Between the ecological and economical, the green building materials market gets to reap both
The World Green Building Trends 2016 SmartMarket Report, presented by Dodge Data & Analytics and United Technologies Corporation, compiled intelligent insights to support growth trends observed in the green building materials market.
The report data suggests that green construction around the world has experienced a twofold growth over every three years. This rate of growth is projected to gain an additional fourfold increase in the years to come across some geographical regions, including Brazil, India, Saudi Arabia, and South Africa.
Regions across the U.S., Germany, and the U.K. would sustain their rate of green building developments.
On an average for all 69 countries that were surveyed, 18 percent of international respondents indicate that an average of 60 percent of their building projects would be supported by green materials by the end of 2018.
Project Owners Wake up to a New Green
When it comes to the financial tendencies that have propelled the progress for green buildings, surveyed candidates estimated around 14 percent and 13 percent cutbacks in the overall operational costs over a period of five years—compared to the proposed new green buildings and renovations, respectively.
Project owners acknowledged a seven percent increase in net asset value when surveyed, whether brought on by newer projects or by retrofitted models, over the conventional buildings.
In addition, experts valuate through practical observations that the cost premiums incurred on green buildings range between negative four percent up to 12.5 percent as compared to the traditional alternative constructions. When these figures add up, they indicate considerable long-term savings for the project owners overall.
On an average, 18 percent of the clients of the construction industry demanded that their projects be eligible for green certification. This number is expected to hit 37 percent over the next two years.
Recently, the World Green Building Council observed that the motivation for this demand has changed significantly. Owners of residential and commercial projects make their choice—not based on ecological ethics—based on long-term operational cost savings.
For instance, in an environment where on-site availability of water for construction comes across as a burden on resources and finances, the potential to save up to 30 percent of water looks quite attractive, if not downright economical.
Strong Market Impactors, Stronger Growth
Allied Market Research released their latest set of analytical insights for the global green building materials market.
The report expects the global industry to garner $377,029 million in terms of revenue by 2022 as compared to the estimated $171,475 million in 2015.
The compound annual growth rate (CAGR) during the forecast period (2016 through 2022) has been projected to be around 11.9 percent.
The trend of green buildings has become commonplace over a very short period of time and both owners and lessees have increased affinity towards green properties thanks to their higher financial and operational efficiency.
Ever since the emergence of the “going green” trend, project associations find it a matter of reputable corporate status. Owners also find green buildings to be healthier spaces for their family members and employees to stay fit and productive.
All participants in the segment unanimously agreed on the sundry benefits brought upon the practice of building from green materials. The materials are designed for extra strength, longer durability, customized implementation, structural requirements, and guideline adherence.
Their sales value is high, they attract buyers easily, and provide rapid return on investments.
What’s the best part? The novice class of green building materials has manufacturers honed in on reducing net costs for end users. An added advantage is earning green credits from regulatory authorities if builders manage to tailor their projects according to their guidelines.
A Collaborative Win
An ultimate win has been achieved by the collaborative approach of federal authorities, which managed to publicize, economize, and implement sustainable use of green building materials.
The commercial and implementational success of green buildings is testimonial to the positive impact of a convergence of public and private initiatives. In terms of technological reinforcements, standard third-party verification tools—such as Leadership in Energy and Environmental Design (LEED)—have managed to increase the trust factor among the project developers.
Now, the favorite assessment tool of the construction leaders has been reintroduced in a stronger and specialized avatar called LEED v4, in order to meet the project requirements of now and the future.
Smart technologies and, most importantly, smarter market players oversee the reins to the global green building materials market; and the future financial prospects for the industry stakeholders appear a lot greener.