Green building report tracks compounded market growth

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Dodge Data & Analytics’ World Green Building Trends 2016 SmartMarket Report, compiled from surveys tracking nearly 70 countries, finds global green building volume is doubling every three years. Authors see expansion continuing in the United States, Germany and United Kingdom, but emerging economies like Brazil, India, Saudi Arabia and South Africa representing growth engines—their development activity trending two- to six-fold over current green building levels.

“International demand for green building, due in great part to the LEED program’s global popularity, has grown steadily,” says U.S. Green Building Council CEO Rick Fedrizzi. “Countries are looking for tools that support stable and sustainable economic growth. International business leaders and policymakers recognize that a commitment to transforming the built environment is crucial to addressing major environmental challenges.”

Increasing consumer demand has pushed the world’s green building market to a trillion-dollar industry, a surge the SmartMarket report finds has led to a corresponding increase in the green building materials market, now on pace to reach $234 billion by 2019. Economic forces were cited as the most important drivers for many of the countries Dodge Data & Analytics surveyed, respondents citing green buildings’ operational cost savings against conventional construction. They expect a 14 percent savings in operational costs over five-year savings for new green buildings and 13 percent savings in operational costs over five years for green retrofit and renovation projects. Building owners also report that green buildings—whether new or renovated—command a 7 percent increase in asset value over conventional buildings.

USGBC reports nearly 75,000 commercial projects participating in LEED across the globe, with 1.85 million square feet of building space becoming LEED-certified every day. “The growth of LEED reflects its global adaptability as the world’s most widely used and recognized system guiding the design, construction, operation and maintenance of green buildings,” notes Chief Operating Officer Mahesh Ramanujam. “LEED is a critical tool in creating structures that mitigate greenhouse gas emissions; create healthier indoor environments for workers, students and community members; and, lower utility bills for building owners through reduced energy and water use.”