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What Will Be the Size of the Green Building Market by 2029?

In recent times, there has been robust growth in the size of the green building market. It is projected to expand from $588.37 billion in 2024 to $642.19 billion in 2025, yielding a compound annual growth rate (CAGR) of 9.1%.

This growth during the historical period is linked to heightened awareness about climate change and environmental sustainability, increased implementation of green building methods, encouragement of eco-friendly construction, spiking energy costs, and emphasis on energy-saving building designs, reduction in long-term operational costs, and automation intended for effective building management.

The market size for green buildings is predicted to experience significant expansion in the forthcoming years, rising to a colossal $897.79 billion by 2029, with a compound annual growth rate (CAGR) of 8.7%. The anticipated growth during this period is due to increased environmental awareness, the implementation of policies promoting eco-friendly materials and methods, the environmental advantages of sustainable construction methods, and the beneficial effect it has on individual health and well-being.

Furthermore, increasing government encouragement for sustainable building activities also fuels this growth. The future trends expected in this period encompass efficient and inventive manufacturing processes, the issuance of green financing instruments, embrace of environmentally sustainable practices, deployment of renewable energy solutions, and breakthroughs in technology.

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What Are the Major Drivers of the Green Building Market in 2025?

The green building market’s growth is projected to accelerate due to the increasing focus on sustainable construction methodologies. These methodologies encompass environmental responsibility and resource efficiency throughout a building’s lifespan, from design and construction to operation.

The rise of sustainable building can be attributed to heightened awareness of environmental issues, the potential economic advantages to property owners, and legislative mandates.

Green structures endorse sustainable development by cutting down on resource use, decreasing pollution, and generating healthier, more resilient architectural environments for present and future generations.

For example, in February 2024, the US Green Building Council, an American non-profit organization, announced a 9% increase in LEED (Leadership in Energy and Environmental Design) certifications in 2023 compared to the previous year. This count also included another 21 LEED certifications for single-family homes in the residential sector.

Impressively, there was also a striking 51% increase in new LEED project enrollments during this timeframe. Hence, the ascending interest in sustainable construction methodologies is propelling the advancement of the green building market.

What Are the Growth Trends Across Key Green Building Market Segments?

The green building market covered in this report is segmented –

1) By Product Type: Exterior Products, Interior Products, Building Systems, Solar Products, Other Product Types

2) By Application: Residential, Non-Residential Buildings

3) By End-Use: Roofing, Flooring, Insulation

Subsegments:

1) By Exterior Products: Green Roofs, Insulated Windows And Doors, Sustainable Landscaping Materials, Cool Roofing Materials

2) By Interior Products: Energy-Efficient Lighting, Sustainable Flooring, Low-Emission Paints And Coatings, Green Insulation Materials

3) By Building Systems: Hvac Systems, Water Conservation Systems, Energy Management Systems, Building Automation Systems

4) By Solar Products: Solar Panels, Solar Water Heating Systems, Solar Roofing Solutions

5) By Other Product Types: Smart Building Technology, Green Construction Materials, Energy-Efficient Windows And Glazing

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What Are the Fastest-Growing Trends in the Green Building Market Ecosystem?

The central players in the green building market, such as green concrete service providers, are honing their focus on developing creative solutions to boost sustainability and energy conservation. Green concrete solutions serve as eco-friendly alternatives to their traditional counterparts and are designed to diminish carbon emissions, save resources, and foster sustainability across the construction sector.

For example, ACC Limited, a cement production company based in India, made significant strides in the green concrete solution industry when it introduced ACC ECOMaxX to the Indian market in January 2023. This expansive range reduces embodied carbon content by an impressive 30-100% when compared to conventional concrete made with ordinary Portland cement (OPC).

The products utilize state-of-the-art Green Ready Mix Technology, which cuts CO2 emissions by as much as 100%. ACC ECOMaxX also offers enhanced durability and a perfect finish due to its innovative CO2-reduced binders and optimal mix formula.

This high-yielding green concrete solution is specifically designed to satisfy the sustainable construction needs of a broad base of audiences including contractors, developers, engineers, architects, and private homeowners.

Which Regional and Global Companies Are Dominating the Green Building Industry?

Major companies operating in the green building market are Robert Bosch GmbH, BASF SE, Siemens AG, General Electric Company, Raytheon Technologies Corporation, Panasonic Corporation, LG Electronics Inc., International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Daikin Industries Ltd., Johnson Controls International plc, CEMEX S.A.B. de C.V., DuPont de Nemours Inc., Owens Corning, Kingspan Group plc, Signify N.V., Binderholz GmbH, Forbo International SA, Interface Inc., Alumasc Group plc, Amvik Systems Inc., Bauder Ltd., Plastiblok Ltd.

Which Regions Are Poised for Long-Term Green Building Market Growth?

North America was the largest region in the green building market in 2024. Asia-Pacific is expected to be the fastest-growing region in the market.

The regions covered in the green building market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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