Sustainable Construction Materials Market Report 2024: A USD 1137.0 Bn by 2033, Register at a CAGR of 9.9%

Introduction

The global sustainable construction materials market is set for significant growth, with the market size expected to increase from USD 442.19 billion in 2023 to USD 1137.0 billion by 2033, at a compound annual growth rate (CAGR) of 9.9%. This market is gaining traction due to the rising demand for environmentally friendly building materials, driven by growing awareness of climate change, stricter government regulations, and a shift toward sustainable urban development. Key materials include bamboo, reclaimed wood, recycled metal, and green insulation products, which are increasingly used across residential, commercial, and industrial sectors.

Key growth factors include the expansion of green building certifications, such as LEED, which encourage the use of sustainable materials, and the push for energy-efficient solutions in construction. The rise in urbanization is also a critical factor, as cities worldwide expand and require eco-friendly infrastructure to reduce their environmental impact.

Opportunities in this market are vast, with innovation in materials like recycled plastic cement and bio-based products offering new ways to meet sustainability goals. The Asia-Pacific region is expected to lead in market expansion due to rapid industrialization and favorable government policies, while North America is driven by technological advancements and corporate sustainability initiatives. Overall, the sustainable construction materials market is poised for strong growth as industries, governments, and consumers prioritize reducing carbon footprints and promoting eco-friendly practices.

Key Takeaways

• Sustainable Construction Materials Market size is expected to be worth around USD 1137.0 Bn by 2033, from USD 442.19 Bn in 2023, growing at a CAGR of 9.9% during the forecast period from 2023 to 2033.
• Reclaimed Wood dominated Sustainable Construction Materials with a 23.3% share.
• Structural dominated the Sustainable Construction Materials Market with a 37.3% share.
• Residential dominated the Sustainable Construction Materials Market with a 34.5% share.
• Asia-Pacific led the global Aluminum Castings Market in 2023, capturing 41% market share, valued at USD 182.6 Bn.

Sustainable Construction Materials Statistics

• It is estimated that over the next 40 years the world will build 230 billion square metres – roughly the area of Paris – in new construction every single week.
• The amount of man-made mass has reached over 1 trillion tonnes, exceeding the biomass of the entire natural world.
• Roughly 80% of buildings standing today will still be around in 2050.
• In Europe, buildings account for 36% of CO2 emissions, including operational impact and embodied carbon.
• Embodied carbon in construction is responsible for 15% of world greenhouse gas emissions.
• Between 2017 and 2018, emissions from the global construction sector rose by 2% to reach a record high.
• The importance of buildings can be seen by the amount of time we spend in them; it is thought that the average person spends 90% of their lifetime indoors.
• The construction sector in the EU accounted for 5-6% of GDP between 2010 and 2019.
• Construction is also the no.1 industrial employer in Europe, accounting for 7% of total employment and almost 1/3 of industrial employment in Europe.
• Buildings and the construction industry are responsible for using up 50% of raw materials.
• Construction represents 50% of the global steel demand.
• Roughly 15% of the materials delivered to a construction site are not actually used.
• Every cubic metre of wood used in construction can retain 1 tonne of CO2.
• Buildings and the construction industry account for 33% of waste and water use.
• A report states that construction, demolition, and excavation currently produces more than 60% of UK waste (2018).
• In the US, 44,000 buildings and 270,000 homes are demolished annually. Even though 90% of the debris could be recycled, only a third is actually sent to recycling.
• It has been estimated that 2/3 of freight transport within cities is to and from construction sites.
• Emissions from transport account for 23% of all emissions in the buildings and construction industry.
• CO2 emissions from the transportation of materials accounts for 2.4% of total construction CO2 emissions while 4.2% of total emissions is generated by on-site construction.
• More than 15% of respondents to a World Green Building Trends survey (2018) said there was an operating cost decrease of 23-21% over the first 12 months and a 43-49% decrease within five years of operation.
• Most architects and contractors agree that building sustainably gives buildings a higher asset value. 27% of them believe it adds more than 10% to the value.
• The average larger-scale architecture, engineering, and construction company is planning to spend €3.5 million on better sustainability efforts over the coming years.
• Currently, only 30% of professionals are ready to implement more projects with a focus on sustainable construction (regardless of the impact in terms of development time, supply of materials, and margins). But 57% of them believe that more than half of their activity will involve sustainable construction within five years.
• For 70% of respondents (76% in the case of elected officials), cost would be the main obstacle to increasing sustainable construction.
• Less than 30% of professionals feel adequately trained in the area of sustainable construction.
• The reduction of construction site waste is of more concern to professionals, 28% of whom (compared with 20% overall) include this as a definition of sustainable construction.

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Emerging Trends

• Emerging trends in sustainable construction materials reflect a growing shift toward eco-friendly, efficient, and innovative building solutions. One major trend is the adoption of green materials such as recycled concrete, reclaimed wood, and bio-based options like bamboo. These materials significantly reduce carbon emissions and environmental impact, addressing global sustainability concerns. Another notable development is the use of lightweight materials, such as composites and aerated concrete, which are not only strong but also improve energy efficiency and reduce construction time, making them ideal for urban environments with strict weight restrictions.
• Additionally, modular construction is gaining traction, offering a sustainable method that reduces waste and speeds up the building process. This off-site prefabrication approach allows for better control over resources and minimizes the carbon footprint. Energy-efficient designs, which focus on integrating renewable energy and improving insulation, are also becoming more popular. Innovations like smart windows and advanced HVAC systems help reduce energy consumption.
• Finally, advanced technologies like Building Information Modeling (BIM) are transforming how sustainability is planned and tracked, allowing for better decision-making on materials and energy use throughout a building’s lifecycle. These trends showcase how sustainable construction materials are moving toward reducing environmental impact while optimizing performance and costs.

Use Cases

• Green Building Certifications: Sustainable materials are crucial for obtaining certifications like LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method). These certifications, increasingly demanded by commercial real estate developers, can increase property value by up to 10%, and reduce operational costs by 20% through energy-efficient materials such as recycled steel, bamboo, and low-emission concrete.
• Urban Infrastructure Projects: Governments and urban planners are turning to sustainable materials for public infrastructure projects. For example, cities are using materials like permeable concrete and recycled asphalt to reduce stormwater runoff and urban heat islands. According to reports, the adoption of green materials in public works could reduce construction-related emissions by 13% by 2035.
• Affordable Housing Initiatives: Sustainable materials such as compressed earth blocks and hempcrete are being used in low-cost housing projects, particularly in emerging markets where affordable housing demand is surging. These materials can lower building costs by 30-50% while promoting a lower carbon footprint.
• Circular Economy Projects: The use of recycled materials is a key strategy in circular economy initiatives. For example, some cities now repurpose construction debris into new materials, closing the loop and reducing the need for new raw materials by up to 40%. This strategy aligns with the growing global trend towards waste reduction and resource efficiency.

Key Players Analysis

Alumasc Group Plc is a key player in the sustainable construction materials sector, specializing in environmentally conscious building solutions. The company offers innovative products such as green roofs, BluRoofs, and Bio-SolaCell, which contribute to energy efficiency, rainwater management, and biodiversity enhancement. Over 80% of its product offerings are designed to deliver environmental benefits. Alumasc has significantly reduced its greenhouse gas emissions by 69% since 2018 and continues to prioritize sustainability across its operations, helping to shape greener construction practices.

Amvic Inc. is a leader in the sustainable construction materials sector, specializing in Insulated Concrete Form (ICF) systems. Their ICF blocks offer superior energy efficiency, thermal performance, and sound insulation, making them a popular choice for both residential and commercial projects. These systems contribute to sustainable building practices by reducing energy consumption and improving building durability. Amvic’s products are widely used in green-certified projects, including homes, schools, and medical facilities, supporting the growing demand for eco-friendly construction solutions.

AECOM plays a leading role in the sustainable construction materials sector through its “Sustainable Legacies” strategy. This approach focuses on reducing carbon emissions, enhancing resilience, and improving social outcomes across the lifecycle of construction projects. A key component is its proprietary ScopeX™ platform, designed to cut at least 50% of carbon from major infrastructure projects. AECOM has also committed to achieving net-zero emissions by 2040, with interim goals such as a 60% reduction in Scope 1 and 2 emissions by 2030. This makes AECOM a frontrunner in delivering sustainable infrastructure solutions globally.

Bauder Ltd. is a prominent player in the sustainable construction materials sector, especially known for its innovative roofing solutions. The company focuses on reducing environmental impact by integrating sustainability into its products, such as the BauderECO FF insulation. This insulation is made from 80% biomass-based raw materials and significantly lowers carbon emissions compared to conventional products. Bauder also emphasizes energy efficiency, biodiversity, and water management through its green roofs, blue roofs, and solar photovoltaic (PV) systems, making it a key player in eco-friendly roofing solutions.

Balfour Beatty has been an active player in promoting sustainable construction materials and practices through its comprehensive sustainability strategy, “Building New Futures.” The company is committed to reducing its carbon footprint, utilizing low-carbon materials, and reducing waste across its projects. By working closely with its supply chain, Balfour Beatty promotes sustainable procurement, offering clients eco-friendly materials, and diverting 70% of jobsite waste to recycling. The company also invests in sustainability training, upskilling its workforce and partners to implement carbon-conscious practices on a large scale.

Binderholz GmbH is a leader in the sustainable construction materials sector, specializing in innovative mass timber solutions. The company maximizes the use of wood, ensuring that 100% of this renewable resource is utilized in its operations, from solid wood products to biofuels. Binderholz offers a variety of products such as cross-laminated timber (CLT), glulam, and solid structural wood (KVH), making it a key player in eco-friendly construction. Its commitment to sustainable forestry and energy-efficient manufacturing processes aligns with the growing global demand for green building solutions.

The Clark Group plays a significant role in the sustainable construction materials sector, emphasizing the integration of environmentally friendly practices in their projects. With a portfolio of over 495 sustainably certified buildings totaling approximately 177 million square feet, Clark is committed to innovative and sustainable construction methods. They focus on retrofitting existing buildings to enhance energy efficiency and comply with local regulations, like Washington D.C.’s Building Energy Performance Standards. Additionally, Clark collaborates with organizations such as the U.S. Green Building Council to develop educational resources that promote green construction practices, reflecting their dedication to fostering industry-wide sustainability.

CEMEX is a prominent player in the sustainable construction materials sector, actively advancing its commitment to lower carbon emissions through innovative products. One of its flagship offerings is Vertua®, a range of lower-carbon concrete solutions that are being utilized in significant projects like the Mission Rock development in San Francisco, where CEMEX provided over 56,000 cubic yards of sustainable materials. This project aligns with the city’s goal of achieving carbon neutrality and emphasizes CEMEX’s dedication to integrating sustainability into its operations. Additionally, CEMEX is enhancing its circular economy initiatives through its Regenera business, aiming to recycle a substantial portion of waste generated in the construction process.

Florbo International SA is a key player in the sustainable construction materials sector, focusing on eco-friendly solutions that minimize environmental impact. The company specializes in producing high-quality, sustainable materials that cater to the growing demand for green building practices. With a commitment to reducing carbon footprints, Florbo International emphasizes innovation in its product offerings, which include renewable and recyclable materials. As the market for sustainable construction materials continues to expand, driven by regulatory support and increasing consumer awareness, Florbo International is well-positioned to capitalize on these trends and contribute to a more sustainable built environment.

Gilbane Building Company plays a significant role in the sustainable construction materials sector by integrating environmentally responsible practices into its projects. Committed to reducing environmental impact, Gilbane emphasizes the principles of Reduce, Reuse, and Recycle, aiming for a construction waste diversion rate of at least 75%. The company focuses on conserving natural resources through energy and water efficiency while actively using recycled materials in its construction processes. With numerous LEED certifications and a team of accredited professionals, Gilbane is dedicated to promoting sustainability and ensuring healthier communities through its innovative building practices.

Gensler, a leading global architecture and design firm, is making significant strides in the sustainable construction materials sector. Through its Gensler Product Sustainability (GPS) Standards, the firm has expanded its focus to cover 20 categories of building products, emphasizing materials widely used in various environments, including offices and residences. This initiative aims to reduce the environmental impact associated with the materials used in over 1.25 billion square feet of space designed annually by Gensler. By vetting over 2,800 products for compliance with these standards, Gensler promotes lower-carbon materials and fosters collaboration with manufacturers to innovate greener solutions. This approach not only meets client sustainability goals but also sends a strong market signal that sustainable practices are essential for the future of the industry.

Hensel Phelps is a leader in the sustainable construction materials sector, actively integrating eco-friendly practices into their operations. With a strong commitment to sustainability, the company has completed over 200 projects that prioritize environmental responsibility, including those certified under LEED standards. Hensel Phelps has been focused on reducing its carbon footprint since 1990, emphasizing waste management and recycling programs. Their commitment extends to utilizing a hybrid vehicle fleet and implementing energy-efficient practices across their projects, contributing to a greener construction landscape.

Johnson Controls is a key player in the sustainable construction materials sector, focusing on creating smart and energy-efficient buildings. The company has made significant progress in reducing carbon emissions, with a 43.8% decrease in Scope 1 and 2 emissions since 2017, ahead of its 2030 targets. Johnson Controls leverages its OpenBlue digital platform to optimize building performance, enhancing energy efficiency and sustainability. They have also invested 90% of their new product research and development into climate-related innovations, addressing challenges like embodied carbon by using recycled materials in their steel production.

LafargeHolcim is a prominent leader in the sustainable construction materials sector, actively pushing for greener building solutions. The company focuses on reducing carbon emissions through innovative products like ECOPact, a green concrete, and Susteno, a circular cement. Their collaboration with Solidia Technologies aims to capture and utilize CO₂ during cement production, significantly reducing emissions by up to 70%. LafargeHolcim is committed to recycling 100 million tons of materials annually by 2030 and has signed the Science-Based Targets initiative to ensure they meet ambitious net-zero goals.

Saint-Gobain plays a pivotal role in the sustainable construction materials sector by focusing on innovative and eco-friendly building solutions. The company has launched various products aimed at reducing environmental impact, such as low-carbon glass and energy-efficient glazing systems. They recently established the Sustainable Construction Observatory to assess global trends and enhance sustainable practices across the construction industry. Their efforts emphasize the importance of occupant health and well-being while addressing critical issues like climate change and resource management. Through initiatives like their Sustainable Construction Barometer, Saint-Gobain aims to drive awareness and action among industry stakeholders, ensuring a sustainable future for construction.

Skanska is a leader in sustainable construction materials and practices, actively pursuing a path to net-zero emissions by 2045. The company has made significant strides in reducing greenhouse gas emissions, achieving a 58% reduction since 2015. It focuses on low-carbon materials and energy efficiency across its projects. Skanska has also developed tools like the Embodied Carbon in Construction Calculator (EC3) to help industry professionals choose materials that lower carbon footprints. Through collaboration and innovation, Skanska aims to reshape the built environment, addressing the challenge that construction contributes to nearly 40% of global carbon emissions.

Siemens AG is making significant strides in the sustainable construction materials sector through its innovative approaches and technologies. The company focuses on enhancing energy efficiency and promoting a circular economy in construction. Notably, Siemens is salvaging bricks from demolished buildings at its Siemensstadt project, allowing these materials to be reused in new structures, which reduces waste and carbon emissions. Additionally, Siemens aims for a net-zero carbon footprint in its operations by 2030 and is actively working to assist customers in achieving similar goals, reflecting its commitment to sustainability in the built environment. Through advanced products and partnerships, Siemens is transforming the infrastructure sector towards more sustainable practices.

Sika AG is a key player in the sustainable construction materials sector, specializing in concrete admixtures, specialty mortars, sealants, and waterproofing systems. The company’s innovative Sika ViscoCrete technology significantly reduces the cement content in concrete while ensuring optimal performance, contributing to lower carbon emissions in construction projects. Sika’s products have been utilized in major infrastructures, such as the Gotthard Base Tunnel, known for its durability and reduced maintenance needs. Additionally, Sika is actively researching bio-based polymers, which reflects its commitment to sustainability and enhancing the environmental performance of construction materials.

The Whiting-Turner Contracting Company is a leading player in the sustainable construction materials sector, recognized for its commitment to environmental responsibility and energy efficiency. The company has successfully executed over 400 projects certified under various sustainability programs, such as LEED and the Living Building Challenge. They prioritize sustainable practices by incorporating eco-friendly materials and emphasizing waste management and indoor air quality during construction. Notable projects include the United Therapeutics Unisphere, a LEED Platinum building aiming for net-zero energy, showcasing their dedication to reducing the carbon footprint and promoting healthier communities.

The Turner Corporation is a leader in the sustainable construction materials sector, actively working towards reducing its carbon footprint and improving environmental practices. The company is committed to achieving Net Zero Emissions by 2040, implementing innovative measures such as using electric and hybrid heavy equipment, zero-carbon cement, and piloting low-emission technologies on various projects. For instance, on a recent data center project, Turner successfully avoided over 100,000 gallons of diesel and implemented electric equipment that significantly reduced energy consumption. Furthermore, Turner aims to electrify its vehicle fleet by 2028, marking a significant step towards sustainability in construction.

Veolia Environnement S.A. is making significant strides in the sustainable construction materials sector. The company focuses on transforming waste materials into valuable resources, such as using incinerator bottom ash (IBA) as a sustainable alternative to traditional aggregates. This innovative process not only reduces waste but also preserves natural resources by producing approximately 50,000 tonnes of usable construction materials annually. Veolia collaborates with major construction firms to promote eco-friendly practices, contributing to a circular economy and minimizing the environmental impact of construction activities. Their commitment to sustainability is further highlighted by their efforts to help clients achieve green building certifications.

WSP Global Inc. is a leader in the sustainable construction materials sector, emphasizing innovative and eco-friendly practices in its projects. The company integrates sustainable solutions into various sectors, including transportation, infrastructure, and building design. In 2023, WSP reported that approximately 63.4% of its revenues were linked to sustainable development goals, reflecting its commitment to enhancing environmental, social, and governance (ESG) practices. WSP’s initiatives include designing net-zero buildings and promoting energy-efficient construction methods. Their recognition as the 12th most sustainable corporation globally further highlights their role in driving sustainability in construction.

Conclusion

In conclusion, the sustainable construction materials market is poised for substantial growth, driven by increasing global demand for eco-friendly building solutions. This expansion is fueled by rising awareness of environmental sustainability, stricter regulations around carbon emissions, and growing consumer preference for green buildings. As governments continue to support eco-friendly construction through incentives and carbon reduction policies, the adoption of materials like green concrete, bio-based composites, and energy-efficient insulation is becoming more widespread.

Challenges such as high initial costs and a complex regulatory landscape persist, but the long-term benefits—such as lower operational costs and a reduced environmental footprint—position sustainable materials as the future of the construction industry. With the right investment and innovation, the market will see further expansion in both developed and emerging economies, offering vast opportunities for stakeholders to capitalize on this evolving landscape.

Sources:

• https://citychangers.org/construction-facts-and-figures/
• https://www.saint-gobain.com/sites/saint-gobain.com/files/media/document/2023.04.11_OBS_Sustainable%20Construction%20Barometer.pdf