Green Buildings Market valued at USD 538.4 billion in 2024 and is projected to reach USD 954.1 billion by 2030 – openPR.com

Green Buildings Market Report: Advancing Sustainable Development Goals

Market Overview and Growth Projections

The global Green Buildings Market is undergoing significant expansion, driven by a collective commitment from governments, corporations, and consumers to advance global sustainability targets. The market focuses on reducing the environmental impact of the built environment through enhanced energy efficiency, sustainable materials, and improved indoor environmental quality. This directly contributes to the achievement of multiple Sustainable Development Goals (SDGs).

The market’s growth trajectory reflects an increasing urgency to address climate change and promote sustainable infrastructure.

• Market Valuation (2024): USD 538.4 billion
• Projected Market Valuation (2030): USD 954.1 billion
• Compound Annual Growth Rate (CAGR): 10.0% (2024-2030)

Alignment with Sustainable Development Goals (SDGs)

The principles of green building are intrinsically linked to the United Nations’ 2030 Agenda for Sustainable Development. The market’s growth is a key enabler for progress across several critical SDGs.

SDG 13: Climate Action

Green buildings are a primary strategy for climate change mitigation. They are designed to reduce both operational and embodied carbon emissions through the use of low-carbon cement, renewable energy systems, and high-performance insulation, directly supporting the goal of combating climate change and its impacts.

SDG 7: Affordable and Clean Energy

A core objective of green buildings is to minimize energy consumption and promote clean energy sources. This is achieved through energy-efficient HVAC systems, LED lighting, smart building automation, and the integration of on-site renewable energy generation like solar photovoltaics, advancing the transition to sustainable energy.

SDG 11: Sustainable Cities and Communities

The market is fundamental to developing inclusive, safe, resilient, and sustainable urban environments. By promoting sustainable construction and retrofitting of existing infrastructure, green buildings reduce the ecological footprint of cities and enhance the quality of life for urban populations.

SDG 9: Industry, Innovation, and Infrastructure

The sector fosters innovation in sustainable materials and technologies, contributing to the development of resilient infrastructure. The adoption of smart building systems, IoT sensors, and recycled materials like steel showcases the industry’s role in building a sustainable industrial base.

SDG 12: Responsible Consumption and Production

Green buildings champion sustainable production patterns by prioritizing the use of recycled, renewable, and responsibly sourced materials, such as sustainable wood products and green roofing materials. This focus minimizes waste and promotes a circular economy in the construction sector.

SDG 6: Clean Water and Sanitation

The integration of water-saving technologies, including rainwater harvesting, greywater recycling, and efficient plumbing systems, directly addresses the need for sustainable water management, contributing to water conservation efforts globally.

SDG 3: Good Health and Well-being

By emphasizing improved indoor air quality through low-VOC materials and advanced ventilation systems, green buildings create healthier environments for occupants. Certification standards like WELL specifically target the health and well-being of individuals within the built environment.

Key Market Drivers and Trends

Market Drivers

• Government incentives and mandates for green certifications (LEED, BREEAM, WELL), aligning national policies with SDG targets.
• Corporate Environmental, Social, and Governance (ESG) commitments driving investment in sustainable real estate.
• Rising global emphasis on achieving carbon neutrality and net-zero emissions in line with SDG 13.
• Increased demand for energy-efficient building systems to support SDG 7.
• Growing consumer and corporate preference for healthy buildings constructed with environmentally friendly materials, supporting SDG 3 and SDG 12.

Market Trends

• A surge in the development of net-zero energy buildings and carbon-neutral campuses.
• Integration of smart technologies, including IoT and AI, for optimized energy and resource management.
• Expansion of green retrofit programs to upgrade existing infrastructure for improved sustainability performance.
• Growth in green financing mechanisms such as green bonds and sustainability-linked loans to fund sustainable projects.
• Increased adoption of advanced water management systems to promote water conservation.

Market Segmentation Analysis

By Building Type

• Residential Buildings
• Commercial Buildings
• Industrial Buildings
• Institutional & Educational Buildings
• Hospitality Buildings
• Healthcare Facilities
• Government & Public Infrastructure

By Component

• Materials
  • Low-Carbon Cement
  • Recycled Steel
  • High-Performance Insulation
  • Sustainable Wood Products
  • Glass & Façade Solutions
  • Green Roofing Materials
• Technologies
  • Smart Building Automation
  • Energy-Efficient HVAC
  • Solar Photovoltaics
  • LED Lighting & Controls
  • Water Recycling & Purification
  • Smart Meters & Sensors

By Construction Type

• New Construction
• Renovation & Retrofitting

By Certification Type

1. LEED
2. BREEAM
3. WELL Building Standard
4. IGBC
5. Green Star
6. Others (National & Regional Certifications)

Regional Outlook and Competitive Landscape

Regional Analysis

North America and Europe currently lead the market, supported by stringent building energy codes and strong policy frameworks. The Asia-Pacific region is identified as the fastest-growing market, driven by rapid urbanization and increasing government commitments to sustainable development in both commercial and residential sectors.

Competitive Landscape

The market is characterized by the active participation of leading global companies focused on developing innovative solutions for sustainable infrastructure. These key players are instrumental in driving the market forward through investment in R&D for smart technologies and sustainable materials.

• Saint-Gobain
• Carrier Global Corporation
• Johnson Controls
• Siemens AG
• Schneider Electric
• Kingspan Group
• Holcim (LafargeHolcim)
• VELUX Group
• Skanska
• Honeywell International

Analysis of Sustainable Development Goals in the Green Buildings Market Article

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

• SDG 6: Clean Water and Sanitation – The article mentions technologies and practices aimed at efficient water management in green buildings, such as “water-saving technologies,” “Water Recycling & Purification,” “rainwater harvesting,” and “greywater recycling.”
• SDG 7: Affordable and Clean Energy – This is a central theme, with the article extensively discussing “energy efficiency,” “renewable energy systems” like “Solar Photovoltaics,” and the goal of creating “net-zero energy buildings.”
• SDG 9: Industry, Innovation, and Infrastructure – The article focuses on transforming the construction industry through “sustainable construction,” “retrofitting” aging infrastructure, and innovating with “smart materials,” “low-carbon cement,” and “intelligent building automation” to create sustainable infrastructure.
• SDG 11: Sustainable Cities and Communities – The core subject of “green buildings” directly contributes to making cities more sustainable. The article highlights the growth of “commercial and residential green construction projects” and “green retrofit programs for aging infrastructure,” which are key to sustainable urban development.
• SDG 12: Responsible Consumption and Production – This goal is addressed through the emphasis on using sustainable and recycled materials in construction. The article lists “Recycled Steel,” “Sustainable Wood Products,” and the “growing use of sustainable materials like green concrete, bamboo, and recycled steel” as key components.
• SDG 13: Climate Action – The article directly connects the green building market to climate action by highlighting “carbon reduction,” “low-carbon cement,” and reducing “operational and embodied emissions.” The push for “carbon neutrality” and “net-zero energy buildings” is a direct response to climate change.

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

1. Target 6.4: By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity.
   • The article supports this target by highlighting the adoption of “water-saving technologies,” “rainwater harvesting,” and “greywater recycling” systems in green buildings to reduce water consumption.
2. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • This target is identified through the article’s mention of the “rapid adoption of renewable energy systems in commercial and residential buildings,” specifically citing “Solar Photovoltaics.”
3. Target 7.3: By 2030, double the global rate of improvement in energy efficiency.
   • The article’s focus on “energy efficiency,” “energy-efficient HVAC,” “LED Lighting & Controls,” “high-performance insulation,” and “smart building automation” for “energy optimization” directly aligns with this target.
4. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
   • This is reflected in the article’s discussion of “sustainable construction and retrofitting,” the “expansion of green retrofit programs for aging infrastructure,” and the use of technologies like “low-carbon cement” and “recycled steel.”
5. Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.
   • The article connects to this target by promoting buildings that improve “indoor air quality,” reduce “operational and embodied emissions,” and use “environmentally friendly building materials.”
6. Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
   • The use of materials such as “Recycled Steel,” “Sustainable Wood Products,” and “recycled materials” in green construction, as mentioned in the article, directly contributes to this target.
7. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • The article implies this target is being met through “government incentives for green certifications,” “stricter building performance standards and emissions codes,” and “net-zero energy building mandates.”

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

• Market Growth and Investment: The projected growth of the Green Buildings Market from “USD 538.4 billion in 2024 to USD 954.1 billion by 2030” serves as a high-level indicator of investment and progress in sustainable infrastructure.
• Adoption of Green Building Certifications: The increasing number of buildings seeking and obtaining certifications like “LEED, BREEAM, IGBC, and WELL” is a direct indicator of the adoption of sustainable building practices (relevant to Target 11.6).
• Rate of Renewable Energy Integration: The “rapid adoption of renewable energy systems” and “Solar Photovoltaics” in buildings can be measured to track progress towards Target 7.2.
• Development of Net-Zero Buildings: The “rapid surge in net-zero energy buildings and carbon-neutral campuses” is a key performance indicator for energy efficiency and carbon reduction goals (Targets 7.3 and 13.2).
• Use of Sustainable Materials: The market share and volume of “low-carbon cement,” “recycled steel,” and “sustainable wood products” used in construction can be tracked as an indicator for Targets 9.4 and 12.5.
• Implementation of Government Policies: The number and stringency of “government incentives,” “building energy codes,” and “emissions codes” are indicators of policy integration for climate action (Target 13.2).
• Adoption of Water-Saving Technologies: The market penetration of “rainwater harvesting, greywater recycling, and advanced plumbing systems” can measure progress towards water-use efficiency (Target 6.4).

4. SDGs, Targets, and Indicators Table

Source: openpr.com