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

The Prefabricated Housing Market is segmented by Type (Single Family and Multi-Family), and by Region (North America, Asia-Pacific, Europe, GCC, and the Rest of the World). The report offers market sizes and forecasts in value (USD billion) for all the above segments.

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Prefabricated Housing Market Size

Prefabricated Housing Industry
Study Period: 2019-2028
Fastest Growing Market: Europe
Largest Market: North America
CAGR: > 6 %

Major Players

Prefabricated Housing Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Prefabricated Housing Market Analysis

The size of Prefabricated Housing Market is USD 19.1 billion in the current year and is anticipated to register a CAGR of over 6% during the forecast period.

  • The construction industry has also seen delays in finishing projects due to labor shortages and a global supply deficit in several common building materials, including steel, paint, cement, wood, cabinets, and some 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 of the U.S. since the start of 2022.
  • The modular building market expands as demand rises, even though it accounts only for a small portion of the USD 1 trillion construction industry. Prefabrication is becoming increasingly popular because of its on-site effectiveness, increased worker productivity and safety, and cheaper construction costs. In addition to these advantages, modular construction offers fantastic prospects for more responsible use of building materials and environmentally friendly designs. It also marks a significant advancement in environmental sustainability.
  • Not all mobile houses are modular. According to the American Housing Survey, 80% of manufactured homes are still located at the original location where they were first installed. A manufactured home can be moved for between USD 5,000 and 10,000 or even USD 20,000, depending on the distance, licenses and taxes, and the house size. The U.S. Census Bureau estimates that there are about 7 million prefabricated homes in the country (7.5% of all single-family homes). It is good to see that more than 80% of contractors are already embracing off-site building techniques like modularization.
  • 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 U.S. states. However, the problems above are beginning to affect all types of construction. The cost rises traditionally started in residential construction. According to the Australian Bureau of Statistics, the country has witnessed a record amount of construction activity from Jan 2021 to September 2021, valued at more than USD 141.2 Billion.

Prefabricated Housing Industry Segmentation

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 Global Prefabricated Housing Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report. The Global Prefabricated Housing Market is segmented by Type (Single Family and Multi-Family) and Region (North America, Asia-Pacific, Europe, GCC, and the Rest of the World). The report offers market size and forecasts for the Prefabricated Housing Market in value (USD billion) for all the above segments.

By Type
Single Family
Multi Family
By Region
North America
Asia-Pacific
Europe
GCC
Rest of the World

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Prefabricated Housing Market Trends

This section covers the major market trends shaping the Prefabricated Housing Market according to our research experts:

Expansion of prefabricated housing to drive the market

  • Prefabricated housing was once a temporary solution to a problem in recent history, but it soon turned into a long-term fix. Prefab houses are currently seeing a modern comeback throughout Europe, accounting for 23% of the country of Germany's housing stock. The UK construction company TopHat is growing and plans to create a massive factory the next year that can produce one modular home per hour.
  • In the U.S., there is a clear demand for more housing. At the end of the previous year, the shortage, in our estimation, was around 3.5 million units. The Great Recession caused a more than ten-year underproduction, accompanied by labor shortages and supply chain issues brought on by the pandemic. Between now and 2030, it is predicted that the U.S. will need to construct roughly 1.7 million new homes yearly to close the housing gap.
  • Despite the significant housing shortage, builders have slowed construction because demand has decreased. According to the U.S. Census Bureau, housing permits and starts decreased to yearly rates of 1.67 million and 1.45 million in July 2022 from 1.84 and 1.67 million at the start of 2021. While it is not anticipated that a complete halt to development, we do anticipate a further decline as builders become more cautious about controlling their inventory levels. The housing deficit will worsen as a result.
Prefabricated Housing Market trend - Number of new houses sold in United States

Increase in prices to affect the demand of residential real estate

  • Real estate values continued to increase globally in the first quarter of 2022, increasing 4.6% on an annualized basis. This was due to the robust nominal house price growth (+11.2%), the first double-digit rate since the Great Financial Crisis (GFC), being offset by the sharp increase in consumer price indices. (CPIs). 
  • Real house price growth in advanced economies (AEs) increased to 8.5% (from 7.8% in Q4 2021), but it stayed significantly lower in emerging market economies (EMEs), averaging 1.6% after 1.8% in the previous quarter. Real home prices increased by 18.5% in central and eastern Europe, but they increased much more slowly in the Middle East and Africa (+2.7%) and even decreased in both Asia and Latin America, by 1.3% and 1.5%, respectively.
  • Real residential property values rose year over year in nearly 90% of the jurisdictions in the first quarter of 2022, with housing inflation concentrated among AEs. Nearly half of the EMEs saw price declines, while only one-third of the AEs experienced strong price increases (i.e., above 5% year on year).
  • Real residential property prices increased overall for the group of AEs (Advanced economies) by 8.6% year over year in Q2 2021 as opposed to 3.8% in Q2 of the previous year. Australia saw the largest price increase (+12%), followed by the United States (++11%), Canada (+10%), the United Kingdom (+8%), and Japan (+6%). In New Zealand, house prices increased at a double-digit rate (+24%).
  • Real year-over-year house price inflation in the euro area was slightly slower (+5%), with considerable regional variations. Real prices were almost stable in Spain (+1%) and Italy (-1%), but they were still strong in the Netherlands (+11%), Germany (+8%), Portugal (+6%), and France (+4%).
  • As housing trends improve, the residential market is expected to have a capital value growth of about 5%. Residential real estate trends are also experiencing a tremendous resurgence due to the increased demand among purchasers who prefer larger homes with more facilities.
Prefabricated Housing Market - Average sales price of New Manufactured Homes in U.S

Prefabricated Housing Industry Overview

The Global prefabricated housing market is fragmented and highly competitive without dominant players. Daiwa House Industry, Sekisui House, Asahi Kasei Corporation, Skanska AB, Peab AB, and many others are major players. Companies use environmentally friendly materials and manufacturing techniques to differentiate their products from competitors. Companies are implementing effective production technologies to minimize product costs and reduce related risks. High capital requirements and rapid technological advancement are important barriers to entry for new participants.

Prefabricated Housing Market Leaders

  1. Daiwa House Industry

  2. Sekisui House 

  3. Asahi Kasei Corporation 

  4. Skanska AB

  5. Peab AB

*Disclaimer: Major Players sorted in no particular order

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Prefabricated Housing Market News

  • September 2022: Modulous, a construction technology startup, raised USD 11.5 million to develop a software platform that allows architects to create multifamily dwellings using a kit of prefabricated elements. The startup's software streamlines multifamily house design planning. The technology can be used by builders, architects, and developers to estimate the costs and viability of a potential site for a house. Additionally, it offers unique kit-of-parts, prefabricated construction pieces used by builders to create the homes like a life-sized Lego set.
  • June 2022: TopHat, the modular home maker, has announced plans to create a second factory, increasing its annual production capacity to 4,500. The company announced that a new 650,000-square-foot plant in Corby, Northamptonshire, will open in 2023 and have the ability to build about 4,000 homes annually. The structure will house the largest manufacturer of modular homes in Europe, according to TopHat.

Prefabricated Housing Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    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 Housing Industry

    4. 4.4 Cost Structure Analysis of the Prefabricated Housing Industry

    5. 4.5 Impact of COVID-19 on the Market

    6. 4.6 Insights on Different Types of Materials used in Prefabricated Housing Construction

  5. 5. MARKET DYNAMICS

    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunities

    4. 5.4 Industry Attractiveness - 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 Type

      1. 6.1.1 Single Family

      2. 6.1.2 Multi Family

    2. 6.2 By Region

      1. 6.2.1 North America

      2. 6.2.2 Asia-Pacific

      3. 6.2.3 Europe

      4. 6.2.4 GCC

      5. 6.2.5 Rest of the World

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Overview

    2. 7.2 Company Profiles

      1. 7.2.1 Daiwa House Industry

      2. 7.2.2 Sekisui House

      3. 7.2.3 Asahi Kasei Corporation

      4. 7.2.4 Skanska AB

      5. 7.2.5 Peab AB

      6. 7.2.6 Ichijo

      7. 7.2.7 Swietelsky AG

      8. 7.2.8 Panasonic Homes

      9. 7.2.9 Laing O'Rourke

      10. 7.2.10 Champion Home Builders Inc.

      11. 7.2.11 Bouygues Batiment International

      12. 7.2.12 Derome AB*

      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 & import statistics of construction Materials

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Prefabricated Housing Market Research FAQs

The Prefabricated Housing Market is studied from 2019 - 2028.

The Prefabricated Housing Market is growing at a CAGR of >6% over the next 5 years.

Europe is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2022.

Daiwa House Industry, Sekisui House , Asahi Kasei Corporation , Skanska AB, Peab AB are the major companies operating in Prefabricated Housing Market.

Prefabricated Housing Industry Report

Statistics for the 2023 Global Prefabricated Housing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Global Prefabricated Housing analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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