Australia Prefabricated Buildings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Australian Prefabricated Buildings Market is segmented by material type (concrete, glass, metal, timber, and other material types) and application (residential, commercial, and other applications (infrastructure and industrial)). The report offers market size and forecast values in (USD billion) for all the above segments.

Australia Prefabricated Buildings Industry Overview

Australia Prefabricated Buildings Market Summary
Study Period: 2019 - 2028
CAGR: > 7.5 %

Major Players

Australia Prefabricated Buildings Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Australia Prefabricated Buildings Market Analysis

The Australia Prefabricated Buildings Market is anticipated to register a CAGR of more than 7.5% over the forecast period.

  • 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 Australian Bureau of Statistics recently released that Australia witnessed a record construction activity from September 30, 2021, valued at more than USD 141.2 Billion.
  • 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 Industry Segments

Prefabrication is the practice of assembling components of a structure in a factory or other manufacturing site and transporting complete assemblies or sub-assemblies to the construction site. A comprehensive background analysis of the Australia Prefabricated Buildings Market, including the economic assessment and sectors' contribution to the economy, market overview, market size estimation for crucial segments, emerging market segments trends, market dynamics, geographical trends, and COVID-19 impact is in the report.

The Australian Prefabricated Buildings Market is segmented by material type (concrete, glass, metal, timber, and other material types) and application (residential, commercial, and other applications (infrastructure and industrial)). The report offers market size and forecast values in (USD billion) for all the above segments.

By Material Type
Concrete
Glass
Metal
Timber
Other Material Types
By Application
Residential
Commercial
Other Applications (Infrastructure and Industrial)

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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.

Australia Prefabricated Buildings Market - Value of construction work done, Australia, in USD Million, June 2022

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 Market - Detached single-family home prices, Australia, in USD per m2, 2021

Australia Prefabricated Buildings Market Competitor Analysis

The Australia Prefabricated Buildings Market is fragmented and highly competitive due to the presence of global, regional, and local players. Some key players include Allen Taylor & Company Ltd, Ausco Modular Construction Pty Ltd, Fleetwood Corporation Limited, Metcon (Vic) Pty. Ltd, Landmark Products Pty Ltd, and many others. 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 Top Players

  1. Allen Taylor & Company Ltd

  2. Ausco Modular Construction Pty Ltd

  3. Fleetwood Corporation Limited

  4. Metcon (Vic) Pty. Ltd

  5. Landmark Products Pty Ltd

*Disclaimer: Major Players sorted in no particular order

Australia Prefabricated Buildings Market Concentration

Australia Prefabricated Buildings Market Recent Developments

September 2022: Contreras Earl Architecture has developed a modular vertiport design for Skyportz that can be set up anywhere in the world. Just a week prior, Melbourne-based Australian vertical port company Skyportz announced plans to establish the nation's first network of air taxi facilities. The business creates a database that evaluates and organizes potential urban air mobility (UAM) infrastructure locations around the globe.

July 2022: Sener Group, a Spanish engineering and technology company with operations in the aerospace, infrastructure, energy, and marine sectors, will purchase 60% of Tactix Group, an Australian transportation and infrastructure consultant. Tactix, founded in 2012, has locations in several of the nation's major cities, including Sydney, Brisbane, Adelaide, and Melbourne. From these locations, its 150 consultants offer project management, assurance, and design services for road and rail engineering systems.

Australia Prefabricated Buildings Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Technological Trends

    3. 4.3 Insights on Supply Chain/Value Chain Analysis of the Prefabricated Buildings Industry

    4. 4.4 Brief on Different Structures Used in the Prefabricated Buildings Industry

    5. 4.5 Cost Structure Analysis of the Prefabricated Buildings Industry

    6. 4.6 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunitites

    4. 5.4 Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers / Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Material Type

      1. 6.1.1 Concrete

      2. 6.1.2 Glass

      3. 6.1.3 Metal

      4. 6.1.4 Timber

      5. 6.1.5 Other Material Types

    2. 6.2 By Application

      1. 6.2.1 Residential

      2. 6.2.2 Commercial

      3. 6.2.3 Other Applications (Infrastructure and Industrial)

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles

      1. 7.2.1 Allen Taylor & Company Ltd

      2. 7.2.2 Ausco Modular Construction Pty Ltd

      3. 7.2.3 Fleetwood Corporation Limited

      4. 7.2.4 Metcon (Vic) Pty. Ltd

      5. 7.2.5 Landmark Products Pty Ltd

      6. 7.2.6 Spanbild Pty Limited

      7. 7.2.7 Aussie Modular Solutions Pty Ltd

      8. 7.2.8 Archiblox Pty. Ltd.

      9. 7.2.9 Swan Hill Engineering Pty Ltd

      10. 7.2.10 Black Diamond Modular Buildings Pty Ltd

      11. 7.2.11 Anchor Homes

      12. 7.2.12 Strongbuild Manufacturing Pty Ltd

      13. 7.2.13 Modscape

      14. 7.2.14 Prebuilt Commercial

      15. 7.2.15 K.L. Modular Systems Pty. Ltd *

    3. *List Not Exhaustive
  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

  9. 9. APPENDIX

    1. 9.1 Marcroeconomic Indicators (GDP breakdown by Sector, Contribution of Construction to Economy, etc.)

    2. 9.2 Key Production, Consumption, Exports and Import Statistics of Construction Materials

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Australia Prefabricated Buildings Market Research FAQs

The Australia Prefabricated Buildings Market is studied from 2019 - 2028.

The Australia Prefabricated Buildings Market is growing at a CAGR of >7.5% over the next 5 years.

Allen Taylor & Company Ltd, Ausco Modular Construction Pty Ltd, Fleetwood Corporation Limited, Metcon (Vic) Pty. Ltd, Landmark Products Pty Ltd are the major companies operating in Australia Prefabricated Buildings Market.

Australia Prefabricated Buildings Industry Reports

In-depth industry statistics and market share insights of the Australia Prefabricated Buildings sector for 2020, 2021, and 2022. The Australia Prefabricated Buildings research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Australia Prefabricated Buildings report PDF.

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