Green Construction Market size to worth USD 780.72 Billion by 2032, says Coherent Market Insights

/EIN News/ -- Burlingame, CA, April 08, 2025 (GLOBE NEWSWIRE) -- Increasing environmental concerns, stricter regulations on energy efficiency Drives Green Construction Market Growth from USD 375.80 Bn in 2025

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Global Green Construction Market Key Takeaways

• By product type, the sustainable building materials segment is set to be valued at US$ 15 billion by 2025. This is due to the increasing adoption of eco-friendly construction materials and the growing demand for energy-efficient and sustainable buildings.

• Based on the channel of distribution, the online retailing segment is likely to reach at US$ 5.2 billion by 2025. This growth is driven by the convenience of purchasing sustainable products online, along with the rise of e-commerce platforms catering to the green construction market.

• By end-user, the commercial segment is anticipated to dominate the market for green construction. This is due to the increasing number of businesses investing in energy-efficient and environmentally responsible building practices to meet sustainability goals and reduce operational costs.

• North America is expected to hold a valuation of US$ 12.3 billion by 2025. This is because of strong regulatory frameworks, incentives for green construction, increased awareness of sustainability, and the growing trend of eco-conscious development projects in urban areas.

Green Construction Market Report Coverage

Report Coverage	Details
Market Revenue in 2025	$375.80 billion
Estimated Value by 2032	$780.72 billion
Growth Rate	Poised to grow at a CAGR of 11.0%
Historical Data	2020 To 2024
Forecast Period	2025 To 2032
Forecast Units	Value (USD Million/Billion)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Product Type, By Application
Geographies Covered	North America, Europe, Asia Pacific, and Rest of World
Growth Drivers	• Rising Environmental Awareness and Consumer Demand for Green Buildings • Rising Cost Competitiveness of Green Building Materials and Technologies
Restraints & Challenges	• Overcoming Mindset Shifts and Adoption Barriers • Addressing Cost Disparities and Regulatory Hurdles

Increasing environmental concerns Fuelling Market Growth

The growth of the Green Construction Market is fuelled by increasing environmental concerns, stricter regulations on energy efficiency, and rising consumer demand for sustainable buildings. Technological advancements in eco-friendly materials, energy-efficient systems, and renewable energy integration contribute to the market’s expansion. Additionally, government incentives and policies promoting green construction practices, coupled with growing awareness about reducing carbon footprints, are driving investments and adoption across residential, commercial, and industrial sectors.

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High initial costs In Green Construction Market Limiting Market Growth

The growth of the Green Construction Market is limited by high initial costs associated with sustainable materials and technologies, which can deter some developers and consumers. Additionally, a lack of skilled labour and expertise in green building practices hinders widespread adoption. Limited availability of eco-friendly materials and slow regulatory implementation in some regions further restrict market expansion. These challenges, coupled with the complexity of retrofitting existing structures, impede faster growth in the sector.

Opportunities for Growth

The Green Construction Market presents significant opportunities for growth through increased demand for energy-efficient and environmentally sustainable buildings. Emerging technologies, such as smart building systems and advanced materials, offer innovative solutions to reduce energy consumption and carbon footprints. Government incentives and stricter regulations are driving investments in green construction.

Additionally, the growing trend toward sustainable urbanization and the rising awareness among consumers about climate change provide ample opportunities for expansion in both developed and developing markets.

Emerging Green Construction Market Trends

Modular and Prefabricated Construction: These methods are gaining traction for their cost-effectiveness, quicker build times, and reduced environmental impact.

Use of Renewable Materials: There’s an increasing focus on sustainable materials like recycled steel, bamboo, and green concrete to reduce environmental footprints.

Analyst View

“The growing emphasis on sustainability and eco-conscious building practices is driving substantial growth in the Green Construction Market," said senior research consultant Ramprasad Bhute. The increasing demand for energy-efficient buildings and environmentally responsible materials is being fuelled by both regulatory pressures and consumer preferences for sustainable living. Furthermore, the rise of smart building technologies and renewable energy integration is shaping the future of the market, as businesses and homeowners seek to reduce their carbon footprints. The ongoing shift toward green building certifications and the adoption of circular economy practices are contributing to the sector's rapid expansion, positioning green construction as a key driver of innovation in the global construction industry.

Key Player Insights

• BASF SE
• Clark Construction Group
• DPR Construction
• Gilbane Building Company
• Johnsons Control International plc
• Kingspan Group PLC
• LafargeHolcim
• Lend Lease Group
• Lennar Corporation
• Siemens AG
• Skanska AB
• Tetra tech Inc
• USC Corporation
• Webcor Builders

Key Developments

In January 2022, Binderholz GmbH, a subsidiary of the Austrian Binderholz Group, acquired BSW Timber Ltd., making it Europe's largest sawmill and solid wood processing company. This acquisition significantly strengthened Binderholz GmbH's position in the timber industry, with BSW Timber Ltd. contributing over 1.2 million cubic meters of sawn timber each year.

In April 2021, Lafarge Egypt, part of the LafargeHolcim group, launched ecolabel cement in Egypt. This new product aligns with the company’s environmental standards and helps reduce the carbon footprint of construction projects.

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Detailed Segmentation-

By Product Type:

• Exterior Product
  • Roofing
  • Windows
  • Siding
  • Doors
• Interior Product
  • Insulation
  • Flooring
• Solar Products
• Building Systems
• Others
  

By Application:

• Residential
• Non-Residential
  • Commercial & Office
  • Institutional
  • Industrial
  • Hospitality
  • Leisure
• Others

By Regional:

• North America
  • U.S.
  • Canada
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Rest of Latin America
• Europe
  • Germany
  • U.K.
  • Spain
  • France
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East
  • GCC Countries
  • Israel
  • Rest of Middle East
• Africa
  • South Africa
  • North Africa
  • Central Africa

Related Reports:

The Global Green Airport Market is estimated to be valued at USD 6.26 Bn in 2025 and is expected to reach USD 13.24 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 11.3% from 2025 to 2032.

The green building materials market is estimated to be valued at USD 450.07 Bn in 2025 and is expected to reach USD 1,014.40 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 12.3% from 2025 to 2032.

The global construction materials market is estimated to be valued at USD 1.57 Tn in 2025 and is expected to reach USD 2.47 Tn by 2032, exhibiting a compound annual growth rate (CAGR) of 6.7% from 2025 to 2032.

The green energy Market size is valued at US$ 1,137.83 Bn in 2025 and is expected to reach US$ 2,847.15 Bn by 2032, growing at a compound annual growth rate (CAGR) of 14.0% from 2025 to 2032.

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