Green Building Materials ‘$254bn Annual Market by 2020’

Market Value of Green Construction Materials by Region, World Markets 2013-2020

by | May 2, 2013

Market Value of Green Construction Materials by Region, World Markets 2013-2020The worldwide market for green construction materials will grow from $116 billion in 2013 to greater than $254 billion in 2020, according to a report from Navigant Research.

These green building materials will range from traditional materials that are being revalued for their minimal impacts to new technologies that enable better passive and active building performance.

Europe, accounting for about half of the market, will be the largest regional market in 2020, Navigant Research forecasts.

Materials in Green Buildings says demand for green buildings, and the materials that go into them, has remained relatively buoyant during the global recession. Future market growth for green buildings and the use of green materials will be driven by a combination of policies and regulations that prioritize energy efficiency and green design, the expansion of voluntary certification programs for green buildings, cost reductions for green materials, consumer demand, and growing evidence that green buildings confer quantifiable market advantages.

The report says the use of environmental product standards and lifecycle assessments, along with product and company reporting, will be significant in shaping the green materials market.

Though it can be argued that the current green product labeling landscape is overpopulated, a more select class of standards and tools is emerging, making environmental performance more measurable and more transparent, according to the report. For example, increasing use of environmental product declarations, supported by LEED and BREEAM, will help clarify benefits and make selecting green products easier, it says.

Construction companies worldwide are shifting their business toward green building, with 51 percent of respondents to a survey by research firm McGraw-Hill Construction saying they expect more than 60 percent of their work to be green by 2015. This is a significant increase from the 28 percent that said the same for their work in 2013 and the 13 percent in 2008, according to the company’s latest SmartMarket Report, published in March.

Last month, BASF launched a sustainable construction website, which the company says can help contractors, developers, architects and other building professionals improve water and resource efficiency and indoor air quality, among other sustainable construction challenges.

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