Advance Building Materials Market Overview, 2025-30

The advanced building materials market has witnessed significant growth over the past decade, owing to rise in construction business. The rise of urbanization and infrastructure development has led to increase in advance building materials requirements as well as its extensive use in construction of building, apartment and commercial spaces. Increase in government expenditures for infrastructural development such as construction & infrastructure developments largely drives the market. Industries, such as construction and tunnels, require concrete and wall cladding, precast products & elements.

By 2040, the global population is estimated to grow by approximately two billion with the urban population growing by 46%, triggering massive demand for infrastructure support such as roads, subways, tunnels, common areas, and commercial infrastructures. Need for reduced construction time and cost-effective products are driving the demand of advance material for construction applications.

In addition use of ready-mix concrete and precast products & elements saves a lot of construction time. For instance, in February 2020, a road was built in Nagpur, India, using precast concrete pavement in six hours, which would have taken around 8-10 days or more otherwise. Similarly, in January 2021, Gage Brothers Concrete Products built a 440,000 sq. ft.

N95 manufacturing facility in just 52 days using precast concrete components. The demand for advanced building materials decreased in 2020, owing to low demand from different regions due to lockdowns imposed by the government of many countries. The COVID-19 pandemic has shut-down production of various products for the advanced building materials end-user, mainly owing to prolonged lockdowns in major global countries.

This has hampered the growth of the advanced building materials market significantly during the pandemic. The major demand for advanced building materials was previously noticed from giant manufacturing countries including the China, U.S., Germany, Italy, and the UK which was badly affected by the spread of coronavirus, thereby halting demand for advanced building materials.

According to the research report, "Global Advance Building Materials Market Overview, 2030,", the Global Advance Building Materials market was valued at more than USD 64.57 Billion in 2024, with the CAGR of 6.96% from 2025-2030. Technological innovations in construction processes are significantly impacting the Advanced Building Materials Market Industry. Advanced techniques, such as 3D printing, smart materials, and digitized construction methodologies, have revolutionized the way buildings are designed and constructed. These innovations allow for more precise material usage, reducing waste and enhancing overall efficiency.

As the industry embraces smart technologies, the demand for advanced materials that can integrate with these systems is on the rise. Development in manufacturing technology of advance building material is one of the major driving factors of the market. Many key innovators are also providing advance building material. For instance, in September 2021, Kingspan Group has acquired Ondura in order to expand its roofing and waterproofing sector throughout Europe and North Americas. Such factors are driving the demand of advanced building materials industry. The need for advanced material for construction applications is being driven by the need for products with shorter production times and lower costs.

In addition, using precast materials and parts as well as ready-mix concrete cuts down significantly on building time. For instance, August 2022, CEMEX has expanded its production plant in Jamaica by means of this business expansion to increase the cement production capacity at CEMEX’s Jamaica cement plant by up to 30%. Such instances are expected to drive the advanced building materials market growth.

Furthermore, collaboration between material scientists, architects, and policymakers has accelerated the development and commercialization of novel materials, ensuring that they meet both performance and regulatory requirements. However, challenges remain in terms of high initial costs, lack of awareness in some developing regions, and limited testing standards for newer materials.

Market Drivers

• Growing Demand for Sustainable Construction:: One of the most significant drivers in the advanced building materials industry is the increasing global push for sustainable construction. Governments, businesses, and consumers are prioritizing eco-friendly practices to reduce carbon footprints. Advanced materials such as self-healing concrete, energy-efficient glass, and green insulation are in high demand because they help buildings use fewer resources and generate less waste. Regulatory policies, green building certification systems like LEED and BREEAM, and corporate ESG goals are all encouraging the use of such innovative materials. As urbanization increases, especially in emerging economies, the demand for sustainable and durable infrastructure is expected to surge, further driving the growth of advanced materials.
• Technological Innovations and Smart Materials: The rapid pace of technological advancements is another strong driver. The integration of nanotechnology, 3D printing, and smart sensors into building materials has led to the creation of high-performance products that are lighter, stronger, and more adaptable. For example, materials embedded with sensors can now monitor structural integrity in real-time, improving safety and maintenance efficiency. Likewise, phase-changing materials that adjust to temperature variations are being used for energy conservation in buildings. These breakthroughs enhance functionality and performance, pushing the construction industry toward high-tech solutions that are both cost-effective and energy-efficient in the long run.

Market Challenges

• Long-Term Performance Uncertainty: Because many advanced building materials are relatively new, there’s often limited data on their long-term performance under different environmental conditions. Investors, developers, and regulatory bodies can be hesitant to embrace materials that lack a proven track record over decades. Concerns may include how well these materials withstand weather, UV exposure, or seismic activity over time. This uncertainty can slow down adoption and raise questions about insurance coverage, warranties, and lifecycle costs, all of which are critical factors in construction planning and investment decisions.
• Skills Gap and Labor Shortage: The use of advanced materials frequently requires new construction techniques, specialized knowledge, and training, which the current workforce may not have. There is a notable skills gap in both the design and application of these materials. For example, installing smart glass or handling aerogel insulation requires a different skill set than traditional materials. Without adequate training programs and education, this limits the scalability and efficiency of using advanced materials in real-world construction. Labor shortages in the broader construction industry further compound this issue, making it harder to adopt and apply innovative solutions.

Market Trends

• Rise of Prefabrication and Modular Construction: Prefabrication and modular construction are gaining traction globally, and they heavily rely on advanced building materials. Lightweight composites, high-performance concrete, and energy-efficient panels are increasingly used in factory-built components that are assembled on-site. This trend is driven by the need for faster, safer, and more cost-effective construction solutions. Advanced materials that facilitate precision engineering and quick assembly are becoming essential in this shift, particularly in urban housing and commercial projects where speed and scalability are critical.
• Circular Economy and Recyclability Focus: There’s a growing trend toward adopting a circular economy approach in the construction industry, where materials are designed for reuse, recycling, and minimal waste. This has spurred innovation in materials that can be deconstructed and repurposed, such as modular bricks made from recycled plastic or concrete alternatives made from industrial byproducts. Companies are investing in materials that not only reduce the initial environmental impact but also contribute to a building’s end-of-life sustainability. This trend is aligned with global climate goals and resonates particularly well with younger, environmentally conscious consumers and stakeholders.

The growth of technically advanced building materials in the global advanced building materials industry is primarily driven by the increasing demand for sustainable, energy-efficient, and high-performance construction solutions.

The global advanced building materials industry has witnessed significant growth due to the increasing demand for materials that meet modern needs for sustainability, energy efficiency, and high-performance in construction. Technically advanced building materials are evolving as key solutions for addressing pressing environmental and structural challenges, aligning with the growing focus on green construction and smart buildings. A primary factor in this growth is the heightened awareness of environmental sustainability and the urgent need to reduce the carbon footprint of buildings.

With climate change becoming a central concern, both governments and private sectors are prioritizing eco-friendly and energy-efficient technologies in construction. Building materials that improve energy conservation - such as insulated concrete forms, high-performance windows, and smart glass - are gaining traction due to their ability to reduce energy consumption and carbon emissions throughout a building's lifecycle. Additionally, the rise in urbanization and the need for more efficient, cost-effective, and resilient construction methods are key drivers.

As the global population continues to grow, the demand for housing, commercial infrastructure, and industrial facilities increases, necessitating the development of materials that can withstand extreme weather conditions, reduce maintenance costs, and extend the life span of structures. Advanced building materials, such as self-healing concrete, high-strength steel alloys, and composites, offer enhanced durability, resistance to corrosion, and adaptability to various environmental conditions.

These materials help to build structures that are not only stronger but also safer, lowering the risk of damage and maintenance costs over time. The integration of technology in construction, from 3D printing to artificial intelligence (AI) and building information modeling (BIM), is revolutionizing the way buildings are designed, constructed, and maintained.

The growth of facades in the global advanced building materials industry is driven by the increasing demand for energy-efficient, aesthetically appealing, and environmentally sustainable building designs that enhance the performance and aesthetic value of structures.

Facades have become one of the fastest-growing applications in the global advanced building materials industry due to the convergence of several key trends that emphasize energy efficiency, aesthetic design, and environmental sustainability. Facades, which serve as the outermost shell of a building, are no longer just functional elements; they have evolved into highly sophisticated components that contribute significantly to a building's overall energy performance, durability, and visual appeal. One of the primary factors driving the growth of facades is the increasing global demand for energy-efficient buildings.

As cities around the world are grappling with rising energy costs and the pressing need to reduce carbon emissions, building designs are shifting toward passive and active energy-saving technologies. Facades play a critical role in this transformation by incorporating advanced materials that improve insulation, regulate heat, and maximize natural light, all of which reduce the building's dependence on artificial heating, cooling, and lighting systems. For instance, modern facades made from materials like high-performance glass, insulated panels, and ventilated cladding systems are designed to optimize the building’s thermal performance, reducing energy consumption and contributing to a more sustainable built environment.

Aesthetically, facades are increasingly seen as a key feature in modern architecture. Advanced building materials for facades allow architects to explore innovative designs that integrate aesthetics with functionality. Materials like dynamic glass, terracotta, metal panels, and composite materials provide designers with greater flexibility in creating striking and modern facades that enhance the aesthetic value of buildings. The ability to combine various textures, colors, and finishes in facades also allows for customization that meets the specific demands of building owners, municipalities, and urban planners, fostering the creation of iconic buildings that stand out in urban landscapes.

The global growth of cross-laminated timber (CLT) in the advanced building materials industry is primarily driven by the rising demand for sustainable, low-carbon, and high-performance alternatives to traditional concrete and steel in modern construction.

Cross-laminated timber (CLT) is experiencing rapid growth in the global advanced building materials industry due to its unique combination of sustainability, structural performance, and versatility, making it an increasingly attractive alternative to traditional building materials like steel and concrete. As climate change concerns intensify, the construction sector - historically one of the largest contributors to global carbon emissions - is undergoing a fundamental shift toward greener and more sustainable practices. CLT, a prefabricated engineered wood product made by gluing layers of solid-sawn timber in alternating directions, offers a renewable and low-carbon solution that aligns with these new priorities.

One of the most compelling reasons for the rise of CLT is its significantly lower environmental impact. Timber naturally sequesters carbon dioxide, and when sourced from sustainably managed forests, CLT not only locks in carbon but also helps to reduce overall emissions associated with construction. Compared to steel and concrete, which are energy-intensive to produce and transport, CLT has a much smaller carbon footprint, making it a vital component of the shift toward net-zero and climate-positive building design. In addition to sustainability, CLT offers outstanding structural and design flexibility.

Its cross-laminated configuration provides high strength and dimensional stability, allowing it to be used in multi-story residential, commercial, and institutional buildings. This has opened the door for mass timber construction, where entire mid-rise and even high-rise buildings are constructed primarily from engineered wood. Developers and architects are increasingly drawn to CLT because it enables faster and more efficient construction. Since panels are prefabricated off-site to precise specifications, construction time on-site is dramatically reduced, leading to cost savings and minimized disruption in urban areas. This level of precision also enhances quality control and reduces material waste, aligning with broader goals of lean and sustainable construction.

The global growth of fire resistance and safety as a key functional segment in the advanced building materials industry is primarily driven by increasing urbanization, stricter fire safety regulations.

The fire resistance and safety function type is gaining significant momentum in the global advanced building materials industry due to a heightened focus on creating safer, more resilient structures amid growing urban populations and evolving climate risks. With more people living in dense urban environments, the potential impact of fire-related incidents has increased dramatically, placing greater pressure on governments, developers, and architects to prioritize fire safety in the design and construction of buildings. This has led to stricter building codes and regulations worldwide that mandate the use of fire-resistant materials, driving up demand for innovative, high-performance solutions.

Wildfires have become more intense and widespread in regions like California, Australia, Southern Europe, and parts of Asia, affecting both rural and urban areas. These environmental threats are prompting a shift toward materials and construction systems that offer passive fire protection - meaning they inherently resist ignition and slow the spread of flames without active intervention. This passive protection is especially critical for critical infrastructure, high-rise buildings, and public spaces such as hospitals, airports, and schools, where occupant safety and evacuation timelines are of utmost importance.

Taller buildings require materials that not only meet baseline fire ratings but also contribute to compartmentalization, structural stability under high heat, and reduced toxic gas emissions. Advanced materials such as fire-resistant concrete, fiber-reinforced composites, ceramic-based insulation, and innovative steel alloys are now being designed to meet these rigorous performance standards.

Moreover, the demand for sustainable building practices is intersecting with fire safety, pushing manufacturers to develop eco-friendly fire-resistant materials that align with green certifications like LEED and BREEAM. Traditional fireproofing substances often relied on harmful chemicals, but the industry is now transitioning to low-VOC, halogen-free, and recyclable alternatives that combine safety with environmental responsibility.

The growth of the infrastructure end-user segment - comprising bridges, roads, tunnels, and airports - in the global advanced building materials industry is primarily driven by increasing investments in resilient, long-lasting.

The infrastructure sector, particularly in areas like bridges, roads, tunnels, and airports, is emerging as one of the fastest-growing end-user segments in the global advanced building materials industry due to the pressing global need for modern, durable, and climate-resilient public infrastructure. Rapid urbanization, especially in developing countries, is creating massive demand for infrastructure expansion and modernization, while in developed nations, aging infrastructure requires urgent upgrades or replacement. In both cases, traditional construction materials are often inadequate for meeting the long-term performance, durability, and environmental requirements of the 21st century.

Advanced building materials - such as ultra-high-performance concrete (UHPC), fiber-reinforced polymers, corrosion-resistant alloys, and self-healing materials - are being increasingly adopted to extend the lifespan of infrastructure, minimize maintenance costs, and ensure structural integrity under high loads and harsh conditions. Governments and private stakeholders alike are recognizing that investment in quality materials translates into longer-lasting infrastructure, which reduces lifecycle costs and improves public safety. Moreover, global climate change is putting unprecedented stress on existing infrastructure systems, especially in regions prone to extreme weather events, such as flooding, hurricanes, and heatwaves.

Advanced materials that are engineered to withstand these stresses - whether through enhanced thermal resistance, moisture control, or structural flexibility - are now critical components in resilient infrastructure design. For example, bridges constructed with fiber-reinforced composites can better resist corrosion from de-icing salts and marine environments, while roadways made with phase-change materials can adapt to temperature fluctuations, reducing wear and tear. In tunnels and underground transit systems, fire-resistant linings and smart concrete with integrated sensors are being used to enhance safety and enable real-time monitoring, allowing quicker response and maintenance.

The Asia-Pacific (APAC) region is growing in the global advanced building materials industry due to rapid urbanization, increasing construction activities, and the rising demand for sustainable, energy-efficient, and technologically advanced construction solutions.

The Asia-Pacific (APAC) region is experiencing a significant surge in the global advanced building materials industry, driven primarily by its rapid urbanization, booming construction sector, and a growing demand for sustainable, energy-efficient, and technologically advanced building solutions. As the world’s most populous and economically dynamic region, APAC is undergoing a major transformation, with cities expanding at an unprecedented rate. The region is home to some of the fastest-growing economies, such as China, India, Japan, and Southeast Asian countries, all of which are witnessing an explosion in both population and urban development.

This surge in population and the expansion of urban areas have created an urgent need for new infrastructure, housing, and commercial properties, fueling the demand for advanced building materials that can meet the challenges of modern construction. Furthermore, APAC is a hub for innovation and technological advancement, particularly in countries like Japan, South Korea, and China. These countries have invested heavily in research and development (R&D) in the building materials sector, and they are pushing the boundaries of what is possible in terms of material science.

Through collaborations between governments, research institutions, and private companies, APAC is emerging as a leader in the development of next-generation materials such as self-healing concrete, advanced thermal insulation systems, and nanomaterials that offer superior strength and functionality. These innovations are reshaping the global construction industry, and as APAC becomes a primary source of these groundbreaking materials, the region’s influence continues to grow.

The region’s robust manufacturing capabilities, coupled with a competitive labor market, allow APAC to produce advanced building materials at a scale and cost that is attractive to both domestic and international markets. With established supply chains and access to abundant raw materials, APAC countries can efficiently produce large quantities of building materials while keeping costs relatively low.

• In October 2022, Kingspan Group has acquired CALOSTAT brand of high-performance insulation in order to provides high insulation and speciality chemicals business throughout Germany. Such instances drive the market of advance building materials market.
• In September 2022, Kingspan Group has acquired Ondura in order to expands its Roofing and Waterproofing sector throughout Europe and North Americas.
• In February 2022, Sherwin-Williams Company has acquired AquaSurTech, to expands its coatings solutions in the building products market.
• In April 2022, Sherwin-Williams Co. has acquired European industrial coatings business of Sika AG top expands it coating solution. This will increase the customer reach of the company.
• In February 2022, Kingspan Group plc has acquired Troldtekt A/S, a manufacturer of sustainably produced wood-based acoustic boards in order to expands it advanced insulation and innovative building solutions. Such instances drive the market of advance building materials market.

Considered in this report:

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report:

• Advance Building Materials Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type:

• Green Building Materials
• Technically Advanced Building Materials

By Materials:

• Advanced Cement & Concrete
• Cross-laminated Timber
• Structural Insulated Panel
• Sealants
• Other (Aerogels, Recycled Composite Materials, Geopolymer)

By End Use:

• Residential Construction
• Commercial Construction (Offices, Malls, Hotels, etc.)
• Industrial Buildings (Factories, Warehouses)
• Infrastructure (Bridges, Roads, Tunnels, Airports)
• Institutional Construction (Hospitals, Schools, Government Buildings)

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.