Nonresidential Green Building Trends and Forecast
The future of the global nonresidential green building market looks promising with opportunities in the office, education, hotel & restaurant, retail, institutional/ assembly, healthcare, and warehouse markets. The global nonresidential green building market is expected to grow with a CAGR of 12.2% from 2024 to 2030. The major drivers for this market are the rising demand for eco-friendly and sustainable solutions and the increase in environmentally friendly structures.
• Lucintel forecasts that, within the product category, the interior product is expected to witness higher growth over the forecast period.
• Within the application category, the office is expected to witness the highest growth over the forecast period.
• In terms of regions, APAC is expected to witness the highest growth over the forecast period.
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Emerging Trends in the Nonresidential Green Building Market
Emerging trends in the nonresidential green building market are reshaping its future applications and dynamics.
• Net Zero Energy Buildings: Net-zero-energy (NZE) buildings are designed to produce as much power over a year as they consume. This can be achieved through renewable energy sources such as solar panels installed on top of them or by achieving high levels of insulation through double glazing or wall thicknesses, thereby optimizing their energy consumption to the highest possible level within conventional frameworks. These buildings save running costs while minimizing environmental impacts since they do not require any additional heating or lighting apart from what is already available on-site.
• Smart Building Technologies: Building efficiency and occupant comfort are being improved by integrating smart building technologies that include sensors for the internet of things and automated control systems. Real-time lighting and HVAC settings, monitoring air quality, and optimizing energy use are leading to considerable breakthroughs in operational efficiency.
• Sustainable Materials and Resources: Recycled steel, bamboo, low-VOC paints, etc., are increasingly finding common usage as more sustainable materials. These materials decrease environmental impact while promoting resource conservation. Technological advances in material science have opened up new possibilities for eco-friendly alternatives that enhance construction performance and sustainability.
• Green Roofs and Living Walls: Energy efficiency is not the only aspect of green roofs that has led to their popularity; they also help manage stormwater and bolster urban biodiversity. This includes using nonresidential buildings that insulate roofs while reducing heat island effects and enhancing air quality, thereby making them visually appealing.
• Wellness and Indoor Air Quality: Indoor air quality is increasingly seen as a factor in the well-being of occupants alongside ventilation improvement, increased natural light provision, and the use of non-toxic materials, etc. For instance, WELL, BREEAM, and other green building certifications emphasize the creation of healthy indoor spaces for occupants.
Emerging trends are revolutionizing nonresidential green buildings by spurring advancements in energy efficiency, intelligent technology, sustainable products/materials, and operator comfort or health issues, among others. Consequently, these trends combine to give rise to greener buildings that are more sustainable, efficient, and healthier.
Recent Developments in the Nonresidential Green Building Market
Ongoing innovations and advancements in the nonresidential green building market have been highlighted.
• Advanced Energy Management Systems: The growing complexities of energy management systems incorporate real-time data analytics and AI that optimize energy consumption. These systems monitor the energy utilization of buildings and control it, thus reducing operational costs and carbon emissions.
• Adoption of Green Building Certifications: The adoption of green building certifications is rising sharply, such as LEED, BREEAM, WELL, etc. These certifications outline strategies for achieving sustainability while signaling a commitment to environmental responsibility. The increase in the number of certified projects demonstrates the sectorÄX%$%Xs resolve to meet stringent requirements for green building.
• Integration of Renewable Energy Sources: Nonresidential buildings are increasingly incorporating renewable sources like solar panels and wind turbines. These technologies lower operating expenses while ensuring a transition into more sustainable energy sources away from fossil fuels.
• Development of High-Performance Insulation Materials: Aerogels or phase-change materials, etc., are examples of new insulation materials with characteristics capable of making buildings more energy-efficient. These excellent-performing materials offer better thermal resistance, thereby aiding the achievement of energy-efficient building standards and minimizing heating/cooling expenses.
• Use of Smart Building Technologies: Building management has been made easier by smart building technologies such as IoT sensors and automated systems, which also improve occupant comfort. Optimization through lighting, HVAC, security systems, and others contributes to a responsive environment within a building.
These developments have substantial implications for the nonresidential green building sector, advancing better ways of managing energy, certification practices, renewable integration into the electricity grid, insulation options, and smart control systems. Accordingly, the acceptance of these innovations by industry stakeholders will be pivotal in attaining high-quality sustainable constructions.
Strategic Growth Opportunities for Nonresidential Green Building Market
Some key strategic opportunities in the nonresidential green building market include:
• Expansion of Renewable Energy Integration: There is a huge scope for integrating renewable energy sources into nonresidential buildings across every sector. Solar panels, wind turbines, and geothermal systems can be installed. This trend promotes energy independence, reduces operating costs, and aligns with sustainability goals.
• Growth in Smart Building Technologies: Smart building technologies have gained ground in the construction of nonresidential green buildings through innovations such as IoT sensors, automated control systems, and energy management platforms that improve building performance and efficiency, thereby attracting clients seeking advanced solutions.
• Development of Sustainable Building Materials: There is an increasing demand for sustainable building materials, including recycled-content products and low-impact materials. Opportunities exist in developing eco-friendly materials that comply with green building standards and support resource conservation efforts.
• Emphasis on Building Health and Wellness: The need for indoor air quality-enhancing buildings and providing comfortable environments has fueled interest among developers in occupant health and wellness. Developers aim to improve the performance of buildings through technology development and design solutions that contribute to occupant well-being.
• Expansion into Emerging Markets: Nonresidential green building has new markets in Asia and Latin America. Rapid urbanization trends combined with rising environmental awareness prompt demands for sustainable construction solutions and green construction practices.
These strategic growth opportunities expose areas where the nonresidential green building sector can expand itself by innovating ways to integrate renewable energies, smart technologies, sustainable materials, wellness-focused real estate developments, and emerging markets, all contributing to its growth.
Nonresidential Green Building Market Driver and Challenges
The nonresidential green building market is influenced by several key drivers and challenges, including technological, economic, and regulatory ones.
The factors responsible for driving the nonresidential green building market include:
• Increasing Environmental Regulations: Stricter environmental regulations have led to the adoption of green building practices. Regulations such as energy efficiency standards and emission reduction motivate business investment in sustainable construction solutions and technologies.
• Growing Demand for Sustainability: There is an increasing demand from both consumers and businesses for sustainable building solutions. This is driven by increased awareness of environmental issues and the desire to reduce carbon footprints, leading to more investments in environmentally friendly buildings known as “green buildings.”
• Technological Advancements: Technological advancements like smart building systems and energy-efficient materials are driving innovation in green building. They improve building performance, reduce operational costs, and help safeguard overall sustainability necessary for the growth of the green sector.
• Financial Incentives and Subsidies: Governments and other organizations provide financial incentives and subsidies for green building projects. For example, tax credits and grants ease the financial burden of adopting these practices or investing in green technology buildings.
• Increased Focus on Health and Wellness: The importance of occupant health and wellness has resulted in growing demand for healthier indoor air quality in green buildings. This focus on wellness is in line with green building certifications, which also promote greener, healthier buildings.
Challenges in the nonresidential green building market include:
• High Initial Costs: The start-up costs of green building materials and technologies may be higher than other methods. This cost factor dissuades some businesses from practicing green methods, despite the long-term advantages and savings.
• Complexity of Green Building Standards: Navigating the complexity of green building standards and certifications can be difficult for businesses. There may be challenges in implementing green buildings due to compliance with several standards and regulations, requiring expertise and resources.
• Limited Availability of Sustainable Materials: Sustainable building materials may not always be available in certain areas, hindering the completion of green construction projects. The project timeline and budget can be affected by limitations in supply chains and the high cost of sustainable materials.
The forces and impediments affecting nonresidential green buildings result from a dynamic setting shaped by regulations, demand for sustainability, advancing technology, financial incentives, etc. Overcoming these drivers and challenges is necessary for success within the field of green building.
List of Nonresidential Green Building Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies nonresidential green building companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the nonresidential green building companies profiled in this report include-
• Turner Construction Company
• AECOM Technical Services
• Balfour Beatty Construction
• Whiting-Turner Contracting Company
• Lendlease Americas
• Gilbane Building Company
• PCL Construction Enterprises
• Hensel Phelps Construction
• DPR Construction
• HITT Contracting
Nonresidential Green Building by Segment
The study includes a forecast for the global nonresidential green building by product, component, application, and region.
Nonresidential Green Building Market by Product [Analysis by Value from 2018 to 2030]:
• Interior Products
• Exterior Products
Nonresidential Green Building Market by Application [Analysis by Value from 2018 to 2030]:
• Office
• Education
• Hotels & Restaurants
• Retail
• Institutional/ Assembly
• Healthcare
• Warehouse
• Others
Nonresidential Green Building Market by Component [Shipment Analysis by Value from 2018 to 2030]:
• Roofing
• Insulation
• Framing
• Exterior Siding
• Interior Finishing
• Others
Nonresidential Green Building Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Nonresidential Green Building Market
Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major nonresidential green building producers in key regions: the USA, China, India, Japan, and Germany
• United States: In America, there is an increasing focus on net zero energy buildings and renewables integration into buildings. Recent developments have included the increased use of advanced energy management systems as well as adoption of LEED and WELL certification schemes for green buildings. Henceforth, reducing carbon footprints and improving indoor air quality will demand the adoption of sustainable materials and technologies.
• China: China has made significant progress in terms of implementing stricter environmental regulations aimed at promoting greener building standards. These developments include the widespread application of energy-efficient HVAC systems and installation of green roofs. Through subsidies and financial incentives, the Chinese government encourages development projects aimed at enhancing sustainability which have led to increased investments in this field.
• Germany: German remains leading example for other nations when it comes to being innovative with regard to green building through its strong commitment towards sustainability principles. Lately there has been passive house development codes introduced alongside incorporating alternate sources such as solar or geothermal energy into these structures. In addition, Germany’s emphasis on having high-performance insulation materials and energy efficient building designs is a yardstick for green construction.
• India: In India, there is an emerging trend of adopting green building practices that are aimed at improving energy efficiency and water conservation. Some of these developments include the establishment of green building codes and standards such as the Indian Green Building Council (IGBC) certification. This has been accompanied by growing preference towards using locally sourced and sustainable materials to reduce environmental impact and support local economies.
• Japan: On the other hand, Japan is pushing forward green building industry with focus on earthquake resistance constructions along with reducing energy demands. The latest developments involve advanced building technologies like smart grids and high-efficiency HVAC systems. The nation’s commitment to sustainable urban development also includes reduction in energy use as well as promotion of greener construction methods.
Features of the Global Nonresidential Green Building Market
Market Size Estimates: Nonresidential green building market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Nonresidential green building market size by product, component, application, and region in terms of value ($B).
Regional Analysis: Nonresidential green building market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different products, components, applications, and regions for the nonresidential green building market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the nonresidential green building market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the growth forecast for nonresidential green building market?
Answer: The global nonresidential green building market is expected to grow with a CAGR of 12.2% from 2024 to 2030.
Q2. What are the major drivers influencing the growth of the nonresidential green building market?
Answer: The major drivers for this market are the rising demand for eco-friendly and sustainable solutions and the increase in environmentally friendly structures.
Q3. What are the major segments for nonresidential green building market?
Answer: The future of the nonresidential green building market looks promising with opportunities in the office, education, hotel & restaurant, retail, institutional/ assembly, healthcare, and warehouse markets.
Q4. Who are the key nonresidential green building market companies?
Answer: Some of the key nonresidential green building companies are as follows:
• Turner Construction Company
• AECOM Technical Services
• Balfour Beatty Construction
• Whiting-Turner Contracting Company
• Lendlease Americas
• Gilbane Building Company
• PCL Construction Enterprises
• Hensel Phelps Construction
• DPR Construction
• HITT Contracting
Q5. Which nonresidential green building market segment will be the largest in future?
Answer: Lucintel forecasts that interior product is expected to witness higher growth over the forecast period.
Q6. In nonresidential green building market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness the highest growth over the forecast period.
Q.7 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the nonresidential green building market by product (interior products and exterior products), component (roofing, insulation, framing, exterior siding, interior finishing, and others), application (office, education, hotels & restaurants, retail, institutional/ assembly, healthcare, warehouse, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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