Prefabricated Buildings Industry - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Prefabricated Buildings Industry is Segmented by Structure Type (Assembled and Un-assembled), Application (Residential, Commercial, and Industrial), Region (North America, Asia-Pacific, Europe, Middle-East and Africa, and South America). For each segment, the market sizing and forecast have been done based on value (USD billion).

Market Snapshot

Prefabricated Buildings Market Size
Study Period: 2018-2027
Base Year: 2021
CAGR: >5.5 %
Prefabricated Buildings Key Players

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Market Overview

The prefabricated buildings industry is expected to register a CAGR of more than 5.5% during the forecast period (2022 - 2027). All construction-related operations worldwide have been halted due to the COVID-19 pandemic and consequent lockdowns. As a result, modular construction projects in various construction segments, such as educational, residential, airports, and others, have decreased, thus significantly impacting demand for prefabricated buildings. In several places, the supply chain has also been interrupted, thus causing a delay in the delivery of construction material required and affecting the construction activities.

The adoption of additive manufacturing in Europe is expected to boost the prefabricated construction sector significantly. Companies are embracing eco-friendly products and production practices to set themselves apart from the competition. The introduction of energy-absorbing materials such as micro dwellings resulted from the focus on energy efficiency. Another major factor driving market expansion in the region, particularly in Switzerland, the Nordics, and the United Kingdom, is the introduction of turnkey solutions. The prefabricated building industry in Europe is dominated by Germany, the Nordic countries, and the United Kingdom. The United Kingdom is a prospective market for prefabricated building companies. The major players are investing in improved performance and productivity to capitalize on the market's growth potential and modular construction approaches. The existing shortage of skilled labor in the construction industry is a crucial element sustaining the United Kingdom's position in the European prefabricated building industry.

Prefab enterprises have a huge opportunity in India, where there is a need for hundreds or thousands more plants in the future. India is anticipated to be among the fastest-growing countries in terms of construction output over the next few years, making technology a critical component. By 2025, India is projected to be the world's third-largest building market. A continued government push for digitalization and the adoption of cutting-edge construction technology like BIM is a key driver for the adoption of prefabricated buildings. Government efforts such as "Digital India", "Housing for All", and "Bharatmala Pariyojana" have boosted the use of prefabricated buildings in India.

Scope of the Report

Prefabricated buildings, also known as prefabs, are structures made out of prefabricated components (such as walls, roofs, and floors) assembled at a factory or manufacturing facility. These components can be constructed wholly or partially in a factory before being transported to the construction site. This form of building construction is recommended due to its economic effectiveness, quick turnaround, and reusability. The report provides a complete background analysis of the prefabricated buildings industry, including an assessment of the economy, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles. The report also covers the impact of COVID-19 on the market.

The market is segmented by structure type (assembled and un-assembled), application (residential, commercial, and industrial), and region (North America, Asia-Pacific, Europe, Middle-East and Africa, and South America). For each segment, the market sizing and forecast have been done based on value (USD billion).

By Structure Type
Assembled
Un-assembled
By Application
Residential
Commercial
Industrial
By Region
North America
Asia-Pacific
Europe
Middle-East and Africa
South America

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Key Market Trends

Growth in Modular Construction Type

Prefabricated, or 'prefab', refers to any component of a building that is built in a factory prior to arrival and installation on the construction site. Modular construction is a type of prefabricated building. Modular construction can save up to 20% on costs and be completed in 30–50% less time than traditional construction. Real-estate developers may be able to save even more money if the process improves. Modular homes should last just as long as traditional stick-built homes because they are made of the same materials. Modular buildings are available in various quality levels in terms of construction materials and design.

The United Kingdom is a market leader for its high rate of modular construction adoption. According to industry projections, the UK modular construction market is likely to grow further over several years, owing to enormous ongoing investments in residential building development, a renewed focus on updating healthcare facilities, and a chronic shortage of trained workers. Meanwhile, shorter daytime hours and frigid climatic conditions in nations like Finland, Sweden, and Canada stifle the growth of conventional construction methods. As a result, modular construction has become a viable alternative to traditional methods.

Due to the region's booming construction industry, Asia-Pacific is experiencing strong growth. Commercial building construction is quickly rising in nations like India, China, and Indonesia because they are some of the greatest outsourcing and manufacturing centers. Compared to the United States, the European region has a high level of interest in modular construction. As costs continue to rise to unaffordable levels and trustworthy labor remains rare, more cities (like New York City and San Francisco) and countries (like England, Singapore, and Hong Kong) are turning to modular construction to alleviate chronic housing shortages.

Prefabricated Buildings Trend

North America Driving the Market

In North America, the number of infrastructure projects is increasing due to an increase in the demand for prefabricated building structures. The federal government set aside USD 1 billion in 2020 to establish a new Rapid Housing Initiative (RHI) to help address disadvantaged Canadians' urgent housing requirements by fast creating new affordable housing. Builders are accelerating work due to robust demand, limited inventories, and low mortgage rates. According to the survey, single-family homebuilder optimism reached a new high in October 2020. New single-family house sales in the United States increased by 14.0% to 800,000 at a seasonally adjusted annual rate in September 2021, up from 702,000 in August-2021.

Along with the growth of the residential sector in the United States, prefabricated building construction is becoming more popular among developers. As the demand for healthcare has grown enormously due to the COVID-19 pandemic, the demand for hospitals and medical facilities also grew, thus boosting the demand for quick construction techniques in 2020-2021. Modular housing has had remarkable success in communities across Canada, and it may soon make its mark in one of the country's fastest-growing cities. In 2020, it identified two sites where prefabricated structures will be built to provide homes for 100 people who are now homeless. On-site prefabricated buildings with bachelor flats and shared kitchens are planned to be constructed. As part of the Housing to 2020-2030 Action Plan, the goal is to get 40,000 affordable rental units approved and 1,000 prefabricated homes built.

Prefabricated Buildings Growth

Competitive Landscape

The major companies in the prefabricated buildings industry are covered in this research. The market is fragmented, but it is likely to grow during the forecast period as prefab construction building investments and upcoming significant projects in various developing and developed countries increase. Larsen And Toubro Limited, NCC Limited, Paramount Building Solutions Private Limited, Skyline Champion Corporation, and Morton Buildings Inc. are among the major players in the market. One of the biggest players, Berkley Homes, has revealed intentions to construct a factory in Kent to produce 1,000 homes every year. Goldman Sachs recently invested USD 93 million in TopHat, a key leader in the UK prefab business.

Recent Developments

May 2021: MiTek, a global provider of innovative construction-based software, services, and engineered building solutions owned by Berkshire Hathaway and Danny Forster & Architecture (DF&A), a New York City-based architecture firm, announced the formal launch of its Modular Initiative, with the mission to help the construction industry meet the global demand for smarter, more affordable, and more sustainable buildings and communities.

July 2021: Modulaire Group acquired Tecnifor SpA and the business and operations of Locabox SRL and FAE SpA. Tecnifor and Locabox are among the leading providers of modular building leasing solutions in Italy. The acquisition aims to strengthen Modulaire Group’s presence in Italy, focusing on optimizing sales, an efficient cost base and granular management of branch-level performance, and effective capital investment.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMERY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Industry Attractiveness Porter's Five Forces Analysis

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Government Regulations

    6. 4.6 Technological Developments

    7. 4.7 Brief on Different Structures Used in the Prefabricated Buildings Industry

    8. 4.8 Insights on Prefabricated Buildings by Material Type (Concrete, Glass, Metal, Timber, and Other Material Types)

    9. 4.9 Cost Structure Analysis of the Prefabricated Buildings Industry

    10. 4.10 Impact of COVID-19

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Structure Type

      1. 5.1.1 Assembled

      2. 5.1.2 Un-assembled

    2. 5.2 By Application

      1. 5.2.1 Residential

      2. 5.2.2 Commercial

      3. 5.2.3 Industrial

    3. 5.3 By Region

      1. 5.3.1 North America

      2. 5.3.2 Asia-Pacific

      3. 5.3.3 Europe

      4. 5.3.4 Middle-East and Africa

      5. 5.3.5 South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration and Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 Larsen And Toubro Limited

      2. 6.2.2 NCC Limited

      3. 6.2.3 Paramount Building Solutions Private Limited

      4. 6.2.4 Skyline Champion Corporation

      5. 6.2.5 Morton Buildings Inc.

      6. 6.2.6 American Buildings Company

      7. 6.2.7 Plant Prefab

      8. 6.2.8 Barratt Developments PLC

      9. 6.2.9 Persimmon Homes Limited

      10. 6.2.10 Bellway Homes Limited

      11. 6.2.11 ILKE Homes

      12. 6.2.12 Berkley Group

      13. 6.2.13 Morgan Sindall Group PLC

      14. 6.2.14 FACIT Homes

      15. 6.2.15 Galliford Try Limited

      16. 6.2.16 Phoenix Homes

      17. 6.2.17 Saudi Building Systems Mfg Co.

      18. 6.2.18 Kirby Building Systems

      19. 6.2.19 Al-Shahin Metal Industries

      20. 6.2.20 Saudi Cement Company*

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

  8. 8. APPENDIX

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Frequently Asked Questions

The Prefabricated Buildings Market market is studied from 2018 - 2027.

The Prefabricated Buildings Market is growing at a CAGR of >5.5% over the next 5 years.

Larsen And Toubro Limited, NCC Limited, Paramount Building Solutions Private Limited, Skyline Champion Corporation, Morton Buildings Inc. are the major companies operating in Prefabricated Buildings Market.

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