Covid impact, trends and forecast for green building materials market

Green building construction in the residential sector is increasing due to the rising number of building regulations and policies mandating energy-efficient structures.

Green building operating costs are lower than a regular building, with 63 percent less water usage and 53 percent less electricity usage. The green building materials market was estimated at US$ 199.9 billion, and the market is projected to register a CAGR of over 9 percent during the 2021-2026 period. Green Building Materials market was negatively impacted due to COVID-19.

Owing to pandemic scenario, several countries went into lockdown. Construction work stopped all across the world, especially in major construction hubs like China, India, and Japan. Supply chain disruptions, work stoppages due to measures imposed by governmental authorities to slow the spread of the virus, and workforce shortages due to illness and preventative quarantines negatively affected the market. However, this is expected to be temporary, and the market is expected to recover in the coming years. In the short term, increasing demand for energy-efficient buildings, demand for insulation, and favourable government policies for green buildings are driving the market’s growth.

The declining cost of green buildings over time and increasing awareness about recycled construction are likely to provide opportunities for the studied market during the forecast period. However, in 2020, several construction works were put to on halt as a protective measure to curb the spreading of the virus. However, conditions are expected to recover in 2021, thereby driving the market studied during the forecast period.

In the Asia-Pacific region, countries such as China and India have already been facing environmental pollution-related problems, which has grasped the attention of governments to take the initiative in this regard. Moreover, power shortage problems in developing nations, like India, South Korea, Sri Lanka, and others, are likely to promote the concept of green building construction to promote daylight harvesting. With the growing public awareness and rising income levels, the use of green building materials and the growing trend of energy-efficient structures in high-rise residential buildings and townships are likely to further boost the demand for green building materials in the coming years.