Low Carbon Building Market Size Expected To Reach USD 1598.18 Billion By 2034, With 11.80% CAGR

(MENAFN- GlobeNewsWire - Nasdaq) The global low carbon building market size is projected to reach USD 1598.18 billion by 2034 from its value of USD 654.77 billion in 2024, at a CAGR of 11.80% during the forecast period.

NEW YORK, USA , Sept. 08, 2025 (GLOBE NEWSWIRE) -- Zion Market Research has published a new research report titled“ Low Carbon Building Market By Type (Energy-Efficient Materials, Renewable Energy Systems, Low Carbon HVAC Systems, Green Building Certifications, and Others), By Component (Structural Components Energy Systems, HVAC Systems, Lightning Solution, and Others), By Application (Commercial, Residential, Industrial), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2025 - 2034” in its research database.

“According to the latest research study, the global low carbon building market size was valued at around USD 654.77 billion in 2024. The market is expected to grow at a CAGR of 11.80% and is anticipated to reach a value of USD 1598.18 billion by 2034.”

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Low Carbon Building Industry Overview:

Low-carbon building refers to the construction, design, and operation of buildings that reduce carbon emissions throughout their lifespan, from material sourcing to power use and waste management. These buildings focus on energy efficiency, sustainable materials, renewable energy integration, and innovative solutions to decrease GHG. The global low-carbon building market is projected to witness substantial growth driven by growing environmental awareness, urbanization, population growth, and technological improvements in green construction. Consumers and businesses are primarily concerned about climate change. Businesses integrate ESG goals into their operations, while users prefer ecologically friendly buildings.

With the urban population anticipated to surpass 68% by 2050, sustainable urban infrastructure becomes a vital factor. Advancement in building materials, smart sensors, energy-efficient HVAC systems, and renewable energy solutions drives industry adoption. Although drivers exist, the global market is challenged by factors like the lack of skilled labor and low awareness in developing economies. Low-carbon adoption needs expertise in the construction, design, and operation of sustainable buildings.

Report Scope:

Report Attribute	Report Details
Market Size in 2024	USD 654.77 Billion
Market Forecast in 2034	USD 1598.18 Billion
Growth Rate	CAGR of 11.80%
Base Year	2024
Forecast Years	2025- 2034
Key Companies Covered	Skanska, Vinci Construction, Bouygues Construction, LafargeHolcim (now Holcim), Saint-Gobain, Heidelberg Materials (formerly HeidelbergCement), Balfour Beatty, Turner Construction Company, Bechtel Corporation, Katerra, ACC Limited, Kajima Corporation, Lendlease Group, Obayashi Corporation, Ferrovial, and others.
Segments Covered	By Type, By Component, By Application, and By Region
Regions Covered	North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa
Customization Scope	Avail customized purchase options to meet your exact research needs.

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Key Insights

• As per the analysis shared by our research analyst, the global low carbon building market is estimated to grow annually at a CAGR of around 11.80% over the forecast period (2025-2034)
• In terms of revenue, the global low carbon building market size was valued at around USD 654.77 billion in 2024 and is projected to reach USD 1598.18 billion by 2034.
• The low carbon building market is projected to grow significantly due to increasing demand for energy-efficient buildings, smart city development, and urbanization, as well as rising prices of traditional energy sources.
• Based on type, the energy-efficient materials segment is expected to lead the market, while the renewable energy systems segment is expected to grow considerably.
• Based on component, the structural components segment is the dominating segment, while the energy systems segment is projected to witness sizeable revenue over the forecast period.
• Based on the application, the commercial segment is expected to lead the market compared to the residential segment.
• Based on region, Europe is projected to dominate the global market during the estimated period, followed by the Asia Pacific.

Industry Growth Factors

The proliferation of green building rating systems like WELL, BREEAM, and LEED has propelled the growth of the low-carbon building market by promoting sustainable construction practices. In 2024, the number of LEED-certified projects surged by 15% over the past year, with PAC experiencing speedy adoption.

Certification plays a key role as a quality benchmark, appealing to tenants and investors who value environmental responsibility. Corporate sustainability goals also comply with these certifications, fueling commercial demand.

Investment in green and sustainable initiatives has increased worldwide, fueling demand and impacting the low carbon building market. Global green building investments hit $1.5 trillion in 2024, a 12% rise from 2023, denoting rising confidence among private and institutional investors.

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Low Carbon Building Market: Segmentation

The global low carbon building market is segmented based on type, component, application, and region.

Based on type , the global low carbon building industry is divided into energy-efficient materials, renewable energy systems, low carbon HVAC systems, green building certifications, and others. The energy-efficient materials segment registered substantial growth in the market. These materials comprise low-emission concrete, sustainable flooring, high-performance insulation, and energy-efficient glass, which decrease energy consumption and curb operational costs.

Based on component , the global low carbon building market is segmented into structural components, energy systems, HVAC systems, lightning solutions, and others. The structural components segment held a leading market share. It comprises foundations, roofs, and floors built with ecological and low-carbon materials.

Based on application , the global market is segmented into commercial, residential, and industrial. The commercial segment holds leadership since these buildings have significant energy consumption because of HVAC systems, lighting, and equipment, making them prime candidates for energy-saving solutions. They comprise retail spaces, offices, and educational institutions, denoting a significant market share.

Regional Scope:

Europe is likely to sustain its leadership in the low carbon building market due to high adoption of green building certifications, emphasis on renewable energy integration, and high environmental awareness among corporates and consumers. European nations have broadly adopted green building certifications like DGNB, LEED, and BREEAM, making certified low-carbon benchmarks for sustainability and quality.

Asia Pacific continues to secure the second-highest share in the low carbon building industry owing to speedy urbanization, growing environmental awareness and corporate ESG goals, and increasing adoption of smart technologies. Asia Pacific is witnessing the fastest rate of urbanization across the globe, creating strong demand for new commercial, residential, and industrial buildings.

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Some of the leading players in the global low carbon building market include;

• Skanska
• Vinci Construction
• Bouygues Construction
• LafargeHolcim (now Holcim)
• Saint-Gobain
• Heidelberg Materials (formerly HeidelbergCement)
• Balfour Beatty
• Turner Construction Company
• Bechtel Corporation
• Katerra
• ACC Limited
• Kajima Corporation
• Lendlease Group
• Obayashi Corporation
• Ferrovial

The global low carbon building market is segmented as follows:

By Type

• Energy-Efficient Materials
• Renewable Energy Systems
• Low Carbon HVAC Systems
• Green Building Certifications
• Others

By Component

• Structural Components
• Energy Systems
• HVAC Systems
• Lightning Solution
• Others

By Application

• Commercial
• Residential
• Industrial

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Southeast Asia
  • Rest of Southeast Asia
• The Middle East & Africa
  • GCC
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America

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Key Questions Answered in This Report:

• What is Low Carbon Building?
• Which key factors will influence the Low Carbon Building market growth over 2025-2034?
• What will be the value of the Low Carbon Building market during 2025-2034?
• What will be the CAGR value of the Low Carbon Building market during 2025-2034?
• Which region will contribute notably towards the Low Carbon Building market value?
• Which are the major players leveraging the Low Carbon Building market growth?
• What can be expected from the global Low Carbon Building market report?

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