Alternative Construction Materials Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Alternative Construction Materials Market is segmented By Material Type (Straw Bales, Rammed Earth, HempCrete, Bamboo, Recycled Plastic, Wood, Mycelium, Ferrock, AshCrete, Timbercrete, Others), By Product Type (Structural, Interior, Exterior, Building Systems), By Application (Insulation, Framing, Roofing, Interior Finishing, Exterior siding, Others), By End-users Industry (Industrial Construction, Commercial Construction, Residential Construction, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Market Overview

The Global "Alternative Construction Materials Market" is expected to grow at a high CAGR during the forecasting period (2024-2031).

The world has come to be dependent on concrete as one of the chief materials for building construction. However, concrete does more harm to the environment than help it. To clarify, 16% of all fossil fuel consumed every year is used to turn those raw materials into construction products. In regards to this, alternatives for building materials can lower the impact on the environment. Alternative construction materials are those which can be used economically by replacing conventional building materials. Alternative construction materials are made out of natural materials, such as bamboo and straw bales, and can help to lower the energy costs of the occupant once built by helping with natural insulation or by using recycled materials that have reduced greenhouse emissions. 

Market Summary

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Market Dynamics

The global alternative construction materials market is primarily driven by its unique properties and added advantages over the conventional materials used for construction. Characteristics in the material provide environmental benefits, less energy consumption, and emission reduction potential are major driving factors. According to the U.S. Green Building Council (USGBC), the construction industry accounts for 40% of worldwide energy usage, and 16% of all fossil fuel consumed every year is used to turn those raw materials into construction products. Moreover, alternative materials provide better, efficient, durable, and cost-effective construction while ensuring judicious utilization of limited available resources with the least possible degradation of the environment which is expected to boost the market growth further.

However, the lack of knowledge about new materials may hinder market growth.

Market Segmentation Analysis

By Material Type, the global alternative construction materials market is segmented into Straw Bales, Rammed Earth, HempCrete, Bamboo, Recycled Plastic, Wood, Mycelium, Ferrock, AshCrete, Timbercrete, and others. Wood holds one of the most significant market shares owing to its extensive use in construction for thousands of years. Moreover, it has significant environmental benefits such as manufacturing wood for construction is less energy-intensive than other materials, including steel, concrete, cement, or glass production and the finished product also has lower embodied energy. Recycled Plastic is a fast-growing market share as plastics are one of the most energy-efficient materials over their entire life-cycle. It is attributed to the fact that the typical lifespan of plastic applications in building and construction is up to 30 to 50 years.

By product type, the global alternative construction materials market is segmented into structural, interior, exterior, and building systems. The structural type products dominate the global market as they are an essential part of a building and are therefore are used in larger quantities when compared to other interior and exterior construction materials. The structural materials used are made up of recyclable products such as concrete, metals, and industrial wastes such as fly ash, fabrics, etc.

By application, the global alternative construction materials market is segmented into exterior siding, interior finishing, insulation, framing, roofing, and others. The insulation share holds the most substantial share as insulation is the primary component that reduces energy consumption, in turn lowering the overall energy cost and carbon emissions impact. According to the United States Environmental Protection Agency (EPA), Commercial and Residential buildings caused 11.6% of 2017 greenhouse gas emissions. These greenhouse gas emissions arise primarily from fossil fuels burned for heat and the use of certain products that contain greenhouse gases. This can be done by materials such as HempCrete, Mycelium, and Timbercrete which are eco-friendly insulation materials that help reduce the amount of heating needed.

Market Geographical Share

North America holds the largest market share for alternative construction materials. It is attributed to the growing need for energy-saving construction buildings coupled with government and non-government regulations for energy efficiency practices along with the rise in consumer awareness regarding environmental & economic benefits. Moreover, the increasing number of LEED-certified projects along with the growth of the construction industry is giving a much-needed thrust to the North American regional market. The US, where LEED originated, has the world’s largest market for LEED with 33,632 projects, and Canada comes in third with 3,254 projects as of December 31, 2018. Additionally, strong support of the government in terms of grants, funds and subsidies, and R&D activities will propel the market.

Market Companies and Competitive Landscape

The most prominent players in the market include – Forbo Holding AG, KIREI, LafargeHolcim, Interface, Inc., PPG Industries Inc., DuPont, Owens Corning Corporation, BASF SE, and Bauder. Most of the key players in the market are adopting strategies such as mergers and acquisitions, partnerships, and regional expansion to enhance market competitiveness. For instance –

In February 2019, LafargeHolcim has been awarded major long-term contracts worth EUR 110 million as part of the Grand Paris Express (GPE) project. The GPE is the largest transport infrastructure project in Europe and represents a total investment of about EUR 38.5 billion. The project will meet the growing city’s needs for improved transport infrastructure and will prepare Paris for the 2024 Olympic Games.

In February 2019, LafargeHolcim acquired Transit Mix Concrete Co., a leading supplier of building materials in Colorado and subsidiary of Continental Materials Corporation.

In October 2018, Kingspan announced a new range of architectural floor finishes which include a wide variety of Terrazzo, Porcelain, and genuine timber that will allow architects, designers, specifiers, and building owners to elevate their interior space whilst ensuring practical access to the services underneath.