Dec 2 2009
The rising environmental consciousness of consumers in Asia Pacific has placed the Green Buildings market on the threshold of significant growth. In markets where awareness of the long-term benefits of Green Buildings is markedly low, governments' and Green Building councils' regulations, incentives, and certification systems are proving invaluable.
This awareness issue, compounded by the high upfront costs of the buildings and early market development stage in some countries such as Malaysia and Indonesia, makes it imperative for builders to depend on regulatory support and Green Building Certification programs.
New analysis from Frost & Sullivan, Green Buildings - A Strategic Analysis of the Asia Pacific Markets, finds that the market accounts for less than 6 percent of the total building markets in 2009 and estimates this to reach 17 percent by 2015. In this research, Frost & Sullivan's expert analysts thoroughly examine the potential of Green Buildings markets across various sectors such as commercial, residential and education.
The councils are playing a pivotal role in increasing the awareness and knowledge about the advantages of Green Buildings among various stakeholders. Already, market stakeholders in Australia, Singapore, and Hong Kong are well educated about the merits of Green Buildings. New government initiatives such as the Neutral Carbon Emission 2030 strategies will further promote the market.
These marketing efforts are not a recent development. Green Buildings have been promoted since 2000 but the market has still not realized its potential and this offers substantial scope for growth. Nearly 14 percent of the new buildings in developed countries such as Australia and Singapore are Green, and the rest of the countries in the region are expected to follow suit. In fact, close to 30 percent of the new buildings in the Asia Pacific are expected to be Green by 2015.
"To achieve such success, developers across countries need to exchange Green Building materials and resources, as well as upgrade their expertise, skills, and practices related to Green Building development and management," says Frost & Sullivan Consultant Ranajay Dasgupta. "Governments and Green Building associations, for their part, should closely collaborate and offer more incentives to the builders."
Builders will also be hoping to benefit from corporate social responsibility as well as Green Building recognitions, as Green brands have better marketability. Although builders win considerable orders from government and non-government projects, most of their business is expected to come from premium customers. Interestingly, the next wave of growth will be seen in buildings that target middle-class consumers.
"The Asia Pacific Green Building market aims to promote sustainable building constructions all over the world," notes Dasgupta. "Green Buildings in Asia Pacific markets encourage environment-friendly practices within the construction and building industries as well as provide better design, healthier environment, energy-efficient offices and homes, and ultimately, higher productivity."
Source: http://www.frost.com/prod/servlet/frost-home.pag