The US green building market was valued at about $144.5 billion in 2024. The market is expected to reach USD 434.1 billion by 2035 from USD 160.2 billion in 2025, at a CAGR of 10.5% from 2025 to 2035.

This market research report looks closely at the rapidly evolving green building sector in the U.S. It points out the major changes in construction practices, new building technologies, and sustainable design strategies that are transforming the built environment across the country. The report reviews market drivers, rules and regulations, technology use, and competition among different building types, construction methods, and regions. It provides insights into investment opportunities, certification systems, and the important role the US plays in promoting sustainable building practices worldwide through 2035. By highlighting the effects of policy initiatives, certification programs like LEED and ENERGY STAR, and new technology trends, this report serves as a key resource for stakeholders who want to understand and take advantage of the growing US green building market.

Key Market Drivers & Trends

• The US green building market is driven by stricter energy efficiency rules, strong federal and state climate goals that aim for net-zero emissions by 2050, and increasing corporate sustainability requirements that stress eco-friendly real estate portfolios.
• Important laws like the Inflation Reduction Act and the Infrastructure Investment and Jobs Act have sped up building electrification efforts, raising the demand for new building technologies and sustainable construction methods.
• State green building codes, especially in California, New York, and Washington, have set tough performance standards that are shaping national market trends. Investors are looking for ESG-compliant assets, and tenants prefer buildings that are healthy and energy-efficient, which continues to boost market growth.
• The COVID-19 pandemic has increased awareness of indoor air quality, natural lighting, and flexible space design. These factors are creating fresh opportunities in the green building sector. Current market trends include the use of artificial intelligence and Internet of Things (IoT) technologies to enhance building performance through predictive maintenance and effective energy management.
• The popularity of mass timber construction as a low-carbon substitute for traditional materials is increasing, particularly in mid-rise commercial and residential projects. Biophilic design, which uses natural elements and materials, is becoming common in high-end developments.

Key Market Challenges & Restraints

Despite strong growth prospects, the US green building market faces notable implementation challenges that could constrain its expansion.

• Persistent labor shortages in specialized green building trades cause project delays and rising costs.
• High initial costs for sustainable technologies and materials create barriers for budget-sensitive developments, even with long-term savings.
• Fragmented regulations across states and municipalities make standardization harder and increase compliance challenges.
• Supply chain disruptions affecting sustainable building materials and advanced building systems impact project schedules and budgets.
• The traditionally cautious construction industry slows down the use of innovative green building technologies.
• Limited access to skilled professionals trained in green building design, construction, and commissioning holds back market growth, especially in developing areas.
• Financing issues exist for new building technologies that have limited proven success.
• Split incentive problems between building owners and tenants reduce investments in retrofits.
• Grid infrastructure limitations in some areas limit the use of advanced building electrification technologies.

Market Segmentation Analysis

By Building Type

Commercial buildings dominate the US green building market in 2025, making up about 50-55% of the total market value. Within commercial buildings segment, office buildings lead this segment. This growth is driven by corporate sustainability goals, benefits for attracting employees, and savings on operational costs. However, multi-family residential projects are expected to grow the fastest through 2035. This growth is supported by housing affordability initiatives that include energy efficiency measures.

Institutional buildings, such as schools, hospitals, and government facilities, have a strong presence in the market. This is due to public sector commitments to sustainability and health-focused design requirements that fit with green building principles.

By Technology Type

Based on technology, HVAC and Mechanical Systems represent the largest technology segment in 2025. This highlights the important role of efficient heating, cooling, and ventilation in how buildings perform. Smart thermostats, variable refrigerant flow systems, and geothermal heat pumps push growth in this area.

However, Building Envelope Technologies are expected to witness the fastest growth during the forecast period. New insulation materials, high-performance windows, and integrated photovoltaic systems take advantage of federal tax incentives and state energy codes that require better building envelope performance.

By Region

The West Coast, which includes California, Oregon, and Washington, holds the largest share of the US green building market in 2025. This is due to its forward-thinking building codes, renewable energy requirements, and a strong focus on environmental issues among consumers and businesses. California alone makes up over 30-35% of the country's green building activity.

However, the Northeast region is expected to grow at the fastest CAGR through 2035. This growth is driven by New York's Climate Leadership and Community Protection Act, Massachusetts' building performance standards, and regional pledges to electrify buildings and improve energy efficiency.

Competitive Landscape

The US green building market includes construction companies, architects, engineers, technology providers, material manufacturers, and specialized service firms. Market trends vary by region based on local regulations, climate, and customer needs. This creates opportunities for both national companies and local experts.

Top players in the market use strategies that blend design skills, construction abilities, and technology solutions to provide complete green building services. The competitive landscape focuses on innovation, performance testing, and cost-effectiveness, all while meeting the growing demands of customers for sustainability and health.

National construction companies benefit from economies of scale and uniform processes to ensure reliable green building performance across various markets. In contrast, regional specialists use their local knowledge and connections to address specific market niches.

Key Market Players

The major companies in the US green building market include Turner Construction Company, Skanska USA, Clark Construction Group, Whiting-Turner Contracting Company, and DPR Construction among others. These are among the leading construction contractors. Key architecture and engineering firms are HOK, Gensler, AECOM, Jacobs Engineering Group, and Stantec Inc.

Technology and material providers include Johnson Controls International, Honeywell International Inc., Siemens Corporation, Schneider Electric, and Carrier Global Corporation. Sustainable material manufacturers like Interface Inc., Armstrong World Industries, Owens Corning, and CertainTeed Corporation supply important building components.

US Green Building Market Research Summary