Green Building Market Assessment, By Product Type [Exterior Products, Interior Products, Building Systems, Solar Products, Others], By Building Type [Residential Buildings, Commercial Buildings, Industrial Buildings, Institutional Buildings, Public Infras

Global green building market is projected to witness a CAGR of 9.82% during the forecast period 2025-2032, growing from USD 683.12 billion in 2024 to USD 1,444.85 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 drive 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 the awareness about climate change and the shortage of valuable resources rises, it is projected to foster the global green building market demand 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 September 2022, Barclays Bank PLC announced the launch of a brand new Sustainable Residential Development Framework. Barclays Bank PLC also collaborated with CBRE, Inc., to design collectivity and support the financing, data collection, monitoring, and delivery of Green Residential Development Loans.

Asia-Pacific Holds the Largest Global Green Building Market Size

Asia-Pacific has emerged as a significant player in the global green building market owing to rapid urbanization, rising awareness concerning the benefits of green building, and stringent government regulations. Rapid urban development has led to surged requirements for sustainable building practices to reduce the environmental impact. Also, the rising awareness concerning environmental issues and the benefits of sustainable building on the environment, compelling both industrialists and consumers to invest in the development of green buildings, further propel the Asia Pacific green building market growth in the forecast period. Additionally, the rising emphasis on environmental, social, and governance (ESG) criteria among investors highlights the increasing recognition of green buildings as valuable assets. These factors are expected to accelerate the demand for green buildings in Asia-Pacific significantly. Furthermore, companies in the Asia-Pacific green building market plan to establish green buildings to address the rising awareness concerning climate change and inspire others to embrace eco-friendly choices.

For instance, in March 2024, Tata Starbucks Private Limited announced its first certified Greener Store in India, located in Ayali Kalan, Punjab, and recognized it as the Greener Store of the Year for the Asia Pacific region. The global Greener Stores of the Year initiative honors one store from each of six regions, highlighting those that excel in innovation and environmental performance.

Future Market Scenario (2025-2032F)

Rapid urban growth is driving 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.

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.