Renewable Materials in Construction Market Global Opportunity Analysis & Industry Forecast, 2024–2030
Renewable Materials in Construction Market Overview
Government bodies across the globe are taking several measures to reduce the carbon pollution. Moreover, change in climatic conditions across the globe is further boosting the need for sustainable building materials in order to reduce energy consumption. Few of the renewable materials used in construction industry are recyclable concrete, lime mortars, natural fiber composites, timber concrete composite and plant based polyurethane rigid foam. An increase in construction activities has opened new avenues for improved sustainability, digitalization and employing new technologies in this sector.
Many industries across the globe have faced several challenges due to the COVID-19 pandemic. The construction industry has experienced pitfalls due to the unavailability of labor and raw materials. The production and demand in this industry has declined due to an interrupted supply chain and cessation in transportation. For instance, according to India’s Ministry of Statistics and Programme Implementation, in 2020, the growth rate of Indian construction industry declined by 7% in Q3 and 49.4% in Q2. The pause in industrial production and distribution, the demand and consumption of renewable materials in construction has hampered to an extent.
The report: “Renewable Materials in Construction Market Report — Forecast (2024–2030)” by IndustryARC, covers an in-depth analysis of the following segments of the Renewable materials in the construction industry.
By Material: Plant-Based Material (Straw Bales, Cork, Bamboo, Reclaimed Wood and Others), Precast Concrete Slabs, Ferrock, Rammed Earth, Recycled Material (Metal, Plastic, Composites and Others), Green Thermal Insulation Materials (Sheep Wool, Cellulose, Earthwool and Others) and Others
By Application: Exterior Products (Window and Doors, Siding, Roofing and Others), Interior Products (Flooring, Insulation and Others), Building System (HVAC, Nonresidential Glazing, Lighting Fixtures and Others), Solar Products and Others
By End User: Residential (Independent Houses, Apartments and Others), Commercial (shopping malls, Hospitals, Corporate Offices, Education Centers, Hotel and Others), Industrial (Manufacturing Facilities, Warehouses and Other)
The notable growth in residential and commercial construction industry is driving the growth of Renewable materials in construction market.
Plant based renewable materials play an important role in several applications such exterior products, interior products and building systems which is expected to provide significant growth opportunity to increase Renewable materials in construction market size in coming years.
Favorable government regulations for the net-zero carbon emission in construction is expected to provide substantial growth opportunities for the industry players in near future in Renewable materials in construction industry.
Figure: Asia Pacific Renewable Materials in Construction Market Revenue, 2021–2027 (US$ Billion)
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Renewable Materials in Construction Market Segment Analysis — By Material
The plant-based material segment is expected to grow at a fastest CAGR of 10.7% during the forecast period in the Renewable materials in construction Market. The plant based renewable materials in construction can be further pided into straw bales, cork, bamboo, reclaimed wood and others. It is considered as construction sector is responsible for around 40% of the global carbon emissions. Thus, renewable materials are adopted to enhance the eco-friendliness in the industry. Cork is one of the highly eco-friendly and renewable resources made of cork oak tree. Straw bales owns a high insulating property and can be used in walls, ceilings and attics for temperature stability. Bamboo is suitable choice for constriction industry which is 100% biodegradable, eco-friendly and antibacterial. Reclaimed wood is one of the most common types of renewable material in construction as these are aesthetically pleasant and easy to use. Thus, several benefits associated with the use of plant-based materials is boosting the growth and is expected to account for significant renewable materials in construction market share. Few of the renewable materials used in construction industry are recyclable concrete, lime mortars, natural fiber composites, timber concrete composite and plant based polyurethane rigid foam.
Renewable Materials in Construction Market Segment Analysis — By End User
The residential segment held the largest Renewable Materials in Construction Market share in 2021, with a share of over 42%. During the past few years, construction industry is more inclined towards designing, operating and constructing buildings that improve their environmental sustainability owing to the stringent government regulations related to net-zero carbon future. Change in global climatic conditions also demand for sustainable building materials for the management of temperature. Renewable materials offer several benefits such as cost savings, regulatory incentives and improved quality. Sustainable building is referred to constructing building that are more energy efficient. The utilization of renewable materials in residential construction provides benefits such as efficient use of resources, reduction in carbon consumption and reduced use non-toxic materials. Thus, the increase in demand from residential construction is boosting the market growth of polypropylene market.
Renewable Materials in Construction Market Segment Analysis — By Geography
Asia Pacific held the largest Renewable Materials in Construction market share in 2021, with a share of 36%. This growth is mainly attributed to the increase in residential, commercial and industrial construction activities in this region. The region consists of major economies such as China, India, Japan and Australia where level of construction output including residential and commercial has rapidly increased. For instance, according to Australian Bureau of Statistics, in February 2022, the number of dwellings approved in Australia rose 43.5% with private sector house approvals showing 16.5% rise. Also, according to India’s Ministry of Statistics and Programme Implementation, in Q4 of 2020, India construction industry grew by 6.2%. Further, according to China’s National Bureau of Statistics, in Q2 of 2021, construction sector of China registered growth of 1.8% while its cumulative growth was 8.6% in first half of 2021. The significant growth in construction in this region also demands for more sustainable and renewable materials in construction for the environmental benefits.
Renewable Materials in Construction Market Drivers
Favorable government regulation
Since past few years, construction industry is booming owing to the growth in approved construction projects, increase in disposable income and surge in urban population. Construction industry is considered as one of the major reasons for the high carbon emission, thus, the adoption of eco-friendly building materials is increasing while easing environmental pollution. In consideration with these concerns, the governments has imposed several regulations aiming towards net-zero carbon future. Several renewable materials hold the potential to replace conventional construction materials to building sustainable construction sector. The organization such as LEED (Leadership in Energy and Environmental Design) are encouraging construction companies by awarding them with green building certification. Similarly, EPA’s waste characterization report, the Advancing Sustainable Materials Management, 2018 Fact Sheet projected the construction and demolition material generation in the United States. According to Global Institute of Architecture, In India, the available code and guidelines available for construction are National Building Code, Energy Conservation Building Code (ECBC), Indian Green Building Council (IGBC) and National Building Code (NBC). Thus, favorable government regulations are further propelling the demand for renewable materials in construction market.
Increase in construction activities across the globe
The growing residential construction on account of high demand for residential projects from the growing population, is also showing the customer inclination towards the renewable materials. This has increased the demand for renewable material in construction industry. Moreover, rapid urbanization and technological advancements has led to increase in the spending towards infrastructure developments in several countries across the globe. This has increased renewable material usage for commercial construction. For instance, according to UK’s Ministry of Housing, Community and Local Government, in Q1 of 2021, there were 49,470 completed homes in the UK, showing a highest figure in over 20 years and 4% increase compared to the last 3 months of 2020. Further, according to Statistics Canada, in January 2022, investment in institutional building increased by 0.6% to US$1.12 billion while industrial construction investment increased by 2.1% US$691.4 million since mid-2020. Thus, high growth in construction activities is further propelling the growth of renewable materials and is expected to boost renewable materials in construction market size.
Renewable Materials in Construction Market Challenges
Renewable materials (recyclable concrete, lime mortars, natural fiber composites, timber concrete composite and plant based polyurethane rigid foam) in construction offer several benefits such as complying with different government and environmental regulations, high quality and reduced carbon emission. However, the utilization of these materials associated with the high initial investment may burden most of the buyers. Therefore, customer may want healthy and sustainable place, however, cannot afford the high cost. The high cost of these materials is due to the unavailability of resources. Furthermore, this may require labor expertise to install the materials. Thus, the high initial investment may hamper the market growth.
Renewable Materials in Construction Industry Outlook
The top 10 companies in the Renewable Materials in Construction market are -
In May 2022, Cemex S.A.B. de C.V. has announced the setting of goal for its Vertua low carbon cement and concrete products to reach more than half of all the cement and concrete sales by 2025.
In November 2021, BASF SE has showcased its sustainable product portfolio at UTECH 2021 with the aim of reducing carbon footprint. For construction industry, products comprise of PU rigid foam systems for sandwich panel Elastopor and Elastopir.
In October 2021, Cemex S.A.B. de C.V. has announced the introduction of low carbon concrete for the construction of sustainable building in Warsaw’s P180 office building, the project that focuses on environment and wellbeing of its occupants.
The Top 5 companies in Renewable Materials in Construction Market are:
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