Green Building Materials Global Market Opportunities and Strategies to 2033

This report describes and explains the green building materials market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global green building materials market reached a value of nearly $305.62 billion in 2023, having grown at a compound annual growth rate (CAGR) of 6.1% since 2018. The market is expected to grow from $305.62 billion in 2023 to $499.95 billion in 2028 at a rate of 10.3%. The market is then expected to grow at a CAGR of 13.1% from 2028 and reach $925.57 billion in 2033.

Growth in the historic period resulted from the emerging markets growth, increase in demand for green buildings, growing investments in energy efficiency and rise in disposable income. Factors that negatively affected growth in the historic period was high costs.

Going forward, growing supportive government policies, increasing investments in renovation activities, increasing energy cost and consumption, growing construction industry and global population growth and urbanization will drive the growth. Factor that could hinder the growth of the green building materials market in the future include concerns about affordability and perceived higher costs of green construction.

The green building materials market is segmented by type into structural, exterior, interior and other types. The structural market was the largest segment of the green building materials market segmented by type, accounting for 47.2% or $144.34 billion of the total in 2023. Going forward, the structural segment is expected to be the fastest growing segment in the green building materials market segmented by type, at a CAGR of 10.7% during 2023-2028.

The green building materials market is segmented by application into framing, insulation, roofing, exterior siding, interior finishing and other applications. The insulation market was the largest segment of the green building materials market segmented by application, accounting for 27.7% or $84.8 billion of the total in 2023. Going forward, the interior finishing segment is expected to be the fastest growing segment in the green building materials market segmented by application, at a CAGR of 11.9% during 2023-2028.

The green building materials market is segmented by end-use into residential buildings and non-residential buildings. The residential buildings market was the largest segment of the green building materials market segmented by end-use, accounting for 56.4% or $172.28 billion of the total in 2023. Going forward, the residential buildings segment is expected to be the fastest growing segment in the green building materials market segmented by end-use, at a CAGR of 10.6% during 2023-2028.

North America was the largest region in the green building materials market, accounting for 33.5% or $102.39 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the green building materials market will be Asia-Pacific and Western Europe where growth will be at CAGRs of 11.9% and 10.9% respectively. These will be followed by Middle East and Eastern Europe where the markets are expected to grow at CAGRs of 9.6% and 9.3% respectively.

The global green building materials market is highly fragmented, with large number of players operating in the market. The top ten competitors in the market made up to 1.32% of the total market in 2022. Owens Corning was the largest competitor with 0.30% share of the market, followed by BASF SE with 0.20%, Kingspan Group Plc with 0.19%, Knauf Group with 0.12%, Holcim Ltd with 0.11%, Binderholz GmbH with 0.09%, Compagnie de Saint-Gobain with 0.08%, Wienerberger AG with 0.08%, DuPont de Nemours, Inc. with 0.07%, and Interface Inc. with 0.06%.

The top opportunities in the green building materials market segmented by type will arise in the structural segment, which will gain $95.28 billion of global annual sales by 2028. The top opportunities in the green building materials market segmented by application will arise in the insulation segment, which will gain $53.71 billion of global annual sales by 2028. The top opportunities in the green building materials market segmented by end-use will arise in the residential buildings segment, which will gain $112.65 billion of global annual sales by 2028. The green building materials market size will gain the most in the USA at $47.62 billion.

Player-adopted strategies in the green building materials market include focus on strengthening operational capabilities through business expansions by acquiring companies with similar businesses, enhancing product portfolio through the launch of new products, strategic mergers and acquisitions to expand geographical reach, expanding production capabilities by setting up new production units and developing new technologies to recycle construction demolition materials for a wide range of applications.

Market-trend-based strategies for the green building materials market include focus on use of recycled and reclaimed materials for sustainable construction, development of eco-friendly insulation materials to save energy costs, introduction of green cement to reduce carbon footprint, focus on introducing paint solutions with low levels of volatile organic chemicals (VOCs) and strategic partnerships and collaborations among market players.

To take advantage of the opportunities, the analyst recommends the green building materials companies to focus on sustainable practices, focus on eco-friendly insulation materials, focus on green cement for sustainable growth, focus on structural and interior segments, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships for market expansion, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on insulation and interior finishing applications and focus on residential buildings.