by Green construction is the practice of increasing the efficiency of construction and building activities to reduce the negative environmental impact. It includes conserving natural resources through green design, sustainable site development, energy efficiency, water conservation, and overall resource efficiency. Factors such as growing environmental issues and rising awareness regarding the importance of environmentally sustainable buildings have led to an increased adoption of green construction practices across the globe. Green buildings help reduce operating costs, conserve natural resources, improve occupants’ health and productivity, and minimize waste sent to landfills.
The global green construction market is estimated to be valued at US$ 420.89 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period of 2024 to 2030.
Key Takeaways
Key players operating in the green construction market are JVC Kenwood Corporation, Tait Ltd., Thales Group S.A., Nokia Networks B.V., Raytheon Company, RELM Wireless Corporation, Airbus DS Communications, Inc., Motorola Solutions Inc., Harris Corporation & Hytera US Inc. These players are focusing on adopting organic and inorganic growth strategies such as new product launches, partnerships, and expansions to strengthen their foothold in the global market.
The rising consumer awareness regarding environment protection and associated government initiatives present significant opportunities for manufacturers in the green construction market. Growing investments by public and private organizations in developing sustainable infrastructure are further expected to drive the demand.
North America dominated the global green construction market in 2024 owing to stringent government regulations and high investment in green projects in the US and Canada. However, Asia Pacific is expected to witness the fastest growth over the forecast period supported by strong economic growth in countries such as China and India.
Market drivers
Increasing environmental concerns across the globe: Rising greenhouse gas emissions, global warming, and pollution have significantly increased environmental concerns globally. According to studies, buildings account for around 40% of global energy use with residential and commercial buildings consuming around 18% of global energy. This has prompted the need for more sustainable construction practices to reduce the environmental footprint of the construction industry.
PEST Analysis
Political: Green Construction Market Growth is expected to benefit from the various environmental regulations and policies promoting sustainable building practices. Many governments offer financial incentives like tax benefits to encourage the use of environment-friendly materials and renewable energy resources in construction projects.
Economic: Growth in the green construction market is driven by the rising costs of energy and utilities which encourages the adoption of energy-efficient technologies and techniques. The increasing costs of raw materials also promote waste reduction practices in the sector.
Social: There is a growing social and consumer demand for green buildings due to rising environmental consciousness. Many private companies and institutions now prioritize sustainability in their real estate strategies. Standards like LEED certification help owners promote their green credentials.
Technological: Recent technological advances facilitate green construction methods. Digital tools enable efficient project management and building design optimization. Innovations in energy storage, smart grids, automated controls enhance construction sustainability. Drones, robotics, 3D printing offer new solutions.
Geographical regions with high market concentration
The green construction market sees maximum value sales concentration in regions like North America and Europe due to stringent regulations and higher acceptance of green building practices. Government incentives and initiatives and presence of major players drive market growth.
The Asia Pacific region exemplifies the fastest market growth owing to the huge infrastructure development activities underway, increasing energy costs, and supportive policy frameworks in major economies like China and India promoting sustainable buildings. Rapid urbanization and industrialization in the region raises demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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