Low Carbon Buildings Industry Outlook 2025-2029: Market Set to Cross $986.17 Billion Milestone

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How Large Will the Low Carbon Buildings Market Size By 2025?
Over the past few years, the market size for low carbon buildings has expanded significantly. This market is expected to balloon from $553.39 billion in 2024 to $620.87 billion in 2025, reflecting an annual compound growth rate (CAGR) of 12.2%. The notable growth during the historical period can be traced back to a surge in environmental rules, increased consciousness about climate change, heightened energy efficiency norms, a boost in government incentives aimed at sustainable construction, and a growing demand for environmentally friendly materials.

How Big Is the Low Carbon Buildings Market Size Expected to Grow by 2029?
The market for low carbon buildings is anticipated to experience swift expansion in the forthcoming years, reaching $986.17 billion by 2029 with a compound annual growth rate (CAGR) of 12.3%. This predicted growth during the forecast period can be credited to several factors such as increasing strict regulatory mandates from governments for sustainable construction, heightened consumer understanding of energy effectiveness, significant investment in incorporating renewable energy for buildings, escalating urbanization, and emerging smart cities with an emphasis on sustainability. Principal trends contributing to this surge include the creation of low-carbon concrete, breakthroughs in eco-friendly steel production, the growing embrace of mass timber usage, hempcrete advancements, utilization of bio-based plastics, recycling materials, and progress in energy-efficient building systems.

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Which Key Market Drivers Powering Low Carbon Buildings Market Expansion and Growth?
The escalating cognizance of climate change is projected to propel the expansion of the low-carbon buildings market in the future. This rising consciousness is a result of mounting environmental worries, the proliferation of information, and intensified media spotlight, which collectively breed public involvement and calls for eco-friendly methods. Low-carbon buildings play a crucial role in curtailing greenhouse gas emissions through energy-efficient designs, the use of sustainable materials, and the integration of renewable energy systems. This encourages environmental sustainability and fights against climate change. For example, as per the forecasts of the European Commission, a Belgium-based governmental institution, by 2023, 87% of Europeans will advocate for the proliferation of renewable energy usage, while 86% will stand for the optimization of energy efficiency by 2030. Hence, the escalating cognizance of climate change is fueling the growth of low-carbon buildings in the market.

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Which Emerging Trends Are Transforming the Low Carbon Buildings Market in 2025?
Significant players in the low-carbon buildings market are focusing on forming strategic alliances to initiate decarbonization programs. These programs aim to speed up the switch to sustainable construction, increase energy efficiency, and cut down carbon emissions. These strategic partnerships are essential in expanding sustainable construction methodologies, speeding up decarbonization initiatives, and encouraging invention in the low-carbon buildings sector. For instance, in June 2024, Mahindra Group, an industrial firm based in India, teamed up with Johnson Controls, an industrial machinery producer based in Ireland. Together, they launched an initiative for net zero buildings. The program aims to achieve decarbonization of India's commercial, urban, residential and public buildings by offering complimentary training programs and toolkits. The initiative simplifies the access to necessary resources and top strategies, enabling organizations to adopt sustainable building solutions. This initiative targets fostering a sustainable transition in the construction environment and back India's low-carbon development objectives by guiding building owners on conservation tactics, regulatory compliance, funding options, and cutting-edge technologies.

What Are the Emerging Segments in the 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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Who Are the Global Leaders 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

Which are the Top Profitable Regional Markets for the Low Carbon Buildings Industry?
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.

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