The global green hospitals market is characterized by various sustainable practices and technologies adopted by healthcare facilities to minimize environmental impact and optimize the use of resources. Some key initiatives adopted by green hospitals include waste management, energy efficiency, water conservation, sustainable purchasing, and use of non-toxic materials. The initiatives also aim to improve indoor environmental quality, reduce pollution and toxic emissions, and integrate sustainable building design principles.
The Global green hospitals market is estimated to be valued at US$ 54.02 Mn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period of 2024 to 2031.
Key Takeaways
Key players operating in the green hospitals market are Baker Tilly, BDO, CROWE, Deloitte, Ernst & Young Global Limited, Grant Thornton, KPMG, Mazars, PWC, RSM International, and TMF Group. These players are focusing on developing innovative sustainability solutions for hospitals. For instance, Baker Tilly provides advisory services to help healthcare facilities reduce emissions and optimize energy usage.
The growing environmental consciousness among consumers as well as strict regulations regarding resource consumption and emissions are fueling the demand for Green Hospitals Market Growth. Various studies have shown that sustainable practices implemented in hospitals can help lower energy and water bills substantially as well as improve indoor air quality. This is encouraging more healthcare facilities to adopt green technologies and remodeling initiatives.
The global green hospitals market is expanding rapidly as players focus on establishing operations in emerging regions. For example, in 2022 TMF Group partnered with EMR to help develop an 81-bed greenfield hospital project in Vietnam by ensuring compliance with local healthcare and sustainability standards. Similar projects in Asia Pacific, Latin America, Middle East and Africa will continue driving the green hospitals market during the forecast period.
Market Drivers
Growing emphasis on sustainability goals and policies by governments worldwide regarding reduction of emissions is a major market driver. Many countries have set targets to lower carbon footprint of public infrastructure and make healthcare facilities more eco-friendly. This is prompting investment in renewable energy solutions, green building techniques as well as sustainable procurement practices in the hospital sector. Other factors such as rising energy costs and growing consumer preference for eco-certified hospitals are also contributing to the rising adoption of green initiatives in the global healthcare industry.
Impact of geopolitical situation on Green Hospitals Market growth
The green hospitals market is seeing considerable change due to various geopolitical influences. Many countries are focused on strengthening healthcare infrastructure and improving medical services. This is driving greater investment in resource-efficient and environment-friendly hospitals. However, supply chain disruptions caused by global events are hindering raw material procurement. The ongoing Russia-Ukraine conflict has notably impacted energy prices and trade relations. This is pushing up costs for hospitals and healthcare providers globally. Many nations are now prioritizing energy security and investing in renewable sources to reduce dependency on imported fuels. This transition provides growth opportunities for green technologies in the built environment sector.
Adopting greener designs and operations can help hospitals combat rising expenses in the long-run. While the short-term costs may be higher, energy-saving solutions pay for themselves over time through lower utility bills. They also future-proof facilities against price volatility in carbon-intensive utilities. The market players must account for uncertainties arising from geopolitical tensions and offer flexible financing options. They also need innovative service models that can be tailored for different resource availability scenarios across nations and regions. Collaborating with local policymakers for favorable regulations can boost large-scale adoption of green hospitals.
Geographical regions with high concentration of green hospitals market value
Currently, the green hospitals market sees high concentration of value in developed regions like North America and Western Europe. These parts of the world have stringent norms for environmental compliance of buildings. Many countries offer financial incentives for green construction as part of their climate action plans. For example, the European Union has enacted policies to decarbonize its healthcare sector and aims for carbon-neutral hospitals by 2050. Similarly, nations like the United States and Canada provide tax credits to promote energy-efficient technologies in facilities. This supportive policy environment drives significant investments in building green hospitals with the latest solutions across these regions.
Fastest growing region in the green hospitals market
The Asia Pacific region is poised to be the fastest growing market for green hospitals during the forecast period. Rapid urbanization and rising public healthcare expenditure are enabling infrastructure upgrades here. At the same time, issues like pollution and resource depletion are pushing for greener buildings. Countries like China, India, Japan, and South Korea are introducing stricter codes to curb carbon emissions from buildings. They offer funding and initiatives to Modernize existing hospitals on sustainable lines. This growing policy support, together with the large untapped market potential, makes Asia Pacific an attractive region for green hospital solutions and services providers globally to expand their presence and tap high growth opportunities.
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