Green Buildings A Strategic Analysis of Asia Pacific Markets

Market Structure Introduction

Green Buildings Market: End-user Analysis by Number of Green Buildings (Asia Pacific), 2009

x%

x% x%

x% x%
xx%

Commercial and office buildings include retail, private and government office buildings. Commercial and office sector has close to half of the total certified Green Buildings. Residential buildings sector includes multi unit and single dwelling buildings. It is the second largest market sector. However, in countries such as Singapore, Japan, and South Korea, the residential Green Building certification tools were founded earlier and this sector performs better than the commercial sector. Green Buildings in Educational sector is prevalent in Australia, New Zealand, and South Korea where Green Building rating tools have been developed for the buildings in education sector. This sector is expected to grow at a double digit rate in these countries

xx%

Commercial and of f ice Education Hotel and recreation Others

Residential Industry Healthcare

Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan

Other sectors such as industry, hotel and recreation, and healthcare buildings are also expanding. One of the reasons for these sectors to lag behind is that no assessment tool was designed for buildings in these sectors. Japan and South Korea have slightly larger number of Green Buildings in Industrial sector, followed by New Zealand which recently introduced its Green rating system for industrial buildings. However, Australia, Singapore, and Hong Kong are focusing more on emerging healthcare, hotel, and recreation buildings.

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Green Buildings A Strategic Analysis of Asia Pacific Markets

Market Structure (Contd) Introduction (Contd)
Green Buildings Market: Share of Certified Green Buildings Retrofitted versus New (Asia Pacific), 2008
New design xx% Retrofitting

Almost xx% to xx% of the newly designed buildings in Australia are Green Buildings. In Singapore Green Buildings land area covers x% of total area for building construction. New Zealand Green Building Council has proposed to increase Green Buildings market share from xx% to xx% within building construction market in New Zealand. All eight countries covered in this study are facing challenges to transform existing buildings into Green buildings. Japan and South Korea are relatively advanced and performing better compared to other countries in retrofitting green features into existing buildings . Their Green Building rating tools are able to rate both new and existing buildings. Recently developed rating systems for Green Buildings in Malaysia and Indonesia will drive retrofitting of existing buildings with green features

xx%

Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan

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Green Buildings A Strategic Analysis of Asia Pacific Markets

Market Structure (Contd) Green Building Norms and Standards

the first phase of market growth, government standards helped a lot to increase stakeholders awareness and interest. In the second phase of the market growth businesses are more active, as observed within a few developed GB markets.
As

In

Australia, Singapore, and Hong Kong move into the second phase of market growth, it is expected that the countries still in the first phase of market growth will follow and implement similar government rules and regulations to boost the growth in Green Building industry

of both government and non government organizations in designing regulations will drive growth. Market stakeholders are encouraged to share their opinion to help design the regulations
Australia,

Involvement

Japan, Singapore, and Hong Kong Green Building markets are proactive and willing to accept new green regulation. These countries have already developed nationwide accepted building codes and regulations. a few emerging markets such as New Zealand, Indonesia, and Malaysia have developed welldesigned regulations to drive market growth.

Even

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Green Buildings A Strategic Analysis of Asia Pacific Markets

Market Structure (Contd) Green Building Norms and Standards (Contd)
Australia, Federal and State Governments have ruled that all new government buildings should comply with x Star label of Green Building certificate. Buildings management, ecological cleanliness, emission-related issues are increasingly becoming significant for green certification. Lower carbon emission standards for the new buildings are going to be discussed as the future certification criteria. National Australian Built Environment Rating System (NABERS) is a performance-based rating system in Australia that now incorporates The Australian Building Greenhouse Rating (ABGR). has recently set a target of xx% decrease of carbon emission by 2020. The target will be achieved by implementing new standards within building construction industry as Japanese buildings contribute nearly xx% of total carbon emission. In addition, Japans Comprehensive Assessment System for Building Environmental Efficiency (CASBEE) is being promoted under the MLIT Environmental Action Plan (June 2004) and the Kyoto Protocol Target Achievement Plan (approved by the Cabinet on April 28, 2005.)
Singapore Japan In

is another country that is successfully implementing energy efficiency standards for the buildings. Residential sector of building construction market is most developed due to the demand in the market. Singapore Green Building market is considered to be mature and awareness about green buildings is high. Through Green Mark certification system, the government is on its way to fulfill its green objective of getting xx% of Singapore's buildings to achieve a "green mark" standard by 2030.

Zealand announced its Second Vision master plan (formed by New Zealand Green Building Council) to transform up to xx% of total buildings into Green Buildings. The Second Vision raises the earlier target of transforming xx% of the total buildings into Green Buildings.

New

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Green Buildings A Strategic Analysis of Asia Pacific Markets

Market Structure (Contd) Regional Overview
Green Buildings Market: Number of Green Buildings (Asia Pacific), 2009 South Korea has more than xxxx buildings which are C ertified Green Buildings already green certified or under evaluation for the Buildings under evaluation certification xxx
xxx xxx
Total numbers of Green Buildings

With xxx certified buildings and around xxx buildings under evaluation, the Australian market is second in terms of size in the region.
Singapore

xxx xxx xxx xxx 0

is the third largest market in the region with close to xxx buildings already certified or under evaluation for green certification countries mentioned above are actively promoting Green Building markets, supported by government and GB council s initiatives. Japan initially was a major participant in the market, Hong Kong managed to make faster progress with over xxx buildings already certified or under evaluation for green certification

The

Although

Source: Frost & Sullivan

New Zealand Green Building market is expected to grow within a short period of time. Malaysia and Indonesia Green Building markets growth will be helped by newly designed rating tools.
21

The

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Green Buildings A Strategic Analysis of Asia Pacific Markets

Market Structure (Contd) Regional Overview (Contd)
Green Buildings Market: Analysis by Country (Asia Pacific), 2009 - Leading Green Building markets in Asia Pacific region are South Korea, Australia and Singapore, due to both government support and market stakeholders commitment and efforts. Hong Kong has achieved similar positioning with slightly less number government initiatives. - Japan, and New Zealand have made progresses too, but in terms of market stakeholders involvement and government support they are behind from leading markets mentioned above - The market is at the initial stage of development. Malaysia and Indonesia have recently introduced their own rating systems and GB councils. These markets have high growth potential in the future.
22

Market participation and stakeholders involvement

High

South Korea Hong Kong

Australi a Singapo re

Medium

Japan

Low

Malays ia Indone sia

New Zeala nd

Low

Medium

High

Government regulations, incentives and GB associations initiatives to promote GB

Source: Frost & Sullivan

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