US Green (Vegetative) Roofing Market 2022-2030

Sika Acquires American Hydrotech to Become Market Leader

This industry study analyzes the $162 million US green (vegetative) roofng industry. It presents historical demand data and forecasts by system type (extensive, semi-intensive, and intensive), market (new and retroft), component (waterproof membranes, growing media, vegetation, geotextiles and drainage layer, insulation, and other components), and region (Northeast, Midwest, South, West) and subregion.

Demand for green (also called vegetative) roofing systems in the US is forecast to rise 5.1% per year to $207 million in 2025 with demand in area terms projected to reach 11.8 million square feet. Advances will be driven a post-pandemic rebound in construction of commercial buildings - such as government offices, educational facilities, and warehouses and manufacturing plants - as most green roofs are installed on these types of buildings. Additional factors supporting growth include:

• rising awareness of both the public and the private benefits of green roofs - such as reducing urban heat island effects and increasing local biodiversity while also lowering building utility costs
• the expanding number of cities with green roofing mandates and/or incentive programs that promote property owners to install green roofs
• the aesthetic appeal and recreational benefits of green space amenities
• the ability of green roofing systems to earn LEED credits for buildings

However, faster increases will be limited by the glut of vacant commercial properties in the wake of the pandemic, hindering new construction (green roofs are most often installed on new buildings) and the market will remain relatively small due in part to the relative scarcity of green roofing mandates or incentive programs throughout much of the country.

Post-Pandemic Rebound in Commercial Building Construction to Drive Market Growth

Demand for green roofing systems fell in 2020 and 2021 due to pandemic-related weakness in commercial building construction, where the vast majority of green roofs are installed. Even as economic conditions improve, many building owners and managers remain reluctant to invest in such large-scale and generally optional projects as green roofs, limiting the number of installations in the near term. Nevertheless, green roofing sales are projected to return to growth in 2022 and accelerate through 2025 as commercial building construction continues to rebound, and recently implemented green roof mandates (e.g., New York City’s 2019 Climate Mobilization Act) make a greater impact on the market.

The South Will Continue to Lead US Regions, But West to See Faster Growth

The South will remain the leading regional green roofing market through 2025, bolstered by the relatively large number of installations each year in South Atlantic cities such as Washington, DC, Atlanta, Baltimore, and Miami. However, the West will continue to post faster growth, driven by the expanding impact of green roofing initiatives in cities in the Pacific subregion, such as San Francisco and Portland, Oregon. Green roofing suppliers in these areas benefit from significant government support for vegetative roofing, as well as from warm climates that support investments to improve energy efficiency.

Sika Acquires American Hydrotech to Become Market Leader

In July 2021, Sika acquired American Hydrotech - maker of the popular Garden Roof vegetative roof system and other green roofing products - as part of a strategy to become the leading green roofing supplier in North America. The acquisition complements Sika’s existing roofing and waterproofing portfolio with a range of sustainable roofing products. Other notable acquisitions include Holcim’s April 2021 purchase of Firestone Building Products from Bridgestone and Carlisle’s July 2021 agreement to acquire Henry.