Forecast Period | 2025-2029 |
Market Size (2023) | USD 62.25 Billion |
CAGR (2024-2029) | 4.58% |
Fastest Growing Segment | Green Concrete |
Largest Market | Asia Pacific |
Market Size (2029) | USD 81.11 Billion |
Market
Overview
Global
Low-Carbon Construction Material Market was valued at USD 65.25 billion in 2023
and is anticipated to project robust growth in the forecast period with a CAGR
of 4.58% through 2029.
Low-carbon
construction materials are specifically engineered to minimize greenhouse gas
emissions throughout their lifecycle, from extraction and processing to
utilization and disposal. These materials encompass renewable plant-based
resources, recycled materials, and innovative composites, all offering
comparable or superior performance to conventional counterparts.
They
have gained significant traction in the construction industry, facilitating the
development of sustainable buildings. By employing low-carbon materials,
construction projects can markedly diminish their carbon footprint, aligning
with global initiatives to combat climate change. Utilizing renewable
plant-based resources like bamboo and timber not only presents an eco-friendly
alternative to traditional materials but also fosters forest growth, serving as
carbon sinks.
The
sector has demonstrated a robust commitment to expediting the introduction of
net-zero products in global markets and fostering innovation in new offerings.
In this context, metals, particularly recyclable ones such as steel and
aluminum, have emerged as pivotal players in the low-carbon construction
material landscape. The recyclability of metals ensures their repeated use
across various projects, curbing the demand for fresh raw materials and
minimizing waste generation.
Nevertheless,
transitioning to a low-carbon economy poses its own challenges. One of the
primary hurdles is the higher initial expenses linked with low-carbon
materials. Despite the upfront investment, their long-term environmental
advantages and potential cost savings throughout the building's lifecycle
outweigh the initial outlay. Furthermore, adopting low-carbon materials
necessitates ongoing technological advancements to enhance their performance
and enhance accessibility within the construction domain.
Thus,
the low-carbon construction materials present a sustainable avenue for slashing
greenhouse gas emissions in the construction sector. Through the integration of
renewable plant-based resources, recycled materials, and innovative composites,
industry can construct sustainable edifices while minimizing environmental
repercussions. The industry's dedication to expediting the adoption of net-zero
products and the pivotal role of metals in slashing carbon footprint underscore
the significance of low-carbon materials. Despite challenges, the long-term
benefits and potential cost savings make embracing low-carbon materials an
enticing proposition for the construction industry.
Key
Market Drivers
Growth
in Construction Industry
The
construction industry stands as a formidable contributor to global carbon
emissions, accounting for a substantial 37% of the total output. Within this
significant figure, approximately 16% can be attributed to embodied carbon
emissions, predominantly stemming from the manufacturing processes of
construction materials. Faced with the urgent imperative to address climate
change, there has been a notable surge in momentum toward embracing
carbon-neutral construction practices.
This
burgeoning movement has catalyzed a marked increase in the demand for
low-carbon construction materials, meticulously engineered to curtail
greenhouse gas emissions across their entire lifecycle. These materials span a
diverse spectrum, encompassing renewable plant-based resources, recycled
materials, and cutting-edge composites. Importantly, they not only diminish
carbon footprint but also offer performance metrics on par with, or even
surpassing, their conventional counterparts.
The
integration of low-carbon construction materials has instigated a
transformative wave within the construction industry. This wave has ushered in
an era of sustainable building practices that resonate with overarching
environmental objectives. However, the transition toward sustainable growth
within the industry extends far beyond mere material choices. It necessitates a
holistic metamorphosis in how industry stakeholders conceive, execute, manage,
and dismantle infrastructural assets.
This
comprehensive approach to sustainability is propelling the demand for
low-carbon construction materials to unprecedented heights. These materials
emerge as linchpins in the realization of a vision characterized by green
growth and a future steeped in sustainability.
At
the heart of this paradigm shift lies the ethos of innovation and adaptation.
Stakeholders across the construction spectrum are embracing novel technologies
and methodologies to integrate low-carbon materials seamlessly into their
projects. By doing so, they not only mitigate environmental impact but also
enhance operational efficiency and resilience.
The
advantages of low-carbon construction materials extend beyond their
environmental credentials. They present a strategic opportunity for industry
players to future-proof their investments amidst a rapidly evolving regulatory
landscape. As governments worldwide intensify their focus on climate mitigation
measures, adherence to stringent emissions standards becomes not just a moral
imperative but also a competitive advantage.
Moreover,
the adoption of low-carbon materials resonates with evolving consumer
preferences. Today's discerning clientele increasingly prioritize
sustainability and environmental stewardship when selecting built environments.
Consequently, properties boasting green credentials command premium valuations
and enjoy heightened market appeal.
Conversely,
realizing the full potential of low-carbon construction materials demands
concerted collaboration across the industry ecosystem. This entails fostering
partnerships between manufacturers, architects, builders, developers, and
policymakers. By leveraging collective expertise and resources, stakeholders
can surmount existing barriers and accelerate the mainstream adoption of
sustainable building practices.
Surge
in Technological Advancements
Technological
breakthroughs have been instrumental in reshaping building methodologies,
ushering in an era of heightened efficiency and sustainability. These
innovations have not only introduced novel low-carbon materials but have also
elevated the performance standards of existing ones, outstripping conventional
counterparts.
At
the forefront of this technological wave lies the advent of low-carbon
concrete, a game-changer in an industry historically synonymous with high
carbon emissions. Traditionally, concrete production has been a significant
contributor to CO2 emissions. However, recent strides in research and
development have yielded low-carbon concrete formulations, effectively
mitigating its environmental impact by curtailing emissions throughout the
manufacturing process.
In
addition to the strides made in low-carbon concrete, there's a burgeoning
movement toward carbon-neutral construction, advocating for the use of
materials with minimal embodied carbon. This encompasses recycled materials
alongside locally sourced alternatives, thereby minimizing emissions associated
with transportation. Thanks to technological advancements, these eco-conscious
materials can now be seamlessly integrated into diverse construction processes,
further whittling down the overall carbon footprint.
Furthermore,
alongside low-carbon concrete and recycled materials, renewable plant-based
alternatives have surged in popularity in the pursuit of sustainable
construction practices. These innovative materials not only slash greenhouse
gas emissions but also foster resource conservation and waste reduction,
cementing their status as invaluable assets in the construction industry's
quest for sustainability.
By
harnessing technological innovations and embracing these pioneering materials,
the construction sector can continue its march toward a more sustainable
future, where efficiency and environmental stewardship harmoniously converge.
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Key
Market Challenges
Limited
Availability and Supply Chain Constraints of Low-Carbon Construction Material
Low-carbon
construction materials represent a crucial frontier in the drive to minimize
greenhouse gas emissions across the construction lifecycle. These materials,
encompassing renewable plant-based resources, recycled materials, and
innovative composites, have garnered considerable attention for their potential
environmental advantages and their alignment with the escalating demand for
sustainable building practices. Nonetheless, despite their merits, several
challenges impede their widespread adoption in the construction industry.
The
major among the all challenges is the limited availability of low-carbon
materials. A report by Construction News underscores this issue, emphasizing
that the scarcity of these materials in the market hampers the construction
industry's ability to realize its net-zero carbon emission targets. This
scarcity not only obstructs the industry's pursuit of sustainability objectives
but also inflates the costs and complexities associated with procuring these
materials.
Geographical
constraints further compound the challenge of accessing specific low-carbon
materials. Certain regions encounter difficulties in procuring materials such
as concrete and asphalt, which are pivotal components of construction projects.
This restricted access exacerbates the complexities associated with
incorporating low-carbon materials into building practices.
Supply
chain constraints pose formidable barriers to the widespread adoption of
low-carbon materials. The availability of lower-carbon raw materials, like
Supplementary Cementitious Materials (SCMs), is often contingent on factors
such as price and proximity. Additionally, many of these materials are niche
products with limited availability, such as rice-husk ash, further complicating
their integration into construction projects.
Another
pressing concern revolves around potential supply constraints accompanying the
transition to a low-carbon economy. As demand surges for sustainable materials,
certain metals critical to construction, such as aluminum, copper, indium,
neodymium, dysprosium, and lithium, may face shortages, jeopardizing the
availability of these indispensable resources.
In
addition to availability and supply chain issues, there are considerations
regarding the requisite training for deploying these materials and their
scalability for adoption in large-scale projects. Ensuring that construction
professionals are equipped with the necessary knowledge and skills to work with
low-carbon materials is imperative for their successful implementation.
Addressing
these multifaceted challenges necessitates concerted efforts from stakeholders
across the construction industry. Investing in research and development,
incentivizing the production of low-carbon materials, and implementing
supportive policies are essential steps to overcome these hurdles and expedite
the transition toward more sustainable construction practices. Collaboration
and innovation will be pivotal in surmounting these challenges and paving the
way for a greener, more sustainable future in construction.
Key
Market Trends
Growing
Demand for Sustainable Construction
Sustainable
construction entails the utilization of environmentally responsible and
resource-efficient processes throughout a building's life cycle, encompassing
design, construction, operation, maintenance, and eventual demolition. The
overarching objective is to minimize waste, reduce energy consumption, and
conserve natural resources.
This
paradigm shift towards sustainability in construction is predominantly
motivated by heightened awareness of climate change and the pressing need to
address its ramifications. Recognizing the adverse impact of carbon emissions
on the environment, there is a burgeoning demand for low-carbon construction
materials. These materials, comprising renewable plant-based resources,
recycled materials, and innovative composites, are purposefully engineered to
curtail greenhouse gas emissions throughout their lifecycle.
The
surge in demand for these sustainable materials stems from the acknowledgment
of their long-term environmental advantages by builders, developers, and
consumers alike. Not only do low-carbon construction materials contribute to
carbon emission reduction, but they also yield energy savings and bolster
energy efficiency throughout the buildings' lifespan. Consequently, this
translates into diminished operational costs and a diminished environmental
footprint.
In
tandem with the utilization of low-carbon materials, there is a discernible
shift towards carbon-neutral construction practices. This encompasses the
selection of materials with minimal embodied carbon alongside the
implementation of sustainable methodologies across the construction spectrum.
Such methodologies encompass energy-efficient design, waste minimization and
recycling, water conservation, and the integration of renewable energy sources.
By embracing a comprehensive approach to construction, stakeholders can attain
carbon neutrality and attenuate the overall environmental impact of their
projects.
Low-carbon
construction materials occupy a pivotal position in realizing the objectives of
sustainable and carbon-neutral construction endeavors. Through the adoption of
these materials and the execution of sustainable practices, the construction
industry can contribute substantively to a more sustainable future, thereby
mitigating the effects of climate change and safeguarding our planet for future
generations.
Segmental
Insights
Application
Insights
The
residential segment is poised for rapid growth in the foreseeable future. This
expansion is fueled by a notable uptick in environmental consciousness among
homeowners and builders, driving the widespread adoption of low-carbon
construction materials. These materials have garnered significant attention due
to their dual advantages of environmental friendliness and contribution to a
sustainable future, aligning with the overarching goal of reducing carbon
footprints and mitigating greenhouse gas emissions.
A
key driver propelling the uptake of low-carbon materials in residential
construction is the imperative of energy efficiency. Given that residential
buildings account for approximately 40% of global energy consumption, there is
a pressing need to curb their energy usage. By incorporating low-carbon
materials with superior insulation properties, these buildings can
significantly reduce their energy requirements for heating and cooling. This
not only yields environmental benefits but also translates into substantial
long-term savings on energy costs for homeowners.
The
growing inclination toward integrating low-carbon materials in residential
projects underscores the steadfast commitment of both homeowners and builders
to fostering greener and more sustainable living environments. With the
potential to make a significant impact on energy consumption and greenhouse gas
emissions reduction, the widespread adoption of these materials represents a
pivotal step toward securing a sustainable future for all.
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Regional
Insights
Asia
Pacific emerged as the dominant region in the Global Low-Carbon Construction
Material Market in 2023, holding the largest market share in terms of value. In
the Asia-Pacific region, leaders are increasingly recognizing the importance of
addressing the full spectrum of climate risks and opportunities. There is a
growing awareness of the need for environmental sustainability, leading to a
surge in demand for low-carbon construction materials. This shift is driven by
a deep understanding of the long-term benefits of reducing carbon emissions and
adopting more sustainable practices in the construction industry.
Governments
in the Asia-Pacific region are taking proactive steps to implement policies
that stimulate markets for low-carbon products and materials. These policies
not only promote the use of low-carbon construction materials but also
encourage improved design and purchasing decisions based on embodied carbon. By
considering the environmental impact of materials throughout their lifecycle,
decision-makers are playing a vital role in driving the adoption of low-carbon
construction materials and fostering a more sustainable built environment.
Recent
Development
- In
July 2023, Cemex, S.A.B. de C.V., a global building materials company,
proudly announced record-breaking sales of its innovative Vertua net-zero
carbon (CO2) concrete in Colombia. This groundbreaking achievement marked
a significant milestone as the company surpassed the production of over
100,000 cubic meters of this environmentally-friendly concrete. The Vertua
concrete, known for its exceptional strength and durability, not only
meets the highest standards of construction but also contributes to the global
efforts in combating climate change.
- In
July 2023, CarbonCure Technologies Inc., a leading carbon capture company,
made a significant stride towards its mission of reducing carbon
emissions. The company successfully secured a substantial investment of
USD 80 million in a new equity round, which was led by Blue Earth Capital,
a prominent investment firm. This funding round also received strong
support from CarbonCure's existing shareholders, demonstrating their
confidence in the company's innovative carbon capture technology.
- In May
2023, SSAB AB announced a partnership with BE Group, a steel service firm
active in Sweden, the Baltic States, Finland, and Poland. The partnership
aims to identify demand and opportunities for fossil-free steel in BE
Group’s key markets, including manufacturing and construction. This
collaboration will help meet the technical, sustainable, and communication
needs of BE Group’s customers.
Key
Market Players
- Carbicrete
Inc
- Cemex,
S.A.B. de C.V.
- CarbonCure
Technologies Inc.
- Arcelormittal
Ltd
- SSAB
AB
- Nucor
Corporation
- HOLCIM
- Norsk
Hydro ASA
- Mercer
Mass Timber LLC
- CRH
Plc
|
By Product
|
By Application
|
By Region
|
- Plastic
- Metal
- Mass Timber
- Green Concrete
- Green Tiles
- Low-Carbon Bricks
- Others
|
- Residential
- Commercial
- Industrial
- Others
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
Report
Scope:
In
this report, the Global Low-Carbon Construction Material Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
·
Low-Carbon
Construction Material Market, By
Product:
o Plastic
o Metal
o Mass
Timber
o Green
Concrete
o Green
Tiles
o Low-Carbon
Bricks
o Others
·
Low-Carbon
Construction Material Market, By
Application:
o Residential
o Commercial
o Industrial
o Others
·
Low-Carbon
Construction Material Market, By Region:
o North
America
. United
States
. Canada
. Mexico
o Europe
. France
. United
Kingdom
. Italy
. Germany
. Spain
o Asia
Pacific
. China
. India
. Japan
. Australia
. South
Korea
o South
America
. Brazil
. Argentina
. Colombia
o Middle
East & Africa
. South
Africa
. Saudi
Arabia
. UAE
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Global Low-Carbon Construction
Material Market.
Available
Customizations:
Global
Low-Carbon Construction Material Marketreport with the given market data, Tech
Sci Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company
Information
- Detailed
analysis and profiling of additional market players (up to five).
Global
Low-Carbon Construction Material Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]