The global alternative building material market size was valued at USD 217.3 billion in 2023 and is expected to reach USD 361.4 billion by 2032, registering a CAGR of 6.2% during the forecast period (2024–2032).
Alternative building materials replace conventional building materials and can provide economic benefits. These building materials are made from waste products and thus minimize pollution. Alternative building materials include bamboo, recycled plastic, wood, and other environmentally friendly materials. These alternative building materials are used to build structures, furniture, and flooring for residential and non-residential infrastructures. These alternative building materials are energy and resource-efficient, cost-effective, and waste-reducer. Such advantages of alternative building materials will lug their demand in the future.
In the wake of climatic change, there has been an increase in environmental awareness worldwide. In order to preserve natural resources and avoid adverse effects on the climate, materials that emit ozone gases during manufacturing should be avoided. Alternative building materials are green materials that are entirely eco-friendly and emit no radiation or harmful gases during manufacturing. These materials are good insulators, providing high-quality insulation from heat and cold. As a result, temperature loss is avoided, making the house more energy-efficient. In addition, alternative materials such as recycled plastic are made from plastic waste, resolving a significant issue of dumping hazardous plastic wastes. As a result, the alternative building material market will be driven during the forecast period. The government and organizations worldwide enforce strict rules and regulations concerning the construction of houses, the materials used in their construction, and the energy consumed by the places.
LEED (Leadership in Energy and Environmental Design) is globally the most extensively used green building rating system. LEED, which is available for all building types, provides a framework for highly efficient, healthy, and cost-effective green buildings. LEED provides a framework for project teams to select solutions contributing to environmental progress. In addition, LEED assists investors in meeting their ESG objectives by providing a robust and globally recognized green building framework for measuring and managing real estate performance. LEED is defined as the globally recognized symbol of achievement and sustainability leadership. LEED-certified buildings are designed and built with an emphasis on energy efficiency, water efficiency, reduced carbon emissions, and improved indoor air quality. Owing to the several benefits provided by the LEED, the demand for alternative building products is expected to heave during the forecast period.
Some alternative building materials are weak and cannot withstand floods, heavy rains, or natural calamities. Thus, concrete construction is preferable due to the lack of strength in alternative building materials. In addition, as alternative building materials are environmentally friendly, chemicals cannot be used to strengthen the alternative, preventing companies from producing alternative solid materials. Further, alternative materials such as wood and bamboo have a low resistance to fire, which can destroy the house's structure. In addition, inappropriate wood and bamboo walls, roofs, and floors can create a temperature loss. Thus, with such drawbacks of alternative materials, the market's growth is expected to be hampered.
Alternative materials, such as recycled plastic, rammed earth, or wood, lack strength and cannot withstand heavy rains, floods, or storms. As a result of the lack of power, the used prefers concrete construction. Furthermore, because of their eco-friendliness, chemicals cannot be used to strengthen the alternative, so companies are unable to manufacture alternative solid materials. Furthermore, wood and bamboo can easily catch fire, destroying the house or structure. Likewise, if the wood and bamboo walls, roofs, or floors are not properly bound, they can cause temperature loss, degrading the green quality of the house. All of these disadvantages impede the growth of the alternat
| Study Period | 2020-2032 | CAGR | 6.2% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 217.3 Billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 361.4 Billion |
| Largest Market | Asia Pacific | Fastest Growing Market | North America |
Asia-Pacific is expected to dominate the alternative building material market during the forecast period, growing at a CAGR of 5.9%. Significant increases in construction activity in Asia-Pacific, particularly in China and India, have contributed to the construction market's growth in recent years. Governments in Singapore, China, Japan, and India are actively investing in sustainable infrastructure development. Furthermore, increasing environmental awareness in developing countries is expected to provide lucrative opportunities to expand the alternative building material market. Several buildings in China, Japan, and India are constructed with environmentally friendly materials. North America is the second-largest region. It is estimated to reach a value of USD 60 billion by 2030 at a CAGR of 5.7%. As the market is in its early stages of development, the North American alternative building material market has seen consistent growth. However, it is expected to increase as technology advances, and challenges such as poor finish and technical expertise are overcome in the global market. The United States accounts for the majority of revenue generation. Furthermore, the increased focus of key market players in the region on developing and commercializing new manufacturing techniques is expected to drive market growth. Europe has been a pioneer in using alternative building materials in construction technology. Countries like the United Kingdom, France, Italy, and Germany have several ongoing construction projects that use alternative building materials to construct houses. This makes a significant contribution to market growth. Furthermore, the European Union (EU) has implemented several plans to make homes 90% energy efficient by 2030. As a result, the market for alternative building materials in Europe is growing.
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Wood acquires the largest share in the market and is expected to grow at a CAGR of 5.6% by 2030. Wood has been used in construction since antiquity. It's used in various applications, including walls, roofs, flooring, furniture, and artifacts. It is the most environmentally friendly alternative building material used worldwide. Construction involves the use of timber, lumber, and other wood products. Since wood is a renewable natural resource, it is readily available and economically viable. It has a more excellent strength-to-weight ratio despite its lightweight. It also acts as a good insulator against cold and heat. Therefore, it is commonly used in construction applications. It also improves the infrastructure's natural aesthetics. Due to its flexibility, it can withstand earthquakes. Moreover, the use of wood reduces carbon footprint. Given these benefits, the use of timber in construction is steadily increasing, which will drive the alternative building material market during the forecast period. Recycled Plastic is the fastest-growing segment. It is estimated to grow at a CAGR of 8% by 2030. Recycled plastics are utilized in new building and construction applications on a large scale. Using recycled plastics helps reduce construction costs and saves energy and landfill space. It also strengthens the walls, roofs, and floorings where it is used. Owing to this use of recycled plastic in construction is rapidly rising.
The Flooring segment is anticipated to dominate the global alternative building material market during the forecast period, growing at a CAGR of 5.7%. In July 2020, Oregon Flooring Company announced to expand its business by starting a new manufacturing plant with an investment of USD 35 million in Georgia to meet the growth in demand for wood flooring products. Such strategies are anticipated to drive the development of the alternative building material market during the forecast period. Furniture is the fastest-growing segment. There has been a rise in using sustainable materials to build furniture in the houses as they are low cost and can be recycled later in their life cycle. Owing to this, furniture giants, such as Ikea 2019, started offering a variety of alternative materials to build furniture. Such strategies will boost the alternative material market during the forecast period. The construction holds a substantial position in the market. Building a sustainable house includes setting up the structure and constructing walls and roofs. Due to the growing popularity of using alternative materials in construction, several new pilot projects and homes have been built in recent years. Several companies are coming forward and setting up manufacturing facilities to manufacture this alternative material.
The Residential segment dominates the global alternative building material market and is expected to grow at a CAGR of 5.7% by 2030. The majority of alternative building materials are used in residential construction. Around the world, various alternative materials are used to construct sustainable homes.
