Low Carbon Buildings Market Forecast 2025-2034: Analysing Major Trends, Opportunities, and Growth Drivers

How Are the key drivers contributing to the expansion of the low carbon buildings market?
Rising consciousness about climate change is projected to fuel the expansion of the low-carbon buildings market in the future. This increasing climate change awareness stems from growing ecological worries, broad access to information, and amplified media exposure, resulting in amplified public involvement and a surge in demand for eco-friendly procedures. Through energy-efficient blueprints, sustainable elements, and renewable energy setups, low-carbon buildings reduce greenhouse gas emissions, thus fostering sustainability and battling climate change. For example, the European Commission, a Belgium-based government entity, predicted that by 2023, 87% of Europeans will advocate for increased usage of renewable energy, and by 2030, 86% will back improving energy efficiency. Consequently, the heightened consciousness about climate change is steering the growth of the low-carbon buildings market.

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What growth opportunities are expected to drive the low carbon buildings market's CAGR through 2034?
The market size of low carbon buildings has seen a significant surge in the past years. Forecasts show this market growing from a size of $553.39 billion in 2024 to an increased size of $624.85 billion in 2025 with a compound annual growth rate (CAGR) of 12.9%. The historical surge in growth can be tied back to various factors such as more stringent environmental regulations, increased awareness about climate change, higher energy efficiency requirements, government incentives pushing for sustainable construction and an upswing in demand for eco-friendly materials.

In the next few years, the market size of low carbon buildings is predicted to experience exponential growth, achieving a value of $1,001.71 billion in 2029 with a compound annual growth rate (CAGR) of 12.5%. The predicted surge for this term could be due to the increasing strict governmental rules endorsing eco-friendly construction, amplified consumer enlightenment on energy conservation, escalating investment in the adoption of renewable energy for buildings, burgeoning urbanization, and the expansion of smart cities that prioritize sustainability. Main market trends during this period comprise the evolution of low-carbon concrete, enhancements in the production of ecologically friendly steel, the increased use of mass timber, innovations in hempcrete, the acceptance of bio-based plastics and recycled materials, as well as advancements in energy-saving building systems.

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What are the emerging trends shaping the future of the low carbon buildings market?
Leading companies in the low-carbon structures market are prioritizing strategic collaborations to initiate decarbonization efforts, aiming to expedite the shift towards eco-friendly construction, enhance energy efficiency, and cut down carbon pollutants. Such collaborative efforts are pivotal in expanding sustainable construction methodologies, speeding up decarbonization initiatives, and stimulating innovation in the low-carbon edifices market. For example, in June 2024, Mahindra Group, a company hailing from India with industrial operations, teamed up with Ireland's Johnson Controls, a manufacturer of industrial machinery, to kickstart a net zero buildings campaign. This campaign is targeted at decarbonizing India's commercial, urban, residential and public facilities by offering complimentary toolkits and training. It simplifies the accessibility to vital resources and exemplary methods, enabling organizations to put into action sustainable architectural solutions. The campaign is directed at promoting a green shift in construction environment and backing India's low-carbon development goals by advising building proprietors on preservation tactics, compliance with regulatory standards, financing alternatives, and modern technologies.

Which growth-oriented segments of the low carbon buildings market are leading the industry's development?
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 regions are leading the charge 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.

What companies are at the forefront of innovation 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

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What Is Covered In The Low Carbon Buildings Global Market Report?

•Market Size Forecast: Examine the low carbon buildings market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the low carbon buildings market for a structured understanding.
•Key Players Overview: Analyze major players in the low carbon buildings market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the low carbon buildings market.
•Segment Contributions: Evaluate how different segments drive overall growth in the low carbon buildings market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the low carbon buildings market.
•Industry Challenges: Identify potential risks and obstacles affecting the low carbon buildings market.
•Competitive Landscape: Review strategic developments in the low carbon buildings market, including expansions, agreements, and new product launches.

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