by Market Overview
The global Green Construction Market is estimated to be valued at US$265.7 Bn in 2020 and is expected to reach a market size of US$ (TBBn by 2022, exhibiting a CAGR of 11.2% over the forecast period (2021-2028), according to a new report published by Coherent Market Insights. As the world increasingly recognizes the importance of sustainable practices, the demand for green construction solutions has been soaring. Green construction refers to the practice of using environmentally friendly materials and designing energy-efficient structures that have minimal impact on the environment. This not only reduces carbon emissions but also offers several advantages such as energy savings, enhanced indoor air quality, and reduced waste production.
Market Key Trends
One of the key trends in the Green Construction Market is the adoption of green building certification programs. Organizations like LEED (Leadership in Energy and Environmental Design) have established globally recognized rating systems to assess a building’s sustainability performance. These certifications provide a competitive edge to construction projects, as they demonstrate a commitment to sustainable practices and help attract environmentally-conscious investors and buyers. For example, the Bank of America Tower in New York City received the LEED Platinum certification, becoming an iconic symbol of sustainable construction.
Porter’s Analysis
– Threat of new entrants: The Green Construction Market offers significant opportunities for new entrants, particularly in emerging economies where sustainable practices are gaining traction. However, established companies with extensive industry experience and strong brand reputation pose a challenge for new players.
– Bargaining power of buyers: Buyers in the Green Construction Market have a relatively high bargaining power due to the presence of multiple suppliers and the availability of alternative construction materials and technologies. Buyers can negotiate for competitive pricing and demand adherence to sustainable construction standards.
– Bargaining power of suppliers: Suppliers in the Green Construction Market have moderate bargaining power. As the demand for green construction materials and technologies increases, suppliers can leverage their expertise and innovation to establish long-term partnerships with construction companies.
– Threat of new substitutes: The threat of new substitutes in the Green Construction Market is relatively low. Sustainable construction practices have become a global phenomenon, and the shift towards sustainable infrastructure is expected to continue. However, the emergence of breakthrough technologies or materials could potentially disrupt the market.
– Competitive rivalry: The Green Construction Market is highly competitive, with key players continuously striving to develop innovative solutions and expand their market share. The industry is characterized by collaborations, mergers, and acquisitions, enabling companies to enhance their product portfolios and geographical reach.
Key Takeaways
1. Market Size: The global Green Construction Market is projected to witness high growth, exhibiting a CAGR of 11.2% over the forecast period. Growing environmental concerns, government initiatives, and cost savings associated with green buildings are driving the market’s expansion.
2. Regional Analysis: Asia Pacific is expected to be the fastest-growing and dominating region in the Green Construction Market. Rapid urbanization, increasing disposable income, and government emphasis on sustainable development are fueling the demand for green construction practices in this region.
3. Key Players: Key players operating in the global Green Construction Market include Alumasc Group Plc, Binderholz GmbH, Bauder Ltd, Forbo International SA, Certain Teed Corporation, The Turner Corp, Clark Group, Gilbane Building Co, Hensel Phelps, and The Whiting-Turner Contracting Co. These companies are actively engaged in research and development activities to provide innovative green construction solutions and gain a competitive edge.
In conclusion, the Green Construction Market is experiencing robust growth, driven by the need for sustainable infrastructure solutions. The shift towards green construction practices is not only addressing climate change concerns but also offering economic benefits and improved quality of life. As governments and organizations around the world prioritize sustainability, the market is poised to witness significant development in the coming years, with key players leading the way with their innovative products and services.
