The growing need to adopt environmentally sustainable practices across industries has led to the rise of green hospitals. Green hospitals aim to reduce their environmental footprint and carbon emissions through various measures such as reducing energy and water consumption, proper waste management, use of non-toxic and sustainable building materials and supplies. They promote the use of renewable energy sources, adopt green building standards and educate staff as well as the community on eco-friendly initiatives.
The Global Green Hospitals Market is estimated to be valued at US$ 54.02 billion in 2024 and is expected to exhibit a CAGR of 7% over the forecast period 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 companies provide consulting and certification services related to sustainable building standards and operations to healthcare facilities worldwide.
The growing awareness about the environmental impact of conventional hospitals is driving the demand for green hospitals globally. Various government policies and regulations in countries are also encouraging the set up of eco-friendly healthcare infrastructure.
Several hospitals are now adopting the green approach not only to lower costs through efficient resource management but also to attract environmentally conscious patients and staff. The green hospital concept is steadily gaining traction worldwide with many countries actively working towards transitioning existing facilities and building new ones sustainably.
Market Key Trends
One of the major trends in the Green Hospitals Market Demand is the rise of digital transformation solutions that enable remote monitoring of resource consumption and waste generation. This allows hospitals to gain real-time insights into their sustainability performance and take corrective actions promptly. Advanced building automation and control systems are also being increasingly used to centrally manage and optimize energy usage of heating, ventilation, air conditioning and lighting systems in hospitals. This is expected tofurther boost the growth of green hospitals globally.
Porter’s Analysis
Threat of new entrants: Low investment is required to set up green hospital however managing certifications, operational costs and scaling up the business poses challenges for new players.
Bargaining power of buyers: Large healthcare organizations and government hospitals have higher bargaining power due to their large procurement budgets. They can negotiate on service offerings and pricing.
Bargaining power of suppliers: Suppliers of green materials, equipment and technologies have moderate bargaining power due to availability of close substitutes and priority of customers on sustainability compliance over costs.
Threat of new substitutes: Alternate greener operations, renewable energy solutions and waste management practices pose threat of substitution.
Competitive rivalry: Intense competition exists among existing players to acquire new clients and comply with evolving regulatory mandates. Major strategic differentiators are scope and depth of service offerings, compliance expertise and geographical reach.
Geographical Regions
North America has the largest share in the green hospitals market in terms of value due to stringent regulatory push and higher adoption among healthcare providers for sustainability goals in the region.
Asia Pacific is expected to grow at the fastest pace during the forecast period due to increasing healthcare infrastructure development, rising health awareness and supportive government policies & funding for green buildings in countries like India, China and Singapore.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
