Market Size of Saudi Arabia Prefabricated Buildings Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.67 Billion |
| Market Size (2029) | USD 5.54 Billion |
| CAGR (2024 - 2029) | > 8.59 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Prefabricated Houses in Saudi Arabia Market Analysis
The Saudi Arabia Prefabricated Buildings Market size is estimated at USD 3.67 billion in 2024, and is expected to reach USD 5.54 billion by 2029, growing at a CAGR of greater than 8.59% during the forecast period (2024-2029).
The increase in demand for prefabricated housing in the country, including manufactured housing, modular housing, precut housing, and panelized housing, is driven by continued gains in housing demand across the country. The growth in the prefabricated buildings market is majorly due to the increasing construction activities across the country and the lack of affordable houses for expatriates working on ongoing development projects in Saudi Arabia.
The growth of modular construction is high in remote and rural areas, which is expected to impact the overall market growth during the forecast period significantly. The residential construction industry in Saudi Arabia is facing a shortage of affordable housing because of a growing population and an influx of expatriates. This has encouraged the demand for prefabricated homes, as they are cost-effective and time-efficient.
Furthermore, prefabricated buildings are more eco-friendly than conventionally constructed buildings, as they do not generate any on-site waste. This is projected to positively influence the market demand in the upcoming years. Moreover, energy efficiency, design flexibility, and faster completion are some of the other advantages of prefabricated buildings, which are anticipated to drive market growth.
Backed by the Ministry of Housing, the modular construction undertaking is used to help Saudi Arabia’s homeownership strategy, which predicts that 70% of residents will likely own homes by 2030. Moreover, Saudi Arabia’s recent budget shows that the government is focusing on infrastructural reforms as per the 2030 vision.
In Saudi Arabia, the housing shortfall is growing rapidly. To address this deficit, the government has established a Real Estate Development Fund, which has developed various financing schemes to increase homeownership rates. It has also consolidated government land under the Ministry of Housing to accelerate the delivery of the 500,000 units announced through a royal decree. The Ministry of Housing has recently started a PPP program to complement other housing delivery initiatives.
