The green construction market is estimated to be valued at US$ 365.35 Bn in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Green construction uses processes that are environmentally responsible and resource-efficient throughout a building's life-cycle from siting to design, construction, operation, maintenance, renovation and demolition. It includes using sustainable building materials and techniques that reduce the overall impact of the built environment on human health and the natural environment by efficiently conserving energy and resources (e.g. water, materials, vegetation, etc.), as well as creating healthy, productive spaces.
Market key trends:
One of the major trends driving the growth of the green construction market is the increased adoption of green building materials. Green building materials help in reducing waste and environmental impact during construction and building operation. Some key green building materials gaining popularity include recycled content materials (e.g. fly ash, slag), rapidly renewable materials (e.g. bamboo, wheat board), and locally-sourced materials. These materials have lower embodied energy, are non-toxic, and cheaper. The rising environmental consciousness and stringent regulations have encouraged builders to increasingly opt for sustainable materials.
Porter’s Analysis
Threat of new entrants: The green construction market faces moderate threat of new entrants due to high capital requirements for R&D and cost for manufacturing green construction materials.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and low switching costs in green construction materials.
Bargaining power of suppliers: Suppliers have moderate to high bargaining power due to differentiated products and services offered by them.
Threat of new substitutes: Threat from substitutes is low as green construction materials have various advantages over traditional materials.
Competitive rivalry: High due to presence of numerous global players offering green construction solutions.
SWOT Analysis
Strength: Green building materials are environment friendly and offer various health benefits. Growing awareness about sustainability and LEED certifications boost demand.
Weakness: Higher upfront capital costs for green construction compared to traditional methods. Lack of consumer awareness in developing nations.
Opportunity: Stringent government regulations to reduce carbon footprint and tax benefits for green projects create opportunities. Rising disposable incomes spur renovation and new construction.
Threats: Economic slowdowns can dampen new project investments. Delays in approvals and certification processes pose threats.
Key Takeaways
The global Green Construction Market Growth is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing environmental concerns and stringent government policies regarding energy efficiency in buildings.
Regional analysis- North America dominates the global green construction market currently due to strict ENERGY STAR guidelines and LEED rating standards mandatory for public buildings. Asia Pacific is expected to grow at the fastest pace during the forecast period with China, India and Japan emerging as major markets owing to rapid urbanization, rising environmental awareness and infrastructure development programs in these countries.
Key players operating in the Green Construction market are Alumasc Group Plc, Binderholz GmbH, Bauder Ltd, Forbo International SA, Certain Teed Corporation, The Turner Corp, Clark Group, Gilbane Building Co, Hensel Phelps, and The Whiting-Turner Contracting Co. Top players are focusing on green product innovation and collaborating with architectural firms to integrate sustainable designs and materials in new projects.
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Recently, East Vancouver Fire Hall 17 was in the spotlight at the Canada Green Building Council (CAGBC)’s Building Lasting Change conference held in downtown Vancouver.Fire Hall 17 was discussed in the session called Zero Carbon City that focused on curbing carbon emissions from buildings owned by the city.The history of Vancouver’s Fire Hall 17 can be dated back to 1955, the year it was built.
At present, the hall is seismically unsound, too small, and operationally and energy inefficient.According to sources, though the new fire hall will still house red fire engines, it will be the first passive house among fire halls in the city.Fire Hall DesignConsidering that buildings are responsible for roughly one-third of global carbon emissions, modern architects nowadays erect buildings that produce no emissions while in use.Even the designers take an environmentally friendly approach to interior design.
This is precisely what Vancouver aspires with its building plan.Gregor Robertson, the mayor of Vancouver, cited that the new Fire Hall is going to be high tech while sticking fast to zero-carbon building standards.
Thus, it will need 25% more energy than the usual fire hall.As per Zina Berrada, HMCA Architecture and Design sustainability coordinator, the new building will be four storeys.
It will feature four equipment bays and will be divided into two Passive House certified areas.The building will be constructed in such a way that a firefighter in the building can get to a fire truck in 60 seconds.The ChallengesHMCA Architecture and Design sustainability coordinator, Berrada mentioned that the biggest challenge faced in their zero-emission plan is airtightness.The challenges also include the need to utilize the operational area as an IT and communications hub, which leads to heat gains.
Another issue cited by Scott Ghomeshi, Integral Group project manager and mechanical engineer is noise mitigation as a result of the proximity of the Fire Hall to Knight Street.The BudgetThe construction cost of the new Fire Hall is estimated at $19.9 million.
The global green building industry is eyeing for a momentous growth at 10.12% CAGR over the predicted years (2018-2023).
Some of the common materials utilized in the construction of such buildings include recycled plastic, grasscrete, timbercrete, rammed earth, wood, mycelium, straw bales, hempcrete and bamboo.
These factors as per the Market Research Future (MRFR) report include focus on superior quality products, rising need for renewable resources, consumers changing lifestyle, technological innovation, increasing funds for the development and commercialization of refueling infrastructure, and benefits over conventional technologies such as consumes less energy, reduces waste, conserves water and reduces emissions.
On the contrary, limited awareness regarding the utilization and advantages of eco-friendly materials used in construction in underdeveloped and remote regions and high production cost related to manufacturing packaging materials that are green may hamper the growth of the green building market over the predicted years.Key PlayersLeading players profiled in the green building market include Green Building Store (U.K.), Weinerberger AG (Austria), E. I. du Pont de Nemours and Company (U.S.), SGS (Switzerland), Saint Gobain S.A. (Germany), Green Build Products (I) Pvt Ltd (India), Kingspan Group plc (Ireland), Ginkgo Sustainability (Canada), Bauder Limited (U.K.), NATiVE (U.S.), and others.May 2019- The Williams Parkway Operations Centre has attained LEED Gold certification from the Green Building Council in Canada.
This is an administrative building having public and staff parking, green space, event terrace and a garden.
Exterior products are further segmented into building systems, solar products, HVAC systems, smart lighting and others.
