April 23, 2024

Green Construction Is Driven By Increased Demand For Sustainable Buildings

The Green Construction Market involves construction of sustainable buildings using eco-friendly materials and renewable sources of energy. Green building techniques help reduce the negative environmental impact of buildings and provide various economic and health benefits. Buildings account for around 40% of global energy use and 33% of greenhouse gas emissions. Thus, construction of energy efficient green buildings is becoming increasingly important to reduce human impact on climate change. Green buildings utilize materials like recycled steel and wood, sustainably sourced bamboo and cork. They are also equipped with renewable energy systems like solar panels and geothermal heating and cooling. Large windows allow for maximum natural light reducing electricity consumption from artificial lighting. The global Green Construction Market is estimated to be valued at US$ 365.35 Bn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the green construction market is the adoption of green building certifications and standards. Various certification programs like LEED, BREEAM, and Green Star evaluate design, construction and operations of buildings based on criteria like energy savings, water efficiency, CO2 emissions reduction, indoor environmental quality and stewardship. Obtaining these certifications helps increase marketability, rentals and values of green buildings. Governments across regions are also framing new green building codes and policies to drive the transition towards sustainable construction practices. For example, the European Union has set a target for all new buildings to be nearly zero energy buildings by 2020. Green buildings also provide various health benefits to occupants from better ventilation, air quality and use of non-toxic materials. This is increasing the popularity of wellness redevelopment and green retrofitting of existing buildings.
Porter’s Analysis
Threat of new entrants: The green construction market has moderate threat of new entrants as it requires high initial investments and expertise. However, opportunities exist for new sustainable materials and technologies.
Bargaining power of buyers: The bargaining power of buyers is moderate as the market is fragmented with presence of many regional and global players providing buyers with options.
Bargaining power of suppliers: The bargaining power of suppliers is moderate given differentiated green materials and technologies available. However, suppliers of conventional materials have less influence.
Threat of new substitutes: Threat of new substitutes is low as no direct substitutes exist for green construction. Alternate sustainable solutions continue to emerge.
Competitive rivalry: Competition is high among existing green construction players globally to gain market share through innovation and customer value.

Key Takeaways
The global Green Construction Market Analysis is expected to witness high driven by stringent regulations and rising sustainability focus. Regional analysis: North America dominates currently due to early adoption. Europe and Asia Pacific are fastest growing regions with increasing green building mandates and construction activities.
Key players operating in the green construction market are Johnson & Johnson Services, Inc., 3M, Baxter, Coloplast A/S, Integra LifeSciences, Medtronic, Omeza, Cardinal Health, Bactiguard AB, Noventure, Essity, Schulke & Mayr GmbH, Smith & Nephew Plc., Convatec Group PLC, SANUWAVE and SANUWAVE Health, Inc., EO2 Concepts, Wound Care Advantage, LLC., Healthium Medtech Limited, Arch Therapeutics, Inc., Hydrofera, Sanara MedTech Inc., Axio Biosolutions Pvt Ltd., and Gentell, Inc. The key players focus on sustainable product innovation and partnerships to strengthen market position.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it