Report: U.S. Green Building Market Should See Strong GrowthNovember 17th, 2015 | Category: Industry News
The U.S. market for green building materials reached nearly $43.8 billion in 2014, and it’s expected to grow at a compound annual growth rate (CAGR) of 9 percent to nearly $69 billion into 2019, according to a new report from BCC Research, a market research company based in Wellesley, Mass.
Structural materials will increase from nearly $28.7 billion in 2014 to $43.8 billion by 2019, a growth rate of 8.8 percent. Interior materials will climb from nearly$9.5 billion in 2014 to $14.7 billion by 2019, a growth rate of 9.2 percent.
According to the report, the market for green building materials has seen rapid growth in recent years. As of October 2014, more than 3.3 billion square feet of building space had been certified by the U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED) Program. Additionally, as of April 2014, more than 4.3 million people live and work in LEED-certified buildings, according to the USGBC. By 2015, McGraw-Hill projects that an estimated 40-48 percent of new nonresidential construction by value will be green.
During the Great Recession, the green building industry was down by nearly 40 percent in 2008 compared with 2009, according to the report. However, the housing and commercial construction markets began gradually recovering in 2010; as of 2014, they seem to have made a significant recovery, BCC says.
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 as more building owners and investors become aware of the potential of green building.
The built environment affects the natural environment, human health and the economy in significant ways, according to the report. According to the Environmental Protection Agency (EPA), buildings in the U.S. account for 36 percent of the nation’s total energy use, 12 percent of its potable water consumption, 65 percent of total electricity consumption, 30 percent of greenhouse gas emissions, and 30 percent of waste output (136 million tons annually).