Green Construction Market is Estimated to Witness High Growth Owing to Increasing Demand for Energy-Efficient Buildings

 

Green Construction Market Trends 

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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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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