Green Building Market Assessment, By Product Type [Exterior Products, Interior Products, Building Systems, Construction Materials, Others], By Building Type [Residential, Commercial, Industrial, Institutional, Public Infrastructure], By Application [Insulation, Roofing, Flooring, Others], By Region, Opportunities and Forecast, 2018-2032F

Global green building market is projected to witness a CAGR of 9.75% during the forecast period 2025-2032, growing from USD 683.11 billion in 2024 to USD 1,444.77 billion in 2032. The market has witnessed significant growth in recent years and is expected to continue to expand in the coming years owing to a significant increase in awareness about climate change, a rise in energy costs, a growing focus on energy conservation, and a considerable increment in usage of eco-friendly materials including recycled plastics, and others. The global demand for green building is increasing due to rising concerns about growing environmental pollution, stringent government regulations on ecological sustainability, and the rising adoption rate of green building materials. Stringent government regulations and financial incentives on environmental sustainability promote investment in green building technologies and procedures, driving the global green building market growth in the forecast period. In addition, the rapidly growing energy prices force property owners and developers to integrate energy-efficient solutions in green buildings, reducing long-term operational costs and propelling green building market growth globally. Furthermore, considerable innovations in green building technologies, including smart energy management systems and advanced insulation materials, improve building effectiveness and affordability, fostering market growth and the adoption rate of sustainable construction.

Companies in the global green buildings market are efficiently investing in research and development activities to enhance their environmental footprint and focus on integrating green building materials to strengthen their market position. Also, key participants in the market are planning to launch eco-friendly building technology to accelerate the decarbonization of real estate.

For instance, in February 2024, Siemens AG presented innovative and sustainable building technology at Mostra Convegno Expocomfort (MCE) 2024 for Original Equipment Manufacturers and installers to decrease heating and cooling costs in small- and mid-sized buildings. The products include the MVL702 magnetic expansion valve, which is designed for refrigeration cycle processes in heat pump and chiller applications, as well as the new Climatix S400 controller, which allows OEMs in the heating, ventilation, air conditioning, and refrigeration (HVACR) sector to control, design, maintain, install, and innovate in an efficient, sustainable, and open manner while offering Software-as-a-Service (SaaS).  

Increased Consumer Demand for Sustainable Building Drives Market Demand

The increased consumer demand for sustainability and stringent government regulations drives the demand for green buildings across the globe. This trend is significantly prevalent among the young population, who prioritize environmental impact during purchasing impact. As awareness about climate change and the shortage of valuable resources rises, it is projected that global demand for green building will increase in the forecast period. Companies and developers in the real estate sector are innovating sustainable technologies to address the growing demand for green buildings and incorporating green certifications coupled with sustainable features to support sustainability objectives, further boosting the expansion of the global green building market. Furthermore, companies in the market are collaborating to enable customers to digitalize better and optimize energy use in buildings.

For instance, in September 2023, BT Group plc announced a collaboration with Johnson Controls International plc to help business customers in the UK and internationally benefit from smart building technology to monitor and optimize energy use in workplaces digitally.

Advancements in Green Building Technologies Propels Global Green Building Market Growth

Advancements in green building technologies and the integration of lightweight components in technologies are projected to drive the global green building market growth. The technological advancement of 3D printing helps companies make construction more sustainable and eliminates traditional manufacturing procedures. 3D printing also reduced the volume of energy and resources used in production, coupled with increased accuracy, propelling the demand for advanced and innovative technologies that further drive the global green building market in the forecast period. Implementing robotics and automation in building construction automates tedious tasks, including welding and bricklaying, reduces labor costs, and increases production accuracy. In addition, companies in the market are incorporating different advanced sensors to improve effectiveness and safety during the construction process.

For instance, in June 2024, Honeywell International Inc. announced the introduction of Connected Power, a revolutionary solution that helps manage, monitor, and automate buildings’ power usage at the plug level.

Government Rules and Regulations Push the Market Growth for Green Buildings Globally

Globally, the government increasingly emphasizes sustainability, accelerating the global green building market growth. Regulations often mandate energy efficiency standards and sustainable practices for new and prevailing buildings. The governments of different countries, including the U.S., Canada, and others, have implemented stringent codes and offer subsidies and incentives for green building projects. These incentives include rebates, grants, and tax breaks for sustainable technological upgrades. Governments of emerging countries are setting ambitious targets for carbon reduction and giving financial assistance, further making it more feasible for developers and builders to invest in green technologies and fostering global green building market growth in the forecast period.

For instance, in July 2024, the Government of Canada introduced the Canada Green Buildings Strategy to improve energy effectiveness in Canada’s homes and buildings, reduce energy bills for Canadians, and cut pollution.  

Residential Buildings Dominate the Global Green Buildings Market

Residential buildings dominate market growth owing to rising consumer preference for eco-friendly homes and rising demand for energy-efficient green buildings. Green residential buildings feature energy-saving technologies, including highly efficient windows, advanced insulation, and renewable energy sources, propelling the global residential building market growth. Governments of emerging countries have implemented stringent building codes and standards for residential buildings, requiring energy efficiency and sustainable practices, which further drive the adoption of green building practices in the residential sector. Companies in the market are planning to invest and collaborate in residential green building projects to focus on sustainable residential construction.

For instance, in January 2025, Massachusetts led the United States Green Building Council’s Top 10 States for LEED with 4.95 certified square feet per capita, followed by Illinois (4.017), New York (3.438), Washington (3.03), and Maryland (2.775). The District of Columbia outperformed all states with 33 square feet per resident across 111 projects. The rankings highlight sustainable building efforts, including the residential sector, reflecting growing commitments to green construction and energy efficiency nationwide.

North America Holds the Largest Global Green Building Market Size

North America holds the largest share of the global green building market, driven by its strong focus on sustainability, robust regulatory frameworks, and widespread adoption of green building certifications like LEED (Leadership in Energy and Environmental Design). The region’s commitment to reducing carbon emissions, coupled with advancements in energy-efficient technologies and sustainable construction practices, has positioned it as a leader in the green building sector. Governments, businesses, and consumers in the United States and Canada are increasingly prioritizing eco-friendly buildings to combat climate change, lower operational costs, and improve occupant health and well-being.

In April 2024, the United States Department of Energy released a comprehensive plan titled Decarbonizing the United States Economy by 2050: A National Blueprint for the Buildings Sector. This blueprint outlines strategies to reduce greenhouse gas emissions from buildings by 65% by 2035 and 90% by 2050. It emphasizes increasing energy efficiency, onsite emissions reductions, and transforming building interactions with the electricity grid. The plan aims to save consumers over USD 100 billion in annual energy costs while addressing energy insecurity in economically disadvantaged communities.

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Future Market Scenario (2025-2032F)

• Rapid urban growth drives the demand for sustainable construction as cities seek to minimize environmental impacts and improve living conditions.
• Many governments are implementing stricter building codes and incentives for green construction, fostering an environment conducive to sustainable practices in the building sector.
• Growing consumer awareness of environmental issues is pushing developers to adopt green building practices, enhancing market competitiveness and appeal.
• The integration of renewable energy sources in building designs is becoming more common, promoting sustainability and reducing reliance on traditional energy systems.

Report Scope

“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 global 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.

Report Attribute	Details
Base Year of the Analysis	2024
Historical Period	2018-2023
Forecast Period	2025-2032
Projected Growth Rate	CAGR of 9.75% between 2025 and 2032
Revenue Forecast in 2032	USD 1,444.77 billion
Segments Covered	Product Type, Building Type, Application
Regions Covered	North America, Europe, South America, Asia-Pacific, Middle East and Africa
Key Companies Profile	Schneider Electric SE, Owens Corning, BASF SE, Cemex, S.A.B. de C.V., Kingspan Holdings (Ireland) Limited, Binderholz GmbH, DuPont de Nemours, Inc., Johnson Controls International plc, Bauder Limited, Siemens AG, The Alumasc Group plc, Amvic Inc.
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, global green building market has been segmented into the following categories: 

• By Product Type
  • Exterior Products
  • Interior Products
  • Building Systems
  • Construction Materials
  • Others
• By Building Type
  • Residential
  • Commercial
  • Industrial
  • Institutional
  • Public Infrastructure
• By Application
  • Insulation
  • Roofing
  • Flooring
  • Others
• By Region
  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East and Africa

Key Players Landscape and Outlook

Companies in the global green building market are investing in different research and development activities to address the growing concern of sustainable buildings and introducing new sustainable building products. Also, companies specializing in building technologies and energy efficiency solutions support organizations to enhance building sustainability. In addition, companies are producing insulation materials that contribute to energy efficiency and thermal comfort in buildings, encouraging sustainable construction practices. Furthermore, key participants in the market are adopting strategies including joint ventures, mergers and acquisitions, technology partnerships, new product launches, and others to expand their market portfolio and strengthen their market position.

In May 2024, Schneider Electric, a digital energy management and automation company, revealed that its smart energy management solutions are now integrated into the London headquarters of Dar Al-Handasah Consultants Shair and Partners Holdings Ltd. (Sidara), a prominent design, engineering, and consulting firm.

Key Players Operating in Global Green Building Market are:

• Schneider Electric SE
• Owens Corning
• BASF SE
• Cemex, S.A.B. de C.V.
• Kingspan Holdings (Ireland) Limited
• Binderholz GmbH
• DuPont de Nemours, Inc.
• Johnson Controls International plc
• Bauder Limited
• Siemens AG
• The Alumasc Group plc
• Amvic Inc

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• How are the markets divided into different product/service segments and the market size and growth of each segment?
• What is the market potential of different product segments and their investment case?
• How are the markets predicted to develop in the future, and what factors will drive or inhibit growth?
• What is the business environment and regulatory landscape specific to the product/service?

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