Green Building Testing & Certification Services Market Size (2023 – 2030)

The Global Green Building Testing and Certification Services was valued at USD 11.71 billion and is projected to reach a market size of USD 29.77 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 14.26%. 

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Green building began in the late '70s and '80s with the movement started by US organizations such as the US Green Building Council (USGBC) that developed the Leadership in Energy and Environmental Design certification in the year 1998.  This certification is a pioneer in defining and measuring the sustainability of buildings. Moreover, the concept was gradually adopted in the early 2000s in North American and European regions.

Furthermore, environmental awareness increased among the people, which led to the development of other green building certification systems such as BREEAM in the UK, Green Star in Australia, and others. The present scenario of green building certification and services showcases the expansion of green building concepts in various regions of the world, encouraging eco-friendly and sustainable construction. Further, various certifications are now tailored as per the requirements of the buildings, such as commercial, residential, industrial, or public utilities.

Moreover, rising trends in energy efficiency have increased the need for complying with energy-efficient construction norms that can reduce the carbon footprint. The future holds positive for the green building industry, as people and industries become more and more environment conscious. These include the integration of green technology such as smart building systems or carbon-neutral buildings, the use of sustainable materials in building materials, and the use of natural ways that focus on the well-being of the residents such as maintaining indoor air quality, natural lighting, and others.

Key Market Insights:

• The first LEED platinum-certified high-rise commercial building is One Bryant Park in Manhattan. It has greywater recycling services, rainwater harvesting, and has 4.6-megawatt cogeneration plant.
• Moreover, well-ventilated offices register a 101% rise in brain functionality of employees.
• Further, LEED-certified buildings help to reduce CO2 emissions by 34%.
• The Australian Green Star Certified buildings produce 62% less greenhouse gas emissions. (World Green Building Council, Austrade)
• Furthermore, the global green building industry is anticipated to curb energy consumption by 50% or more by 2050.

Green Building Certification & Services Market Drivers:

Environmental concerns in the construction industry drive the market for green building certification & and services market

Growing awareness regarding climate change is the primary concern in the building industry. Buildings are responsible for producing a substantial portion of pollution and greenhouse gases, leading to deteriorated air quality and a negative impact on health. However, after the implantation of green building practices, this has reduced considerably, as green building services prioritize energy-efficiency and carbon offsetting methods by installing energy-efficient windows, lighting, and HVAC systems, and by setting up carbon-neutral plants to absorb the carbon emission released during the construction process.

Moreover, conventional building practices led to a greater amount of water wastage, which is now reduced by green building services as they offer water-saving technologies to construct structures. These include low-flow fixtures, rainwater harvesting systems, drought-resistant systems, and others. Additionally, the use of recycled building materials ensures the minimization of construction waste and helps to reduce waste accumulation and landfills.

Technological advancements in the construction industry have boosted the demand for green building certification & and services market.

The advancements in building technologies have completely transformed the building industry. With the emergence of smart technologies such as IoT sensors, deployment of energy-efficient HVAC systems, smart thermostats, and others.

Further, increasing trends in energy-efficient technology have led to the development of efficient lighting solutions such as LED lighting, energy-efficient natural lighting windows, and others. Moreover, smart home demands by consumers have raised the demand for precision-controlled and automated systems. Apart from this, renewable energy technologies have made energy more affordable and accessible to people. These include integrating buildings with nearby wind turbines, installing solar panels, deploying clean energy systems, and other systems that reduce the dependency on fossil fuels.

Further, a recent trend in building management systems has increased the use of smart sensors and data analytics for monitoring building activities in real time and adjusting the activities as per the weather conditions, thus reducing operational costs considerably. Moreover, energy trackers are installed in buildings that help in tracking energy consumption and identifying any faults in the systems that help prevent future damage.

Green Building Certification & Services Market Restraints and Challenges:

The high cost of certification & and services can decrease the demand for green building certification & and services in the market. Green building certification and services require expensive assessments, documentation, verification, and other services, which require extra costs on the part of building owners and developers.

Green Building Certification & Services Market Opportunities:

The Global green building certification & and services market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches, and agreements during the forecasted period. Furthermore, the growing demand for green-certified buildings and energy efficiency is predicted to develop the market for green building certification & and services and enhance its future growth opportunities.

GREEN BUILDING CERTIFICATION & SERVICES MARKET REPORT COVERAGE:

Green Building Certification & Services Market Segmentation: By Certification Type

• LEED Certification

• BREEAM Certification

• Green Star Certification

• Others

In 2022, based on market segmentation by certification type, LEED certification occupies the highest share of more than 30% of the market. LEED (leadership in Energy & Environmental Design) is the most recognized and widely used green building certification used by buildings. Its main emphasis is on providing regulatory support to buildings, focusing on energy-efficiency technologies, and others. Moreover, it offers tailor-made certifications for different building types such as for homes, existing buildings, neighborhood development, and others.

The BRREAM certification occupies a significant share of the market. This certification is limited to regions in Europe and focuses on key environmental concepts such as energy efficiency, water and wastage management, landscaping and biodiversity protection, and others. Moreover, it offers certification for both new construction and existing ones.

Green Building Certification & Services Market Segmentation: By Building Type

• Residential

• Commercial

• Public

In 2022, based on market segmentation by building type, the residential segment occupies the highest share of about 29% in the market. These include services provided for constructing standalone houses, single-family homes, and housing complexes that focus more on energy efficiency, sustainable landscaping, and renewable energy sourcing options.

The commercial segment is the fastest-growing segment during the forecast period. Certification services are used for office buildings with a focus on environment-friendly HVAC systems and efficient lighting. Moreover, retail settings and the hospitality sector require certification and services that focus on waste management, energy efficiency, sustainable practices in food services, eco-friendly cooling and heating systems, and others.

Green Building Certification & Services Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

In 2022, based on market segmentation by region, North America occupies the highest share of about 31% in the market. Mandatory government regulations towards sustainable construction & and building methods, rising demand for environment-friendly structures, and the technologically enabled construction industry have contributed to the demand for green building certification & and services in the market.

Asia-Pacific is the fastest-growing region during the forecast period. The increase in infrastructure projects in the region due to the increase in population and rising environmental concerns regarding increased pollution and environmental deterioration, has contributed to the demand for green building certification & and services in the market.

COVID-19 Impact Analysis on the Global Green Building Certification & Services Market:

The pandemic hurt the green building certification & and services market. Due to the closure of many industries including construction, there was a decline in demand for certification and services in the market. Moreover, the reduced building occupancy rate during the pandemic negatively affected the real estate sector, which further impacted the growth of green building certification & and services in the market.

Latest Trends/ Developments:

The global Green Building Certification and Services Market is reasonably split and fragmented with the existence of several global companies. These players are motivated to achieve higher market share by implementing different strategies, such as acquisitions, partnerships, and investments. A growing trend in carbon neutrality and net-zero emissions is among the key factors contributing to the green building industry. Moreover, as consumers shift their preferences towards energy-efficient and cost-saving technologies, several green building consultancy companies are offering energy-saving management systems along with energy-efficient installations such as LED lighting, energy-efficient windows, smart energy trackers, and access to renewable energy sources.

Key Players:

1. Godrej

2. IGBC

3. UL Solutions

4. GRC India

5. TUV SUD

6. SGS India

7. Blue Star India