United States Green Building Market is projected to witness a CAGR of 10.13% during the forecast period of 2025-2032, growing from USD 152.37 billion in 2024 to USD 331.54 billion in 2032. The United States’ green construction industry has become a cornerstone of the construction sector, driven by a growing commitment to environmental protection and sustainable development. As climate change, resource conservation, and the health impacts of traditional building practices have become central concerns, certifications like LEED (Leadership in Energy and Environmental Design) have gained prominence. Furthermore, government policies, advancing technologies, and rising consumer and corporate demand for sustainable spaces are propelling the growth of the United States green building market during the forecast period.
For instance, federal sustainable construction projects are expanding across the United States, with the market valued at USD 99.8 billion in 2023 and continuing to grow in 2024. Billions in funding are available, supported by Congress’s focus on maintaining public assets. The Consolidated Appropriations Act of 2023 allocated over USD 100 million for major repairs and alterations at federal facilities, emphasizing green design, clean energy, water efficiency, and waste reduction. These projects aim to create high-performance, durable buildings that reduce energy costs and can withstand weather-related events, benefiting communities nationwide.
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Accelerating the United States Green Building Market Through Innovation and Policy Support
The United States green building market is growing primarily due to policy intervention pressure and innovation. Among them, the growth driver is technological development in the shape of energy-saving equipment, intelligent building systems, and the use of renewable power. Such technologies reduce carbon footprints, lower costs of operation, and increase building efficiency, rendering it more attractive for developers and occupants to use green buildings. Furthermore, increased demand for green certifications such as LEED (Leadership in Energy and Environmental Design) and Energy Star has established standardized frameworks, enabling the widespread adoption of green building policies.
Policy incentives provided by the federal, state, and city governments have also played a role in fueling the green building market. Tax credits, grants, and rebates on energy-efficient retrofitting make homeowners and developers switch to green buildings. Further, strict building regulations, energy efficiency, and low emissions requirements have compelled industry to go green.
For instance, in April 2024, the Biden- Harris Administration hosted the inaugural White House Summit on Healthy and Sustainable K -12 Schools, as reported by the Investing in America Agenda. This move is a historic school investment to update their facilities, such as removing lead pipes, adding solar panels, and purchasing electric school buses. The schools are using this fund to fight air pollution, turn around climate change, and build healthier, greener schools. The summit is calling for federal and technical funding to provide equitable, resilient, and sustainable school buildings for future generations.
Technological Advancements in Construction Drive the United States Green Building Market Growth
Technological advancements in the construction industry are driving most of the United States’ green building industry growth. Upcoming technologies such as Building Information Modeling (BIM), energy-efficient solutions, and green products are revolutionizing the industry. The Department of Energy (DOE) invested around USD 6.3 billion in 33 projects across various industries in the United States to demonstrate cutting-edge decarbonization technologies.
BIM supports precise planning and resource management, reducing wastage and increasing sustainability. Smart technologies such as IoT-based sensors and automation, optimize energy management and building operations. In addition, the use of green materials like recycled steel and cross-laminated timber is becoming increasingly mainstream, offering greener options for construction materials.
Renewable technologies like solar photovoltaics and geothermal heating and cooling are increasingly being incorporated into green building planning, lowering the dependency on fossil fuels and carbon emissions. Besides their ecological advantages in terms of sustainability, they also offer economic advantages in the long run. This particularly applies in the domain of energy efficiency as well as enhanced building performance.
For instance, in July 2024, according to the United States Department of Energy (DOE), innovative ventures are developing low-carbon cement to minimize a sector that contributes to 8% of the global CO₂ emissions in the United States. The Department of Energy (DOE) can bypass the chemical reactions and the high temperature of traditional cement production. However, the scale-up of such technologies requires facilitating policies to facilitate take-up because of the industry’s low margins and the sluggish rate of decarbonization that presents a challenge to the United States’ net-zero emissions by 2050. The initiative underscores the need for technology development in driving sustainable construction and emissions reduction in hard-to-abate sectors.
Residential Buildings are Expected to Hold the Largest Market Share
Residential buildings will lead the biggest market share in the United States green building industry as customers propel growth with increased demands for green and energy-efficient homes. Customers are increasingly demanding more from developers for green attributes, renewable energy use, and healthier indoor environments through the assistance of green building certifications such as LEED and Energy Star. Innovation in construction technology, in the form of smart home systems and energy-efficient appliances, is also enhancing the demand for green residential buildings. Growing environmental concern and the long-term cost advantage of green buildings are also key drivers of the trend. As urbanization progresses and carbon emission goals tighten, there will be a gigantic need for cleaner residential choices.
For instance, in January 2023, the United States initiated incentives for residential and commercial buildings. Multifamily buildings will be provided with USD 2,500 or USD 5,000 for Zero Energy Ready certification, and commercial buildings will be provided with USD 2.50 to USD 5 per square foot for energy savings. Government investments in energy efficiency are pushing United States green building material expansion at a faster rate to enable enhanced air-sealing and insulation capability and thereby support industry expansion.
The Northeast leads the United States green building sector, with visionary green policies, dense urban development, and uncompromising drive for sustainable growth. The states of Massachusetts and New York have never been behind when it comes to green building strategy, backed by stringent energy efficiency laws and incentives for green growth. The area’s density and high demand for green infrastructure ensure that it helps fuel growth.
For instance, according to the United States Building Council, Massachusetts was the country’s top state in 2024 for the Green Building and LEED green building program with 4.95 certified square feet per capita. Furthermore, New York (3.438 certified square feet per capita) ranked closely behind, showing a Strong dedication to green buildings. The lists demonstrate a growing interest in green construction in the United States, as the LEED framework helps organizations achieve ESG goals and encourages them to develop more sustainable and affordable cities. These statistics show the dominance of the Northeast region in green design and its share of the green building market, reflecting a national trend toward sustainable building and development.
Future Market Scenario (2025-2032F)
- The United States green building sector is bound to grow exponentially as state, public, and private funds are directed toward sustainability. Net-zero carbon goals and the Inflation Reduction Act policy are set to drive growth in green and energy-efficient construction.
- Technological changes in smart building technology, integration of renewable energy, and green building materials will revolutionize the market. IoT, AI, and green building principles will enhance building performance while reducing environmental impacts.
- LEED certification will continue to play an important role. Companies and residents will continue to seek LEED-certified structures since they are cost-effective in the long term, increase property value, and are environmentally friendly.
- Green buildings with improved air quality, daylight, and disaster-resistant design will become more significant in line with consumer values and regulatory requirements.
Report Scope
“United States Green Building Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the United States green building market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
Contact
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