Green construction refers to the practice of increasing the
efficiency of construction and building usage while limiting, and potentially
reducing, negative environmental impacts through choices of building location,
building materials, design, construction, operation, maintenance, renovation,
and demolition.
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 2024 To
2031.
Green
Construction Market Trends practices have grown in popularity in recent
years driven by rising demand for environment-friendly and energy-efficient
buildings. Green building materials and technologies are used to maximize
building performance and reduce emissions of greenhouse gases into the
atmosphere. Some of the key advantages of green construction include reduced
water consumption and energy costs for homeowners through efficient utilities
systems and appliances, lowered adverse impact on the surrounding environment
by decreasing pollution, reducing wear and tear on materials over time. The
rapidly growing global population and urbanization has increased the demand for
more residential, commercial and public infrastructure development which is
fueling the green construction market growth.
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 new product launches and expansion activities to meet the
growing market needs.
The key opportunities in the green construction market include increasing
investments by various governments across the world in eco-friendly
infrastructure development and offering of tax incentives and subsidies on
energy-efficient buildings. Additionally, rising commercial construction of
green-rated buildings to lower operating costs and gain competitive advantage
is also providing impetus to market growth.
The increasing collaborations between market players and green building
consultancies are helping them expand globally. Growing environmental awareness
among public and commercial organizations is driving the demand for green
construction especially in developed regions including North America and
Europe. Various initiatives by private organizations and NGOs to promote green
building concepts in developing Asian countries will further support the global
expansion of green construction market during the forecast period.
Market Drivers
The major market driver for the green construction market is
the increasing demand for energy-efficient buildings. Stringent governmental
regulations and building codes regarding carbon emissions and energy usage from
buildings is forcing builders to incorporate sustainable practices in new
constructions. Rising environmental pollution levels and impact of greenhouse
gas emissions is encouraging adoption of green building standards to reduce carbon
footprint of the construction sector. Growing consumer preference for
eco-friendly homes to lower utility bills will further propel the green
construction market over the coming years.
PEST Analysis
Political: Green construction market is influenced by
government policies and regulations regarding energy efficiency, emission
standards and use of eco-friendly materials. Many countries have implemented
policies that encourage or mandate green building practices.
Economic: Factors such as investment in renewable energy,
rising energy costs and incentives/tax benefits for green buildings are driving
demand in this market. Customers' willingness to pay higher costs for
sustainable buildings is also a key economic factor.
Social: Rising environmental awareness among public and
brand image consciousness of private/public organizations are important social
determinants. Customers prefer establishments with eco-friendly credentials.
Technological: Adoption of energy efficient equipment,
renewable energy solutions, green building certifications are helping reduce
carbon footprint of structures. Advances in design, material and waste
management are boosting green construction.
The North American region accounts for the largest share of the
Green
Construction Market Regional Analysis in terms of value. Presence of
major construction players, stringent regulatory policies regarding energy
efficiency, and high investment in renewable resources have supported market
growth in North America. The Asia Pacific region is expected to grow the
fastest during the forecast period due to ongoing infrastructure development,
urbanization and supportive government policies/incentives for green buildings
in major economies like China and India.
In terms of concentration of value, China stands out as a major hub for green
construction globally. The nation is driving force behind the industry
supported by strong economic development, urbanization initiatives, government
targets for carbon emissions and renewable energy usage. India is emerging as
the fastest growing regional market due to large-scale building projects
underway as part of the smart cities mission coupled with regulations favouring
sustainable constructions.
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Insights on- Green
Construction Market
About
Author:
Ravina
Pandya, Content
Writer, has a strong foothold in the market research industry. She specializes
in writing well-researched articles from different industries, including food
and beverages, information and technology, healthcare, chemical and materials,
etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
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