Green Building Materials Market to Hit US$ 671.9 Billion by 2031 at 7.3% CAGR; North America Leads with 36% Share Amid Surge in Eco-Friendly Construction

The Global Green Building Materials Market reached US$ 381.4 billion in 2023 and is expected to reach US$ 671.9 billion by 2031, growing at a CAGR of 7.3% during the forecast period 2024-2031. Growth is driven by increasing construction of energy-efficient buildings, rising environmental awareness, strict government regulations on emissions, and rapid adoption of sustainable construction technologies across residential, commercial, and industrial sectors.

Insulation materials hold the largest market share, driven by rising demand for energy-efficient HVAC systems and strict building codes. Exterior products, roofing, and framing materials are also expanding rapidly, supported by green certifications like LEED, BREEAM, and IGBC. North America leads the global market due to strong regulatory support and high adoption of eco-friendly construction, while Asia-Pacific is the fastest-growing region, driven by large-scale urbanization, smart city projects, and government-led sustainability initiatives.

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Green Building Materials Market refers to the industry that produces eco-friendly construction materials designed to improve energy efficiency, reduce environmental impact, and support sustainable building practices.

Key Developments

United States
✅ January 2025: Major US construction firms increased adoption of low-carbon concrete and recycled steel as federal green building incentives under the Inflation Reduction Act (IRA) pushed large-scale sustainable construction procurement.

✅ April 2025: Several states expanded mandates for LEED, WELL, and ENERGY STAR certifications in public infrastructure projects, accelerating use of green insulation, cool roofing, and energy-efficient building envelopes.

✅ July 2025: US manufacturers launched next-generation bio-based insulation materials made from agricultural waste fibers to reduce embodied carbon and meet stricter building performance standards.

Japan
✅ February 2025: Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT) strengthened its Green Building Program, driving adoption of low-emission concrete, bamboo-based panels, and renewable-material interior systems in new commercial developments.

✅ May 2025: Leading Japanese companies introduced high-performance thermal barrier materials designed to meet ZEB (Net Zero Energy Building) targets, supporting the government's 2030 energy-efficiency roadmap.

✅ August 2025: Construction firms in Japan expanded deployment of recycled ceramic tiles, reclaimed wood, and smart energy-efficient façade systems across residential projects to meet sustainability certification requirements.

Mergers & Acquisitions

United States
✅ March 2025: A major US green-construction materials producer acquired a recycled-concrete manufacturer to scale production of low-carbon aggregates for sustainable infrastructure projects.

✅ September 2025: A leading provider of eco-friendly insulation solutions entered a strategic partnership with a biopolymer company to co-develop next-generation plant-based insulation products.

Japan
✅ April 2025: A Japanese construction materials company formed a joint venture with a domestic forestry group to expand production of certified sustainable timber for green buildings across the country.

✅ June 2025: A Japan-based building materials firm partnered with a European clean-technology company to develop carbon-neutral cement and high-performance bio-based building composites for Asian markets.

Key Players
Hensoldt | Indra Sistemas | Lockheed Martin | Raytheon Technologies | Thales Group

Key Highlights
• Lockheed Martin - Holds 21.4% share of the global defense surveillance, radar, and sensor systems market, driven by advanced radar platforms, electronic warfare systems, and large international defense contracts.

• Raytheon Technologies - Accounts for 18.7% share, supported by strong demand for its air-defense radars, missile-tracking systems, and integrated surveillance technologies.

• Thales Group - Maintains 15.6% share, led by its innovations in multi-mission radar systems, military avionics, and advanced battlefield surveillance solutions.

• Hensoldt - Holds 12.3% share, strengthened by its cutting-edge sensor technologies, airborne surveillance systems, and expanding European defense procurement.

• Indra Sistemas - Contributes 9.8% share, supported by its radar modernization programs, command-and-control solutions, and government defense partnerships.

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Market Drivers
• Growing global focus on sustainable construction is driving the adoption of green building materials that reduce energy consumption and carbon emissions.

• Rising regulatory pressure and green certification standards such as LEED, BREEAM, and IGBC are accelerating demand for eco-friendly construction materials.

• Increasing urbanization and infrastructure development are pushing builders toward renewable, recyclable, and low-toxicity materials.

• Growing consumer preference for energy efficient homes with improved indoor air quality is boosting adoption of insulation, cool roofing, and non-toxic flooring materials.

• Expansion of green construction incentives, tax benefits, and government-backed sustainability programs is supporting market growth.

Industry Developments
• Global manufacturers are launching high performance insulation boards made from recycled and bio-based materials to reduce embodied carbon.

• Construction companies are partnering with sustainability tech firms to integrate smart, energy saving composite panels into commercial buildings.

• Major cement and concrete producers are scaling up production of low-carbon cement blends and geopolymer concrete.

• Governments in Europe, the US, and Asia are announcing large-scale green building stimulus packages to boost environmentally friendly construction.

• Startups are developing plant based and nanomaterial infused coatings that improve thermal efficiency and reduce VOC emissions.

Regional Insights
• North America holds a 36% share, driven by strong adoption of LEED certified projects, high demand for energy-efficient building solutions, and strict environmental regulations across the US and Canada.

• Europe holds a 32% share, supported by stringent EU energy performance mandates, rapid transition toward low carbon construction materials, and major investments in green renovation programs.

• Asia Pacific holds a 26% share, fueled by large scale infrastructure development, rapid urban expansion, and increasing government initiatives promoting green building certifications.

• Latin America holds a 4% share, driven by rising awareness of sustainable construction, growth of eco-friendly urban development projects, and expanding green certification adoption.

• Middle East and Africa hold a 2% share, supported by investments in sustainable smart cities, increasing focus on energy efficient buildings, and climatic need for high performance insulation materials.

Key Segments:

➥ By Product
Structural panels dominate the market as they provide core strength, durability, and load-bearing capabilities essential for modern construction. Exterior panels continue to grow due to rising demand for weather-resistant, energy-efficient building envelopes. Interior panels hold a steady share, driven by applications in partitioning, wall finishing, and aesthetic interiors. Other product types include specialized and custom-engineered panels used for niche architectural and industrial needs.

➥ By Application
Framing leads the segment as structural framing is a foundational requirement across residential, commercial, and industrial buildings. Insulation applications are rising rapidly with an increasing focus on energy efficiency and green building codes. Roofing and exterior siding applications remain key contributors, supported by demand for durable, weather-resistant panel systems. Interior siding is also growing due to expansion in interior renovation, modular construction, and commercial fit-outs. Other applications include specialty uses in temporary structures, acoustics, and protective installations.

➥ By End-User
Commercial and Industrial sectors dominate owing to high adoption in warehouses, manufacturing units, office spaces, and retail infrastructure. Public Facilities such as community buildings, transport hubs, and government structures drive consistent demand for durable building panels. Education facilities contribute significantly as schools and universities increasingly adopt prefabricated and panelized construction. Healthcare and R&D Centers are growing end-user categories due to the need for controlled environments, quick installation, and high-performance building materials. Other end-users include custom projects, mixed-use developments, and specialized infrastructure.

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