UK Green Building Market

UK Green Building Market Size and Share:

The UK green building market size was valued at USD 6.6 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 17.1 Billion by 2033, exhibiting a CAGR of 11.10% from 2025-2033. Factors like the rising energy efficiency demands, growing sustainable construction awareness, strict government regulations, surging demand for eco-friendly buildings, the growing emphasis on carbon reduction and operational costs are impelling the market growth.

The green building market in the UK is significantly growing due to the introduction of government policies for net-zero carbon emissions in the building sector by 2050. In addition, the advent of energy-saving measures including the future homes standard (FHS) that are designed to reduce the whole carbon footprint of new structures is aiding the market growth. Moreover, higher implementation levels of energy-efficient designs correspond with increased levels of compliance and regulations, which is strengthening the market share. Furthermore, the increase in the prices of conventional sources of energy is creating a surge in demand for energy-efficient materials and is fueling the market expansion. These vital policies and incentives, along with economic factors included in the development of the sustainable construction sector, promote an environmental approach in construction, thereby impelling the market growth.

Concurrent with this, the rising consumer awareness and corporate sustainability commitments are significantly boosting the UK green building market. A growing number of businesses are prioritizing sustainability and are impacting the widespread adoption of green building technologies, thus aiding the market growth. Besides this, the integration of advanced technologies, such as smart building systems and energy-efficient heating, ventilation, and air-conditioning (HVAC) solutions for energy savings and improving operational efficiency in commercial properties are fostering the market expansion. Additionally, the increasing availability of eco-friendly materials, along with innovations in construction methods, is supporting the shift toward greener buildings. Apart from this, public demand for environmentally responsible developments is encouraging developers to prioritize sustainability, making green construction a major factor in the future of green building, thereby providing an impetus to the market.

UK Green Building Market Trends:

Rising demand for energy-efficient buildings

The increasing emphasis on energy efficiency is reshaping the construction sector in the UK. Companies and residents are looking for strategies to minimize the usage of energy and, costs, due to the surging energy prices in the region. Additionally, efficient buildings include insulation and energy-saving technologies, renewable energy sources, and systems, that may provide long-term monetary and environmental benefits, aiding the market growth. For example, 24% of the total, which is approximately 5.1 million properties in Great Britain, have no insulation for cavity walls, which makes them less energy efficient and more vulnerable to heat loss. Consequently, the increased government regulation of carbon emission restrictions and the rising customer demand for eco-friendly, low-carbon intensity buildings is significantly contributing to the market expansion.

Adoption of green certifications

The adoption of green certification is one of the factors that is driving the demand for the UK green building market. In addition, certifications, such as Building Research Establishment Environmental Assessment Method (BREEAM) and Leadership in Energy and Environmental Design (LEED) are gaining more importance among developers, architects, and builders, which is aiding the market growth. For instance, the developments with BREEAM certification had a 20.6% higher capital value than non-certified properties. These certifications promote the utilization of sustainable processes in construction to ensure better energy efficiency, lower carbon emissions, and better quality indoor environment, fueling the market demand. Furthermore, environmental issues are becoming crucial in society, leading to the incorporation of green certification, and fulfilling the requirements of governmental norms, thus propelling the market forward.

Growth in eco-friendly materials

The green building market in the UK is significantly developing, due to the increasing use of specific elements such as recycled steel, low-carbon concrete, and bamboo. In line with this, biological materials are useful in providing insulation and preserving energy, which is aiding the market growth. According to research, the construction industry contributes around 19% of the global greenhouse gas (GHG) emissions, further impacting climatic change and requiring urgent mitigation. This has led the construction builders to focus on minimizing carbon-intensive materials in construction, thus fueling the market demand. Moreover, the adoption of sustainable construction materials, promoted by government incentives including tax exemptions for firms working on green construction materials, is providing an impetus to the market.

UK Green Building Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the UK green building market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type and end user.

Analysis by Product Type:

• Exterior Products
• Interior Products
• Building Systems
• Solar Products
• Others
   

In exterior products, the shift towards architectural conveniences such as green facades to cool roofing is enhancing the provision of maintaining minimal effects of heat islands, impelling the market growth. 

Moreover, interior products are experiencing rising utilization of non-hazardous paints and recycled floor covering materials, as customers are becoming more health conscious, which is contributing to the market expansion.

Furthermore, the growing popularity of modular and prefabricated systems due to the minimization of construction waste management (CWM) and fast-track construction is driving the market demand.

Apart from this, the cost-effectiveness along with the advancement of integrated solar panels have boosted energy and grid reliability, providing an impetus to the market.

Analysis by End User:

• Residential
• Commercial
• Industrial
• Others
   

In the residential sector, homeowners are increasingly seeking eco-friendly designs and energy-saving improvements. These reduce the utility bills, further raising the value of the property, thus fueling the market demand.

Meanwhile, in the commercial industry, the surging construction of structures under green building projects to achieve environmental, social, and governance (ESG) goals, is promoting clients and employees to seek eco-friendly friendly buildings., which is aiding the market growth.

Besides this, industries are making efforts to improve the industrial infrastructure by incorporating cost-effective energy solutions, to meet the carbon credit requirements, thereby propelling the market forward.

Regional Analysis:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others
   

The demand for green buildings in London is primarily driven by the stringent sustainability regulations, the expansion of urban redevelopment projects, and the focus of the corporate sector on meeting ESG standards across the region.

In South West, the surging residential developments, energy-efficient modernization initiatives, and government incentives for adopting low-carbon building technologies are fostering the adoption of green buildings, thereby aiding the market growth.

The North West is witnessing rising demand driven by the rise in industrial revitalization projects, renewable energy integration in construction, and the ongoing shift towards net-zero goals, thus driving the need for green buildings in the region.

In the East of England, the market is growing due to the surging demand for agricultural-to-urban land conversion, eco-friendly housing trends, and strong community-based renewable energy projects, which are encouraging the adoption of green buildings in the region.

The rising demand for tourism-focused eco-construction, stringent regional environmental policies, and a strong emphasis on environment-friendly housing solutions are driving the green building market in the South West region.

The market in Scotland is experiencing steady growth because of the shifting trend towards renewable energy-based building practices, along with the rising urban sustainability initiatives in major cities like Glasgow and Edinburgh.

In the West Midlands, the market is primarily driven by continuous industrial innovations, the expansion of sustainable business hubs, and increased funding from government initiatives for green urban infrastructure.

Yorkshire and The Humber region are witnessing a robust demand driven by the increase in strong investments in renovating conventional structures and the growing initiatives for sustainable urbanization, thereby advancing the green building practices in the region.

In the East Midlands, the market demand is significantly surging due to the stringent growth in modular eco-housing projects, sustainable infrastructure development, and rising awareness of green construction benefits in the region.

Competitive Landscape:

The competitive landscape of the UK green building market is characterized by the presence of established players and emerging innovators who focus on sustainability. The incorporation of green certifications, such as the BREEAM, has increased the competition as companies are urging them to follow strict environmental standards, attracting sustainability-conscious clients. Moreover, local players are steadily implementing advanced modular construction, renewable energy integration, and smart building technologies to gain a competitive edge. Meanwhile, government incentives and rising consumer demand for sustainable homes and commercial spaces have encouraged new market entrants. Furthermore, the market has introduced strategic collaborations between construction firms, technology providers, and material manufacturers, which is intensifying the competition. Apart from this, companies are focusing on innovation and operational efficiency, along with the rising eco-friendly concerns, to distinguish themselves in this rapidly expanding market.

The report provides a comprehensive analysis of the competitive landscape in the UK green building market with detailed profiles of all major companies.

Latest News and Developments:

• In October 2024, Barratt Developments acquired Redrow plc for £2.5 billion, aiming to create a combined entity to meet the growing demand for sustainable housing.
• In September 2024, Canary Wharf Group collaborated with Kadnas Science Partner to commence the construction of Europe’s tallest commercial laboratory, One North Quay, which is set for completion in 2027, blending research and sustainable living.

UK Green Building Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK green building market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the UK green building market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK green building industry and its attractiveness.
  Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.