Australia Prefabricated Buildings Market Size
|Study Period||2019 - 2028|
|Base Year For Estimation||2022|
|Market Size (2023)||USD 9.79 Billion|
|Market Size (2028)||USD 12.45 Billion|
|CAGR (2023 - 2028)||4.93 %|
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and its growth?
Australia Prefabricated Buildings Market Analysis
The Australia Prefabricated Buildings Market size is expected to grow from USD 9.79 billion in 2023 to USD 12.45 billion by 2028, at a CAGR of 4.93% during the forecast period (2023-2028).
- The market is primarily driven by the demand for low to mid-rise residential buildings, project homes, and public housing. Increasing awareness about prefabricated building benefits, such as reduced material waste and less disruption to the surrounding environment, is driving the market growth. Revenue in the prefabricated building industry is expected to grow as the rising demand from the government and education sectors has supported the industry during the COVID-19 pandemic. The Australian construction industry has faced severe challenges over the past two decades.
- The adoption of prefabricated solutions in Australia has increased significantly over the past few years. Industry associations and institutions in Australia are launching campaigns to create awareness about the benefits of the prefabricated industry. Leading figures in the Australian industry have recognized the productivity and efficiency gains that advanced manufacturing techniques can offer.
- Due to various causes, including a tight labor market, rising input costs, and increased demand due to government incentives, the construction, and building industries have experienced significant price inflation in most states. However, the problems mentioned above are beginning to affect all types of construction. The cost rises traditionally started in residential construction.
- The construction industry has also seen significant delays in finishing projects due to labor shortages and a global supply deficit in several common building materials. The materials include steel, paint, cement, wood, cabinets, and electrical components. Compared to pre-pandemic levels, building material wait times have, at best, doubled and, at worst, increased by more than ten times. Construction projects will experience completion delays and increased cost pressure due to the unfavorable weather affecting the east coast since the start of the year.
- The adoption of prefabricated solutions in Australia has increased significantly over the past few years. Industry associations and institutions in Australia are launching campaigns to create awareness about the benefits of the prefabricated industry. Many public spaces in Australia, such as new railway stations, police stations, healthcare facilities, and community centers, are now being built using volumetric modular construction and other prefabricated methods with the assistance of the Australian government. The prefabrication construction market in the country is estimated to witness growth.
Australia Prefabricated Buildings Market Trends
This section covers the major market trends shaping the Australia Prefabricated Buildings Market according to our research experts:
Increasing demand for new building construction in Australia driving the market
Australia is one of the nations with the highest economic growth, and its building sector is flourishing. As public awareness of climate change and other environmental issues continues to rise, more and more people are seeking methods to live sustainably, leading to numerous new construction trends in Australia. One of Australia's most recent construction trends is the preference for modular construction techniques. Off-site construction methods like modular construction include building prefabricated modules in a factory setting before transporting them to the job site.
The latest official data indicates a significant projected decline in approvals in April. Rising building material and labor costs are pulling down new housing permits. According to the Australian Bureau of Statistics, after a decrease of 19.2% in March 2022, the number of residences permitted in Australia further decreased by 2.4% in April 2022. Approvals for detached homes increased by 0.5% to 10,077, while apartments and townhomes decreased by 6.1% to 4,701.
As the sector returns to normal after the Home Builder-fueled boom in activity, total approvals are down 32.4% per year, with detached homes and apartments experiencing declines of 33.7% and 28.7%, respectively. The most recent information relates to the housing supply. By 2032, 163,400 dwellings will be necessarily less than what was previously predicted by the National Housing Finance Investment Corporation. New residential construction's value increased by 4.4% to USD 6.054 billion, while renovations' value increased by 6.6% to slightly over USD 1 billion. Buildings other than homes saw a 30% decline to USD 4.35 billion.
To understand key trends, Download Sample Report
Increasing costs of construction in Australia
The average cost to build a home in Australia increased by more than USD 94,000 in just 15 months. Mortgage holders across the country also feel the effects of the astounding increase. Housing costs also play a significant role in the inflation data that drove the Reserve Bank of Australia to raise interest rates by 1.5% over the past three months. According to an analysis of the most recent building approvals data from the Australian Bureau of Statistics, the average cost of a new house permitted in the country's private sector in May 2022 was USD 413,436.
Last year, with an increase of 23.7% over the previous 12 months, residential property values experienced their highest yearly growth on record. Due to historically low borrowing rates and government assistance, Australia's real estate industry has experienced exponential growth. Price increases were seen in all the major capital cities, with Hobart (+29.8%), Canberra (+28.8%), Brisbane (+27.8%), Sydney (+26.7%), and Adelaide (+23.9%) seeing the highest yearly increases. In the last 12 years, Melbourne (+20.0%) has seen the most considerable annual growth, followed by Perth (+15.7%) and Darwin (+13.0%). Due to the increase, Australia's real estate market now has a value of USD 9.9 trillion, with the typical price of residential properties rising by another USD 44,000 to USD 920,100 nationwide.
The government has been investigating housing affordability and supply due to high prices. The results are anticipated to be public this year. With many Australians being shut out of the real estate market and others facing lifetime loans of millions of dollars, the price increase is causing a housing catastrophe.
Australia Prefabricated Buildings Industry Overview
The Australia Prefabricated Buildings Market is fragmented and highly competitive due to the presence of global, regional, and local players. Some key players include Ausco Modular Construction Pty Ltd, Fleetwood Australia, Archiblox Pty. Ltd., Anchor Homes, and Prebuilt Commercial. Prefabricated building systems and construction hold a high potential to improve the efficiency and performance of the Australian construction industry in a more sustainable sense. With the market just opening up in the building industry, generating trust and investments in the technology, the market is open to ample opportunities and can witness substantial growth in the coming years.
Australia Prefabricated Buildings Market Leaders
Ausco Modular Construction Pty Ltd
Archiblox Pty. Ltd.
*Disclaimer: Major Players sorted in no particular order
Australia Prefabricated Buildings Market News
- November 2022: Flow2Edge entered a USD 3.5 million consulting, licensing, and distribution agreement with ASX-listed prefab data center provider DXN to export its data center modules to APAC markets excluding Australia. The agreement follows months of failed acquisition negotiations between the Singapore-based FLOW Digital Infrastructure subsidiary and DXN.
- January 2022: Australian data center firm DXN announced that it was going to build a modular data center for a new Covid-19 quarantine center being built in Perth, Western Australia. The company announced it had been contracted by construction firm Multiplex to supply a modular data center and 10 communications rooms for AUD 3.5 million (USD 2.5 million). DXN has also delivered at least 18 modular data centers to customers including Boeing and Covalent Lithium.
Australia Prefabricated Buildings Market Report - Table of Contents
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Technological Trends in the Market
4.3 Insights on Supply Chain/Value Chain Analysis of the Market
4.4 Brief on Different Structures Used in the Prefabricated Buildings Industry
4.5 Cost Structure Analysis of the Prefabricated Buildings Industry
4.6 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.2 Market Restraints
5.3 Market Opportunitites
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers / Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Material Type
6.1.5 Other Material Types
6.2 By Application
6.2.3 Other Applications (Infrastructure and Industrial)
7. COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 Ausco Modular Construction Pty Ltd
7.2.2 Fleetwood Australia
7.2.3 Landmark Products Pty Ltd
7.2.4 Spanbilt Pty Limited
7.2.5 Archiblox Pty. Ltd.
7.2.6 Swan Hill Engineering Pty Ltd
7.2.7 Black Diamond Modular Buildings Pty Ltd
7.2.8 Anchor Homes
7.2.9 Strongbuild Manufacturing Pty Ltd
7.2.11 Prebuilt Commercial
7.2.12 K.L. Modular Systems Pty. Ltd *
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9.1 Marcroeconomic Indicators (GDP breakdown by Sector, Contribution of Construction to Economy, etc.)
9.2 Key Production, Consumption, Exports and Import Statistics of Construction Materials
Australia Prefabricated Buildings Market Research FAQs
How big is the Australia Prefabricated Buildings Market?
The Australia Prefabricated Buildings Market size is expected to reach USD 9.79 billion in 2023 and grow at a CAGR of 4.93% to reach USD 12.45 billion by 2028.
What is the current Australia Prefabricated Buildings Market size?
In 2023, the Australia Prefabricated Buildings Market size is expected to reach USD 9.79 billion.
Who are the key players in Australia Prefabricated Buildings Market?
Ausco Modular Construction Pty Ltd, Fleetwood Australia, Archiblox Pty. Ltd., Anchor Homes and Prebuilt Commercial are the major companies operating in the Australia Prefabricated Buildings Market.
Modular Construction in Australia Industry Report
Statistics for the 2023 Modular Construction in Australia market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Modular Construction in Australia analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.