Green Building Market Expected to Hit USD 2,065.41 Billion by 2035 with a Remarkable 9.5% CAGR – openPR.com

Report on the Global Green Building Market and its Alignment with Sustainable Development Goals

The global green building market represents a critical sector in the transition towards sustainable development, directly contributing to the achievement of multiple United Nations Sustainable Development Goals (SDGs). Green buildings, defined as structures designed to minimize environmental impact, are integral to modern infrastructure development. This report analyzes the market’s dynamics, growth projections, and profound connection to the global sustainability agenda.

Market Size and Growth Projections

The green building market is poised for significant expansion, reflecting a global shift towards sustainable infrastructure. The market’s financial trajectory is as follows:

• 2024 Market Size: USD 761.12 billion
• 2025 Projected Size: USD 833.42 billion
• 2035 Forecasted Size: USD 2,065.41 billion

This growth represents a compound annual growth rate (CAGR) of 9.5% for the 2025-2035 forecast period, underscoring the increasing investment in infrastructure that supports key SDGs.

Core Contributions to Sustainable Development Goals (SDGs)

Green buildings are instrumental in advancing the 2030 Agenda for Sustainable Development. Their design principles inherently address environmental, social, and economic sustainability pillars.

SDG 11: Sustainable Cities and Communities

As urbanization accelerates, green buildings provide a foundational solution for creating resilient, inclusive, and sustainable urban environments. They mitigate urban heat island effects, reduce pollution, and manage resource consumption efficiently.

SDG 7: Affordable and Clean Energy & SDG 13: Climate Action

By optimizing energy use through efficient systems, insulation, and renewable energy integration, green buildings directly support the transition to clean energy. This focus on reduced energy consumption and lower carbon emissions is a primary strategy in global climate action efforts.

SDG 3: Good Health and Well-being & SDG 6: Clean Water and Sanitation

Green buildings prioritize improved indoor environmental quality, including air quality, natural lighting, and the use of non-toxic materials, which enhances occupant health. Furthermore, the integration of water conservation technologies like rainwater harvesting and greywater recycling contributes directly to sustainable water management.

SDG 9: Industry, Innovation, and Infrastructure & SDG 12: Responsible Consumption and Production

The sector drives innovation in sustainable materials, smart technologies, and circular economy practices. By promoting the use of recycled and eco-friendly materials and minimizing construction waste, it fosters responsible production and consumption patterns within the construction industry.

Market Dynamics in the Context of Sustainability

Key Drivers

1. Heightened Environmental Awareness: A growing global consensus on climate change (SDG 13) is accelerating the adoption of energy-efficient building strategies.
2. Supportive Government Regulations: Policies, incentives, and building codes promoting sustainable construction are crucial for achieving national and international climate targets.
3. Demand for Energy-Efficient Infrastructure: Rising energy costs and a focus on operational efficiency drive demand for buildings aligned with SDG 7.
4. Adoption of Smart Technologies: Digital innovations in building management support the goals of SDG 9 by optimizing resource use and enhancing infrastructure resilience.
5. Corporate Sustainability and ESG Goals: Organizations are adopting green building standards to meet Environmental, Social, and Governance (ESG) targets, reducing their carbon footprint in line with SDG 12 and SDG 13.

Restraints

• High Initial Investment Costs: The upfront capital required for advanced materials and technologies can be a barrier, particularly for smaller-scale projects.
• Skilled Workforce Limitations: A lack of specialized expertise in sustainable construction methods can impede progress, especially in developing regions.
• Extended Payback Periods: The long-term return on investment from energy savings may deter investors seeking more immediate financial returns.
• Complex Certification Processes: The rigorous documentation and compliance required for green building certifications can add complexity to project timelines.

Opportunities

• Rapid Urbanization: The expansion of cities presents a significant opportunity to integrate green building principles, directly supporting the objectives of SDG 11.
• Growth in Sustainable Materials: The expanding market for eco-friendly materials fosters responsible production chains, contributing to SDG 12.
• Advancements in Renewable Energy: The integration of solar, geothermal, and other renewable systems into buildings accelerates the transition to clean energy (SDG 7).
• Green Retrofitting: Upgrading existing buildings offers a substantial opportunity to improve energy efficiency and reduce the environmental impact of current infrastructure.
• Focus on Healthy Buildings: Increased demand for healthy indoor environments aligns with SDG 3 and drives the adoption of green design principles.

Emerging Trends in Sustainable Construction

• Net-Zero and Carbon-Neutral Buildings: A primary trend aimed at achieving a balance between energy consumption and production, directly addressing SDG 7 and SDG 13.
• Integration of AI and IoT: Smart technologies are enhancing building efficiency and maintenance, fostering innovation under SDG 9.
• Circular Economy Practices: An increasing focus on recycling, reusing materials, and minimizing waste aligns with the principles of SDG 12.
• Biophilic Design: Incorporating natural elements into building design to improve well-being (SDG 3) and connect occupants with nature.
• Green Roofs and Vertical Gardens: Urban greening solutions that mitigate heat, improve air quality, and support urban biodiversity (SDG 11).
• Advanced Water Conservation: Technologies for rainwater harvesting and water recycling are becoming standard, supporting SDG 6.
• Prefabricated and Modular Green Construction: Methods that reduce waste and improve efficiency, contributing to SDG 9 and SDG 12.

Future Outlook

Short-Term Outlook (2-5 Years)

The market will see increased adoption of smart building technologies, an expansion of green retrofitting projects, and the implementation of stricter energy-efficiency standards in new constructions.

Long-Term Outlook (10 Years)

It is anticipated that green building principles will become standard for most urban development projects. Net-zero buildings are expected to become a global benchmark, with widespread integration of renewable energy systems and sustainable materials, further solidifying the construction sector’s role in achieving the Sustainable Development Goals.

Analysis of the Green Building Market Article and Sustainable Development Goals (SDGs)

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on the green building market discusses several issues that are directly and indirectly connected to a range of Sustainable Development Goals. The analysis identifies the following SDGs as relevant:

• SDG 3: Good Health and Well-being: The article emphasizes that green buildings are designed for “improved indoor environmental quality.” It highlights a growing consumer preference for “healthy building designs,” which includes better “indoor air quality, natural lighting, ventilation, and low-toxicity materials.”
• SDG 7: Affordable and Clean Energy: This is a central theme. The article defines green buildings by their “optimized energy use” and integration of “renewable energy solutions.” It repeatedly mentions “energy efficiency,” “efficient HVAC systems, insulation, lighting,” and the trend towards “Net-Zero” buildings that produce as much energy as they consume.
• SDG 8: Decent Work and Economic Growth: The article is a market analysis report, detailing the significant economic growth of the green building sector. It provides market size figures (USD 761.12 billion in 2024) and projects substantial growth (“reach USD 2,065.41 billion by 2035”), indicating its contribution to economic development.
• SDG 9: Industry, Innovation, and Infrastructure: The article focuses on developing sustainable and resilient infrastructure. It discusses innovations like “smart and automated technologies,” “AI-driven building management systems,” and the importance of “green retrofitting of existing structures” to upgrade infrastructure.
• SDG 11: Sustainable Cities and Communities: The article links green buildings directly to urban development. It notes that “rapid urbanization” increases the demand for sustainable infrastructure to create “long-term resilience against pollution, energy shortages, and resource depletion” in cities. It also mentions specific urban solutions like “green roofs to reduce heat island effects.”
• SDG 12: Responsible Consumption and Production: The article highlights the shift towards sustainable production patterns in the construction industry. It points to the “growth of sustainable materials market” (e.g., recycled steel, bamboo), the adoption of “circular economy practices” like “recycling, reusing materials, and minimizing waste,” and the use of “eco-friendly prefabricated structures.”
• SDG 13: Climate Action: The primary driver for the green building market is identified as “growing global awareness of climate change.” Green buildings are presented as a key strategy for climate mitigation through “reduced carbon emissions” and helping companies reduce their “carbon footprint.”

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s detailed discussion, several specific SDG targets can be identified:

1. Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • The article directly supports this target by mentioning the integration of “renewable energy solutions” and “advancements in renewable energy technologies” such as “solar, wind, geothermal, and hybrid renewable energy systems” into building designs.
2. Target 7.3: Double the global rate of improvement in energy efficiency.
   • This is a core concept in the article. It highlights the “increasing focus on energy efficiency” and describes green buildings as having “optimized energy use” and “efficient HVAC systems, insulation, [and] lighting.” The trend towards “Net-Zero” buildings is a direct effort to maximize energy efficiency.
3. Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
   • The article discusses the “green retrofitting of existing structures” as a profitable market segment. It also emphasizes the “increased adoption of smart and automated technologies” and “AI-driven building management systems” as key drivers for sustainability in the construction industry.
4. Target 11.6: Reduce the adverse per capita environmental impact of cities.
   • Green buildings are presented as a solution to urban environmental problems. The article states they help cities build “resilience against pollution” and mentions specific technologies like “green roofs to reduce heat island effects, improve air quality, and enhance building insulation,” all of which reduce the negative environmental impact of urban areas.
5. Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
   • The article points to “circular economy practices” as an emerging trend where the construction sector is “adopting recycling, reusing materials, and minimizing waste.” It also mentions “prefabricated and modular green construction” as a method to “reduce waste.”
6. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • The article highlights the role of policy in driving the market, noting that “stringent government regulations & policies” including “incentives, tax rebates, building codes, and sustainability certifications” are encouraging the adoption of green building practices as a response to climate change.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article, being a market report, contains several explicit and implicit indicators that can be used to measure progress towards the identified targets:

• Market size and growth rate of the green building industry: The article provides specific financial data, such as the market size growing from “USD 761.12 billion in 2024” to “USD 2,065.41 billion by 2035” with a “CAGR of 9.5%.” This serves as a clear indicator of economic growth (SDG 8) and the overall adoption of sustainable practices.
• Adoption rate of renewable energy technologies in buildings: Progress towards Target 7.2 can be measured by tracking the integration of “solar, wind, [and] geothermal” systems in new and retrofitted buildings, as mentioned in the article.
• Level of energy efficiency in buildings: An indicator for Target 7.3 is the reduction in energy consumption. The article implies this can be measured by the prevalence of “efficient HVAC systems, insulation, lighting,” and the number of buildings achieving “Net-Zero” or “Carbon-Neutral” status.
• Rate of adoption of smart building technologies: For Target 9.4, the article points to the “integration of AI and IoT” and “AI-driven building management systems” as measurable trends. The “strong adoption of smart building technologies” is listed as a short-term outlook.
• Volume of sustainable and recycled materials used: To measure progress on Target 12.5, one could track the market growth for “sustainable materials like recycled steel, low-VOC paints, [and] bamboo,” which the article identifies as a key opportunity.
• Number of green building certifications issued: The article mentions “sustainability certifications” and “green-certified offices” as part of government and corporate strategies. The number of such certifications is a direct indicator of the implementation of policies related to Target 13.2.
• Reduction in construction waste: The article’s mention of “minimizing waste” through circular economy practices and prefabricated construction implies that the volume of waste generated per project can be a key performance indicator for Target 12.5.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

Source: openpr.com