The market was negatively impacted due to COVID-19. Owing to pandemic scenario, several countries were forced to go into lockdown. Construction work stopped all across the world especially in major constructions hubs like China, India, and Japan. Supply chain disruptions, work stoppages due to measures imposed by governmental authorities to slow the spread of the virus, and workforce shortages due to illness and preventative quarantines, further negatively affected the market. Hence, such impact and uncertainties due to the COVID-19 outbreak acted as a stumbling block in the demand and growing use of green building materials. However, this is expected to be temporary and the market is expected to recover in the coming years.

- In the short term, increasing demand for energy-efficient buildings, increasing demand for insulation, and favorable government policies for green buildings are driving the market's growth.

- On the flip side, high capital investment when compared to conventional buildings and the impact of COVID-19 on the market are likely to hinder the growth of the studied market.

- The declining cost of green buildings over time and increasing awareness about recycled construction are likely to provide opportunities for the studied market, during the forecast period.

- North America dominated the market across the world, with government efforts and regulations to mandate the usage of green building materials and greater awareness among the population.

Key Market Trends

Residential Segment to Witness Strong Growth

- Green building construction in the residential sector is increasing, due to the rising number of building regulations and policies mandating energy-efficient structures. This has created a market for environment-friendly and energy conserving materials used in residential construction.

- With the growing public awareness and rising income levels, the use of green building materials and the growing trend of energy-efficient structures in high-rise residential buildings and townships are likely to further boost the demand for green building materials in the coming years.

- Various types of green building materials are gaining popularity in residential buildings, owing to increasing preference for materials that are energy-efficient, moisture-resistant, durable, and easy to maintain. The green building materials are majorly becoming popular in Canada, Germany, United States, and in other western European and Scandinavian countries.

- In the Asia-Pacific region, countries, such as China and India, have already been facing environment pollution-related problems, which has grasped the attention of governments to take initiative in this regard. Moreover, power shortage problems in developing nations, like India, South Korea, Sri Lanka, and others, are likely to promote the concept of green building construction to promote daylight harvesting.

- On the other hand, the green building construction sector in North America and Europe is already widely popular. Thus, growing renovation projects in North America and recovering construction industry in Europe are likely to further increase the consumption of green building materials over the forecast period.

- According to the 2019 report by US Green Building Council, LEED-certified homes have grown 19% since 2017, and are at an all-time high with nearly 500,000 single family, multifamily and affordable housing LEED-certified units globally and more than 400,000 units located in the United States.

- All such factors are likely to increase the demand for green building materials over the forecast period.

North America Region to Dominate the Market

- North American region dominated the global market share. The construction sector has been witnessing growth in the region, due to increased demand for houses, and rise in renovation projects.

- Various government efforts and regulation mandates, such as Leadership in Energy and Environmental Design (LEED), Green Building Certification, subsidies for green housing projects, etc., have been driving the construction of green buildings in the region.

- The United States witnessed noticeable investment for residential construction in 2019. Additionally, in the United States, the Leadership in Energy and Environmental Design (LEED) registrations have been increasing in a decent manner, which reached 69,006 registrations as of 2019.

- Similarly, in Canada, Toronto and Vancouver have become a hotspot for construction, propelled by a hot real estate market. Developers have been looking forward to good returns on investment in the country, particularly with high-density residential projects.

- According to Canada Green Building Council (CaGBC), the Canadian green building sector can contribute USD150 billion in GDP by 2030, while cutting greenhouse gas emissions (GHG) by 53 mega ton compared to 2018 levels, which is expected to drive the market for green building materials in the construction of greenhouses.

- Mexico has also been witnessing high housing demand, for which, the country is attracting noticeable investment into construction.

- For instance, in January 2019, IDB Invest, a private sector institution of the Inter-American Development Bank (IDB) Group, granted a local currency financing program for MXN 150 million (Mexican pesos) to the Mexican company Procsa, in order to finance for land acquisition, development and commercialization of housing for low and middle income families in the country.

- However, in 2020, the COVID-19 pandemic negatively affected the construction activities in the region. Several construction work were put on halt as a protective measure to curb the spreading of virus. However, conditions are expected to recover in 2021, thereby driving the market studied during the forecast period.

- Hence, such favorable trends in the North American construction industry is expected to continue driving the demand for green building materials market over the forecast period.

Competitive Landscape

The green building materials market is partially consolidated. Some of the major players in the market include BASF SE, DuPont, Sika AG, Owens Corning, and Kingspan Group, amongst others.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

For sample report please visit : https://www.statzyreports.com/report/sr496854/green-building-materials-market
Contact Us:
Poojan Dogra
Public Relations Manager
Email : [email protected]
Email : [email protected]
(IN) - +918484035727
(US) - +1415-871-0483
Website : www.statzyreports.com