Green Building Materials Market Size, Share, Forecast, & Trends Analysis by Type, Product (Exterior, Interior), Application (Roofing, Siding, Insulation, Flooring), Sector (Residential, Commercial) and Geography - Global Forecast to 2031

The Green Building Materials Market is expected to reach $791.8 billion by 2031, at a CAGR of 9.9% from 2024 to 2031.

Green Building Materials Market Size & Forecast

The market for green building materials is expected to grow primarily because of several factors, including the growing need for energy-efficient buildings and insulation, the growing acceptance of green building materials across different industries, and government laws that support green construction practices. Furthermore, the players operating in this market would have growth opportunities owing to the growing emphasis on environmental sustainability.

Green Building Materials Market Growth Drivers

Favorable Government Policies for Green Buildings Driving Market Growth

As governments globally increasingly focus on sustainability and climate action, several rising policies and trends in green building are emerging. These policies are aimed at accelerating the transition towards more sustainable, energy-efficient, and environmentally friendly buildings. Some of the government policies for green buildings are as follows:

• In March 2024, the Department of Energy (DOE) (U.S.) announced an investment of USD 6 billion for 33 projects across more than 20 states to decarbonize energy-intensive industries, reduce industrial greenhouse gas emissions, support well-paying union jobs, and boost industrial communities.
• In 2024, policies and announced an investment of USD 73.5 million in programs such as the ENERGY STAR Portfolio Manager platform to support the implementation of local initiatives, including benchmarking, labeling, and disclosure policies, and building performance standards to further reduce emissions and lower energy bills.

These rising policies reflect a growing recognition of the need for more sustainable buildings. Thus, government initiatives encouraging the adoption of green building materials are driving the growth of this market.

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Increasing Demand for Insulation and Energy-efficient Buildings Driving Market Growth

There is a demand for more sustainable building approaches as a result of growing awareness of climate change and the need to minimize carbon footprints. Utility bills are reduced by the substantial reduction in energy use for heating and cooling that comes from insulation and energy-efficient buildings. The entire living and working environment is improved by proper insulation, which additionally preserves appropriate indoor temperatures and improves indoor air quality. To encourage energy efficiency and sustainability, several governments are enacting stronger construction rules and providing incentives for green building methods. Because technology is constantly evolving, it is essential to the robotics market because it increases the productivity, capability, adaptability, and efficiency of robots. This method preserves the caliber of the job while conserving time and resources. Overall, the rising need for insulation and energy-efficient green buildings is driven by conserving energy, reducing environmental impact, improving occupant health and comfort, complying with regulations, and achieving economic benefits.

Green Building Materials Market Growth Opportunities

Increasing Focus on Environmental Sustainability

Emissions of greenhouse gases into the environment occur primarily in buildings. Governments and municipal authorities are having a major impact on the adoption of green building materials in an effort to reduce carbon footprints. The goal of sustainable building methods is to lessen carbon footprints, which will assist in slowing down global warming. The efficient use of resources, including water, electricity, and raw materials, is encouraged by green buildings. As a result, there is less of an effect on the environment and less depletion of natural resources. Green buildings also contribute to the maintenance of healthy indoor environments by reducing exposure to hazardous chemicals, improving air quality, and using natural lighting.

Further, programs like LEED (Leadership in Energy and Environmental Design) and other green building certifications are providing incentives, financial benefits, and recognition for adopting sustainable practices. Thus, the increasing focus on environmental sustainability is creating growth opportunities in the green building materials market.

Green Building Materials Market Analysis: Key Findings

By Type: The Recycled Materials Segment to Dominate the Green Building Materials Market in 2024

Based on type, the green building materials market is segmented into recycled materials, natural materials, and other materials. In 2024, the recycled materials segment is expected to account for the largest share of over 54.0% of the green building materials market. This segment’s large market share is attributed to the growing adoption of recycled materials in various sectors, the surge in demand for sustainable building materials, and promising government policies that encourage the use of recycled materials. In addition, the benefits associated with recycled materials, such as waste reduction, resource conservation, and lower carbon footprints, contribute to the growth of this market. Moreover, this segment is expected to grow at a higher CAGR during the forecast period.

By Product: The Exterior Products Segment to Dominate the Green Building Materials Market in 2024

Based on product, the green building materials market is segmented into exterior products, interior products, solar products, and other products. In 2024, the exterior products segment is expected to account for the largest share of over 43.0% of the green building materials market. The rising demand for energy-efficient buildings and insulation, the growing popularity of exterior products that improve indoor air quality, the growing adoption of innovative and sustainable exterior products, and the growing consumer awareness of environmental issues are all factors contributing to this segment's large market share. Furthermore, the advantages of external items include lower heating and cooling costs, greater home comfort, better air quality, environmental sustainability, and energy efficiency. Moreover, this segment is expected to grow at a higher CAGR during the forecast period.

By Application: The Roofing is Segment to Dominate the Green Building Materials Market in 2024

Based on application, the green building materials market is segmented into roofing, insulation, flooring, siding, framing, and other applications. In 2024, the roofing segment is expected to account for the largest share of over 40.0% of the green building materials market. This segment’s large market share is attributed to the rising development of cool roofs, green roofs, and building-integrated photovoltaics (BIPV), the surge in demand for sustainable roofing materials to reduce carbon footprints, and the rising adoption of green roofs to improve indoor air quality. In addition, the benefits associated with the roofing segment, such as extended roof lifespan, lower surface temperature, reduced carbon footprint, and improved air quality, further support the growth of this segment. Moreover, this segment is expected to register the highest CAGR during the forecast period.

By Sector: The Residential Segment to Dominate the Green Building Materials Market in 2024

Based on sector, the green building materials market is segmented into residential, commercial, and other sectors. In 2024, the residential segment is expected to account for the larger share of over 42.0% of the green building materials market. This segment's large market share is attributed to the rising incentives such as tax credits, rebates, and grants for using green building materials, the rising shift towards more sustainable living practices, the rising demand for advanced insulation and energy-efficient solutions, and the growing need for the development of high-performance insulation, smart windows, and sustainable composites. Furthermore, increasing environmental awareness, regulatory support, and technological innovations are expected to support the growth of this segment.

Geographic Analysis

North America to Dominate the Green Building Materials Market

Based on geography, the green building materials market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of over 35.0% of the green building materials market. The presence of prominent green building materials players contributes to the large market share of this region. In addition, the increasing emphasis on environmental sustainability, the growing adoption of green building materials in the residential sector, and the rising adoption of green building materials in various sectors drive the demand for green building materials in the region. Additionally, several leading key players are investing in green building materials. For instance, in November 2021, CertainTeed, LLC. (U.S.), a leading manufacturer of sustainable building materials, announced an investment of more than USD 400 million to expand its production capacity at four key manufacturing locations in the United States.

However, Asia-Pacific is expected to register the highest CAGR of 11.0% during the forecast period. This region's rapid growth is mainly driven by factors such as the surge in demand for sustainable building materials, favorable government policies for green buildings, and rising awareness about the benefits and availability of green building materials.

Green Building Materials Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the green building materials market are DuPont de Nemours, Inc. (U.S.), Holcim Group (Switzerland), Interface Inc. (U.S.), Kingspan Group plc (Ireland), Owens Corning (U.S.), PPG Industries, Inc. (U.S.), Sika AG (Switzerland), Bauder Ltd. (U.K.), Amvic Inc. (Canada), Binderholz GmbH (Germany), Alumasc Group Plc (U.K.), BASF SE (Germany), CertainTeed, LLC. (U.S.), Forbo International SA (Switzerland), and LG Hausys Ltd (South Korea).

Green Building Materials Industry Overview: Latest Developments from Key Industry Players

• In January 2024, Holcim Group (Switzerland) partnered with Greentown Labs (U.S.) to accelerate open innovation for the decarbonization of the built environment.
• In September 2023, Holcim Group (Switzerland) opened its innovation hub to showcase its sustainable building solutions and serve as a co-creation lab to accelerate low-carbon, circular, and energy-efficient building worldwide.

Green Building Materials Market Research Summary

Key questions answered in the green building materials market report: