Europe Green Building Market

The Europe green building market is expected to grow from US$ 54.1 billion in 2021 to US$ 122.61 billion by 2028; it is estimated to grow at a CAGR of 12.4% from 2021 to 2028.

A “green” building, which can be a home, an office, a school, a hospital, a community center, or any other structure, is designed in such a way that its construction and operation has low or negligible impact on the environment. A green building design can exhibit eco-friendly features such as the efficient use of energy, water, and other resources; use of renewable energy; measures for pollution and waste reduction; adoption of reuse and recycling processes; use of non-toxic materials; dynamic design adaptable to the environment; good quality of indoor environmental air; and enhanced quality of life of occupants. The buildings sector accounts for 36% of greenhouse gas (GHG) emissions and 40% impact on energy consumption in the European Union (EU), wherein the construction and demolition waste (CDW) alone represent ~25–30% of all waste generated across the EU. This creates an unprecedented demand for a green and sustainable approach to building design and construction in the region. However, characteristics such as climatic conditions; cultures and traditions; building types and ages; and environmental, economic, and social priorities vary in different European countries, which alters the market dynamics across the region.

The growth of the Europe green building market is further ascribed to several government policies adopted by European countries and the EU policy framework concerning the development of green and sustainable housing. For instance, in 2020, the European Commission announced a Renovation Wave to improve the energy performance of buildings across the EU by doubling renovation rates by 2030. This is expected to result in the renovation of over 35 million buildings by 2030, in addition to the new building construction. Similarly, the Europe Regional Network (ERN), a network of over 20 national green building councils, eight regional partners, and ~5,000 members, is engaged in ensuring the integration of sustainability across the value chain of the construction sector, thereby leveraging its influence and knowledge to transform the European buildings market. Owing to the thriving ecosystem for the green building market in Europe, several spectacular eco-friendly buildings have been designed, built, and showcased in Europe. A few examples of these buildings are Cube in Germany, the Edge in the Netherlands, and Bloomberg in the UK. These green buildings are building a positive influence on the green building market in Europe by creating avenues for innovation and setting the trends for the green building market worldwide. For example, The Edge is renowned worldwide for its use of IoT, photovoltaic, and LED technologies, among other advanced technologies, to measure and attain energy efficiency.

Impact of COVID-19 Pandemic on Europe Green Building Market

In Europe, currently, France, the UK, and Russia are the worst-impacted countries by the COVID-19 pandemic. The pandemic has created a temporary distortion in operation efficiencies of industrial bases in the European market. The green building market has been negatively impacted due to disruptions in the supply chain. The construction industry from the region has faced challenges in terms of the availability of construction materials. The supply networks for construction materials have also been disrupted

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Lucrative Regions for Europe Green Building Market

Europe Green Building Strategic Insights

Strategic insights for the Europe Green Building provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.

Europe Green Building Report Scope

Europe Green Building Regional Insights

The geographic scope of the Europe Green Building refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.

Market Insight

Support from Government Policies

The increasing significance of green buildings in Europe can be seen in the large number of initiatives taken by both government and non-government organizations and agencies. Notably, in 2019, the European Commission launched the European Green Deal (EGD) underpinning a list of policy initiatives aimed at aligning Europe to the net-zero global warming emissions target by 2050. The areas covered under the European Green Deal include building and renovating, sustainable mobility biodiversity, sustainable food systems, sustainable agriculture, clean energy, sustainable industry, eliminating pollution and climate action. Under the deal, the commission has launched the EU Renovation Wave for the building and renovating sector, which aims at energy-efficient renovation of around 220 million buildings, to increase their environmental performances while generating costs savings for households. Furthering the deal in 2021, the commission proposed governments in the EU to align the rules for the energy performance of buildings with the parameters of EGD and laid down instructions to decarbonize the EU's building stock by 2050. The proposal includes the transformation of homes, schools, hospitals, offices and other buildings across Europe into green building to reduce greenhouse gas emissions and energy consumption, enhancing the quality of life for millions of Europeans. Similarly, during 2021, the UK government hosted a public consultation on proposed changes to the Building Regulations. In response to the consultation on Future Homes Standard, the government unveiled plans to radically improve the energy performance of new homes, requiring them to be highly energy efficient, with low carbon heating and zero-emission by 2025. Additionally, since 2009, Europe has mandated the provision of energy certification Under the Energy Performance of Building Directive (EPBD) which makes it mandatory for building measuring over 1000 m2 to collect the Building Energy Rating system (BER) certificate and Energy Performance Certificate. Therefore, the prominent support from government policies across the region is accelerating the growth of Europe green building market.

Product Type Segment Insights

Based on product type, the Europe green building market is categorized into insulation, roofing and siding, interior products, building systems, and others. The insulation segment led the market with a share of around 28% in 2020 and is expected to hold approximately 29% share by 2028. Insulation is a critical factor for meeting the criteria of a green building since it controls the influx and outflux of heat in the building. Therefore, the amount of insulation and the material used is a vital indicator of the resistance of a structure to energy dissipation. The most common materials in insulation for the construction of green buildings include fiberglass, cellulose, natural fiber (cotton, wool), polyurethane, polystyrene, and isocyanurate. Notably, expanding spray-on polyurethane foams are among the widely used insulation materials as they offer the highest insulation value for a given thickness and are excellent at air leakage elimination.

Europe Green Building Market, by Building Type (% Share)

Europe Green Building Strategic Insights

Strategic insights for the Europe Green Building provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.

Europe Green Building Report Scope

Europe Green Building Regional Insights

The geographic scope of the Europe Green Building refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.

Building Type Segment Insights

Based on building type, the Europe green building market is bifurcated into residential and non-residential. The non-residential segment led the market with a share of around 78% in 2020 and is expected to account for over 76% of the total Europe Green Building market by 2028. Non-residential buildings include retail and other commercial buildings, office complexes, healthcare buildings, educational institutions, hospitality and restaurant buildings, and factories. The popularity of green building design has led to a significant transformation in approaches of designers, architects, and materials used in building green. Furthermore, the ever-increasing demand for sustainable business practices among corporates is creating solid growth opportunities for green building market players in Europe, as a large number of corporate organizations are adhering to zero/low emissions policies of the EU, which requires them to adopt green building practices in their offices.

Strategic Insights

The Europe green building market players focus on new product innovations and developments by integrating advanced technologies and features to compete. In December 2021, AECOM provided construction management services under WUHSD’s Measure AA bond program to modernize, upgrade, and expand the facilities. This contract helps the company leverage its brand recognition among the competing players. In July 2021, Turner Construction provided design-build services for the expansion of the Jacob K. Javits Convention Center. The innovative design has enabled the expansion to achieve LEED Gold certification from the US Green Building Council.

Based on product type, the Europe green building market is categorized into insulation, roofing and siding, interior products, building systems, and others. Based on building type, the Europe green building market is bifurcated into residential and non-residential. Based on country, the Europe green building market is segmented into six countries and regions—Germany, France, Italy, the UK, Russia, and the Rest of Europe.

Bauder Ltd.; AECOM; Skansk; Turner Construction; DuPont de Nemours, Inc.; Wienerberger; Alumasc Group plc; Forbo International; HOLCIM; and Kingspan Group PLC are a few major players operating in the Europe green building market.