According to a report published by Transparency Market Research in recent times, the global green building materials market exhibits a substantially competitive vendor landscape. Although the market is still in its developing stages, the competition is expected to get fiercer during the forthcoming years mainly due to the entry of new players in this field.
Sticking to existing norms in terms of eco-friendly packaging, quickly adapting to any changing regulations put forth by governments, as well as aiming to achieve product differentiation, are key strategies employed by most players in the global green building materials market. Undertaking extensive research and coming up with innovative packaging solutions also are a couple of goals followed by businesses present in this market. CertainTeed Corporation, BASF SE, Owens Corning, E. I. du Pont de Nemours Company, and Kingspan Group Plc, are key businesses operating in the global green building materials market.
Statistically speaking, this market is expected to grow at a splendid CAGR of 12.5% during the forecast period from 2013 to 2019. In this context, the green building materials market had gained a revenue worth US$106.32 bn in 2012, which is further expected to increase up to US$234.77 bn by 2019.
Rising Awareness about Benefits of Green Building Materials Boosts Market’s Growth
The green building materials market is mainly being driven by a rampant need for environmentally sustainable and energy-efficient buildings. This is mainly due to less harm caused by green building materials to the environment, thus being highly lucrative. These materials also do not pose much harm to human health. Hence, a gradual shift has been noticed among construction businesses that favor use of such materials. These are some of the prime factors that are propelling the global green building materials market to witness notable growth.
Favorable initiatives made by several governments to encourage use of green building materials has also caused a rampant shift in the market to progress swiftly. A rising awareness among construction businesses and other organizations regarding the benefits of using eco-friendly building supplies has also caused the green building materials market to pick up notable pace.
High Manufacturing Costs Continue to Dampen Expansion
However high production costs associated with manufacturing of green packaging materials might deter small-scale businesses to venture into this market, thus restraining its growth. Limited awareness about the use and benefits of eco-friendly materials used for construction purposes in remote and underdeveloped regions also has hampered the geographical reach of the green building materials market. Therefore, such areas showcase limited demand from consumers, which consequently has negative affected the production rates of green building materials.
Nevertheless, extensive efforts are being taken by several governmental as well as private organizations to encourage sale and use of eco-friendly packaging respectively among business owners and consumers. Some organizations are also coming up with newer and cost-effective varieties of green building materials, which are expected to reduce the effects substantially.