U.S. Green Building Materials Market Size & Opportunities Analysis - Growth Strategies, Competitiveness, and Forecasts (2025 - 2032)

U.S. Green Building Materials Market Growth Factors

Innovative Materials Are Major Trends

• The construction of buildings has seen numerous technological advancements in recent years, such as use of hempcrete and algae bricks.
• Hempcrete is a lightweight, breathable material that is made by mixing lime with the woody core of the hemp plant.
• It is a natural insulator and regulates humidity to make the buildings more energy efficient.
• Hempcrete is a carbon-negative material as it absorbs carbon dioxide while it cures.
• Algae-based bricks are made with microalgae via natural processes, and their production requires much less energy than normal concrete.
• It can even lower COâ‚‚ emissions by up to 90% as some variants actively sequester carbon when they are manufactured.
• Studies say that buildings are responsible for over 30% of the carbon emissions in the country.
• Besides being eco-friendly, these bricks are durable and fire-resistant.

Economic Benefits of Green Buildings and Government Initiatives Drive Market

• LEED-certified buildings can earn up to 11% higher sales prices and up to 20% higher rental rates, as per the U.S. Green Building Council.
• Energy-efficient buildings lower energy expenses by enhancing ventilation quality and offer comfortable spaces.
• As per studies, buildings account for 40% of the energy and 74% of the electricity consumed in the country, which highlights a major need for energy efficiency in this area.
• Sustainable buildings offer even more savings when integrated with rooftop or building-integrated solar panels and water-saving equipment.
• The Energy Efficient Commercial Buildings Deduction program makes commercial buildings showcasing at least a 25% increase in energy efficiency eligible for a tax deduction.
• Under the Inflation Reduction Act (2022), buildings that use renewable electricity technologies may apply to receive Production Tax Credit and Investment Tax Credit.
• Other government initiative implemented to drive greed construction are the Title 24 Building Energy Efficiency Standards of California, NYSERDA of New York, and ENERGY STAR for Buildings of the EPA.

U.S. Green Building Materials Market Segmentation and Category Analysis

Insights by Product

Exterior products are the largest category, with a market share of 35% in 2024. This is because of the rising demand for reflective roofing, water-efficient concrete, sustainable bricks, low-VOC paints, and other materials to decrease heating and cooling expenses. Moreover, using wood salvaged from old or decommissioned buildings can substantially reduce the need for deforestation. Other key exterior materials trending in the country are fiber cement, recycled steel and aluminum, clay bricks, bamboo cladding, cork panels, rammed earth, walls that incorporate live plants, natural stone, and terracotta panels.

Solar products are the fastest-growing category, with 10.6% CAGR. The advancement of solar technology makes it more effective and cheaper to acquire. Onsite solar panels not only reduce the dependence on the centralized grid, thus enabling utility cost savings but also allow property owners to make money by feeding the excess energy generated to the grid. The EPA’s USD 7-billion Solar for All initiative aims to enable 900,000 disadvantaged and low-income households to receive decentralized solar energy.

These products were analyzed:

• Exterior Products (Largest Category)
• Interior Products
• Building Systems
• Solar Products (Fastest-Growing Category)
• Others

Insights by End Use

Residential buildings are the larger category, with a market share of 55% in 2024, and the faster-growing category, with 10.8% CAGR, because of the rising public awareness of energy efficiency and sustainable materials. As per studies, households consumed 18.4 quadrillion British thermal units of energy in the U.S. in 2023. With the need for more electricity for a burgeoning population, governments are prioritizing green construction, so that electricity can be distributed more equally to everyone.

These end uses were analyzed:

• Residential (Larger and Faster-Growing Category)
• Non-Residential

U.S. Green Building Materials Market Regional Growth Dynamics

Northeast is the largest as well as fastest-growing category, with a market share of 40% in 2024 and CAGR of 11% over the forecast period. Strict environmental regulations, high energy costs, and numerous old structures undergoing renovation with energy efficiency in mind drive the demand for sustainable construction materials. As per the U.S. Green Building Council, New York and Massachusetts rank first and third, respectively, in terms of the number of green buildings in the country. The State of New York also leads in gross green building area, as of 2024.

The regions analyzed for this report include:

• Northeast (Largest and Fastest-Growing Category)
• Midwest
• West
• South

U.S. Green Building Materials Market Share

The market is fragmented because it comprises numerous types of participants, including multinational corporations, regional firms, and niche manufacturers. While the major firms offer comprehensive solutions, numerous smaller firms focus on specialized product categories, such as recycled insulation, low-VOC paints, and bio-based materials. The wide variety of products and installation processes is the primary factor that fragments the market. ​The requirement for customized solutions leads to the existence of local suppliers and manufacturers. Moreover, not every company offers everything, which is the key reason no single firm holds a major share in the overall market.

U.S. Green Building Materials Market News & Updates

• In March 2025, James Hardie Industries announced plans to acquire AZEK for around USD 8.75 billion in stock and cash, including USD 386 million in debt. This move aims to expand James Hardie’s fiber cement line with the addition AZEK’s wide range of eco-friendly decking and exterior products.
• In February 2025, Holcim announced plans to spin off its North American operations into a new company, named Amrize.