Low Carbon Building Market

Low Carbon Building Market Size by Type (Renewable Energy Systems, Low Carbon HVAC Systems, Energy Efficient Systems, and Others), Application (Commercial, Residential, Industrial and Others), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2023 to 2032

Base Year: 2022 Historical Data: 2019-21
  • Report ID: TBI-13962
  • Published Date: Jan, 2024
  • Pages: 238
  • Category: Energy & Power
  • Format: PDF
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The global low-carbon building market was valued at USD 523.81 Billion in 2022 and grew at a CAGR of 11.72% from 2023 to 2032. The market is expected to reach USD 1586.65 Billion by 2032. The growth of the low-carbon building market can be attributed to the rising regulations demanding decarbonization of the construction industry. Further, the increasing technological advancement in the development of low-carbon components has played a pivotal role in the market growth.

Market Introduction:

A building that produces noticeably fewer greenhouse gases than a typical building is called a low-carbon building. A low-carbon building must reduce greenhouse gas emissions from traditional buildings by at least 80% to qualify as climate change neutral. As LCBs are made of materials with lower embodied carbon, buildings have higher energy efficiency. Reducing the direct consumption of fossil fuels, such as gas, coal, and oil, is necessary to achieve low carbon. It also necessitates cutting back on cooking and cleaning that indirectly use fossil fuels. Optimizing the structure, orientation, size, window/glazing position, and appropriate material selection for the building envelope are low-energy or low-carbon building design goals. The low-energy building idea also includes integrating energy-efficient HVAC (heating, ventilation, and air conditioning) systems with TES.

Low Carbon Building Market Size

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Market Dynamics:


Increasing construction for low-carbon buildings: Approximately half of all fuel burned in most of the nation is accounted for by buildings, with commercial buildings accounting for half of this total. Reduced embodied carbon materials are used to create and construct low-carbon structures, which increase building energy efficiency. With increasing urbanization, carbon emissions from building energy use account for a sizable portion of anthropogenic emissions in metropolitan areas. Construction of low-carbon buildings requires reducing energy use during the decades-long building operating period. While other significant characteristics of buildings and cities are disregarded, many frameworks, such as low-carbon buildings/cities and zero-energy buildings, significantly emphasize the influence of greenhouse gas emissions on sustainability.


Cost of installation: The installation of low-carbon buildings can be costly depending on the size of the structure and the material utilized. This also depends on the existing structure's quality, which must be strong enough to sustain the retrofits. The cost of components determines the actual cost of the instalment. As many components are used to construct low-carbon buildings, the final installation cost must be lowered. For market participants, this volatility in material cost impacts the market's growth.


Favourable government initiatives: The increase in the imposition of stringent regulations to reduce ecological footprints and decarbonization has pushed regional governments to take suitable measures. Also, the increase in energy costs and the continuous demand from the industries have pressured the regional governments to set up low-carbon buildings, which will reduce the cost and increase the optimality of the industries. In many regions, the government is offering tax initiatives to companies installing low-carbon buildings and complying with energy-efficient laws. The regional agencies are also setting up low-carbon buildings for industries such as energy auditing and consulting, optimizing processes and verifying the energy units.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Europe emerged as the most significant low-carbon building market, with a 39.82% market revenue share in 2022.

Europe region will account for the largest market share with revenue growth. The region has a high demand for decarbonized buildings, especially in the commercial and industrial sectors. The imposition of stringent regulations regarding sustainable building practices propels the regional market's growth. The regional authorities prioritize energy-efficient structures over traditional ones and thus invest resources in developing such buildings.

Europe region Low Carbon Building Market Share in 2022 - 39.82%



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Product Type Segment Analysis

The product type segment is divided into renewable energy systems, low-carbon HVAC systems, energy-efficient systems and others. The energy-efficient systems segment dominated the market, with a share of around 47.91% in 2022. Energy-efficient buildings are made to use less energy, produce less waste, and emit fewer emissions. Energy conservation is maximized when a building is energy efficient since it provides a suitable living space with low energy usage and waste.

Application Segment Analysis

The application segment is divided into commercial, residential, industrial and others. The commercial segment dominated the market, with a share of around 50.85% in 2022. The commercial industry is moving away from non-renewable building materials like steel and concrete. It is shifting towards low-carbon and renewable because construction materials account for 11% of the world's CO2 emissions today.

Some of the Key Market Players:
  • Siemens AG
  • Johnson Controls International plc
  • Trane Technologies plc
  • Schneider Electric SE
  • ABB Ltd
  • Kingspan Group plc
  • Mitsubishi Electric Corporation
  • Skanska AB
  • Green Building Councils
  • Lendlease Corporation Ltd
  • Turner Construction Company
  • Legrand SA
  • Saint-Gobain
  • Interface, Inc.

Report Description:

Attribute Description
Market Size Revenue (USD Billion)
Market size value in 2022 USD 523.81 Billion
Market size value in 2032 USD 1586.65 Billion
CAGR (2023 to 2032) 11.72%
Historical data 2019-2021
Base Year 2022
Forecast 2023-2032
Region The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
Segments Type and Application

Frequesntly Asked Questions

As per The Brainy Insights, the size of the low carbon buildings market was valued 523.81 Billion in 2022 to USD 1586.65 Billion by 2032.

Global low carbon buildings market is growing at a CAGR of 11.72% during the forecast period 2023-2032.

The global low carbon buildings market has been segmented based on type, application, and regions. Energy efficient systems led the market in 2022 in the type segment. Commercial led the market in 2022 in the application segment.

Europe region emerged as the largest market for the low carbon buildings.

The market's growth will be influenced by the growing construction of low carbon buildings.

The high installation cost can hamper the market growth.

The increasing investments in decarbonisation of construction industry are providing huge opportunities to the market.

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This study forecasts revenue at global, regional, and country levels from 2019 to 2032. The Brainy Insights has segmented the global low carbon buildings market based on below mentioned segments:

Global Low Carbon Buildings Market by Type:

  • Renewable Energy Systems
  • Low Carbon HVAC Systems
  • Energy Efficient Systems
  • Others

Global Low Carbon Buildings Market by Application:

  • Commercial
  • Residential
  • Industrial
  • Others

Global Low Carbon Buildings Market by Region:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
  • Asia-Pacific
    • Japan
    • China
    • India
  • South America
    • Brazil
  • Middle East and Africa  
    • UAE
    • South Africa


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