July 24, 2024
Green Construction Market

Rapid Urbanization Projected To Boost The Growth Of Green Construction Market

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:
The green construction market involves designing and production of environmentally responsible and resource-efficient structures and infrastructure. Green construction prioritizes using sustainably sourced and recycled materials with minimal toxic content and emissions. It also focuses on energy efficiency through harnessing renewable sources and minimizing waste generation. Some key advantages of green construction are reduced environmental impact, improved indoor air quality, lower operating costs and boost to productivity of occupants. With rapid urbanization and growing urban population globally, there is an increasing need for sustainable infrastructure development which drives the demand for green building materials and services in the construction market.

Market key trends:
One of the major trends in the green construction market is the rising adoption of green building certifications and standards such as Leadership in Energy and Environmental Design (LEED), BRE Environmental Assessment Method (BREEAM) and Green Building Initiative (GBI). These certifications encourage use of efficient and eco-friendly construction practices. Another key trend is the increasing focus of governments worldwide on promoting green building through various incentives, subsidies and mandates. Growing awareness among consumers about environment and health benefits of green structures is also fueling investments towards sustainable construction projects globally.
Porter’s Analysis
Threat of new entrants: The green construction market faces moderate threat of new entrants due to high capital requirements for setting up manufacturing plants. However, growing environmental awareness is attracting new players in the market.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes. However, stringent environmental regulations are increasing buyers inclination towards green construction.
Bargaining power of suppliers: The suppliers have low to moderate bargaining power due to availability of substitute materials.
Threat of new substitutes: Threat from new substitutes is low as green construction materials are unique with respect to sustainability and eco-friendliness.
Competitive rivalry: The green construction market witnesses high competitive rivalry due to presence of numerous global and regional players.

Key Takeaways
The global Green Construction Market Growth is expected to witness high growth, exhibiting CAGR of 11.% over the forecast period, due to increasing environmental awareness regarding use of eco-friendly materials and technologies. The market size for green construction is estimated to reach US$ 365.35 Bn by 2023.

Regional analysis: North America dominates the global green construction market and is expected to maintain its lead over the forecast period. This can be attributed to stringent environmental regulations and rising construction of green buildings in the US. Asia Pacific exhibits highest growth and is projected to grow at a CAGR of 13% during forecast period driven by rapid infrastructure development and growing focus on sustainability across countries like China and India.

Key players: 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, The Whiting-Turner Contracting Co. These players are focusing on R&D to develop innovative green construction materials in order to strengthen their market position.