Nonresidential Green Buildings Global Market Opportunities and Strategies to 2030: COVID-19 Impact and Recovery

This report describes and evaluates the global nonresidential green buildings market. It covers 2015 to 2019, termed the historic period, 2019 through 2023, the forecast period, 2023-2025 forecast period, and 2025-2030 the forecast period.

The global nonresidential green buildings market reached a value of nearly $784,886.6 million in 2019, having increased at a compound annual growth rate (CAGR) of 29.2% since 2015. The market is expected to register slow growth from $784,886.6 million in 2019 to $809,693.8 million in 2020 at a rate of 3.2%. The slow growth is mainly due to lockdown and social distancing norms imposed by various countries and economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 12.4% from 2021 and reach $1,134,365.4 million in 2023. The global nonresidential green buildings market is expected to reach $1,397,512.8 million in 2025, and $2,304,498.2 million in 2030.

Growth in the historic period resulted from strong economic growth in emerging markets, low interest rates in most developed countries, and technological development. Factors that negatively affected growth in the historic period were geo-political tensions, and rising material costs. Going forward, increasing growth in investments in renewable power generation capacities, urbanization, and rising demand for eco-friendly alternatives will drive the growth. Factors that could hinder the growth of the construction market in the future include outbreak of coronavirus disease (COVID-19), Falling Consumer Demand, decreasing affordability, and health and safety measures.

The nonresidential green buildings market is segmented by product into exterior products, and interior products. The exterior products market was the largest segment of the nonresidential green buildings market segmented by product, accounting for 78.9% of the total in 2019. Going forward, the interior products segment is expected to be the fastest growing segment in the nonresidential green buildings market segmented by product, at a CAGR of 9.8% during 2019-2023.

The nonresidential green buildings market is also segmented by application into retail and other commercial buildings, office buildings, healthcare buildings, education building, hospitality and restaurant buildings, and factory buildings. The retail and other commercial buildings market was the largest segment of the nonresidential green buildings market segmented by application, accounting for 20.9% of the total in 2019 and is expected to be the fastest growing segment going forward, at a CAGR of 13.3% during 2019-2023.

North America was the largest region in the global nonresidential green buildings market, accounting for 50.3% of the total in 2019. It was followed by Asia Pacific, Western Europe, and then the other regions. Going forward, the fastest-growing regions in the nonresidential green buildings market will be Eastern Europe, and South America, where growth will be at CAGRs of 55.5% and 33.3% respectively. These will be followed by Africa, and the Middle East where the markets are expected to grow at CAGRs of 32.6% and 18.6% respectively.

The nonresidential green buildings market is highly fragmented, with a large number of small players. The top ten players constitute about 4.52% of the market. Major players in the market include HOCHTIEF AG, AECOM, Skanska Group, Clark Construction Group, LLC, Obayashi Corporation and others.

The top opportunities in the nonresidential green buildings market segmented by product will arise in the exterior products segment, which will gain $274,752.8 million of global annual sales by 2023. The top opportunities in the nonresidential green buildings market segmented by application will arise in the retail and other commercial buildings segment, which will gain $108,440.0 million of global annual sales by 2023. The nonresidential green buildings market size will gain the most in China at $92,792.0 million.

Market-trend-based strategies for the nonresidential green buildings market include use of living or green roofs to enhance efficiency of the green buildings, implementing low-emittance windows or smart glasses, using green concrete for the construction of commercial green spaces to enhance sustainable development, implementing new green ideas for increasing the commercial space efficiency, and increasing green building certifications through various certification agencies. Player-adopted strategies in the nonresidential green buildings market include expanding construction business through sustainable action, setting new standard of excellence green building construction, expanding green building construction business through sustainable investments and adopting innovative technologies in sustainable building construction through partnerships, among other strategies.

Amidst the unprecedented outbreak of corona virus, governments across the world are advising people to stay indoors and practice social distancing, to reduce the spread of the pandemic. This has reduced economic activity across the world, thereby decreasing short-term potential growth opportunities for the nonresidential green building market. Construction activity reduced significantly as workers stayed indoors and supply of construction materials was affected. As countries lifted lockdown restrictions, construction activity resumed slowly. Stakeholders in ongoing construction projects are expected to review their agreements and disputes are expected to arise as construction projects generally are time bound projects.

To take advantage of the opportunities, the publisher recommends the nonresidential buildings contractors to focus on providing new sustainable construction solutions such as biomimetic buildings and use green concrete to meet the growing demand, offer green roofing solutions, expand offerings in emerging markets to capture large untapped potential, offer competitive pricing strategy to compete with large number of players in the market, leverage social media to maximize reach and promote their offerings to the fast-growing end-use industries.