Low Carbon Buildings Market Report 2026

The low carbon buildings market size has grown rapidly in recent years. It will grow from $620.87 billion in 2025 to $697.47 billion in 2026 at a compound annual growth rate (CAGR) of 12.3%. The growth in the historic period can be attributed to increasing emphasis on energy-efficient construction, early adoption of low-carbon building materials, rising demand for green-certified structures, growth in corporate sustainability commitments, increased investment in carbon-reduction technologies.

The low carbon buildings market size is expected to see rapid growth in the next few years. It will grow to $1.1 trillion in 2030 at a compound annual growth rate (CAGR) of 12.2%. The growth in the forecast period can be attributed to increasing integration of renewable building systems, rising adoption of circular-economy construction materials, development of ultra-low-carbon concrete, expansion of large-scale green infrastructure, growth in AI-driven building energy optimization. Major trends in the forecast period include rising use of low-emission building materials, growth in green-certified construction, expansion of energy-efficient architectural design, increased adoption of renewable building systems, higher demand for carbon-neutral construction technologies.

The growing awareness of climate change is expected to drive the growth of the low-carbon buildings market moving forward. Increased awareness of climate change results from rising environmental concerns, widespread access to information, and intensified media coverage, leading to greater public engagement and demand for sustainable practices. Low-carbon buildings aim to reduce greenhouse gas emissions by incorporating energy-efficient designs, sustainable materials, and renewable energy systems, all of which promote sustainability and help combat climate change. For example, in 2023, the European Commission reported that 87% of Europeans supported increasing renewable energy use, and 86% favored enhancing energy efficiency by 2030. As a result, the increasing awareness of climate change is propelling the growth of the low-carbon buildings market.

Key players in the low-carbon buildings market are focusing on strategic partnerships to launch decarbonization programs that accelerate the transition to sustainable construction, improve energy efficiency, and reduce carbon emissions. These partnerships are vital for scaling sustainable construction practices, promoting decarbonization, and fostering innovation in the sector. For instance, in June 2024, Mahindra Group, an India-based industrial company, partnered with Johnson Controls, an Ireland-based industrial machinery manufacturer, to launch a net-zero buildings initiative. The initiative aims to decarbonize commercial, urban, residential, and public buildings in India by providing free toolkits and training programs. This initiative streamlines access to essential resources, empowering organizations to adopt sustainable building solutions and supporting India’s low-carbon development objectives by guiding building owners on conservation strategies, regulatory compliance, financing options, and advanced technologies.

In July 2023, Kingspan Group, an Ireland-based supplier of high-performance insulation and building envelope solutions, acquired a majority stake in STEICO SE for about €251 million. The acquisition is intended to strengthen Kingspan’s expertise in bio-based and renewable insulation technologies and broaden its range of sustainable building material offerings. STEICO SE, headquartered in Germany, specializes in wood-fibre insulation materials, engineered timber systems, and other bio-based construction products.

Major companies operating in the low carbon buildings market are Holcim Group, Heidelberg Materials, CEMEX, Lafarge Canada, Vicat Group, CRH plc, Stora Enso, Binderholz GmbH, KLH Massivholz GmbH, Structurlam Mass Timber Corporation, Mayr-Melnhof Holz, Metsä Wood, Nippon Steel Corporation, SSAB AB, ArcelorMittal, Tata Steel Europe, Nucor Corporation, Steel Dynamics Inc., CarbonCure Technologies Inc., Ecocera Concrete Solutions.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the low carbon buildings market by increasing costs for imported mass timber, recycled steel, energy-efficient insulation, photovoltaic components, and low-carbon cement alternatives. Regions with heavy import dependence, including Europe, Asia-Pacific, and the Middle East, face higher project budgets and longer sourcing timelines. However, tariffs are stimulating domestic production of sustainable materials, encouraging regional renewable energy system integration, and supporting innovations that reduce lifecycle carbon footprints.

The low carbon buildings market research report is one of a series of new reports that provides low carbon buildings market statistics, including the low carbon buildings industry's global market size, regional shares, competitors with a low carbon buildings market share, detailed low carbon buildings market segments, market trends and opportunities, and any further data you may need to thrive in the low carbon buildings industry. This low carbon buildings market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Low-carbon buildings are structures specifically designed and constructed to minimize carbon emissions throughout their lifecycle, from design and construction to operation and demolition. These buildings focus on energy efficiency and incorporate sustainable materials, practices, and technologies that significantly reduce the carbon footprint associated with energy use for heating, cooling, lighting, and other functions.

The main components of low-carbon buildings include energy-efficient materials, renewable energy systems, low-carbon HVAC systems, and green building certifications. Energy-efficient materials are designed to reduce energy consumption in buildings by improving insulation, temperature control, and decreasing the need for heating or cooling. Various materials used include wood, bamboo, recycled steel, and recycled plastic, which are applied across commercial, residential, and industrial sectors.Europe was the largest region in the low-carbon buildings market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in low carbon buildings report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the low carbon buildings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The low carbon buildings market consists of sales of low-carbon concrete, mass timber, and sustainable steel. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.