LEED India: What is the Market Size and Growth Rate?

Post date: Feb 10, 2013 4:09:20 PM

Sudhir asks: What is present market size of LEED buildings (all) in India and what it will be within next 5 years?

Advice provided by: Yusuf Turab, Y T Enterprises

Dear Sudhir

Many thanks for your question. I might have been able to answer it better if you were more specific about your purpose; i.e. are you simply researching or are you looking to get into this field in some way?

In either case I will try to give some information that can help you get started.

Green Building India: Ranked #2 Globally

In recent years, India has emerged as one of the world’s top destinations for green buildings and has implemented a number of home-rating schemes and building codes, which open up a wide range of opportunities in construction, architecture and engineering design, building materials and equipment manufacture.

To give you some numbers (which I obtained from the IGBC website), "India has 1140 registered buildings, 153 certified buildings and 761.93 million sqft of Green building footprint". This puts India firmly on the 2nd spot only behind the U.S in total Green Building footprint. Mind you this is only figures for certified buildings. I know of many projects that are green to platinum levels but did not opt for certification to save costs.

According to the Indian Green Building Council:

  • The market for Leadership in Energy and Environmental Design (LEED)-rated green buildings in India is projected to increase to $5 Billion by 2012
  • The total market for green building materials and equipment in India is estimated to be more than 10 times the size of the LEED-rated green building market in India.
  • India’s green building footprint has grown from 20,000 sq ft in 2003, to projects covering 761.93 million sqft by mid-2011.
  • A variety of green building projects are planned or have been completed, including exhibition centres, residential complexes, hospitals, IT parks, educational institutions, laboratories, airports, corporate offices and government buildings.
  • National shortages of water and power are significant factors encouraging India’s focus on green building.

The major drivers for the green building sector in India are coming from the private sector, spurred by the introduction of the Indian LEED rating system along with other rating systems by IGBC and The Energy Resources Institute of India, and investor and occupier demand for more amenable and efficient living and working space.

Growing Market for Green Buildings in India

These trends suggest significant and growing market opportunities for green buildings in India. It is apparent that the market is large and is expected to grow exponentially. Hence there is going to be a serious dearth of experienced professionals, material manufacturers and service providers in this area. This gives plenty of opportunities for budding entrepreneurs in this sector.

Opportunities in India for green building services include:

  • Architectural and engineering services for high-rise structures, theme parks and hotel
  • Urban planning and design
  • Other niche architectural services like creating designs inspired from the traditional Indian architecture
  • Energy efficiency consultancies.

There is also significant demand in India for green building materials and equipment including:

  • High-efficiency heating, ventilation and air conditioning (HVAC) systems
  • Low-emission window and day lighting technologies
  • Affordable green building materials, with consideration for the life cycle perspective of building costs
  • Water saving, water efficiency and non mechanical treatment systems
  • Fire and safety systems and other intelligent building systems, and
  • Other environmentally friendly green building materials and equipment that help score points under the various IGBC and GRIHA green building rating system.

Just like any other sector in India this sector too has its own challenges relating to greenwashing, lack of awareness, non availability of green product certifications, poor practices among builders, inadequate project management skills and many others. But in spite of all this I have found, most buildings that have attempted to be Green have usually proven to be more efficient than what they would have been had they not even made the attempt.

Problems cannot be solved by the same level of thinking that created them; by my personal experience I can tell you that most developers have now started to realise this and are willing to go an extra mile. All this augurs well for the future of the Indian Green Building movement.