Europe Advanced Building Materials Market

Europe Advanced Building Materials Market Analysis

The Europe Advanced Building Materials Market size is estimated at USD 16.80 billion in 2025, and is expected to reach USD 22.16 billion by 2030, at a CAGR of 5.69% during the forecast period (2025-2030).

• .The increase in government expenditures for infrastructural development, such as construction and infrastructure developments, largely drives the market.
• Europe has ambitious goals to clear the air, so to speak, by 2050. However, reducing carbon emissions to net zero won't be easy—or cheap. Cutting emissions from buildings, which are responsible for roughly 30% of global carbon dioxide emissions, is essential to achieving net zero. More than EUR 5 trillion (roughly USD 5.42 trillion) in investments in building energy efficiency will be required to achieve that goal by 2050.
• The European Union is paving the way toward green renovations, starting with subsidies and grants to cover the significant upfront costs of decarbonizing old and inefficient buildings. This initiative has helped increase the number of European consumers carrying out energy-efficient renovations at home to 46% in the last 12 months, compared with 42% the previous year.
• Many residential and commercial building owners have undertaken renovations such as adding wall or roof insulation, replacing doors and windows with double- and triple-glazed models, upgrading heating systems, and installing solar panels.

Europe Advanced Building Materials Market Trends

Increasing demand for green building

• The EU Green Buildings Pact aims to make public and residential buildings more climate-friendly by improving insulation and energy efficiency. The goal is to double renovation rates by 2030.
• The European Commission has proposed that the worst 15 percent of residential buildings in each country be improved by 2030 and again by 2033. Non-residential buildings face a similar timetable. Italy's National Building Association ANCE estimates that to meet the Green Building Pact’s goals, 1.8 million residential buildings will have to be upgraded over the next 10 years at a cost of EUR 400 billion (USD 421 billion). A further EUR 190 billion (USD 200 billion) will be needed to bring business properties to the required standards.
• Commercial property managers in Italy, Spain, and France are planning to increase spending by an average of 2.7% in 2023, up from 1.8% the previous year, according to a separate survey of 125 decision-makers for commercial properties. Of those surveyed, only German property managers indicated they would invest about 1% less in green renovation. However, between 2021 and 2022, Germany increased eco-friendly building projects by 18%, the most of any European country, with 35% of respondents noting they made changes last year.

Improving energy efficiency in buildings

• Buildings are the single largest energy consumer in the European Union, making up 40% of the bloc’s energy consumption and 36% of greenhouse gas emissions. However, despite compulsory efficiency assessments, the energy performance of buildings still has little impact on buyers’ and renters’ decisions. While new buildings are becoming more and more efficient, the rate of renovations for existing ones is still too low to turn the tide.
• The European Union (EU), which aims to renovate tens of millions of inefficient buildings before 2030, is looking to modernize the current building performance status quo for its 27 member states. To that effect, it awarded a three-year grant in 2021 totaling 1.99 million euros (USD 2.1 million) to a consortium called Towards Innovative Methods for Energy Performance Assessment and Certification (or TIMEPAC) to switch the EU’s EPC system from a static certification to a dynamic process.
• The EU’s motivation to reform its building performance regulations is part of its 2030 target to reduce greenhouse gas emissions by 55% compared to 1990.
• According to European Statistics, buildings account for 40% of EU energy consumption and 36% of energy-related GHG emissions. About one-third of all EU buildings are over 50 years old, and nearly 75% of the building stock could be more energy efficient, with only about 1% undergoing renovation each year.

Europe Advanced Building Materials Industry Overview

The Europe advanced building materials market is competitive and fragmented; the major players profiled in the advanced building materials market include Saint-Gobain Group, DowDupont Inc., Kingspan Group Plc, PPG Industries Inc., and BASF SE.

The rise in the use of recycled and eco-friendly materials as one of the prime reasons driving the advanced building materials market growth during the next few years. Also, the adoption of smart materials and self-healing technologies and the integration of nanotechnology for enhanced material properties will lead to sizable demand in the market.

Europe Advanced Building Materials Market Leaders

Europe Advanced Building Materials Market News

• July 2023: Kingspan Group plc, the global leader in high-performance insulation and building envelope solutions, agreed with Schramek GmbH (“Schramek”) to acquire c.51% of the shares of Steico SE (“Steico"), with an option to acquire a further c.10% of shares in Steico in the future. The acquisition is conditional on regulatory clearance and is expected to be completed in early 2024.
• June 2023: Kingspan Group, the global leader in advanced insulation and innovative building solutions, announced the completion of the LRM acquisition, a Parisian-based waterproofing distribution specialist.