The global green building materials market size was valued at USD 213.10 Billion in 2017, growing at a CAGR of 11.2% over the forecast period, as per a research published by Grand View Research, Inc. The market is expected to register notable gains fueled by the rising environmental concerns in Europe and North America. In addition, the introduction of advanced products using sustainable and naturally sourced materials is expected to benefit the industry growth.
Governments and consumers in the market are increasingly becoming concerned regarding the use of mined products for home construction. Introduction of specialized materials such as reclaimed wood, bamboo, fibers, and advanced products such as refurbished concrete. Companies in the market are introducing advanced and smart materials & products that reduce energy consumption. The trend is expected to drive the green building materials market.
Solar Street Lighting Market spending will reach US$ 29.30 billion by the middle of 2030. The worldwide Solar Street Lighting Market is anticipated to grow at a CAGR of 21.4 ##fold over the 2020 and 2030 prediction era. – Visiongain
Major market trends:
Some of the major products that are expected to gain traction over the upcoming years can be viewed as follows:
- Thermally modified wood: One of the major new products that is expected to gain traction over the next few years on account of superior properties, it contains low oxygen content which prevents it from burning at high temperatures. The product is manufactured using five major thermal modification processes such as retification, plato process, thermowood, les bois perdure, and oil-heat treatment. The use of thermally modified wood for the manufacture of panels, decking, and other residential & commercial furniture is likely to remain high.
- Plywood Veneers: The product is used for decorative purposes and offer superior replacement of decorative papers in wood veneer HPL. The use of the product in marquetry and for the production of doors, tops & panels for cabinets are expected to gain traction.
- Smart Windows are the advanced products with variable opacity. The consumers have the option of adjusting the degree of sunlight that is to be allowed to pass through the windows which results in an optimum usage of electricity that reduces the need for air conditioning. We expect and increased demand for such products over the forecast period.
- Self-Healing Concrete is currently under a test stage as a part of the project named as materials for life. In addition, advanced construction techniques such as grasscrete that calls for laying the concrete in a pattern that allows for patches of grass to grow through, is expected to emerge as the major market trend.
- Introduction of advanced products such as AirFlow panels and Modular Graywater System to reduce the overall carbon footprints of the buildings is likely to benefit the industry growth. The use of green products and constructions has been found to result improving the overall interior environment whilst maintaining the aesthetic appeal.
North America green building materials market size by application, 2012 – 2022
Presence of lucrative regulatory framework aimed at encouraging the usage of green building products is expected to drive the industry growth. In addition, government in the U.S. has emphasized on the permeable pavement and recycled concrete in order to promote green materials. Furthermore, increasing usage of products such as rammed earth, hempcrete, and recycled plastic is expected to result in a heightened demand for the products.
Major reasons responsible for the growth of the green building materials market can be summarized as follows:
- Increasing concerns regarding unsustainable constructions
- Heightened consumer adoption
- Favorable governmental support and regulatory framework
- Introduction of new and innovative products
Growing use of composites and stone for the production of building roofs is expected to emerge as the major market trend over the forecast period. In addition, the market for green building materials for structural constructions accounted for a market revenue of 64.9% in 2017, according to Grand View Research, Inc. Abundant availability of the green materials required for the production of structural components is emerged as the primary reason for the high segment share. The segment is also predicted to register fastest gains at a CAGR of 11.4% from 2015 to 2022 driven by increased adoption of such products in industrial and commercial constructions.
Global green building materials market share, by product, 2017 (%)
The use of such products for building interiors is expected to gain traction on account of superior aesthetic appeal. In addition, use of the products for the production of abstract interiors is likely to drive the industry growth over the forecast period.
The demand for green building materials for insulation in buildings realized a revenue of 49.01 Billion in 2017, according to analysts at Grand View Research, Inc. rising usage of naturally sourced insulations is expected to contribute to the industry growth over the forecast period.
Market growth to be fueled by introduction of advanced products:
The industry is expected to be driven by the introduction of advanced products, two of which are expected to register high demand on account of superior product performance:
- Roxul AFB evo by Roxul
- Thermafiber Formaldehyde Free SAFB Batt Insulations by Thermafiber
The products are used extensively as semi-rigid insulation solutions for use across the building & construction industry. Introduction of advanced products is expected to result in an increased adoption by the consumers in the region which is further expected to drive growth.
The market in Asia Pacific is expected to realize high gains over the forecast period on account of burgeoning building & construction industry in the region coupled with rising awareness regarding the usage of such products. The growth of the market in Europe and North America is expected to be spurred primarily by the governmental efforts and efforts by the commercial and institutional establishments to gain the LEEDS certification.
The industry exhibits a high level of forward integration with the raw material suppliers involved in the production of construction components, primarily due to limited integration cost and high profit margins. The marketspace is expected to turn highly competitive in the wake of notable adoption of such products, favorable governmental regulations, and presence of a limited number of companies.
The market entry of a number of players is expected to result in an increase in the trade volume of the products which in turn is likely to result in a decreased dominance of the regional players. This is anticipated to result in a decline in the price of the products, further advancing the adoption of such materials.
Educational Qualification – BE., Electrical, Nagpur University | MBA in Power Management, University of Petroleum and Energy Studies
Professional Experience – Karthik currently works as a Team Lead at Grand View Research, with over 4 years of experience in the materials domain.
Area of Specialization – Automotive, Sustainable materials, Renewable energy, Textile & Fiber
Consulting/Domain Expertise – Karthik holds expertise in client interfacing, growth consulting projects, penetration studies, product sales forecasting, and planning & scheduling projects. Furthermore, he has proficiency in formulating extensive investment feasibility analysis in line with client requirements particularly for new market entrants.