Green Building Materials Market growing at a CAGR of 8.5% from 2025 to 2030

The global green building materials market size was estimated at USD 285.89 billion in 2024 and is projected to reach USD 458.61 billion by 2030, growing at a CAGR of 8.5% from 2025 to 2030. The growth is driven by rising awareness regarding climate change, government regulations encouraging sustainable construction practices, and an increasing demand for energy-efficient buildings.

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Moreover, advancements in building technologies, such as energy-efficient systems, smart building solutions, and renewable materials, such as cross-laminated timber, enhance the sustainability and efficiency of construction projects, thereby favoring market growth.

The market is expected to experience robust growth driven by the escalating need for sustainable building practices. As climate change intensifies, there is a growing emphasis on reducing carbon footprint and enhancing energy efficiency in the construction sector. This shift aligns with global initiatives promoting sustainable development, which is likely to increase investments in green building materials.

Advancements in technology are paving the way for innovative materials that offer improved performance & functionality and attract stakeholders to the market. According to an article published by the World Economic Forum in September 2024, innovative building practices and materials are adept at reducing carbon emissions, as buildings contribute to nearly 40% of global energy-related emissions. Homebuyers and tenants increasingly seek properties that reduce utility costs and contribute positively to the environment.

Strategic partnerships and collaborations within the construction industry are anticipated to play a pivotal role in shaping the future of the green building materials market. Companies can leverage each other’s strengths, share resources, and innovate more effectively. This collaborative approach is expected to enhance product offerings and improve supply chain efficiencies, making sustainable materials accessible across various construction sectors.

Product Insights

The structural products segment dominated the market with the largest revenue share of 66.1% in 2024 and is further expected to grow at the fastest rate. Structural green building materials are eco-friendly and sustainable materials used in constructing the foundation, framework, and load-bearing components of a building. These materials are sourced from recycled or sustainably harvested sources and can include recycled steel, sustainably harvested wood, engineered wood products, and concrete made from fly ash or slag. By using these materials, we can significantly reduce the building’s environmental impact, promote energy efficiency, and create a healthier indoor environment.

The Exterior product segment of the Green Building Materials Market includes eco-friendly materials used for building facades, roofing, cladding, windows, doors, and insulation applied to the outer structure of buildings. This segment is driven by the rising emphasis on enhancing energy efficiency, improving thermal insulation, and reducing the environmental footprint of construction activities. Exterior green building materials such as recycled metal facades, sustainable wood, energy-efficient windows, and cool roofing materials contribute to reducing heat island effects and lowering energy consumption in buildings. The growing adoption of green certifications like LEED and government initiatives promoting sustainable construction are further accelerating the demand for exterior green materials globally.

Green Building Materials Market Report Scope