Funding to "green" construction tech companies will reach a record $2.2 billion this year, a new research bulletin from A/O PropTech suggests.
Over the past five years, from 2017 to 2022, globally, the green construction tech space is expected to have lured $4.5 billion, with European cities accounting for half of that volume.
London was ranked the top destination for green construction tech spends, which encompass everything from the design of green buildings, to finding carbon-reducing materials and new construction methods.
From 2017 to 2022, investment-backed green construction tech companies are set to achieve a combined 84% annual growth rate, A/O PropTech said.
The result of these funding efforts is also likely to impress. For example, the study predicts that by mid century CO2 volumes of up to 60 gigatonnes could be stored in "global building fabric", matching 80% of the carbon currently stored in the Amazon.
Green construction tech brings together under a single umbrella decarbonising business models across the architecture, engineering and construction sectors.
Since 2017, A/O has tracked more than 452 deals, but says there's been a "shift to slightly later" deal stages this year, with more cheques coming at series A or B.
Series A and B rounds accounted for almost half of 2022's deals, up from just 10% in 2017. But while Europe has dominated in terms of deals volume, more than 80% of the cash invested in green construction tech went to North American startups.
Gregory Dewerpe, A/O Proptech founder and chief investment officer, said: "The built environment is one of the biggest contributors to carbon emissions and there is a growing recognition that we need to tackle this problem urgently.
"In our last report we considered the huge opportunity to retrofit buildings to tackle operational emissions, but this alone will not tackle the extent of the issue.
"New technologies that can lower emissions during the construction process are vital from design software, to more sustainable building materials to technologies that speed up and accelerate construction.
"All of these new technologies can play a part in reducing the overall impact of the built environment."