February 21, 2024
Green Construction Market

Green Construction Market: Increasing Adoption of Sustainable Building Practices Driving Market Growth

The global Green Construction Market is estimated to be valued at US$ 265.7 Bn in 2023 and is expected to exhibit a CAGR of 11.2% over the forecast period (2023-2030), as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Green construction refers to the use of eco-friendly materials, sustainable building practices, and efficient design techniques to minimize the environmental impact of construction projects. This market offers a wide range of products and solutions, including green building materials, energy-efficient systems, and waste management solutions. The advantages of green construction include reduced energy consumption, lower operating costs, improved indoor air quality, and reduced carbon footprint. With increasing awareness about environmental sustainability and government initiatives promoting green building practices, the demand for green construction is expected to witness significant growth.

Market key trends:

One key trend shaping the green construction market is the growing adoption of renewable energy systems. With the increasing focus on reducing carbon emissions and the rising cost of conventional energy sources, there is a shift towards integrating renewable energy systems in construction projects. Solar panels, wind turbines, and geothermal heating systems are being widely adopted to provide clean and sustainable energy for buildings. This trend not only helps in reducing the carbon footprint but also provides long-term cost savings to the building owners. The integration of renewable energy systems in construction projects is expected to drive the market growth for green construction in the coming years.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the green construction market is relatively low. This is mainly due to the high capital requirements and specialized knowledge needed to operate in this industry. Additionally, existing companies have already established strong brand recognition and customer loyalty, making it difficult for new entrants to gain a significant market share.

Bargaining power of buyers: The bargaining power of buyers in the green construction market is moderate. While buyers have the option to choose from a wide range of green construction companies, they often prioritize quality and reputation over price. This gives established companies with a solid track record an advantage in negotiations.

Bargaining power of suppliers: The bargaining power of suppliers in the green construction market is relatively high. This is because green construction materials and technologies are often specialized and require specific expertise. Suppliers who offer high-quality and innovative products have the ability to negotiate favorable terms with construction companies.

Threat of new substitutes: The threat of new substitutes in the green construction market is low. Green construction is driven by environmental regulations and a growing awareness of sustainability. This makes it unlikely that buyers would switch to non-green construction alternatives, as they would not meet the desired environmental standards.

Competitive rivalry: The competitive rivalry in the green construction market is moderate. While there is a significant number of players in the market, the industry is highly fragmented, with no dominant player holding a major market share. This creates healthy competition among companies, driving innovation and quality improvement.

Key Takeaways

The Global Green Construction Market Size is expected to witness high growth, exhibiting a CAGR of 11.2% over the forecast period. This growth is primarily attributed to the increasing adoption of sustainable construction practices and the rising awareness of environmental conservation. Government initiatives promoting green building standards and a shift towards renewable energy sources are also driving market growth.

In terms of regional analysis, North America is anticipated to be the fastest-growing and dominating region in the green construction market. This can be attributed to strict environmental regulations and increased investments in green infrastructure projects in countries like the United States and Canada. The growing demand for energy-efficient buildings and sustainable construction materials further contributes to the region’s market dominance.

Key players operating in the green construction market include 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. These companies have established themselves as leaders in the industry, offering a wide range of green construction solutions and maintaining a strong presence in key regional markets.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it