Green building market to experience huge growth
The green market has grown dramatically since 2005 and will continue this growth through 2015, said Harvey Bernstein, vice president, Global Thought Leadership & Business Development, McGraw-Hill Construction, New York, at the Outlook 2011 Executive Conference, Oct. 28-29, in Washington, D.C. “In the five years since 2005, the new green building market has grown seven-fold,” he said. The U.S. market for green building jumped from $10 billion in 2005 to $42 billion in 2008, according to the Green Outlook 2011 report. By 2010, overall new green building – commercial and residential – was projected to rise to between $55 billion and $71 billion.
“The green share of new nonresidential building construction is growing rapidly,” Bernstein said. “Even though the [overall construction] market has shrunk, the demand for green has risen rapidly.” Two-thirds of the market today is green construction, he said, an increase of more than 50 percent compared to 2008. “By 2015, it is estimated to be 50 percent of new nonresidential construction, equating to $145 billion.”
The renovation/retrofit market is expected to grow three-to-five fold in the next five years due to major green retrofit projects. “Energy efficiency in two-thirds of retrofit projects is expected to become the norm,” Bernstein said. “New construction represents only 2 percent of the building stock. That means the retrofit market will see the major shift.”
MHC estimated that the green share of the largest nonresidential retrofit and renovation projects would be 7 percent to 12 percent at the end of 2010, representing a $3 billion market, according to the Green Outlook report. By 2015, MHC estimates that market to more than triple, growing to 25 percent to 33 percent, representing $14 billion to $18 billion in major projects alone.