Low Carbon Building Market to Reach $1,318.4 billion, Globally, by 2033 at 9.1% CAGR: Allied Market Research

The low carbon building market is driven by the growing global emphasis on reducing carbon emissions and achieving sustainability in the construction industry. Stricter government regulations, such as energy efficiency codes and green building certifications, are compelling developers to adopt eco-friendly construction materials and techniques. Additionally, rising consumer awareness of climate change and environmental responsibility is increasing demand for energy-efficient buildings. Innovations in green technologies, such as advanced insulation, smart HVAC systems, and renewable energy integration, are further accelerating market growth. The push for net-zero and zero-emission buildings, along with financial incentives for sustainable projects, continues to drive adoption.

WILMINGTON, Del., March 10, 2025 /PRNewswire/ -- Allied Market Research published a report, titled, "Low Carbon Building Market by Building Type (Residential, Commercial, Industrial), by Component (HVAC Systems, Green Roofing and Solar Panels, Lightning Solution, Others): Global Opportunity Analysis and Industry Forecast, 2024-2033". According to the report, the "low carbon building market" was valued at $554.8 billion in 2023, and is estimated to reach $1,318.4 billion by 2033, growing at a CAGR of 9.1% from 2024 to 2033.

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Prime determinants of growth

The low carbon building market is driven by the growing demand for sustainable construction and stringent environmental regulations aimed at reducing carbon emissions. Governments worldwide are enforcing policies that promote energy-efficient buildings, green certifications, and renewable energy integration. Additionally, rising consumer awareness of climate change and eco-friendly housing solutions has accelerated market growth. However, the market faces challenges such as high initial investment costs and a lack of expertise in sustainable construction practices, particularly in developing regions.

The adoption of low carbon technologies, including energy-efficient HVAC systems and advanced insulation materials, often requires significant upfront capital, limiting accessibility. Despite these challenges, opportunities exist with advancements in green building materials and smart construction technologies. The increasing adoption of prefabricated and modular buildings, coupled with innovations in net-zero energy solutions, presents significant growth potential. Furthermore, government incentives, subsidies, and carbon credit programs are fostering a favorable environment for the expansion of low carbon buildings globally.

Report coverage & details:

The commercial segment is expected to grow faster throughout the forecast period.

By building type, the commercial segment was the highest revenue contributor to the market growing with a CAGR of 9.2%. The growth of low-carbon commercial buildings is driven by stringent government regulations promoting sustainability, corporate commitments to net-zero targets, and increasing investor focus on ESG (Environmental, Social, and Governance) criteria.

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The HVAC systems segment is expected to lead throughout the forecast period.

By component, the HVAC systems segment was the highest revenue contributor to the market growing with a CAGR of 8.9%. The growing demand for low-carbon building HVAC systems is driven by a combination of environmental regulations, sustainability goals, and advancements in energy-efficient technology. As buildings aim to reduce their carbon footprints, HVAC systems designed to optimize energy use and minimize greenhouse gas emissions are becoming increasingly popular.

Asia-Pacific to maintain its dominance by 2033.

Asia-Pacific was the highest revenue contributor, growing at a CAGR of 9.5%. The Asia-Pacific low carbon building market is experiencing rapid growth, driven by increasing urbanization, government initiatives, and rising awareness of sustainability and energy efficiency. As one of the most urbanized regions in the world, Asia-Pacific is undergoing a massive construction boom, with countries like China, India, Japan, South Korea, and Australia leading the charge toward low carbon construction. The region's growing population and expanding urban areas present a unique opportunity to implement sustainable building practices that reduce carbon emissions.

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Key Players: -

• Honeywell International Inc.
• Johnson Controls
• Saint-Gobain
• Kingspan Group PLC
• CEMEX S.A.B DE C.V.
• Skanska AB
• CRH plc
• VEXO International
• Kenoteq
• VINCI Energies Building Solutions

The report provides a detailed analysis of these key players in the global low carbon building market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

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