PUBLISHER: The Business Research Company | PRODUCT CODE: 1435466
PUBLISHER: The Business Research Company | PRODUCT CODE: 1435466
The construction of non-residential green buildings involves the process of constructing, modifying, repairing, enhancing, or demolishing any non-residential structure intended to be environmentally sustainable, utilizing a comprehensive design and plan.
The primary product categories for non-residential green buildings comprise interior and exterior products. Interior products encompass environmentally friendly materials with minimal impact, such as natural clay plaster, natural fiber flooring, paperless drywall, and low-VOC content paints and coatings. These materials serve as alternatives to synthetic counterparts in the interior finishes of green buildings. Key elements include roofing, insulation, framing, exterior siding, interior finishing, among others, and find applications in various sectors such as offices, education, hotels and restaurants, retail, institutional/assembly, healthcare, and warehouses.
The nonresidential green buildings market research report is one of a series of new reports from The Business Research Company that provides nonresidential green buildings market statistics, including nonresidential green buildings industry global market size, regional shares, competitors with a nonresidential green buildings market share, detailed nonresidential green buildings market segments, market trends and opportunities, and any further data you may need to thrive in the nonresidential green buildings industry. This nonresidential green buildings market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The nonresidential green buildings market size has grown rapidly in recent years. It will grow from $1034.1 billion in 2023 to $1160.01 billion in 2024 at a compound annual growth rate (CAGR) of 12.2%. The growth observed in the historical period can be ascribed to factors such as heightened environmental awareness and regulations, emphasis on energy efficiency and cost savings, corporate social responsibility (CSR) initiatives, considerations for occupant health and productivity, and the pursuit of market differentiation and enhanced brand image.
The nonresidential green buildings market size is expected to see rapid growth in the next few years. It will grow to $1853.45 billion in 2028 at a compound annual growth rate (CAGR) of 12.4%. The anticipated growth in the forecast period can be credited to factors such as the enforcement of rigorous green building standards, the pursuit of global climate change mitigation goals, an increasing demand for health-oriented workspaces, financial incentives and tax credits, and evolving tenant preferences. Noteworthy trends expected in the forecast period encompass measures for water conservation, the application of circular economy principles, the pursuit of carbon neutrality targets, a focus on health and wellness-centric design, and the influence of government incentives and regulations.
The expansion of the nonresidential green buildings market is attributed to the growing need for sustainable and eco-friendly solutions. The U.S. Green Building Council (USGBC) report highlights that green buildings can reduce carbon emissions by 34% and consume 25% less energy than conventional buildings. For instance, in 2021, China led in certified LEED projects with 1,077, followed by Canada with 205 and India with 146. The imperative for commercial construction companies to prioritize sustainable design and construction techniques has risen due to the importance of utilizing finite planetary resources sensibly. Sustainable business practices, driven by increased concerns about global warming, have contributed to the demand for the growth of the nonresidential green buildings market.
The growth of the nonresidential green buildings market is expected to be driven by government mandates on incorporating green technology. Governments worldwide are mandating the use of green technology to address environmental concerns, reduce carbon emissions, conserve resources, enhance energy efficiency, and promote sustainability. For example, in June 2023, Israel took a significant step by making it mandatory for all new non-residential structures to install rooftop solar panels to address electricity demands and achieve its renewable energy objectives. Such regulations are designed to mitigate climate change, improve public health, and foster innovation in the green technology sector. Consequently, government mandates on incorporating green technology are poised to drive the growth of the nonresidential green buildings market in the forecast period.
Concerns about affordability and the perception that green projects are exclusively for high-end endeavors are expected to restrain the growth of the non-residential green building market. This perception is prevalent globally, with a significant percentage of respondents in the US, Canada, Germany, UAE, Southeast Asia, and South Africa considering green buildings as unaffordable and meant for high-end projects. This perception poses a challenge to the market's growth, limiting its expansion.
The adoption of living roofs, also known as green roofs, is on the rise in green buildings. A green roof involves covering the roof of a building with vegetation and soil or a growing medium planted over a waterproofing membrane. Not only do green roofs have a longer lifespan compared to conventional roofs, but they also offer various benefits. These include natural insulation that reduces energy costs, absorption and trapping of temperatures (both heat and cold), decreased stormwater runoff, air purification by filtering pollutants and carbon dioxide, and the creation of wildlife habitats in urban areas. It is estimated that to lower the city's ambient temperature by 2%, 8% of roofs in the city need to be green. In the USA, approximately 25 cities have programs encouraging green roofs, with Portland, Ore., making it mandatory for buildings in the central city over 20,000 square feet (with exceptions) to have 100% vegetation cover on their roofs. Consequently, green roofs are emerging as a trend in the nonresidential green buildings market.
In April 2023, Kohlberg Kravis Roberts & Co (KKR), a US-based investment firm, completed the acquisition of Namsan Green Building for $186.7 million. This strategic move by KKR aims to enhance its portfolio by leveraging Namsan Green Building's expertise in green building projects. Namsan Green Building, based in South Korea, specializes in executing green building projects, particularly for premium commercial buildings.
Major companies operating in the nonresidential green buildings market report are Turner Construction Company, AECOM Technical Services Inc., Balfour Beatty Construction Inc., Whiting-Turner Contracting Company, The Whiting-Turner Contracting Company, Lendlease Americas Inc., Gilbane Building Company, PCL Construction Enterprises Inc., Hensel Phelps Construction Co., DPR Construction Inc., HITT Contracting Inc., The Walsh Group LLC, Clark Construction Group, Holder Construction Company, JE Dunn Construction Group Inc., Swinerton Builders, McCarthy Holdings Inc., Suffolk Construction Company Inc., Consigli Construction Company Inc., The Haskell Company, Ryan Companies US Inc., Austin Industries Inc., Skanska USA Civil Inc., The Beck Group Inc., The Weitz Company Inc., Mortenson Inc., The Boldt Company, Webcor Builders Inc., The Opus Group, The Korte Company, The Christman Company, The Barton Malow Company
Asia-Pacific was the largest region in the nonresidential green buildings market in 2023. Eastern Europe is expected to be the fastest-growing region in the global nonresidential green buildings market share during the forecast period. The regions covered in the nonresidential green buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the nonresidential green buildings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The nonresidential green buildings market construction market includes revenues earned by entities by constructing non-residential green buildings such as offices, sports, college buildings, and other commercial buildings. The establishments in this market include non-residential general contractors, non-residential for-sale builders, non-residential design-build firms, and non-residential project construction management firms. The non-residential green building construction work performed includes new work, additions, alterations, maintenance, and repairs. A Green building is an environment sustainable building which is designed, constructed and operated to minimize the environmental impacts. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Nonresidential Green Buildings Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on nonresidential green buildings market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for nonresidential green buildings ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The nonresidential green buildings market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.