Green Technology in Construction Market to Reach $992.1 Billion Driven by Smart Cities & ESG Goals | DataM Intelligence

Green Technology in Construction Market is growing rapidly, driven by sustainability goals, tech innovation and rising global demand for eco-friendly buildings.

AUSTIN, TX, UNITED STATES, June 10, 2025 /EINPresswire.com/ -- The Green Technology in Construction Market is undergoing a powerful transformation as sustainability becomes central to global urban development. In 2023, the market was valued at approximately USD 394.2 billion, and it is projected to reach USD 992.1 billion by 2031, expanding at a CAGR of around 12.3% during the forecast period (2024–2031). This surge is being driven by stringent environmental regulations, growing public awareness of climate change, and a rising demand for energy-efficient and sustainable buildings.

Green technology in construction involves the use of eco-friendly materials, renewable energy integration, smart building management systems, and sustainable design practices. These technologies are designed to reduce carbon footprints, conserve resources, and ensure healthier indoor environments.

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Key Market Drivers

Regulatory Push and Sustainability Goals
Governments across the globe are tightening regulations to lower carbon emissions and encourage energy efficiency in buildings. This is creating significant demand for technologies such as solar panels, advanced insulation, smart lighting, and HVAC systems.

Corporate and Public Sector Investments
Both private enterprises and public institutions are investing heavily in green buildings as part of ESG (Environmental, Social, and Governance) commitments. LEED (Leadership in Energy and Environmental Design) and other green certifications have become key benchmarks for new constructions.

Urbanization and Infrastructure Boom
Rapid urbanization is prompting a wave of infrastructure projects that incorporate sustainable practices. Cities are increasingly looking at green roofs, rainwater harvesting systems, and passive solar design to address environmental challenges.

Technological Innovation
Advanced materials such as self-healing concrete, phase-change materials, and prefabricated modular components are making construction greener and more efficient. Meanwhile, IoT and AI-based building management systems are optimizing energy use and maintenance.

Regional Outlook

North America
North America is a major player in the green construction landscape, with the United States leading in innovation and adoption. Increasing demand for eco-conscious commercial and residential spaces, combined with favorable government incentives, is driving the region’s market share. Additionally, corporate sustainability mandates are pushing developers toward net-zero energy buildings.

Europe
Europe maintains a strong presence, backed by aggressive climate targets such as the European Green Deal. Countries like Germany, the Netherlands, and the Nordic nations are implementing stringent energy standards and investing in green public infrastructure. Circular construction and low-emission building materials are gaining traction here.

Asia-Pacific
This region is emerging as the fastest-growing market. Massive infrastructure development, particularly in China, India, Japan, and Southeast Asia, is incorporating green technologies. Government subsidies, rising urban pollution levels, and a shift toward smart cities are accelerating demand.

Middle East & Africa
Though relatively nascent, this region is witnessing growth in sustainable construction, especially in the UAE, Saudi Arabia, and South Africa. Mega-projects such as NEOM and Masdar City are setting examples of large-scale green urban planning.

Competitive Landscape

ECOPRO

Green Technology Metals Ltd.

Charbone Hydrogen Corporation

Innovation Mining Inc.

CoTec Holdings Corp.

Stardust Power Inc.

Hempalta Inc.

Troy Minerals Inc.

Li-Cycle Corp.

Canadian Solar Inc

Market Segmentation:

By Method: Energy Efficiency Technology, Green Building Materials, Water Efficiency Technology, Sustainable Construction Practices, Waste Management Systems, Others.

By Product Type: Exterior Products, Interior Products, Structural Solutions.

By End-User: Real Estate Developers, Government & Public Infrastructure, Contractors & Builders, Architectural & Design Firms, Others.

Latest News of USA

In 2025, the U.S. Department of Energy (DOE) announced a new initiative under its Better Buildings Challenge, allocating $800 million to support the retrofitting of commercial and government buildings with green technologies. This move is expected to enhance energy efficiency by up to 40% in the next five years.

Additionally, the city of Boston has mandated net-zero construction for all new municipal buildings starting January 2026, putting pressure on contractors to adapt to sustainable practices quickly. Meanwhile, California remains a leader with its strict Title 24 building codes, encouraging solar panel integration and energy-efficient HVAC systems in both residential and commercial buildings.

Tech companies, including Google and Amazon, are also doubling down on sustainable campuses, integrating carbon-neutral building materials, water recycling systems, and AI-based energy controls.

Latest News of Japan

Japan is embracing green construction with renewed vigor as part of its goal to reach carbon neutrality by 2050. In early 2025, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) rolled out updated regulations encouraging the use of low-carbon concrete and biodegradable insulation materials in public projects.

One of the country’s landmark projects is the “Woven City” by Toyota, currently under construction at the base of Mount Fuji. This smart city project integrates renewable energy, hydrogen power, and green buildings designed to seamlessly interact with autonomous vehicles and robotic infrastructure.

Japanese developers are also turning to wood-based high-rise buildings as part of a shift towards carbon sequestration. Tokyo-based Sumitomo Forestry recently announced plans for a 350-meter tall wooden skyscraper, aiming to demonstrate the structural and environmental benefits of timber construction.

Conclusion

The green technology in construction market is evolving rapidly, shaped by environmental imperatives, technological advancements, and global policy shifts. As demand for eco-friendly, energy-efficient buildings accelerates, industry stakeholders must stay ahead by embracing innovation, sustainable design, and digital integration. With regional leaders like the U.S. and Japan setting benchmarks, the global market is poised for a sustainable transformation that redefines the way we build for the future.

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Sai Kumar
DataM Intelligence 4market Research LLP
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