
In 2022, the U.S. green building materials market was valued at USD 76.6 billion and is projected to reach USD 163 billion by 2030, growing at a compound annual growth rate (CAGR) of 9.9% between 2023 and 2030. Government regulations aimed at promoting carbon-neutral construction projects, along with the increasing use of sustainable materials in residential buildings to reduce maintenance and replacement costs, are expected to drive market growth.
The U.S. government is implementing various strategies, including incentives, subsidies, and financial support for manufacturing plants, to encourage the adoption of green building materials. These efforts align with national goals to lower carbon footprints, support sustainable construction, and combat climate change. Additionally, the rise in residential construction—driven by growing demand for larger living spaces and affordable housing initiatives—is boosting the need for energy-efficient and environmentally friendly materials, further propelling market expansion.
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Increasing Use of Timber Driving Market Revenue
Timber is increasingly utilized in residential construction due to its cost-effectiveness, resistance to corrosion, and ease of use. Its structural advantages make it a preferred material for housing projects across the U.S. Government investments in affordable housing and the growing number of apartment developments are key trends contributing to the rise in residential construction activities.
For instance, in August 2022, construction began on New Haven’s second affordable housing project, comprising 69 units, which incorporates mass timber and wood-based solutions. The project is expected to be completed by 2024. As timber continues to be used for economic and sustainability reasons, its demand is expected to further fuel market growth.
Expansion of Green Building Projects Boosting Demand
Green building materials such as earthen materials and fiberglass are widely used in eco-friendly construction projects to enhance indoor air quality, conserve water, and improve resource efficiency. Efforts to promote human health and reduce greenhouse gas emissions are key factors driving the development of sustainable buildings in the U.S.
According to the U.S. Green Building Council, Massachusetts ranked highest in the U.S. for green building adoption in 2022. The total green building space in the state increased from 18.57 million square feet in 2021 to 26.44 million square feet in 2022, marking a 42.3% rise. This growth in eco-friendly construction is driving demand for materials such as cellulose, polyurethane, and fiber cement, further supporting the expansion of the U.S. green building materials market.
Government Incentives Accelerating Market Growth
The U.S. government is introducing various incentives to encourage green construction, including tax benefits, low-interest loans, fast-track approvals, public procurement support, and renewable energy initiatives.
For example, in January 2023, new incentives were introduced for both residential and commercial buildings. Multifamily buildings can receive USD 2,500 to USD 5,000 for meeting Zero Energy Ready certification standards, while commercial buildings are eligible for incentives ranging from USD 2.50 to USD 5 per square foot for energy efficiency improvements. These investments are boosting demand for green building materials, particularly those offering superior insulation and air-sealing properties.
Future Market Trends
Long-term sustainability initiatives aimed at reducing carbon emissions are expected to drive the expansion of green building materials manufacturing in the U.S. Companies are focusing on broadening their eco-friendly product portfolios. For instance, DuPont Performance Building Solutions outlined in its 2023 Sustainability Progress Report that its 2030 goal is to innovate in Leadership in Energy and Environmental Design (LEED)-certified materials. As a result, the introduction of new sustainable building products is set to create significant market growth opportunities.
Local governments are also tightening regulations to promote low-carbon construction. Under the Climate Mobilization Act, buildings larger than 25,000 square feet must comply with greenhouse gas emission standards by 2024, with stricter rules coming into effect by 2030. These policies will drive the demand for green building materials, further expanding market opportunities.
Additionally, the U.S. government is enforcing stringent net-zero emission goals for the construction sector. Executive Order 14057 mandates a 50% reduction in carbon emissions from buildings by 2032, with a target of net-zero emissions by 2045. These regulations are expected to significantly boost demand for green building materials, ensuring a positive market outlook for the coming years.
U.S. Green Building Materials Market: Report Scope
The report “United States Green Building Materials Market Assessment, Opportunities, and Forecast, 2016-2030F” by Markets & Data provides an in-depth qualitative and quantitative analysis of the U.S. green building materials market. It covers market size, segment analysis, growth trends, the impact of COVID-19 and geopolitical factors, emerging opportunities, and forecasts from 2023 to 2030. Additionally, the report profiles key industry players, outlining their market share, business strategies, and competitive positioning.
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