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How has the low carbon buildings market evolved, and where is it heading next?
The low carbon buildings market size has grown rapidly in recent years. It will grow from $553.39 billion in 2024 to $624,85 billion in 2025 at a compound annual growth rate (CAGR) of 12.9%. The growth in the historical period can be attributed to growth in environmental regulations, rise in awareness of climate change, increase in energy efficiency requirements, rise in government incentives for sustainable construction, and rise in demand for eco-friendly materials.
The low carbon buildings market size is expected to see rapid growth in the next few years. It will grow to $1,001.71 billion in 2029 at a compound annual growth rate (CAGR) of 12.5%. The growth in the forecast period can be attributed to rising stringent government regulations promoting sustainable construction, increasing consumer awareness of energy efficiency, rising investment in renewable energy integration for buildings, growing urbanization, and rising smart cities with a focus on sustainability. Major trends include development of low-carbon concrete, advancements in sustainable steel production, adoption of mass timber usage, hempcrete innovation, adoption of bio-based plastics, adoption of recycled materials, and innovation in energy-efficient building systems.
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What are the key drivers behind the rapid expansion of the low carbon buildings market?
The increasing awareness of climate change is expected to drive the growth of the low-carbon buildings market going forward. The awareness of climate change is due to growing environmental concerns, widespread access to information, and heightened media coverage, leading to greater public engagement and demand for sustainable practices. Low-carbon buildings reduce greenhouse gas emissions through energy-efficient designs, sustainable materials, and renewable energy systems, promoting sustainability and combating climate change. For instance, in 2023, according to the European Commission, a Belgium-based government body, 87% of Europeans will favor increasing renewable energy use, and 86% will support enhancing energy efficiency by 2030. Therefore, the increasing awareness of climate change is driving the growth of the low-carbon buildings market.
What is the segmentation for the low carbon buildings market?
The low carbon buildings market covered in this report is segmented –
1) By Type: Energy-Efficient Materials, Renewable Energy Systems, Low Carbon HVAC Systems, Green Building Certifications
2) By Material: Wood, Bamboo, Recycled Steel, Recycled Plastic
3) By Application: Commercial, Residential, Industrial
Subsegments:
1) By Energy-Efficient Materials: High-Performance Insulation, Low-Emissivity Glass, Recycled Building Materials, Phase-Change Materials
2) By Renewable Energy Systems: Solar Photovoltaic (PV) Systems, Wind Energy Systems, Geothermal Heating And Cooling, Biomass Energy Systems
3) By Low Carbon HVAC Systems: Heat Pumps, Energy Recovery Ventilation (ERV) Systems, Radiant Heating And Cooling Systems, Smart Thermostats
4) By Green Building Certifications: Leadership in Energy and Environmental Design (LEED), BREEAMBuilding Research Establishment Environmental Assessment Method (BREEAM), WELL Building Standard, Passive House Certification
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Low Carbon Buildings Market Size And Forecast Report 2025-2034
Who are the most influential companies in the low carbon buildings market?
Major companies operating in the low carbon buildings market are BASF SE, Siemens AG, Dow Inc., Saint-Gobain, ThermoFisher Scientific Inc., Schneider Electric SE, Honeywell International Inc., Mitsubishi Electric Corporation, 3M Company, Holcim Group, ABB Ltd., Heidelberg Materials, Johnson Controls International plc, DuPont, Nippon Paint, Kingspan Group plc, Legrand SA, Rockwool International, Guardian Glass, Knauf Insulation, Armstrong World Industries
What are the most influential trends expected to drive the low carbon buildings market forward?
Major companies operating in the low-carbon buildings market are focusing on strategic partnerships to launch decarbonization programs to accelerate the transition to sustainable construction, improve energy efficiency, and reduce carbon emissions. Strategic partnerships are crucial in scaling sustainable construction practices, accelerating decarbonization programs, and fostering innovation in the low-carbon buildings market. For instance, in June 2024, Mahindra Group, an India-based industrial company, partnered with Johnson Controls, an Ireland-based industrial machinery manufacturing company, to launch a net zero buildings initiative. The initiative seeks to decarbonize India’s commercial, urban, residential, and public buildings by offering free toolkits and training programs. It streamlines access to essential resources and best practices, empowering organizations to implement sustainable building solutions. The initiative aims to drive a sustainable transformation in the built environment and support India’s low-carbon development objectives by guiding building owners on conservation strategies, regulatory adherence, financing options, and advanced technologies.
What are the major regional insights for the low carbon buildings market, and which region holds the top position?
Europe was the largest region in the low-carbon buildings market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the low carbon buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The Low Carbon Buildings Market Report 2025 Offer?
The low carbon buildings market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Low-carbon buildings are structures designed and constructed to minimize their carbon emissions throughout their lifecycle, from design and construction to operation and demolition. These buildings are designed to be energy-efficient and incorporate sustainable practices, materials, and technologies that significantly reduce the carbon footprint associated with heating, cooling, lighting, and other energy uses.
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Low Carbon Buildings Market Size And Forecast Report 2025-2034
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