Global Prefabricated Buildings Market Size & Growth Trends Analysis Report

The industry has been stimulated by the growing emphasis on sustainable building methods as prefabrication drastically cuts down on labor costs and construction time. The main end customers of prefabricated structures are real estate developers and construction firms, which employ them to cut costs and construction time. Similarly, modular building is used in the education sector for schools and universities, and in the healthcare sector for hospitals and clinics. To construct hotels more quickly, businesses in the hospitality industry, such as Marriott International, have embraced modular construction.

Moreover, prefabricated construction techniques can efficiently address the need for inexpensive housing, which is being driven by the fast urbanization and population expansion in emerging nations. Furthermore, the quality and versatility of prefabricated structures are being improved by technical developments in design and production processes, such as 3D printing and modular construction, which is driving its market expansion even more.

Several building and construction bodies that establish rules and codes for durability, safety, and environmental effects control the market. These include organizations that monitor adherence to regional building codes and encourage the use of sustainable practices in the prefabricated building industry, such as the International Code Council (ICC), the International Organization for Standardization (ISO), and regional regulatory bodies such as the European Committee for Standardization (CEN) and the Bureau of Indian Standards (BIS).

The market is constrained, nevertheless, mainly due to the hefty startup costs associated with establishing production facilities and the possibility of logistics and transportation issues when transferring big prefabricated components to building sites. Furthermore, there is an image problem in certain areas where prefabricated buildings are perceived as being less beautiful or long-lasting than traditional building techniques.

The market for prefabricated buildings has a lot of potential despite these obstacles. Prefabricated construction is being encouraged by growing government support and incentives for affordable and ecological housing, especially in developing nations. Furthermore, prefabrication businesses can set themselves apart by providing ecologically friendly products as a result of the move towards green building certifications and laws. Additionally, startups are joining the market and offering specialized, superior prefabricated solutions by utilizing cutting-edge design techniques and novel technology. Innovative prefabricated building solutions are being created by startups like Katerra, Plant Prefab, and Prefab Logic, who are using cutting-edge manufacturing techniques and materials and are having a significant impact on the market.

Impact of COVID-19

The initial COVID-19 outbreak resulted in labor shortages, supply chain disruptions, and delays in construction projects, which slowed down market growth. The market was further hampered by lockdowns and social distancing measures, which compelled numerous building sites to close or operate at reduced capacity. However, the pandemic also highlighted the necessity for quick, scalable, and effective construction techniques to meet pressing demands, such as constructing makeshift hospitals and isolation units. The prefabricated buildings became more popular as a result of their capacity to be swiftly built with little on-site labor. The prefabricated structures are now seen as a robust and sustainable answer to future construction needs as the industry adjusted to new norms and used digital tools, automation, and off-site construction techniques. The need for flexible and modular construction was spurred by the transition to remote work and evolving space needs, which opened up new growth prospects for the industry.

Segmentation

The global prefabricated buildings market is segmented into material type and application. By material type, the market is further segmented into steel, wood, concrete, and others. Companies such as Red Sea Housing and Katerra concentrate on prefabricated concrete buildings owing to their cost-effectiveness, durability, and fire resistance. Prefabricated steel buildings, such as those made by Butler Manufacturing and Tata BlueScope Steel, are ideal for high-rise buildings, warehouses, and other industrial structures due to their strength, flexibility, and recyclability. Due to its aesthetic appeal and sustainability, wood is used for residential and small business applications. Palomar Modular Buildings and Guerdon Modular Buildings are two of the main companies in this market.

By application, the market is segmented into residential, commercial, and industrial. The residential segment includes single-family, multi-family, and apartment buildings; firms in this segment include Sekisui House and Blu Homes. Office buildings, retail establishments, and healthcare facilities are all included in the commercial segment; businesses that serve this segment include Elements Europe and CIMC Modular Building Systems. The participants in the industrial sector, which focuses on factories, warehouses, and logistics hubs, include Modulex and Algeco Group.

Regional Analysis

One of the biggest markets for prefabricated structures is North America, specifically the U.S. and Canada. Rapid urbanization, the need for affordable housing, and the goal of cutting construction costs and schedules are the main drivers of this exponential rise. The renowned companies serving the residential and commercial sectors in this region include Clayton Homes, Skyline Champion Corporation, and Guerdon Modular Buildings. The favorable government regulations encouraging green and sustainable building methods can help the expansion of the prefabricated buildings market in the upcoming years.

Europe is another sizable market, where prefabricated structures are in high demand in nations such as the Netherlands, Germany, Sweden, and the UK. A lack of qualified labor, the desire for energy-efficient development, and strict building safety and sustainability laws are the main drivers of this region's growth. The prominent firms in the European market include Laing O'Rourke, Algeco Group, and Elements Europe. The region is also marked by a growing tendency toward modular building in the fields of healthcare, education, and housing.

Driven by nations such as China, Japan, India, and Australia, the prefabricated building industry is expanding quickly in the Asia Pacific region. The need for inexpensive housing alternatives, growing urbanization, and population rise are the main drivers of market expansion in this region. While Sekisui House is a significant participant in Japan, Broad Group and CIMC Modular Building Systems are leading the industry in China. Prefabricated construction demand is also increasing as a result of government programs supporting infrastructure development and inexpensive housing, especially in India.

With nations such as Brazil, and Chile demonstrating a growing interest in prefabricated and modular construction methods, the market for prefabricated structures is progressively expanding in the Latin America region. The necessity for affordable housing options, quick urbanization, and natural catastrophe recovery are the main factors driving demand in the region. Encouraged by government measures aimed at enhancing the sustainability and quality of new construction projects, local firms such as Etex Group and Tecno Fast are concentrating on growing their prefabricated building solutions in the region.

Due to the growing need for quick construction solutions in the United Arab Emirates, Saudi Arabia, and South Africa, the Middle East and Africa region is exhibiting great growth potential in the prefabricated building industry. The need for cheap housing, tourism growth, and large-scale infrastructure projects are the main drivers of demand in this region. In order to achieve regional development goals, businesses such as Red Sea Housing Services and Katerra are involved in this sector and are profiting from the increasing use of prefabricated and modular construction methods.

Competitive Analysis

The major players in the global prefabricated buildings market are Lindal Cedar Homes Inc., Red Sea Housing Services, Astron Buildings, United Partition Systems, Butler Manufacturing Company, Ritz-Craft Corporation, Champion Home Builders, Kirby Building Systems LLC, Par-Kut Internationals, Algeco Scotsman, Modern Prefab Systems, and GRAITC Groups, among others.

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The global prefabricated buildings market is segmented as follows:

By Material Type (Revenue: USD Billion, 2019 – 2031)
●    Steel
●    Wool
●    Concrete
●    Others

By Application (Revenue: USD Billion, 2019 – 2031)
●    Residential
●    Commercial
●    Industrial

By Region (Revenue: USD Billion, 2019 – 2031)

● North America
o U.S.
o Canada
o Mexico

● Europe
o U.K.
o France
o Germany
o Italy
o Spain
o Rest of Europe

● Asia Pacific
o China
o Japan
o India
o South Korea
o South East Asia
o Rest of Asia Pacific

● Latin America
o Brazil
o Argentina
o Rest of Latin America

● Middle East & Africa
o GCC Countries
o South Africa
o Rest of Middle East & Africa