We’ve heard that the value of green construction starts could reach $140 billion by 2013, but what about the market for green building materials? Thanks to a report by the Freedonia Group, Inc., we have some numbers to look at. According to the Green Building Materials to 2013 report released in February 2009, U.S. demand for green building products is expected to reach $80 billion by 2013. The market is currently at $57 billion, representing a whopping average 7.2% annual increase over the next five years.
Apparently, and I say apparently because the study is $4,700.00 and we haven’t purchased it, the main driver for growth in demand will be an overall recovery in the residential market. Certainly the USGBC’s emphasis on green materials will provide a boost, too. Here are a few snapshots of information in the report:
- FSC certified lumber and wood products will be the fastest growing segment of the green building products market;
- Water efficient and energy-efficient fixtures will undergo double-digit growth;
- Green floor coverings demand will grow at a rate of ~5.7%, but sales in this segment represent the largest share of the green building products market;
- Recycled concrete demand will grow at a rate of ~8.4%, with sales in this segment representing the second largest share of the green building products market; and
- Since 2003, the overall green building materials market grew from $39.2 to $57 billion, representing a 45% increase over five years;
I think we can all agree that the increasing availability of green building materials in all segments is a good thing. Competition creates the opportunity for both low-cost providers and differentiators. Consumers will benefit from that. And widespread availability of green materials gives everyone, whether they’re interested or not, the opportunity to purchase an incrementally better product.
[$] Green Building Materials to 2013 – $4,700.