by The global Green Construction Market is estimated to be valued at US$ 365.35 Bn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Green construction utilizes various techniques and materials that are environmentally responsible and resource-efficient throughout a building’s life-cycle, from siting to design, construction, operation, maintenance, renovation, and demolition. It aims at reducing negative environmental impacts through efficient use of energy, water, and other resources as well as reducing waste, pollution and environmental degradation. Green construction offers substantial benefits such as improved comfort and indoor air quality through use of low-emitting materials, reduction in energy and water costs through efficient features, lower maintenance and operational costs through durable, sustainably sourced materials. It also strengthens resilience to climate change events by utilizing renewable materials and designing adaptable spaces.
Market key trends:
One of the key trends in the Green Construction Market Size is increasing adoption of green building certifications such as LEED, BREAM, Green Star etc. which help implement sustainable practices. There is also a rising focus on green roofs and walls made of vegetations which provide benefits like better insulation, reduction in heat island effect and improved air quality. Another trend is use of sustainable building materials derived from renewable sources like bamboo, cork and recycled materials like fly ash which have lower embodied energy and carbon footprint. Implementation of innovative green technologies like integrated renewable energy systems, smart water management and green infrastructure also supports the market growth.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the construction industry requires huge capital investment and established distribution channels. However, supportive government regulations can reduce entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of numerous established green construction players providing substitutable products. Buyers can easily switch between vendors based on pricing and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate since raw materials required for green construction such as recycled material, bamboo, etc. have few substitutes and suppliers have limited differentiation.
Threat of new substitutes: The threat of new substitutes is high as traditional construction methods can be substituted by new green construction techniques and materials including use of renewable energy, energy-efficient designs, recycled content, etc.
Competitive rivalry: The competitive rivalry is intense due to the presence of numerous players offering similar green construction services.
Key Takeaways:
The global Green Construction Market is expected to witness high growth, exhibiting a CAGR of 11% over the forecast period, due to increasing focus on sustainable infrastructure development and strict government regulations toward green building standards.
Regional analysis: North America dominates the green construction market with the largest share owing to supportive government policies and presence of key players in the US and Canada. Asia Pacific exhibits the fastest growth in the green construction market due to rapid urbanization and industrialization in countries such as China and India.
Key players operating in the 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, The Whiting-Turner Contracting Co.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
