Alternative Building Material Market Drive Growth through 2022-2030



The alternative building materials market was valued at USD 189,823.80 million in 2020 and is expected to reach USD 266234.7 million by 2027, registering a CAGR of 5.8% from 2021 to 2027. The alternative building material market covers revenue from construction material sales other than concrete, bricks, cement, and other traditional building material. The alternative building material is environment friendly and does not affect the environment in any way. This alternative material consists of wood, plastic, bamboo, rammed earth, and other sustainable material.

The major driving factors for the alternative building material market are increasing awareness between people for sustainable infrastructural development of buildings. In addition, the substitute materials are environment friendly and require less energy for production and less carbon emission than traditional building materials. The Leadership in Energy and Environmental Design green certification also leads to considerable tax concession and other grants. However, the alternative material does not provide the expected strength and lacks finish compared to concrete. This acts as a restraint to the alternative building materials market growth. On the contrary, the rise in the adoption of new manufacturing processes and advancement in material technology in its manufacturing and installation process will be a major opportunity for the alternative building materials market during the forecast period. The alternative building materials market is segmented based on material, end user, application, and region. Based on capacity, the market is divided into bamboo, recycled plastic, wood, and others.

In addition, these materials are good insulator, which provides high-quality insulation from heat and cold. Thus avoiding loss of temperature and helping the house to be more efficient. Moreover, alternative material such as recycled plastic is made from plastic waste and thus solves a major issue of dumping hazardous plastic wastes. Thus, driving the alternative building material market during the forecast period.

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COVID-19 Impact on the Global Alternative Building Material

COVID-19 is an infectious disease that originated in the Hubei province of Wuhan city, China, in late December. The highly contagious disease, caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) virus, is rapidly transmitted between humans. Thus, COVID-19 was declared a pandemic by the WHO (World Health Organization) on March 11, 2020. The outbreak of the COVID-19 pandemic had led to the complete shutdown of production facilities, which do not come under essential goods, owing to prolonged lockdown in major countries such as Japan, India, the U.S., China, and Germany.

Furthermore, this pandemic has already negatively influenced the first and second quarters of 2020 and is expected to impact the alternative building material market’s growth negatively. For instance, several countries such as Germany, Italy, and India enforced stringent measures on the movement of people and other industrial activities. This has led to the halting of construction projects, resulting in the downfall of sales of new material. The construction industry has shown a decline of 25–30% in 2020 compared to 2019 and is expected to recover only by the second half of 2021. Similarly, the renovation industry was severely hampered as transportation and logistics industries were closed.

Furthermore, construction, mining, and other activities were hampered across the globe due to government rules to maintain social distancing. Therefore, the demand for new alternative materials was declined, and the sales were reduced. In addition, material production was hindered as the manufacturing facilities were partially or completely closed, which further hampered the sales of alternative material products in March, April, and May of 2020. On the contrary, the number of COVID-19 cases is expected to reduce in the future with safety majors taken by governments and with the introduction of a vaccine for COVID-19. This is further expected to re-initiate the manufacturing industry at its full-scale capacities, which, in turn, is expected to aid the alternative building material market completely recover by mid of 2021.

Global Alternative Building Material Market Dynamics

Drivers: Increase in environmental awareness

There has been an increase in environmental awareness worldwide owing to climatic change occurring around the globe. To conserve natural resources and avoid adverse effects on climate by using material that emits ozone gases while manufacturing. In addition, alternative building materials are also green materials that are completely eco-friendly and emit zero radiation or harmful gases while manufacturing.

The government and organizations worldwide are implementing strict rules and regulations w.r.t the construction of houses, the material used for construction, and energy consumed by the houses. For instance, the European Union has targeted to make all the homes 90% energy efficient by 2030. This will lead to alternative building materials to construct walls, roofs, floors, and other structures.

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Restraints: Lack of strength

The alternative material such as recycled plastic rammed earth or wood does not have high strength and fails to withstand heavy rains, floods, or storms. Thus, lack of strength makes the user opt for concrete construction. In addition, the usage of chemicals cannot be done to strengthen the alternative owing to their eco-friendly property, and therefore the companies fail to manufacture strong alternative materials.

Moreover, wood and bamboo can easily catch fire, which can destroy the house or the structure. Furthermore, the wood and bamboo walls, roofs, or floors can cause loss of temperature if not bound properly, which will cause degrading the green quality of the house. Owing to all these disadvantages, the growth of the alternative building material market is hindered.

Opportunities: Introduction of advanced material

People restrict the use of alternative building materials majorly because of their lack of strength. To overcome this problem, many alternative material manufacturers strive to develop sustainable methods or processes to manufacture the alternative material with high strength without harming its environmentally friendly characteristic. The new and advanced material must be durable, have a longer life cycle ecology, and avoid toxic materials while manufacturing. For instance, in September 2020, Eastman and DuPont Biomaterials launched a fabric collection made with sustainable and bio-based materials. The fabric will be used to manufacture drapes that will have a luxurious look. However, it will restrict heat transfer through the windows. Research and development of new and advanced materials will boost the alternative building material market during the forecast period.

Scope of the Report

The study categorizes the alternative building material market based on material, end-users, application, and application at the regional and global levels.

By Material Outlook (Revenue, USD Million, 2017-2027)

  • Bamboo
  • Recycled Plastic
  • Wood
  • Others

By End Users Outlook (Revenue, USD Million, 2017-2027)

  • Residential
  • Non-residential

By Application Outlook (Revenue, USD Million, 2017-2027)

  • Construction
  • Furniture
  • Flooring

By Region Outlook (Revenue, USD Million, 2017-2027)

  • North America (US, Canada, Mexico)
  • South America (Brazil, Argentina, Colombia, Peru, Rest of Latin America)
  • Europe (Germany, Italy, France, UK, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, the Netherlands, Norway, Sweden, Denmark, Rest of Europe)
  • Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, the Philippines, Singapore, Australia & New Zealand, Rest of Asia Pacific)
  • The Middle East & Africa (Saudi Arabia, UAE, South Africa, Northern Africa, Rest of MEA)

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The wood segment is projected to account for the largest market share by type

The global alternative material market is segmented into bamboo, recycled plastic, wood, and others based on type. During the study period, the wood segment is anticipated to dominate the global alternative building material market in terms of revenue of 91.4%. Wood in an organic and renewable material that has been used in construction from ancient times. It is used in various applications such as walls, roofs, floorings, furniture, and artifacts. It is the most sustainable alternative building material used around the world. Timber, lumber, and other wood products are used for construction. Wood is a renewable natural resource, making it readily available and economically feasible. It has high strength compared to its lightweight. It also provides good insulation from cold and heat. Therefore it is widely used in construction applications. It also enhances the natural aesthetics of the infrastructure. In addition, the structures made of wood can be easily modified. It also holds up well in earthquakes owing to its flexibility. Moreover, the use of wood reduces carbon footprint. Owing to all these characteristics use of wood in construction is continuously rising, which will boost the alternative building material market during the forecast period.

Asia Pacific accounts for the highest CAGR during the forecast period

Based on the regions, the global alternative building material market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Globally, Asia Pacific is estimated to hold the highest CAGR of 5.9% in the global alternative building material market during the forecast period. The region includes the countries such as China, India, Japan, South Korea, Australia, Southeast Asia, and the Rest of Asia-Pacific. China accounted for the major share of the market in 2020; however, India is expected to experience rapid growth during the forecast period.

China is rapidly adopting alternative building material technology. Along with residential and commercial buildings, China has started building other infrastructure with sustainable materials as well. In addition, China hosts the International Building Energy Saving and New Building Materials Exhibition every year to promote newly developed construction materials to contractors and customers. Such strategies will boost the alternative building material market in China during the forecast period.

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Key Market Players

The major players profiled in the alternative building materials market include ByFusion Global Inc., CarbonCure Technologies Inc., Bauder Ltd., Kirei, Neular, Plasticiet, JD Composites, Rammed Earth Enterprises, Takataka Plastics, and Rammed Earth Works. Major companies have adopted product launch, business expansion, and partnership strategies to offer better products and services to customers in the alternative building materials market.

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