Green roofs are also known as vegetated roofs and living roofs. A green roof is a coating of planted flora on top of a waterproofing system installed on top of a completely flat or very gently sloping roof. It is planted on waterproofing systems in residential and commercial areas to absorb rainwater and stormwater. Green roofs provide shade and remove heat from the air, reducing the roof's surface and surrounding air temperature. Using green roofs in urban areas or other built environments with limited vegetation can help mitigate the daytime effects of a heat island.
Green roofs can resemble natural plant communities or meticulously maintained lawns. The layouts of these roofs vary according to climatic conditions, slope, accessibility, structural capacity, and intended use. The standard components include a tested waterproof membrane, a root barrier, drainage outlets, a drainage layer, geofabric, grow medium, vegetation, irrigation, and a maintenance plan. Increased construction and building operations in developing countries such as India, China, and others are anticipated to generate lucrative growth opportunities for the green roof market over the forecast period. China, for instance, is expected to spend USD 13 trillion on construction projects by 2030. A rise in global awareness of green technologies and energy efficiency is another factor contributing to the expansion of the market for green roofs.
The Growing Awareness Related to Green Roof System and The Expansion of Construction Sector to Drive the Global Green Roof Market
Due to their ability to keep buildings cool and increase their aesthetic appeal, there has been a rise in awareness of green roofs in residential and industrial areas. Additionally, the benefits associated with green roofs, such as a reduction in energy costs, a decrease in CO2 levels, a reduction in noise pollution, and an improvement in employee health, drive their global adoption, thereby fostering market expansion. In addition, the increasing emphasis on installing green roof systems in commercial construction projects is driving the growth of the green roof market. Increased construction of green roof systems in developing countries such as India, China, and Mexico significantly contributes to developing the global green roof market.
In addition, governments of various nations and private companies are launching a variety of subsidiaries and programs to increase the implementation of green roof systems. In September 2017, Counterpoint Sustainable Real Estate (SRE), headquartered in Connecticut, United States, rolled out a new financial plan for installing, maintaining, and providing green roof systems. As a result, growing awareness of green roof systems is anticipated to spur green roof market growth.
Globally, there is an increase in residential construction and occupancy, which has acted as a significant market driver. From 2015 to 2019, the residential construction industry in the United Kingdom grew by 2.9%. Additionally, growth in the disposable income of individuals and an improvement in the living standards of people in developing nations are expected to stimulate the market growth of green roofs. In addition, the increase in the urban population in developing countries such as India and China is anticipated to spur the adoption of green roof systems to reduce air pollution. In addition, government regulations governing the installation of green roof systems are expected to boost demand over the forecast period.
Tax Benefits Provided by Government to Create Global Green Roof Market Opportunities
Numerous governments have mandated the installation of green roof systems. Additionally, governments offer homeowners subsidies for installing green roofing systems. In August of 2017, for example, the German government subsidized 50% of building owners' total investment costs. In addition, the government provides tax incentives for businesses that adopt green roof systems. The New York City Department of Buildings mandated in November 2019 that all new and existing buildings install green roof systems. Consequently, government tax incentives provided to private industries that install green roof systems are anticipated to generate lucrative market expansion opportunities.
Europe will likely grow at a CAGR of 15.12% and command the market with the largest share. The increasing awareness of green roof systems among the European populace is anticipated to propel the market expansion of green roofs. Moreover, implementing government regulations to install a green roof system is expected to stimulate the growth of the green roof market. Government spending on green building projects is expected to create lucrative growth opportunities for the green roof market.
In 2020, the British government, for example, spent USD 3.75 billion on green projects in residential and commercial areas. The French government mandates the installation of green roof systems on all new commercial buildings, which is anticipated to stimulate market growth. All of these variables are expected to contribute to the development of the green roof market.
The Asia Pacific will hold USD 1,868 million, growing at a CAGR of 17.52%. Rapid urbanization and an increase in construction activities in developing countries such as India, Singapore, and Vietnam drive the expansion of the Asia-Pacific green roof market. Between 2019 and 2022, India planned to invest USD 1.4 trillion in infrastructure development. Additionally, numerous government initiatives and policies promoting green roofs to mitigate the effects of global warming are expected to expand the green roof market.
For instance, in Asia-Pacific, the Skyrise Greenery Program encourages installing green roof systems on commercial and residential buildings. In addition, it is anticipated that government spending on infrastructure construction will stimulate market growth. For example, in September of this year, the Chinese government invested nearly USD 13 trillion in construction projects by 2030, thereby creating lucrative growth opportunities for the green roof market.