Nationwide demand for green building materials is expected to increase 13% annually to create a $71.1 billion market in 2015, according to a forecast by the Freedonia Group. A number of green building products, including concrete made from recycled materials and green floor coverings, are expected to post gains of more than 10% in demand annually through 2015, the Cleveland-based research firm said.
In 2010, the green building materials market was listed at $38.7 billion, a 22% slide from 2005. The study, however, is predicting the industry to make an 84% jump during the next five years. While the current increased use of green materials in construction will support those gains, the rebound in the construction market in the coming years is expected to be the most influential driver, according to the study.
According to the study, concrete made from recycled contents is expected to make the largest leap with an increase in value by $11 billion, at 24.3% annual growth, between 2010 and 2015, at which point it is predicted to be a $16.2 billion industry. These concrete products are considered valuable on an environmental level because they reduce the amount of waste sent to landfills and the recycled materials actually improve the performance and strength of the concrete.
Currently green floor coverings, which include Green Label Plus-certified carpets and flooring made from resources such as bamboo and cork, are the most in demand products, as they were worth $9.2 billion in 2010, worth almost a quarter of the green building material market at the time. These products are expected to grow by 11.7% annually through 2015. The study predicts, however, that such floor coverings will not grow at the same pace as other green building materials in part because many flooring products are already green.
Green doors are predicted to increase by 12.4% annually over the next five years to go from a $3.2 billion industry to a $5.8 billion industry. Windows will increase by 8% and become a $7.4 billion industry. Insulation and other green building products are expected to jump 14% annually over the next five years and be an $18.3 billion industry by 2015, according to the study. Green roofing materials are predicted to make the smallest annual growth at 4.1% and finish 2015 as a $7.5 billion industry.
Increased availability of green building products, more concerns about the environment and stricter building code standards, combined with the rebounding construction market, are expected to drive growth in demand for a number of green building products.