Construction

Green Building Market to Reach $897.79 Billion by 2029, Growing at a CAGR of 8.7%

November 13, 2025 by The Business Research Company

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What Market Value Is The Green Building Industry Expected To Reach By 2029, Starting From 2025 Levels?

The market for environmentally conscious construction has experienced robust expansion lately, projected to advance from valuations of $588.37 billion in 2024 to $642.19 billion the following year, reflecting a consistent compound annual growth rate of 9.1%. This historical upward trajectory is fundamentally driven by heightened consciousness concerning global warming and the necessity for ecological preservation, alongside a growing trend toward implementing sustainable building methodologies and encouraging the use of ecologically sound construction methods; furthermore, escalating utility expenses and a concerted push toward energy conservation promote the development of energy-saving architectural designs, while the prospect of lower expenses over the lifespan of the structure, coupled with automated systems for streamlined facility oversight, contributes significantly to this growth.

Projections indicate robust expansion for the green building sector over the upcoming quinquennium, with the market value anticipated to reach $897.79 billion by 2029, achieving a compound annual growth rate (CAGR) of 8.7%. This upward trajectory through the projection period is fundamentally driven by mounting environmental awareness, the implementation of legislation mandating the adoption of environmentally sound materials and solutions, the inherent advantages of sustainable construction methods, favorable effects on public health and welfare, and escalating governmental backing for sustainable building initiatives. Key developments shaping this landscape during the forecast timeframe encompass advancements in highly efficient and novel manufacturing techniques, the prominence of green financing mechanisms, the proliferation of ecological and sustainable applications, integration of renewable energy systems, and ongoing technological innovations.

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Which Industry Drivers Are Expected To Accelerate The Green Building Market From 2025 To 2029?

Anticipated advancements in the green building sector are being fueled by an increasing focus on environmentally sound construction methods, which encompass the planning, execution, and maintenance of structures in ways that conserve resources and minimize ecological impact across their entire lifespan; this trend is being propelled by heightened public ecological consciousness, financial advantages available to property holders, and governmental mandates, ultimately fostering sustainable progress through diminished resource utilization, pollution abatement, and the establishment of safer, more robust constructed surroundings for both present inhabitants and those to come; for illustration, data from the US Green Building Council, a US-based non-profit entity, indicated that in 2023, certifications under LEED, the globally prevalent green building assessment program, increased by nine percent over the previous year, further punctuated by an extra twenty-one LEED accreditations specifically for residential single-family dwellings, with new LEED project sign-ups experiencing an even more substantial fifty-one percent rise within that same timeframe, thus affirming that the growing embrace of eco-conscious construction techniques is the primary impetus behind the expansion of the green building industry.

What Are The Major Segment Categories Driving The Green Building Market Growth?

The green building market covered in this report is segmented –

1) By Product Type: Exterior Products, Interior Products, Building Systems, Solar Products, Other Product Types

2) By Application: Residential, Non-Residential Buildings

3) By End-Use: Roofing, Flooring, Insulation

Subsegments:

1) By Exterior Products: Green Roofs, Insulated Windows And Doors, Sustainable Landscaping Materials, Cool Roofing Materials

2) By Interior Products: Energy-Efficient Lighting, Sustainable Flooring, Low-Emission Paints And Coatings, Green Insulation Materials

3) By Building Systems: Hvac Systems, Water Conservation Systems, Energy Management Systems, Building Automation Systems

4) By Solar Products: Solar Panels, Solar Water Heating Systems, Solar Roofing Solutions

5) By Other Product Types: Smart Building Technology, Green Construction Materials, Energy-Efficient Windows And Glazing

What Trends Are Expected To Drive The Green Building Market?

Key players within the green building sector are concentrating efforts on developing novel approaches, exemplified by green concrete alternatives, to boost both environmental responsibility and energy performance. Such environmentally conscious concrete solutions serve as substitutes for standard concrete mixes, with the primary goal of significantly lowering carbon output, decreasing the reliance on raw materials, and fostering broader sustainability throughout the building trades. Reflecting this trend, in the initial month of 2023, the Indian cement manufacturer ACC Limited introduced ACC ECOMaxX to the Indian market, representing a notable step forward for eco-friendly concrete innovations in the sector. This entire product line achieves an impressive 30 to 100 percent cut in its embodied carbon footprint when benchmarked against concrete made using standard Ordinary Portland Cement (OPC). Furthermore, employing advanced Green Ready Mix Technology allows these materials to cut down on CO2 emissions by as much as 100 percent. Beyond carbon advantages, ACC ECOMaxX is engineered to provide superior longevity and an exceptional surface finish, achieved through the incorporation of newly developed CO2-reduced bonding agents and expertly proportioned mix designs. This superior-grade, sustainable concrete formulation has been precisely developed to satisfy the demanding sustainability criteria of everyone involved in construction, including builders, property developers, engineering professionals, architects, and even private homeowners constructing residences.

Which Leading Players Are Enhancing Their Green Building Market Presence Worldwide?

Major companies operating in the green building market are Robert Bosch GmbH, BASF SE, Siemens AG, General Electric Company, Raytheon Technologies Corporation, Panasonic Corporation, LG Electronics Inc., International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Daikin Industries Ltd., Johnson Controls International plc, CEMEX S.A.B. de C.V., DuPont de Nemours Inc., Owens Corning, Kingspan Group plc, Signify N.V., Binderholz GmbH, Forbo International SA, Interface Inc., Alumasc Group plc, Amvik Systems Inc., Bauder Ltd., Plastiblok Ltd.

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Which Global Regions Are Influencing The Competitive Landscape Of The Green Building Market?

North America was the largest region in the green building market in 2024. Asia-Pacific is expected to be the fastest-growing region in the market. The regions covered in the green building market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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