Green Building Market in the US – Size, Forecast, and Competitive Landscape: Explore FBS Global’s US Potential

Market Outlook: Green Building Market in the US 2025-2029

The green building market in the US is rapidly growing, driven by increasing demand for sustainable construction practices, energy efficiency, and eco-friendly building materials, as both consumers and businesses seek to reduce environmental impact and operational costs. The market is expected to grow by USD 60-75 billion at a CAGR of 11%-13% between 2025 and 2029. Exact values for this market can be accessed upon purchasing the report. Key companies in this market include:

• Cushman & Wakefield
• Jones Lang Lasalle (JLL)
• CBRE Group
• Colliers International
• Newmark Group
• Others

The green building market in the US is expanding rapidly as more developers and architects embrace sustainable construction solutions to meet the growing demand for eco-friendly and energy-efficient buildings. Green building technology is at the forefront, integrating innovative materials and systems that reduce environmental impact. With a focus on sustainable architecture designs, builders are increasingly using eco-friendly building materials and adopting green construction practices that prioritize energy efficiency. LEED building standards have become a key benchmark for green building certifications, ensuring structures meet rigorous sustainability criteria. Renewable energy buildings, powered by solar panels and other renewable sources, are becoming more common, helping to drive carbon-neutral construction. As the industry evolves, the focus on creating environmentally responsible spaces is transforming the way buildings are designed, constructed, and operated, ensuring a greener future for urban development.

IPO Company Overview: FBS Global in the US green building market

FBS Global recently launched its IPO on the Nasdaq Capital Market in February 2025 under the ticker symbol FBGL, creating a new opportunity for investors. FBS Global is a leading real estate services firm specializing in providing comprehensive property management, commercial leasing, and investment advisory solutions across the US With a focus on sustainable growth, operational efficiency, and client satisfaction, FBS Global delivers tailored services that meet the unique needs of property owners, investors, and tenants.

Market Segmentation: How is the US green building market segmented?

Building Type

• Residential Buildings
• Commercial Buildings
• Industrial Buildings
• Institutional Buildings

Commercial buildings are the leading subsegment, driven by increasing demand from businesses looking to reduce operational costs, improve energy efficiency, and create healthier work environments. This segment benefits from tax incentives, government policies, and a growing focus on sustainability in the corporate sector.

Building Certification

• LEED
• BREEAM
• Energy Star Certification
• WELL Building Standard

LEED certification is the most widely recognized and sought-after certification in the US, as it provides a comprehensive framework for green building practices and is supported by government incentives and market demand for energy-efficient and environmentally responsible construction.

Investment Opportunities: Why explore the US green building market with Technavio?

Recent developments in the green building market in the US reflect a strong shift towards sustainability, driven by increasing demand from both consumers and businesses for energy-efficient, environmentally friendly structures. Government incentives and regulations, such as the Energy Star and LEED certification programs, continue to fuel the adoption of green building practices, with many states and municipalities implementing stricter energy codes and regulations. This has led to a rise in the construction of net-zero energy buildings and the widespread use of sustainable materials like recycled steel, low-VOC paints, and energy-efficient HVAC systems. Furthermore, the impact of the COVID-19 pandemic has accelerated demand for healthier indoor environments, leading to greater adoption of WELL Building Standards, which focus on the health and wellness of building occupants, including air quality and natural lighting.

In addition to these regulatory and health-driven factors, the green building market has seen significant innovations in smart technologies and energy management systems, contributing to higher building performance and lower operating costs. The growing trend of sustainability-focused real estate investments is also evident, with more developers and investors considering green building certifications and long-term operational savings when evaluating projects. With increasing awareness of climate change and the environmental impact of traditional construction methods, the market is expected to continue evolving, driven by advances in renewable energy integration, smart building systems, and water conservation technologies. These developments align with broader efforts to reduce carbon footprints and promote environmental responsibility in the built environment.

Market Dynamics: What factors are influencing the green building market in the US?

Drivers:

The green building market in the US is primarily driven by growing environmental awareness, with both consumers and businesses seeking to reduce their carbon footprints and environmental impact. Government regulations and incentives, such as tax breaks for sustainable construction and energy-efficient buildings, further boost adoption. The rising cost of energy and utilities also motivates building owners and tenants to prioritize energy-efficient designs and technologies. Additionally, demand for healthier living and working environments, particularly post-COVID-19, has accelerated the push for green buildings that improve air quality, natural lighting, and overall well-being.

Trends:

Key trends in the green building market include the increasing integration of smart technologies like energy management systems, renewable energy sources such as solar energy and wind power, and sustainable building materials like recycled concrete and low-carbon steel. The adoption of green certifications such as LEED and WELL Building Standards continues to grow as both a requirement and a competitive advantage. There's also a noticeable shift toward net-zero energy buildings, which produce as much energy as they consume. Moreover, biophilic design, incorporating natural elements into architecture, is becoming more popular, as it promotes well-being and sustainability.

Opportunities:

The green building market in the US presents numerous opportunities, particularly in retrofit and renovation projects, where existing buildings are upgraded to meet modern energy-efficient standards. The increasing demand for sustainable construction and green building materials presents a robust market for suppliers and manufacturers. Additionally, the growing interest in smart cities and sustainable urban development opens up opportunities for innovation in building technologies and infrastructure. The need for healthier and more resilient buildings in the face of climate change offers significant growth potential, particularly in sectors like healthcare, education, and corporate offices.

Challenges:

Despite its growth, the green building market faces several challenges, including the high upfront costs associated with sustainable construction, which can deter developers and property owners from adopting green building practices. The complexity of certification processes and the need for specialized expertise in design and construction can also pose barriers, especially for smaller firms. Additionally, the lack of standardization in green building certifications and technologies can create confusion and inconsistencies in the market. Lastly, there is the challenge of changing market behavior, as not all stakeholders, especially in the commercial sector, may fully appreciate the long-term savings and environmental benefits of green buildings.

Investment Questions: Topics to consider when investing in the green building market in the US

What is the regulatory environment and potential for policy change?
Assess how local, state, and federal regulations, such as energy efficiency standards and green building incentives (e.g., LEED certification or tax incentives), might affect the market and individual investments. Are there any potential changes in policy that could impact profitability or operational costs?

How sustainable is the demand for green buildings?
Evaluate the long-term demand for sustainable construction and energy-efficient buildings. Is there an increasing trend in eco-conscious consumer preferences, and are companies focusing more on green initiatives in their real estate portfolios?

What is the expected return on investment (ROI) for green building projects?
Consider the financial benefits associated with green buildings, such as lower operating costs, energy savings, and higher tenant retention rates, compared to the initial higher upfront costs. What is the potential for long-term value appreciation?

How is the company or developer integrating sustainable design and technology?
Investigate the level of innovation in the projects being considered. Is the company incorporating the latest energy-efficient technologies, smart building systems, and renewable energy solutions that can enhance the performance and marketability of the property?

What is the potential for retrofit projects?
Retrofit opportunities in existing buildings are an important consideration. What is the demand for upgrading older buildings to meet green standards, and what are the associated costs and returns on these projects?

For a detailed analysis of the green building market in the US, buy the full report

Technavio Report Insights: How Can Technavio Reports Help Investors Make Better Business Decisions?

Key Features of a Technavio Report: 

• Comprehensive Market Analysis: Provides a detailed overview of the green building market in the US, including market size, growth rate, segmentation, and regional analysis. 

• In-Depth Competitive Landscape: Offers insights into the competitive dynamics, market share and positioning, and product offerings of key players. 

• Future Market Trends: Identifies emerging trends and opportunities that can shape the future of the market. 

• Detailed Segmentation: Breaks down the market into various segments to help investors identify specific niches and target markets. 

• Expert Analysis: Provides expert insights and forecasts from industry analysts

FAQ

1. What are the key drivers behind the green building market in the US?

The green building market is driven by increasing environmental awareness, government incentives, tax breaks, and stricter regulations on energy efficiency. Additionally, businesses and consumers are increasingly prioritizing sustainability, and technological advances have made green building solutions more cost-effective and accessible.

2. How is the green building market expected to grow in the future?

The green building market in the US is expected to grow significantly as awareness of environmental issues increases and demand for sustainable, energy-efficient buildings rises. Continued adoption of green technologies, smart building systems, and sustainable materials will drive this growth. Additionally, policies aimed at reducing carbon emissions and enhancing climate resilience will further stimulate market development.

3. What challenges does the green building market face?

Challenges include high initial costs, complex certification processes, and a lack of standardization in green building practices. Additionally, some developers may be hesitant to invest in green buildings due to perceived financial risks or a lack of education on the long-term savings and benefits of sustainable construction.

4. Are there any financial incentives for building green buildings?

Yes, various financial incentives are available at the local, state, and federal levels, such as tax credits, grants, green bonds, and low-interest loans for sustainable construction projects. These incentives help reduce upfront costs and improve the financial viability of green building projects.

5. How do green buildings impact tenant demand?

Green buildings often attract tenants willing to pay higher rents for environmentally friendly and healthier spaces. Features such as better air quality, natural lighting, and energy efficiency make green buildings more appealing to tenants, particularly in commercial real estate. These buildings tend to have lower vacancy rates and higher tenant satisfaction, resulting in better long-term financial performance.

Table of Contents

1 Executive Summary

• 1.1 Market overview
  • Executive Summary - Chart on Market Overview
  • Executive Summary - Data Table on Market Overview
  • Executive Summary - Chart on Global Market Characteristics
  • Executive Summary - Chart on Market by Geography
  • Executive Summary - Chart on Market Segmentation
  • Executive Summary - Chart on Incremental Growth
  • Executive Summary - Data Table on Incremental Growth
  • Executive Summary - Chart on Company Market Positioning

2 Technavio Analysis

• 2.1 Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
  • Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

• 2.2 Criticality of inputs and factors of differentiation
  • Overview on criticality of inputs and factors of differentiation

• 2.3 Factors of disruption
  • Overview on factors of disruption

• 2.4 Impact of drivers and challenges
  • Impact of drivers and challenges in 2024 and 2029

3 Market Landscape

• 3.1 Market ecosystem
  • Parent Market
  • Data Table on - Parent Market

• 3.2 Market characteristics
  • Market characteristics analysis

• 3.3 Value chain analysis
  • Value chain analysis

4 Market Sizing

• 4.1 Market definition
  • Offerings of companies included in the market definition

• 4.2 Market segment analysis
  • Market segments

• 4.3 Market size 2024

• 4.4 Market outlook: Forecast for 2024-2029
  • Chart on Global Market - Market size and forecast 2024-2029 ($ billion)
  • Data Table on Global Market - Market size and forecast 2024-2029 ($ billion)
  • Chart on Global Market: Year-over-year growth 2024-2029 (%)
  • Data Table on Global Market: Year-over-year growth 2024-2029 (%)

5 Historic Market Size

• 5.1 Global Market 2019 - 2023
  • Historic Market Size - Data Table on Global Market 2019 - 2023 ($ billion)

• 5.2 Segment Analysis 2019 - 2023
  • Historic Market Size – Segment Analysis 2019 - 2023 ($ billion)

• 5.4 Geography segment analysis 2019 - 2023
  • Historic Market Size - Geography Segment 2019 - 2023 ($ billion)

6 Qualitative Analysis

• 6.1 Impact of AI on the Global Market

7 Five Forces Analysis

• 7.1 Five forces summary
  • Five forces analysis - Comparison between 2024 and 2029

• 7.2 Bargaining power of buyers
  • Bargaining power of buyers - Impact of key factors 2024 and 2029

• 7.3 Bargaining power of suppliers
  • Bargaining power of suppliers - Impact of key factors in 2024 and 2029

• 7.4 Threat of new entrants
  • Threat of new entrants - Impact of key factors in 2024 and 2029

• 7.5 Threat of substitutes
  • Threat of substitutes - Impact of key factors in 2024 and 2029

• 7.6 Threat of rivalry
  • Threat of rivalry - Impact of key factors in 2024 and 2029

• 7.7 Market condition
  • Chart on market condition - Five forces 2024 and 2029

8 Market Segmentation

• 8.1 Market segments
  • Chart on Segmentation - Market share 2024-2029 (%)
  • Data Table on Segmentation - Market share 2024-2029 (%)

• 8.2 Segment Comparison
  • Chart on Comparison
  • Data Table on Comparison

• 8.3 Segment Market Opportunity
  • Market opportunity ($ billion)
  • Data Table on Market Opportunity ($ billion)

9 Customer Landscape

• 9.1 Customer landscape overview
  • Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

10 Geographic Landscape

• 10.1 Geographic segmentation
  • Chart on market share by geography 2024-2029 (%)
  • Data Table on market share by geography 2024-2029 (%)

• 10.2 Geographic comparison
  • Chart on Geographic comparison
  • Data Table on Geographic comparison

• 10.3 Market opportunity by geography
  • Market opportunity by geography ($ billion)
  • Data Tables on Market opportunity by geography ($ billion)

11 Drivers, Challenges, and Opportunity/Restraints

• 11.1 Market drivers

• 11.2 Market challenges

• 11.3 Impact of drivers and challenges
  • Impact of drivers and challenges in 2024 and 2029

• 11.4 Market opportunities/restraints

12 Competitive Landscape

• 12.1 Overview

• 12.2 Competitive Landscape
  • Overview on criticality of inputs and factors of differentiation

• 12.3 Landscape disruption
  • Overview on factors of disruption

• 12.4 Industry risks
  • Impact of key risks on business

13 Competitive Analysis

• 13.1 Companies profiled
  • Companies covered

• 13.2 Company ranking index
  • Company ranking index

• 13.3 Market positioning of companies
  • Matrix on companies position and classification

14 Appendix

• 14.1 Scope of the report

• 14.2 Inclusions and exclusions checklist
  • Inclusions checklist
  • Exclusions checklist

• 14.3 Currency conversion rates for US$
  • Currency conversion rates for US$

• 14.4 Research methodology
  • Research methodology

• 14.5 Data procurement
  • Information sources

• 14.6 Data validation
  • Data validation

• 14.7 Validation techniques employed for market sizing
  • Validation techniques employed for market sizing

• 14.8 Data synthesis
  • Data synthesis

• 14.9 360 degree market analysis
  • 360 degree market analysis

• 14.10 List of abbreviations
  • List of abbreviations