Green Roofs: An Innovative Solution to Deal with Urban Environmental Issues

Highlights:

• Introduction
• Reasons behind the rising preference for green roofs
• Strategic alliances and product launches in the sector

A green roof is a roofing system partially or entirely covered with vegetation over a waterproofing membrane. Also known as vegetated or living roofs, these systems are designed with waterproofing, drainage, and irrigation solutions, along with root barriers to support healthy plant growth and protect the building structure. The idea of green roofs was first pioneered in modern times by Patrick Blanc, a French botanist, in Paris. However, archeological excavations have shown that they have been used in Babylon, Persia, and Scandanavian countries since the medieval ages. In recent times, the rapid pace of urbanization and industrialization in various developed and developing countries has increased the demand for such innovative roofing solutions, especially in metropolitan cities and towns.

Rising preference for green roofs in urban areas creating new investment opportunities

The primary reason behind the growing adoption of green roofs is the various environmental benefits offered by these solutions. Almost all the major cities across the globe face problems related to the heat island effect wherein the urban areas witness a huge rise in average temperatures as compared to surrounding rural areas. Ecological studies have shown that the replacement of natural surfaces with impervious materials such as concrete and asphalt is the leading factor aggravating this issue. Furthermore, the growing air pollution in cities and towns due to vehicular and industrial emissions enhances the greenhouse effect, thereby increasing the average temperature of the area.

In such a scenario, covering rooftops with vegetation helps cool down the surfaces and provides them shade, thereby mitigating problems related to the heat island effect. Also, these solutions address issues caused by the overuse of impervious materials, thereby regulating the average temperature of the locality. Similarly, the plants over these roofs absorb greenhouse gases and harmful pollutants from the atmosphere, thus improving the overall air quality in the city.

Product launches and M&A deals by top businesses impacting the industry positively

The green roof industry, which accounted for $1,451.3 million in 2019, is anticipated to gather a sum of $4,192.0 million by 2027, citing a CAGR of 15.6% during 2020-2027. The innovative products launched by multinational companies operating in this sector have played a major role in the growth of the market in recent times. For instance, in August 2021, Sika, a specialty chemicals manufacturer, unveiled a complete Green Roof package, which includes hot melt structural waterproofing systems and single-ply and cold-applied liquid membranes. The ability of these roofing solutions to reduce the heat island effect, manage stormwater, and increase biodiversity in the locality has increased the popularity of this product in the last few years.

On the other hand, the strategic alliances established by leading enterprises have expanded the scope of the industry in the last few years. For instance, in February 2024, Holcim, a building materials supplier, announced the acquisition of ZinCo, a German green roofing solutions provider. ZinCo has been one of the biggest players in the sustainable construction segment and has established a robust network of architects, contractors, real estate developers, builders, etc., across the globe. This business move by Holcim is, thus, expected to increase its footprint in the advanced roofing industry significantly in the coming period.

To summarize, the growing pace of industrialization and urbanization has led to a surge in demand for innovative building solutions such as green roofs. In addition, the environmental problems faced by metropolitan cities and industrial towns due to air pollution and global warming are expected to boost the revenue share of the green roof industry in the coming period.

Reach out to our experts for valuable insights on key growth factors and investment opportunities in the sector!

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