What Has Been The Evolution of the Low Carbon Buildings Market in Recent Years?
The low carbon buildings market has seen considerable growth due to a variety of factors.
• The market size for low carbon buildings has seen a swift expansion in the recent past. The market, which stands at $553.39 billion in 2024, is projected to climb to $624.85 billion in 2025, representing a compound annual growth rate (CAGR) of 12.9%.
Factors contributing to this growth during the historical period include stringent environmental regulations, heightened awareness about climate change, increased energy efficiency needs, government initiatives promoting sustainable construction, and burgeoning demand for eco-friendly materials.
What Are the Future Growth Projections for the Low Carbon Buildings Market?
The low carbon buildings market is expected to maintain its strong growth trajectory in upcoming years.
• The market for low carbon buildings is anticipated to experience considerable expansion in the coming years, with projections forecasting that it will reach $1,001.71 billion by 2029, with a compound annual growth rate (CAGR) of 12.5%.
This projected growth throughout the period is primarily due to increasing stringent government policies favouring sustainable construction, enhanced consumer consciousness on energy efficiency, escalated investments in the integration of renewable energy for buildings, burgeoning urbanization, and the expansion of smart cities centred on sustainability. Key trends fueling this growth comprise the development of low-carbon concrete, progression in environmentally-friendly steel production, the rise in mass timber usage, advancements in hempcrete, the increasing use of bio-based plastics and recycled materials, and breakthroughs in energy-efficient building systems.
What Are The Core Factors Supporting Growth In The Low Carbon Buildings Market?
The rising consciousness regarding climate change is anticipated to spur the expansion of the low-carbon buildings market in the future. This consciousness is proliferating due to mounting environmental apprehensions, easy availability of information, and amplified media reportage, which results in increased public participation and a call for sustainable practices. Low-carbon buildings counteract climate change and endorse sustainability through the reduction of greenhouse gas emissions made possible through energy-efficient designs, sustainable materials, and renewable energy systems. For instance, as per the European Commission, a government organization based in Belgium, in 2023, 87% of Europeans are expected to endorse the escalation of renewable energy usage, and 86% will back up the augmentation of energy efficiency by 2030. Thus, the escalating awareness of climate change propels the growth of the low-carbon buildings market.
What Are The Major Segments Within The Global Low Carbon Buildings Market?
The low carbon buildings market covered in this report is segmented –
1) By Type: Energy-Efficient Materials, Renewable Energy Systems, Low Carbon HVAC Systems, Green Building Certifications
2) By Material: Wood, Bamboo, Recycled Steel, Recycled Plastic
3) By Application: Commercial, Residential, Industrial
Subsegments:
1) By Energy-Efficient Materials: High-Performance Insulation, Low-Emissivity Glass, Recycled Building Materials, Phase-Change Materials
2) By Renewable Energy Systems: Solar Photovoltaic (PV) Systems, Wind Energy Systems, Geothermal Heating And Cooling, Biomass Energy Systems
3) By Low Carbon HVAC Systems: Heat Pumps, Energy Recovery Ventilation (ERV) Systems, Radiant Heating And Cooling Systems, Smart Thermostats
4) By Green Building Certifications: Leadership in Energy and Environmental Design (LEED), BREEAMBuilding Research Establishment Environmental Assessment Method (BREEAM), WELL Building Standard, Passive House Certification
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What New Trends Are Influencing The Low Carbon Buildings Market?
Major companies operating in the low-carbon buildings market are focusing on strategic partnerships to launch decarbonization programs to accelerate the transition to sustainable construction, improve energy efficiency, and reduce carbon emissions. Strategic partnerships are crucial in scaling sustainable construction practices, accelerating decarbonization programs, and fostering innovation in the low-carbon buildings market. For instance, in June 2024, Mahindra Group, an India-based industrial company, partnered with Johnson Controls, an Ireland-based industrial machinery manufacturing company, to launch a net zero buildings initiative. The initiative seeks to decarbonize India’s commercial, urban, residential, and public buildings by offering free toolkits and training programs. It streamlines access to essential resources and best practices, empowering organizations to implement sustainable building solutions. The initiative aims to drive a sustainable transformation in the built environment and support India’s low-carbon development objectives by guiding building owners on conservation strategies, regulatory adherence, financing options, and advanced technologies.
Who Are the Key Players In The Low Carbon Buildings Market?
Major companies operating in the low carbon buildings market are:
• BASF SE
• Siemens AG
• Dow Inc.
• Saint-Gobain
• ThermoFisher Scientific Inc.
• Schneider Electric SE
• Honeywell International Inc.
• Mitsubishi Electric Corporation
• 3M Company
• Holcim Group
• ABB Ltd.
• Heidelberg Materials
• Johnson Controls International plc
• DuPont
• Nippon Paint
• Kingspan Group plc
• Legrand SA
• Rockwool International
• Guardian Glass
• Knauf Insulation
• Armstrong World Industries
What Is The Most Dominant Region In The Low Carbon Buildings Market?
Europe was the largest region in the low-carbon buildings market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the low carbon buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
