A compound annual growth rate (CAGR) of 17.9% has been forecast for the green building materials market through 2016, driven by the need for enhanced cost reduction and the increase in initiatives by government bodies.
The use of green building materials has remained relatively consistent during the global recession, and recent figures indicate that demand is only going up.
Solar power products saw explosive growth between 2002 and 2012, driven by increasing installation of rooftop-based solar power modules connected to electricity distribution systems.
Going forward, favourable tax incentives and strong interest in the use of renewable energy sources will promote demand for LEED-eligible solar power products.
In recent years, energy efficiency has become a major global concern, particularly as a result of global warming and the rapid depletion of non-renewable power resources. It is currently estimated, that buildings account for 40% of total global energy consumption.
This high consumption has prompted several governments across the globe to form policies to improve energy efficiency in buildings.
For instance, the US government offers a tax reduction of US$1.80 per square foot to building owners who use green materials and techniques such as building envelopes, interior lighting, and hot water systems that reduce the energy consumption of buildings up to 50%.
Also, many states in the US offer incentives for the usage of recyclable items such as windows, doors, roofs, and insulation.
The US is already seeing an uptick in sustainable construction. By 2015, an estimated 40 to 48% of new non-residential construction by value will be green, equating to a $120-145 billion opportunity, according to the US Green Building Council.
A major challenge currently facing the industry is the lack of awareness regarding the benefits of green building materials. The lack of awareness in developing countries has had a negative impact on the growth of the market.
The green building materials market is dominated by a number of players including E.I. du Pont de Nemours and Co. (DuPont), Lafarge, Owens Corning, and Saint-Gobain S.A.
For more information on the green building materials market, see the latest research: Building Materials Market Research
Follow us on Twitter @CandMResearch
Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.