous rock that is left over from industrial processes, which are usually sent to the landfill. When combined with carbon dioxide, it forms an iron carbonate compound. This viable alternative to cement can be mixed and poured to form driveways, pathways, staircases, etc.
Other factors impacting the green construction market are the rising price for raw materials and their volatility, which is expected to limit the market demand.
For instance, in April 2020, PPG (Pittsburgh Plate Glass) Industries, a global supplier of paints, coatings, and specialty materials made an announcement about signing an agreement with Dow, to expedite the acceptance of low-carbon technologies. The collaboration emphasized on developments in anti-corrosion coating materials for steel so as to provide reduced GHG (greenhouse gas) emissions by offering improved energy efficiency and by decreasing the high maintenance costs associated with steel infrastructure.
Global Green Construction Market - Impact of Coronavirus (Covid-19) Pandemic
Despite the challenges, being forced to stay indoors has made everyone appreciate their buildings and houses and their role in providing protection from the health risks of COVID-19. Green construction refers to the practice of using sustainable building materials and construction processes to create energy-efficient buildings with minimal environmental impact. These days, building construction companies are increasingly using green construction techniques to build energy-efficient buildings and reduce construction costs. For instance, as per reports of World Building Council there are a number of reasons for this – the most pertinent of these being that green design has now taken the building world by storm and the worldwide industry has now been flooded with a substantial increase in green design elements and concepts available on the market. Governments are giving tax and fee reduction for environment friendly buildings which also leads to reduce in construction cost.
The green buildings are also considered as a pathway towards decarbonization of the environment. However, the economic shock of COVID-19 has slowed down the transition to a low-carbon future. Due to lockdown, the supply of materials needed for green construction market has also been severely affected.
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