Prefabricated Buildings Market Size
|Market Size (2023)||USD 234.17 Billion|
|Market Size (2028)||USD 331.36 Billion|
|CAGR (2023 - 2028)||7.19 %|
|Fastest Growing Market||Asia-Pacific|
|Largest Market||North America|
*Disclaimer: Major Players sorted in no particular order
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Prefabricated Buildings Market Analysis
The Prefabricated Buildings Market size is expected to grow from USD 234.17 billion in 2023 to USD 331.36 billion by 2028, at a CAGR of 7.19% during the forecast period (2023-2028).
- All construction-related operations worldwide stopped 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, had decreased, thus significantly impacting demand for prefabricated buildings. In several places, the supply chain had 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 significantly boost the prefabricated construction sector. 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.
- India is projected to be the world's second-largest building market in the next five years. 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.
Prefabricated Buildings Market Trends
This section covers the major market trends shaping the Prefabricated Buildings Market according to our research experts:
Growing demand for Modular Construction
Due to rapid economic development in developing nations and historically low-interest rates in many wealthy nations, there is a rising demand for construction. Along with this, the market is anticipated to rise throughout the forecast period due to factors like rising disposable income, technological advancements, and increased private-sector investments in construction. Additionally, greater spending on housing and infrastructure by governments around the world is boosting market expansion.Time and cost are two factors related to building operations that have long been viewed as a barrier to the industry's expansion in many emerging economies. Overcoming this restriction has been one of the main challenges for many significant building enterprises across the world. The prefabricated building system is one of the primary remedies for these issues.
Prefabricated building technologies can reduce construction time by 30 to 50 percent in today's market and provide an alternative. Since fewer workers are needed for the on-site procedures, the system is economical.Another unintended consequence of the process is reduced on-site activity is the significantly smaller amount of garbage that is generated. Because of these benefits, prefabricated building system activities are growing in popularity in the construction sector.
In nations like Singapore and India, where governments are investing extensively in boosting the building and construction sector, business is booming. The Australian Trade and Investment Commission estimates that Singapore spends at least $2 billion a month on public infrastructure. Additionally, the Dutch construction industry is growing thanks to the government's program for a circular economy, which aims to create a circular economy in the country by 2050. Furthermore, due to different government efforts like Foreign Direct Investments, the building and construction industries are also expanding.
Prefabricated building systems are widely employed in the construction of both residential and non-residential structures because they have several advantages, including being environmentally friendly, flexible, causing less site disruption, and cost savings.Therefore, it is anticipated that demand for prefabricated building systems like ventilated thermal panels will expand significantly as construction activity increases globally. As a result, such government initiatives and investments in the building sector serve as a market driver.
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Asia-Pacific is Projected to Witness Highest Growth in the Market
The Asia-Pacific prefabricated buildings market is estimated to witness the highest growth over the next five years. The prefabricated construction market in Japan is comparatively mature and developed compared to other regions of the world.
The inspections by industry-specific trained professionals rather than a general building code have also contributed to the development of the Japanese prefabricated housing market. The concept of prefabrication is gaining prominence in the Indian construction market.
The entry of prefabricated homes in India has paved the way for innovative and technologically advanced construction and design methods for all kinds of construction, such as villas and mass townships.
With the population continuing to decline in Japan combined with an aging population, it is undeniable that the demand for new house construction also decreases. The companies are looking to capture the potential growth in China and other Asian countries as demand for new construction declines in the shrinking domestic market.
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Prefabricated Buildings Industry Overview
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. The major players include Clayton Homes, Sekisui Homes, China Saite Group Company Limited, PEAB, and Barratt Developments PLC.
Due to their efficiency, Prefabricated buildings are being used more and more frequently in recent years. This is not limited to housing either. The prefabricated buildings will also house restaurants, hotels, catering establishments, etc.
Prefabricated Buildings Market Leaders
China Saite Group Company Limited
Barratt Developments PLC
*Disclaimer: Major Players sorted in no particular order
Prefabricated Buildings Market News
- November 2022: Brick maker Michelmersh buys prefabricated building products specialists FabSpeed for an initial GBP 6.25 million (USD 75.66 Million). The acquisition is expected to strengthen the company's position in the offsite and modern construction products markets.
- November 2021: The Thurston Group, a manufacturer of modular and portable buildings in West Yorkshire, has been acquired by the HLD Group. HLD Group is an industrial investment group covering investments in the UK, US and Europe. The acquisition of Thurston Group is the largest transaction in its decade-long history.
Prefabricated Buildings Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMERY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Current Market Scenario
4.2 Market Dynamics
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Value Chain/Supply Chain Analysis
4.5 Government Regulations
4.6 Technological Developments
4.7 Brief on Different Structures Used in the Prefabricated Buildings Industry
4.8 Cost Structure Analysis of the Prefabricated Buildings Industry
4.9 Impact of COVID-19 on the market
5. MARKET SEGMENTATION
5.1 By Material
5.1.5 Other Materials
5.2 By Application
5.3 By Region
5.3.1 North America
188.8.131.52 United States
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
18.104.22.168 Rest of Asia-Pacific
5.3.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 Sekisui House
6.2.2 Daiwa House Industry
6.2.4 Skyline Champion Corporation
6.2.5 Morton Buildings Inc.
6.2.6 Clayton Homes
6.2.7 Skanska AB
6.2.8 Barratt Developments PLC
6.2.9 Persimmon Homes Limited
6.2.10 China Saite Group Company Limited
6.2.11 ILKE Homes*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
Prefabricated Buildings Market Research FAQs
How big is the Prefabricated Buildings Market?
The Prefabricated Buildings Market size is expected to reach USD 234.17 billion in 2023 and grow at a CAGR of 7.19% to reach USD 331.36 billion by 2028.
What is the current Prefabricated Buildings Market size?
In 2023, the Prefabricated Buildings Market size is expected to reach USD 234.17 billion.
Who are the key players in Prefabricated Buildings Market?
Clayton Homes, Sekisui Homes, China Saite Group Company Limited, PEAB and Barratt Developments PLC are the major companies operating in the Prefabricated Buildings Market.
Which is the fastest growing region in Prefabricated Buildings Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Prefabricated Buildings Market?
In 2023, the North America accounts for the largest market share in the Prefabricated Buildings Market.
Prefabricated Buildings Industry Report
Statistics for the 2023 Prefabricated Buildings market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Prefabricated Buildings analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.