BCC Research report on the the U.S. market for green building materials. Includes forecasts through 2019.
– The U.S. market for green building materials reached nearly $40.0 billion and $43.8 billion in 2013 and 2014, respectively. This market is expected to grow at a compound annual growth rate (CAGR) of 9.5% to nearly $69.0 billion over the period 2014-2019.
– Structural materials as a segment will grow from nearly $28.7 billion in 2014 to $43.8 billion by 2019 at 8.8% CAGR for the period 2014-2019.
– Interior materials as a segment will grow from nearly$9.5 billion in 2014 to $14.7 billion by 2019, increasing at a CAGR of 9.2% from 2014 through 2019.
Introduction & Scope
The man-made environment has significantly impacted the natural environment, human health and the economy. This profound impact has become increasingly
noticeable in recent decades. According to the Environmental Protection Agency (EPA), buildings in the U.S. account for:
– 36% of the nation?s total energy use.
– 12% of its potable water consumption.
– 65% of total electricity consumption.
– 30% of the carbon dioxide (greenhouse gas) emissions.
– 30% of waste output (136 million tons, annually).
In addition, a growing body of research has established the connection between indoor air quality (IAQ) and the health of building occupants. While most of the problems
associated with poor IAQ are the result of inadequate ventilation, some are also caused by various types of airborne contaminants or toxins. The presence of some of these contaminants, such as formaldehyde, trace back to the use of certain building materials. Overexposure to formaldehyde may result in nose irritation, sneezing, dry throat, eye irritation, headache and nausea. Formaldehyde is used extensively in the manufacture of certain building products (e.g., as bonding/laminating agents, adhesives, paper and textile products, and foam insulation) from which formaldehyde gas may be released in the course of normal use.
?Green? or ?sustainable? building involves the use of building practices and materials that use resources as efficiently as possible, while constructing healthier, more
energy-efficient and environmentally friendly buildings. One key objective of some green building projects focuses on creating esthetic harmony between a building and
The market for green building materials has seen rapid growth in recent years. As of Oct. 17, 2014, more than 3.3 billion sq. ft. of building space had been certified by the
U.S. Green Building Council?s (USGBC) Leadership in Energy and Environmental Design (LEED) Program. An article in the June 2006 issue of the Harvard Business Review
accurately predicted that green construction would become a mainstream technology in the next five to 10 years following its publication. Market growth notably helped
drive down the cost of green building products, and building owners had and continue to become increasingly aware of the economic, health and environmental advantages
of green building. The article?s author, Charles Lockwood, went so far as to note that the ultimate impact of green building becoming mainstream will have as profound of
an effect on commercial real estate as the invention of central air conditioning in the 1950s and 1960s or elevators in the 19th century. According to the USGBC, as of April
2014, more than 4.3 million people live and work in LEED-certified buildings. By 2015, McGraw-Hill projects that an estimated 40% to 48% of new nonresidential construction
by value will be green, at a total opportunity value of $120 to $145 billion.
According to the USGBC, more than 500 U.S. companies, including a number of Fortune 500 companies, are involved in the production of green building materials and the
design and construction of green buildings. This number is likely to grow rapidly as more building owners and investors become aware of the potential of green building.
The green building industry was not immune to the recession that began in 2008. The market for all types of green building materials was down by nearly 40% in 2008
compared with 2009, reflecting the significant decline in construction activity. However, the housing and commercial construction markets began gradually recovering in 2010
and as of 2014, seem to have made a significant recovery. The market for the green building industry should continue to experience above-average growth rates over the
forecast period through 2019 due to increased demand for sustainable building products and the national push toward and adoption of green building practices. These trends provide an opportunity for both existing players and new entrants into the green building materials market. This BCC Research report analyzes these new developments and their potential impact on industry participants.
GOALS AND OBJECTIVES
The overall goal of this report is to identify and prioritize the business opportunities for providers of green building materials that will arise over the five-year forecast period
(2014 to 2019) as green building technologies increase their market penetration. In support of this goal, specific objectives of the report include:
– Identification of green building technologies with the greatest commercial potential over the five-year forecast period (2014 to 2019).
– Estimation of the potential U.S. markets for these technologies.
– Analysis of the technical, commercial and other prerequisites of success in these markets.
The report is intended especially for manufacturers and distributors of green building materials and other technologies. Although the report is structured around specific
technologies, it is largely nontechnical in nature. That is, it is concerned less with theory and jargon than with what works, how much of the latter the market is likely to
purchase and at what price. As such, this report?s primary audience targets executive management, marketing and financial analysts. It is not written specifically for scientists and technologists, although certain findings concern the market respective to their work. Specifically, the availability of government and corporate research funding for different technologies and applications should interest them as well.
Others who should find the report informative include, but are not limited to government agencies; green building industry-specific organizations; market research
groups; academic institutions; and environmental and public policy interest groups with an interest in sustainable development, the environment, energy and worker
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