Green Building Materials

US demand to post doubledigit gains through 2017
Through 2017, a rebound in construction activity, combined with continuing consumer interest in environmentally friendly products, will propel US growth in green building materials demand 11 percent annually to $86.6 billion. US construction activity declined sharply during much of the 2007-2012 period, but demand for green building materials held its own, boosted by consumer interest in products that could reduce utility bills or promote environmentally friendly construction practices. For instance, homeowners installed ENERGY STARcertified windows and heating, ventilation, and air conditioning (HVAC) systems to lower energy costs and reduce energy consumption. Gains in residential construction will promote demand for such products as carpeting, gypsum board, concrete, and metal building products.

Builders, architects coming to grips with LEED system
For purposes of this study, green building materials are defined as those products that can be used to earn credits toward certification in any of the Leadership in Energy and Environmental Design (LEED) rating systems extant as of February 2013. These materials do not necessarily have to be installed in buildings where LEED accreditation is being sought to be considered green materials. Over the forecast period, builders and architects will increasingly opt to earn high levels of LEED certification by specifying the use of materials that earn LEED points. Solar power products, insulation, concrete made with fly ash, and lumber harvested in a sustainable manner can all contribute to LEED certification, and all are forecast to exhibit demand gains.

ENERGY STAR-compliant HVAC systems, recycled concrete, permeable pavements to see good gains
Solar power products saw explosive growth between 2002 and 2012, driven by increasing installation of rooftopbased solar power modules connected to electricity distribution systems. Going forward, favorable tax incentives and strong interest in the use of renewable energy sources will promote demand for LEED-eligible solar power products.

Recycled concrete, ENERGY STARcompliant HVAC systems, and permeable pavements are forecast to register aboveaverage gains through 2017. Green structural building product demand will be driven by increasing use of recycled concrete, as concrete made with fly ash and other additives features superior performance properties and is less costly than concrete made solely from cement and aggregates. Demand for green building systems will be fueled by strong residential demand for ENERGY STARcompliant HVAC systems that lower utility bills. Permeable pavement demand will be supported by interest in reducing water runoff and minimizing strains on older sewer and water systems.

PRESS RELEASE

US Demand for Green Building Materials to Reach $86.6 Billion in 2017

Through 2017, a rebound in construction activity will propel growth in green building materials demand 11 percent annually to $86.6 billion. In addition to the lift supplied by general construction activity, continuing consumer interest in environmentally friendly products will increase the market share of most green building materials relative to non-green alternatives. Growth in residential construction will promote base demand for such products as carpeting, gypsum board, concrete, and metal building products, while products that contribute to the earning of LEED certification will see an additional boost in sales. These and other trends are presented in Green Building Materials, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Over the forecast period, builders and architects will increasingly opt to earn high levels of LEED certification by specifying the use of materials that earn LEED points. Residential HVAC systems, concrete made with fly ash, and lumber harvested in a sustainable manner can all contribute to LEED certification, and all are forecast to see above-average gains in demand.

Solar power products saw explosive growth between 2002 and 2012, driven by increasing installation of rooftop-based solar power modules connected to electricity distribution systems. Going forward, favorable tax incentives and strong interest in the use of renewable energy sources will promote demand for LEED-eligible solar power products.

Green building products such as recycled concrete, ENERGY STAR-compliant HVAC systems, and permeable pavement are forecast to see substantial gains through 2017. Recycled concrete will see rising use, as concrete made with fly ash and other additives features superior performance properties and is less costly than concrete made solely from cement and aggregates. Demand for green building systems will be spurred by strong residential demand for ENERGY STAR-compliant HVAC systems that lower utility bills. Permeable pavement demand will be supported by interest in reducing water runoff and minimizing strains on older sewer and water systems.