April 23, 2024
Green Construction Market

The Global Green Construction Market is in Trends Towards Sustainable Building Practices

Green Construction has seen tremendous growth in recent years driven by increasing awareness about sustainability and the need for eco-friendly building practices. Green construction focuses on reducing the environmental impact of buildings by using sustainable and recycled materials, lowering energy consumption through better design and insulation, conserving water resources, and minimizing waste. Some key advantages of green construction include lower operating costs over the lifetime of the building, improved indoor air quality, and reduced carbon footprint. The growing demand for green spaces amid rising environmental concerns has accelerated the need for sustainable construction techniques that preserve natural resources and limit pollution.

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 from 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 developing sustainable and eco-friendly construction materials to capitalize on the increasing shift toward green buildings globally.

Rising environmental awareness and stringent regulations regarding carbon emissions have propelled the demand for green construction practices. The growing preference for green-certified buildings that lower energy costs and ensure better indoor air quality is driving increased spending on sustainable infrastructure development. Various governments are also offering incentives and tax rebates to promote green construction activities.

The green construction market is expanding rapidly across major global economies. Growing investment in sustainable real estate coupled with green building mandates in the European Union and North American nations is fueling the large-scale adoption of eco-friendly construction methods. Rapid urbanization in developing nations is further creating new opportunities for green construction vendors for residential and commercial projects.

Market key trends

One of the key trends gaining traction in the Green Construction Market Demand is the increased use of innovative wood construction methods and cross-laminated timber (CLT) elements. As wood sequesters carbon from the atmosphere, wood-based building solutions offer a sustainable alternative to conventional concrete structures. The application of CLT panels and mass timber construction techniques is reducing construction waste while enabling faster assembly times. Thisemerging wood construction method offers compelling performance and sustainability benefits driving its rising popularity in the commercial building sector.

Porter’s Analysis

Threat of new entrants: High capital requirements for construction equipment and machinery act as a barrier.

Bargaining power of buyers: Large buyers like government can negotiate on prices while small buyers have less influence.

Bargaining power of suppliers: Suppliers of core materials and technologies have some influence, but availability of substitutes restricts their power.

Threat of new substitutes: Substitutes like conventional materials pose minor threat due to stringent environmental regulations.

Competitive rivalry: Intense competition among major players differentiates via innovative offerings.

Geographical Regions

North America currently accounts for the largest share in terms of value owing to strict regulations and significant investments towards sustainable infrastructure. Asia Pacific is expected to be the fastest growing regional market over the forecast period supported by the rapidly growing construction sector and increasing government focus and initiatives on green buildings in major countries including China and India.

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