Construction Sustainable Materials Market

The global Construction Sustainable Materials Market is valued at USD 293 Billion in 2022 and is projected to reach a value of USD 595 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 10.6% between 2023 and 2030.

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According to the UN Environment Program's (UNEP) 2022 Global Status Report for Buildings and Construction Sector, the building and construction sector was responsible for roughly of energy- and process-related CO2 emissions and over 34% of global energy consumption. These concerning data highlight how crucial it is to select environmentally friendly building materials in order to lessen buildings' detrimental effects on the environment. The construction industry worldwide is shifting its focus towards adopting sustainable materials for building construction and architectural design.

Using sustainable materials in construction practices is likely to expand in the future and will be vital to achieving a more sustainable built environment. Governments have begun to put policies in place to encourage sustainable construction. After 2020, any new housing that does not adhere to the passive house standard won't be given a construction permit, as per Europe Union (EU) regulations. This indicates that beginning in 2020, all new buildings in EU nations will be passive structures. More targeted measures have also been adopted by European nations. For instance, the German government mandates "zero emissions" for all new construction by 2020. Additionally, the use of fossil fuels must be fully eliminated from all new construction in Sweden, according to government regulations.

The Canadian government has pledged to cut all of Canada's GHG emissions by 40 to 45 percent below 2005 levels by 2030 and to achieve net-zero emissions by 2050 in order to protect the environment and lessen the effects of climate change. Decarbonization i.e., the reduction or ending of emissions into the atmosphere, must be prioritized because the building sector is Canada's third-largest source of emissions. Overall, the ambitious target is to achieve net-zero GHG emissions in the building sector by 2050. The Canada Green Buildings Strategy will be developed with the help of $150 million from Budget 2022.

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• Competitor Benchmarking
• Market Trends Heatmap
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• Market Sentiment Analysis
• Demographic and Geographic Insights

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Key Highlights

• North America generated over 42% of revenue share in 2022,
• Asia Pacific is expected to increase at the fastest CAGR from 2023 to 2030,
• By Product type, the Structural type segment contributed more than 70% of revenue share in 2022,
• By Application, the Insulation segment recorded over 30% of revenue share in 2022,
• By End User, the Residential segment registered the most significant market share in 2022.

Economic Insights

The economic prospects, market trends, regulatory effects, and competitive advantages brought about by the development of standards and grading systems and the rising popularity of green building ideas. All of these developments demonstrate the growing significance of sustainability in the building sector and its potential to promote innovation, growth in the economy, and environmental stewardship. Several organizations have set up standards, rules, and grading systems for use by government regulators, building professionals, and consumers as a result of growing interest in green building concepts and practices. In certain instances, rules are created so that local governments can implement them as laws to lessen the local environmental impact of construction. LEED (United States and Canada), BREEAM (United Kingdom), DGNB (Germany), VERDEGBCe (Spain), CASBEE (Japan), and GRIHA (India) are some of the green building rating systems that assist consumers in determining a building's level of environmental performance. They give points for optional construction features that promote green design in areas such building site location and upkeep, water, energy, and material conservation, and tenant comfort and health. The degree of achievement is typically determined by the amount of credits. Green building codes and standards like the International Code Council's draft International Green Construction Code is one example of a set of guidelines developed by standards development organizations that establishes minimum criteria for green building elements such as materials or heating and cooling.

Top Market Trends

1. Increased Adoption of Green Building Practices: There has been a significant rise in the adoption of green building practices, which has led to an increase in the demand for sustainable construction materials. The construction industry is shifting towards environmentally friendly construction practices to reduce the negative impact on the environment.

2. Growing Demand for Energy-Efficient Materials: The demand for energy-efficient materials is increasing due to rising energy costs and the need to reduce carbon emissions. Energy-efficient materials are used to minimize buildings' environmental impact and achieve energy savings.

3. Focus on Carbon Footprint Reduction: The focus on carbon footprint reduction drives the demand for sustainable construction materials. Sustainable construction materials are designed to minimize carbon emissions during manufacturing, transportation, and installation.

4. Emergence of New Sustainable Materials: The emergence of new sustainable materials is expected to drive market growth. For instance, bioplastics, green concrete, and recycled wood are some new sustainable materials that have gained popularity in recent years.

6. Government Regulations and Initiatives: Governments worldwide implement regulations and incentives to promote sustainable construction practices and materials. This is driving the adoption of sustainable construction materials in the construction industry.

Market Segmentation

The global Construction Sustainable Materials market can be categorized on the following: Product Type, Application, End User, and Region. Based on Product Type, the market can be categorized into Structural, Interior, Exterior, and Other Product Types. Furthermore, based on Application, the market can be classified into Insulation, Roofing, Framing, Interior Finishing, Exterior Siding, and Other Applications. Additionally, based on End User, the market can be split between Residential, Commercial, and Industrial. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Product Type

Structural Product Type to Accommodate Maximum Market Share

The Structural Product Type is the leading segment in the Global Construction Sustainable Materials Market, which comprises products offering the structural stability, such as insulated concrete forms, cross-laminated timber, and structural insulated panels. These eco-friendly and energy-efficient materials provide benefits like increased thermal resistance, reduced greenhouse gas emissions, and decreased reliance on fossil fuels. Using sustainable structural materials is gaining popularity in the construction industry as more companies prioritize environmentally friendly practices. As a result, the structural type segment in the global Construction Sustainable Materials market is projected to grow at a rapid pace in the coming years.

Based on Application

Insulation to Take Extreme Market Share

The insulation segment is a crucial component of the global Construction Sustainable Materials market. Insulation materials are used to reduce heat transfer in buildings, resulting in increased energy efficiency and reduced carbon emissions. The demand for insulation materials is driven by the growing awareness about the importance of energy conservation and sustainable construction practices. Government regulations and incentives encouraging energy-efficient buildings also contribute to the growth of the insulation segment. Insulation materials come in various forms, including fiberglass, mineral wool, cellulose, and foam, among others. These materials offer high thermal resistance, preventing heat loss or gain through walls, roofs, and floors. Additionally, insulation also provides soundproofing benefits, improving the overall comfort and livability of buildings. With the increasing focus on sustainable construction, manufacturers are developing innovative and eco-friendly insulation materials. This includes the use of recycled materials, such as recycled plastic or glass, as well as the development of bio-based insulation materials. As a result, the insulation segment in the global Construction Sustainable Materials market is expected to experience significant growth in the coming years.

Based on the End User

Residential End User to Lead Market Growth

The residential segment is dominating the global Construction Sustainable Materials market as more homeowners and developers prioritize eco-friendly building practices. Building materials such as bamboo, reclaimed wood, natural insulation, and low-VOC paints are becoming more popular among builders and homeowners for their sustainable benefits. In addition, with rising environmental concerns, the construction industry continues to embrace using sustainable materials to reduce its carbon footprint & promote a more sustainable future. Recycled materials, such as reclaimed wood, recycled concrete, and recycled steel, are gaining popularity in residential construction due to their sustainable properties.

Based on Region

North America to Lead the Global Market

The North American sustainable construction materials market has grown considerably over the forecast period due to the increasing demand for sustainable building materials. Sustainable construction materials are eco-friendly and have a lower environmental impact than traditional building materials, making them an attractive choice for builders and consumers. The market for sustainable construction materials in North America is driven by several factors, including government initiatives focused on sustainable development, growing consumer awareness and demand for environmentally friendly construction materials, and increasing investment in green infrastructure projects. The region's significant construction industry also plays a crucial role in driving the growth of the sustainable materials market in North America. Using sustainable materials in construction helps reduce carbon emissions and energy consumption, making it an essential aspect of the industry's strategies to meet sustainability goals. The North American sustainable construction materials market includes recycled materials, wood products, green concrete, eco-friendly insulation materials, and others. The growing popularity of these products is expected to drive the market's growth significantly in the coming years.

The Asia Pacific Construction Sustainable Materials Market is poised for major growth during the forecast period. The market is driven by the strong regional demand for sustainable infrastructure development and the increasing adoption of green building codes. Asia Pacific has been the fastest-growing region in terms of population and economic growth, leading to an increase in construction activities, further fueling the demand for sustainable materials. The biggest construction market worldwide is in China. For instance, opportunities for the building sector are brought about by China's urbanisation trend. The Chinese government is actively encouraging the construction of energy-efficient structures, stating that by 2020, new buildings' energy consumption should be 75% lower.

Competitive Landscape

The global Construction Sustainable Materials market competitive landscape is highly fragmented, with numerous established players and new entrants striving to gain market share. The global demand for sustainable construction materials has increased significantly in recent years. The growing focus on eco-friendly materials, energy efficiency, and reducing the carbon footprint has boosted the adoption of sustainable construction materials. Moreover, major market players are investing in research and development activities to develop new sustainable construction materials to cater to the rising demand for end-users. With the growing demand for sustainable construction materials, the competition in the market is projected to intensify further in the coming years. For example, Timloc Building Products, Part of Alumasc Group Plc is the first building materials manufacturer in the U.K. that achieved carbon neutral status after adopting several "green" initiatives to completely eliminate and offset their carbon emissions.

The key players in the global Construction Sustainable Materials market include - BASF SE (Germany), Bauder Ltd. (UK), DuPont (U.S.), Forbo International SA (Switzerland), Interface Inc. (U.S.), Kingspan (Ireland), LafargeHolcim (Switzerland), PPG Industries Inc. (U.S.), Alumasc Group PLC (UK), Amvic Inc. (Canada), PCL Constructors Inc. (Canada) among others.

Recent Market Developments

• May 2023: PPG unveiled its 2030 sustainability plans for the near future, which include targets for greenhouse gas (GHG) emissions that have been approved by the Science Based plans initiative (SBTi). The Company also made significant strides towards achieving its environmental, social, and governance (ESG) priorities, reporting higher sales of sustainably sourced goods, more effective operations, strong momentum towards achieving diversity, increased supplier sustainability, and strengthened support within the communities in which the company operates.
• October 2022: BASF's goal is to implement sustainability across the board. There are several innovations and enhanced systems in the construction sector that adhere to strict standards for the development of materials that are future-proof. Modern constructing places a strong emphasis on intelligent insulation. Sandwich panels made of polyurethane (PU) are among the best products available for commercial use.
• October 2022: The Centre for Addiction and Mental Health’s (CAMH) McCain Complex Care and Recovery Centre, Crisis and Critical Care Building, and Mackenzie Health's Cortellucci Vaughan Hospital, all of which were design-built by PCL Constructors Canada Inc., was given LEED® Certification, one of Canada's greatest accreditations in sustainability excellence and green building leadership.
• April 2022: Lafarge Egypt declared that it would be the first time to offer EcoLabel cement in Egypt. The new items meet the group's sustainability standards, which include having recycled content and a lower CO2 footprint.

Segmentation of the Global Construction Sustainable Materials Market