Driving Sustainable Growth - Global Green Building Market booms through 2028
- Global green building market size is expected to grow at a CAGR of almost 8 percent in the forecast period of 2018-2028F
- China´s green building market size is projected to overtake the US by 2028F
- The Middle East is on track to be the fastest-growing region in the global green building market until 2028
Greenwich (CT), USA, March 30, 2023 – The global green building market size is expected to grow at a robust CAGR of nearly 8 percent and reach over USD 690 billion by 2028F CW Research's 2023 update of the Global Green Building Market and Forecast.
"China´s green building market size is on track to surpass the US by 2028F both in terms of value and gross area of certified buildings. Meanwhile, green construction prices are projected to drop at a CAGR of over 1 percent until 2028", explained Lucas Pimenta, Business Analyst at CW Group.
Asia to reach nearly half of the global green building market size in 2023E
According to CW´s Research, China´s global green building market size is forecast to overtake the US by 2028F. Currently, the US is estimated to account for more than one-third of the global market size in 2023E. The Middle East is expected to be the fastest growing region with a forecasted CAGR of nearly 18 percent from 23E-28F
Asia, including China, is estimated to account for almost half of the global green building market size in 2023E. Latin America, Africa, Eastern Europe and CIS, and the Middle East are expected to account for less than one-fifth of the market size in the same period.
Costs for green construction are projected to decrease
Meanwhile, costs for green construction are projected to decrease at a CAGR of over 1 percent during the forecast period to an estimated value of over USD 1,800 per square meter. The premium to normal construction costs has been narrowing over the past years and this trend is expected to continue and even accelerate across different regions due to changes in construction practices and codes
The residential share of the global market size is forecast to increase
The residential share of the global market size is forecast to increase from over 60 percent in 2023E to more than 70 percent in 2028F. Meanwhile, the ratio of residential to nonresidential is estimated at around 70 percent to 30 percent.
CW Research’s “Global Green Building Market Report and Forecast 2023” addresses important market dynamics including a 5-year outlook (2023E-2028F) for the green building industry. The green building industry consists of constructing, selling, and maintaining sustainable (green) residential buildings and related services for households. Green buildings are built through green construction, which is the practice of using sustainable building materials and construction processes to create energy-efficient buildings with minimal environmental impact throughout a building's life cycle (design, construction, maintenance, operation, renovation, and deconstruction.