The global green roof market size was valued at USD 1,828 million in 2021, envisioned to reach USD 5,952 million growing at a CAGR of 15.9% during the forecast period. A green roof is also a vegetated roof or a living roof. A green roof is a layer of vegetation planted on top of a waterproofing system installed on top of a roof that is either completely flat or has a very slight slope. It is planted on the waterproofing systems in residential and commercial areas to absorb rainwater and stormwater. Green roofs provide shade and remove heat from the air, lowering the roof's surface temperature and the air temperature around it. Using green roofs in urban areas or other built environments with limited vegetation can help moderate the effect of a heat island, particularly during the day.
Green roofs can give the appearance of natural plant communities or perfectly manicured lawns. Depending on climatic conditions, slope, accessibility, structural capacity, and intended use, the layouts of these roofs are site-specific. Standard components include a tested waterproofing 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 nations, such as India, China, and others, are expected to create lucrative growth opportunities for the global market over the forecast period. China, for example, is anticipated to spend USD 13 trillion on building projects by 2030. Global awareness of green technologies and energy efficiency is another reason for the increasing green roof market demand.
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The Growing Awareness Related to Green Roof System and The Expansion of the Construction Sector
In the residential and industrial areas, there has been an increase in awareness of green roofs due to their ability to keep buildings cool and enhance their aesthetic appeal. In addition, the advantages 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 boosting the green roof market growth. In addition, the increasing emphasis on installing green roof systems in commercial projects drives the expansion of the market. Increased construction of green roof systems in developing nations like India, China, and Mexico contributes significantly to developing the global market.
Moreover, governments of various nations and private companies are launching a variety of subsidiaries and programs to expand the implementation of green roof systems. Counterpoint Sustainable Real Estate (SRE), centered in Connecticut, United States, launched a new financial plan for the setup, services, and maintenance of green roof systems in September 2017. Consequently, growing awareness of green roof systems is anticipated to stimulate green roof market expansion.
Globally, there has been an upsurge in residential construction and inhabiting activities, which has been a significant market driver. From 2015 to 2019, the residential construction sector in the U.K. grew by 2.9%. Moreover, an increase in the disposable earnings of individuals and an improvement in the living standards of the people in developing nations are anticipated to stimulate the market growth of green roofs. In addition, the increase in the urban population in emerging countries like India and China is expected to spur the adoption of green roof systems to reduce air pollution. In addition, government regulations for the setup of green roof systems are projected to rise their demand over the forecast period.
The Presence of Substitutes
It is projected that the availability of alternatives like cool roofs, blue roofs, and brown roofs will hinder the green roof market growth. Cool and blue roofs are less expensive than green roofs. For instance, the cost to install a blue roof is USD 1 per square foot, while the cost to install a green roof range between USD 15 and USD 20 per square foot. Moreover, green roof systems necessitate extensive maintenance, resulting in high costs. Consequently, such factors are anticipated to impede the global expansion of the market.
Tax Benefits Provided by Government
Multiple governments have enacted policies mandating the installation of green roof systems. Additionally, governments offer subsidies to homeowners who have installed green roof systems. In 2017, the German government subsidized building owners 50% of their total investment costs. In addition, the government provides tax incentives to private companies that adopt green roof systems. In 2019, the New York City Department of Buildings mandated that all new and current buildings install green roof systems. Consequently, government tax incentives offered to private industries that install green roof systems are anticipated to create lucrative growth opportunities for the market.
The global green roof market is classified based on type, distribution channel, application, and region.
Segmentation based on type includes extensive and intensive.
The extensive segment is expected to grow at a CAGR of 15.71% and will hold the largest share. Extensive green roofs are often referred to as eco-roofs or brown roofs. Extensive green roofs are lighter-weight with substrates less than 200 mm deep and require minimal maintenance. Increased commercial construction activities have led to substantial investment in extensive green roofs, fueling the market's growth. In addition, the widespread use of extensive green roofs in the commercial and industrial sectors is a significant factor driving the market's expansion. Major market participants, like Zinco GmbH and Bauder Ltd, offer extensive green roof systems for residential and commercial areas.
The intensive segment will hold the second-largest share. An intensive green roof is also a roof garden or a predoom roof. The soil layer on an intensive green roof is greater than six inches in depth and is heavier. Rapid urbanization and a rise in people's disposable income are anticipated to fuel the expansion of the intensive market. From 2018 to 2019, urbanization in India increased by 0.99%. Furthermore, intensive green roofs are durable, aesthetically pleasing, and decrease surface temperature. In addition, the market is fueled by the U.S. government's implementation of stringent installation standards for green roof systems.
Segmentation based on distribution channels includes online and offline.
The offline segment is estimated to grow at a CAGR of 15.7% and holds the largest market share. The offline distribution channel is a platform for customers to acquire products by physically visiting stores. Numerous consumers consider purchasing green roofing products from brick-and-mortar stores because they tend to favor physical inspection and product authentication. Customers consider the product's temperature, material, thickness, and membrane quality, for instance, when purchasing green roof products. Despite the popularity of online product sales, many businesses are opening physical stores to meet customer demands. Moreover, consumers in rural areas continue to rely on physical stores, leading to the expansion of offline stores.
The online segment will hold the second-largest share. The online distribution channel is a virtual platform that enables communication between two or more parties via internet service. The online segment sells green roofs, substrates, blue roofs, and assemblies through online outlets. E-commerce or an online platform has facilitated manufacturers' ability to reach customers and provide various green roof products. In addition, manufacturers can bypass dealers and distributors and sell directly to consumers via e-commerce websites, enabling them to offer products at a cheaper cost. Consumers receive doorstep delivery of goods and have the option to return or exchange them if they do not like them or if they are damaged. Thus, such benefits contribute to the growth of the trend of purchasing green roofs online, stimulating market expansion.
Segmentation based on application includes residential, commercial, and industrial.
The commercial segment is expected to advance at a CAGR of 15.51% and will hold the largest market share. Hotels, malls, shopping complexes, retail stores, warehouses, and offices are examples of commercial spaces. Green roofs are used to reduce heat in commercial areas. In addition, commercial buildings use green roofs to improve visual appeal, reduce heating costs, extend the life of membranes, manage stormwater, and incorporate biodiversity panels. The advancement of the green roof market is fueled by a rise in commercial structures and an increase in public awareness of green roof systems. Increasing investments by significant players installing green roofs also contribute to market expansion. Major companies like Green Roof Blocks and American Hydrotech Inc. offer green roof systems for commercial buildings.
The residential segment will hold the second-largest market share. Private rooms, waiting areas, and living spaces make up the residential areas. In residential areas, the green roof is utilized for applications like absorbing rainwater and waterproofing buildings. The expansion of residential construction fuels the market growth. Green roof systems are used in residential areas because they clean the air, reduce the environment's temperature, and require minimal upkeep. In addition, the expansion of the green roof market share is anticipated to be stimulated by the rising installation of rooftop farms. In September 2020, for instance, the world's largest rooftop urban farm was inaugurated in Paris.
The region-wise segmentation of the global green roof market includes North America, Europe, Asia Pacific, and LAMEA.
Europe And The Asia Pacific Will Dominate The Regional Market
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Europe will likely grow at a CAGR of 15.12% and command the market with the largest share. The growth of the green roof market is anticipated to be fueled by the growing awareness of green roof systems among the European populace. In addition, the execution of government regulations for installing a green roof system is anticipated to spur the expansion of the market. An increase in government expenditure on green building projects is expected to create lucrative growth opportunities for the green roof market.
In 2020, for example, the British government spent USD 3.75 billion on green projects in residential and commercial areas. The French government demands the construction of green roof systems for all new commercial sectors, which is expected to propel the market's expansion. All of these aspects are expected to drive the growth of the green roof market.
The Asia Pacific will hold USD 1,868 million, growing at a CAGR of 17.52%. Rapid urbanization and increasing construction activities in emerging nations such as India, Singapore, and Vietnam drive the Asia-Pacific green roof market growth. India planned to spend USD 1.4 trillion on infrastructure development between 2019 and 2022. In addition, numerous government efforts and policies promoting green roofs to mitigate the effects of global warming are expected to propel the growth of the green roof market.
In Asia-Pacific, for example, the Skyrise Greenery Program promotes the construction of green roof systems on commercial and residential buildings. In addition, government spending on infrastructure construction is anticipated to stimulate market expansion. In September 2019, for instance, the Chinese government invested nearly USD 13 trillion in construction projects by 2030, thereby creating lucrative growth opportunities for the market.
List of key green roof market manufacturers profiled