Market Size of Saudi Arabia Prefabricated Buildings Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.36 Billion |
| Market Size (2029) | USD 5.16 Billion |
| CAGR (2024 - 2029) | 8.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Prefabricated Building Market Analysis
The Saudi Arabia Prefabricated Buildings Market size is estimated at USD 3.36 billion in 2024, and is expected to reach USD 5.16 billion by 2029, growing at a CAGR of 8% during the forecast period (2024-2029).
The rise in the overall construction industry and increasing prices are now contributing to the turnover of the prefabricated buildings market in Saudi Arabia.
The market is driven by the demand for low to mid-rise residential buildings, project homes, and public housing. Additionally, the high demand for turnkey or prefabricated houses and energy-efficient buildings contributes to market growth.
The residential construction industry in Saudi Arabia is facing a shortage of affordable housing due to a growing population and an influx of migrants. It has encouraged the demand for prefabricated homes, as they are cost-effective and time-efficient. Moreover, energy efficiency, design flexibility, and faster completion are other advantages of prefabricated buildings, anticipated to drive market growth.
COVID-19 caused considerable economic damage. The nationwide lockdown halted construction and impacted the labor-intensive sector. As a result, construction projects in various segments, such as educational, residential, and airports, decreased, significantly impacting the demand for prefabricated buildings in Saudi Arabia.
COVID-19 also affected the market due to slow raw material production, supply chain disruption, inhibited trade movements, declining construction demand, and reduced demand for new projects.
However, the demand for modular buildings increased due to the increased COVID-19 cases and the requirement for healthcare and quarantine buildings/units. Since a high workforce is required for traditional construction, opting for prefabricated buildings became an optimum solution during the pandemic.
