Increasing Preference for Green Building Materials Over Traditional Construction Materials to Fuel Growth of the Green Building Materials Market
The use of green building materials, including the growing trend of energy-efficient structures in high-rise residential buildings and townships, is expected to drive demand for green building materials market. Public awareness compounded by rising income levels give promising future for green materials. Green building materials reduce carbon footprints, allowing for a reduction in global warming. Furthermore, these materials are energy-efficient and environmentally friendly, making them easy to maintain and offer cost-saving benefits. The benefits of green building technology will continue to drive the progress of green building materials market growth lucrative. In May 2020, SmartLam North America and RedBuilt have announced a collaboration to provide Cross-Laminated Timber (CLT) products and solutions to architects, engineers, and contractors working on projects utilising the popular mass timber building technology. RedBuilt will be the sole distributor of SmartLam CLT in the Pacific Northwest, West Coast, and Southwest, which includes nine states.
Various government initiatives and regulatory mandates, such as Leadership in Energy and Environmental Design (LEED), Green Building Certification, and subsidies for green housing projects, have fuelled the region's green building construction sector, in turn fostering the growth of green building materials market. According to the Green Building Information Gateway (GBIG), Austria has around 229 green buildings, with 138 BREEAM certified, 89 LEED certified, 40 DGNB accredited, and the rest certified by various organisations. In addition, the government is pushing new investments and subsidiaries to create more of these structures. Similarly, The US Green Building Council (USGBC) has named Hesse the German state with the most LEED certified green buildings. Hesse has nearly 3 million GSM (grammes per square metre) of building space, with 95 LEED certified projects. Bavaria comes in second with 66 LEED certified projects totalling 1.3 million GSM of building space.
Increased Demand for Residential Building to Drive Growth of Green Building Materials Market
The residential building segment held a significant share of the green building material market over the forecast period. Green building construction in the residential sector is increasing due to the growing number of building laws and policies requiring energy-efficient construction. As a result, a market for eco-friendly and energy-efficient building materials has emerged. Green building construction in the residential sector is increasing because of the building regulations, and policies requiring energy-efficient structures. This has created a market for environment-friendly, and energy-efficient residential construction materials.
Renovation Projects in North American to Drive Growth of Green Building Materials Market
The North American region is expected to dominate the market over the forecast period. The region's construction sector has been growing mainly due to rising demand for houses on one hand and increase in renovation projects on the other. Green building materials are becoming more popular in a variety of construction projects because they reduce the environmental impact of building materials during installation, transportation, manufacturing, processing, disposal, and recycling. Energy-efficient buildings, rising need for insulation, and favourable government policies for green buildings are major business aspects. According to the US Green Building Council (USGBC), 1,171 projects with LEED certification for green buildings in the US with 281.05 million GSF land were certified in 2020. Similarly, according to a report by the Canada Green Building Council (CaGBC), with government investment and proactive policy, green building could create 1.5 million jobs, eliminate 53 million tonnes of carbon, and increase GDP by USD 150 billion by 2030. Such positive trends in the North American construction industry are expected to drive demand for green building materials over the forecast period.
Asia Pacific has also been witnessing promising growth of green building materials market and the trend will prevail throughout the forecast period, majorly attributing to growing adversity of climatic conditions, and favourable government initiatives. China, and India are already dealing with environmental pollution issues, which has piqued the interest of governments to take the lead in this area. For instance, to promote green buildings, the Indian government has launched initiatives such as the Green Rating for Integrated Habitat Assessment (GRIHA). It has mandated that all central government, and PSU buildings receive at least 3-star GRIHA ratings, thereby fortifying the scope of growth for green building materials market.
Global Green Building Materials Market: Competitive Landscape
In July 2021, Sika has acquired American Hydrotech Inc. in the United States and its Canadian subsidiary Hydrotech Membrane Corporation. Hydrotech is a seasoned and well-known liquid membrane manufacturer and provider of complete roofing and waterproofing solutions. On the other hand, in July 2020, Nexii Building Solutions, a Canadian green construction technology company, has announced the opening of three new manufacturing plants across North America. Two full-scale plants will be built in Canada, one in Alberta and the other in Toronto, Ontario, with a third planned for Pennsylvania, USA. The next three plants will represent an investment of approximately CAD 75 million in the production of Nexii's green construction technologies.
A few of the players in global green building materials market include Acoustical Surfaces, Inc. (U.S.), Cemex S.A.B. de C.V. (Germany), Cold Mix Manufacturing Corp. (U.S.), GE Sealants and Adhesives, Inc. (U.S.), Green Build Products (I) Pvt. Ltd. (India), Green Fiber, LLC (U.S.), Novagard Solutions, Inc. (U.S.), Onekin Green Building Materials Co. Ltd. (China), PPG Industries, Inc. (U.S.), RedBuilt, LLC (U.S), Magicrete Building Solutions Pvt. Ltd. (India), Momentive Performance Materials Inc. (U.S.), National Fiber Technology, LLC (U.S.), Reward Wall Systems, Inc. (U.S.), Sika AG (Switzerland), Soben International Eco Ltd. (China), Sunlight Electrical Pte Ltd. (Singapore), Techno Green PVC Pvt. Ltd. (India), and ZinCo USA, Inc. (U.S.).
Regional Classification of the Global Green Building Materials Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Green Building Materials Market
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