The U.S. Market for "Green" Building Materials

Abstract

INTRODUCTION

The built environment has a great impact on the natural environment, human health, and the economy. According to the Environmental Protection Agency, buildings in the U.S. account for

39% of the nation's total energy use 12% of its total water consumption 68% of total electricity consumption 38% of the carbon dioxide emissions In addition, a growing body of research has established the connection between indoor air quality (IAQ) and the health of building occupants. While most of the problems associated with poor IAQ are the result of inadequate ventilation, some are also caused by various types of airborne contaminants or toxins.

The presence of some of these contaminants, such as formaldehyde, is traceable to the use of certain building materials. Overexposure to formaldehyde may result in nose irritation, sneezing, dry throat, eye irritation, headache, and nausea. Formaldehyde is used extensively in the manufacture of certain building products (e.g., as bonding/laminating agents, adhesives, paper and textile products, and foam insulation), from which formaldehyde gas may be released in the course of normal use.

"Green" or "sustainable" building involves the use of building practices and materials that use resources as efficiently as possible, while constructing healthier, more energy-efficient, and environmentally friendly buildings. A related objective of some green building projects is creating esthetic harmony between a building and its environment.

The market for green building materials has been growing rapidly. As of the beginning of 2005, 177 million square feet of buildings have been certified by the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) Program. An article in the June 2006 issue of the Harvard Business Review predicts that green construction will become a mainstream technology in the next 5 to 10 years, as a growing market helps to drive down the cost of green building products, and building owners become increasingly aware of the economic, health, and environmental advantages of green building. The impact of green building going mainstream will be as profound on commercial real estate as the invention of central air conditioning in the 1950s and 1960s, or elevators in the 19th century, according to the article.

Over 500 U.S. companies, including a number of Fortune 500 companies, are involved in the production of green building materials and the design and construction of green buildings. This number is likely to grow rapidly as more building owners and investors wake up to the potential of green building.

SCOPE OF STUDY

This report contains:

An in-depth discussion of building materials defined as "green" The definition of green building materials and the criteria these materials must meet in order to be called green A detailed overview of the green materials market Global trends in the market, including a 5-year forecast to 2011 A review of recent and upcoming technology as well as a detailed analysis of patents Profiles for the top companies in the green building materials market METHODOLOGY

The methodologies and assumptions used to develop the market projections in this report are discussed at length in the section on U.S. Market for Green Building Technologies, 2006 through 2011/Detailed Market Estimates and Projections. In general, BCC used the following approach:

Identified commercial as well as promising developmental green building technologies and their target markets through a literature review and interviews with industry experts.

Estimated baseline (2005) market penetration ratio for each technology/target market.

Developed forecasts of growth trends in each target market.

Analyzed technical, economic and other factors that will influence the ability of different green building technologies to compete for a share of their respective market(s) and estimated future consumption of each technology on this basis.

The report carefully documents data sources and assumptions. This way, readers can see how the market estimates were developed and, if they so desire, test the impact on the final numbers of changing assumptions such as price.