New Technologies in Green Building Materials Entering Market

New Technologies in Green Building Materials Entering MarketThe most significant inhibitor in the market is still economic, as prices for Green Building Materials are still higher than the market. However, new processes and technologies are now entering the market that may provide performance, energy and material efficiency and price.  Just as Australia’s Vecor Building Systems has demonstrated the production of Green ceramic tiles that are superior in performance and life-cycle analysis. It is also directly competitive to industry standard products on price.

One of the most significant drivers in the market is increasing regulation from national, provincial and municipal authorities. Enforcement of standards is lagging policy and regulation, but a reinvigorated national focus on energy efficiency suggests that serious efforts will be made to tighten up compliance.

The total building materials market in China is estimated at 2.2 trillion RMB with approximately 5% of this comprising the Green Building Materials (GBM). Competition in the GBM market in China is strong and becoming more intense as suppliers are increasing capacity, forcing down prices and squeezing margins despite weakened global consumption.

This intensity of competition tends to decrease with product segments that require more sophisticated technology. Domestic Chinese companies represent about 77% of the Chinese GBM market, with a number of large international players making up a large portion of the balance. Few foreign SME’s are competitive in this space, and those that are generally rely on high-value proprietary technologies to carve out a niche. Energy prices is another key driver, as property developers and consumers demand buildings that require less energy inputs and thus costs.

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