Market Size of Sweden Prefabricated Housing Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4 Billion |
| Market Size (2029) | USD 5.70 Billion |
| CAGR (2024 - 2029) | 7.01 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Sweden Prefabricated Housing Market Analysis
The Sweden Prefabricated Housing Market size is estimated at USD 4 billion in 2024, and is expected to reach USD 5.70 billion by 2029, growing at a CAGR of 7.01% during the forecast period (2024-2029).
- The COVID-19 pandemic in 2020 plunged the global economy into recession and led to declines in prefabricated housing construction in Sweden, as lockdown measures and the need to adjust construction practices to accommodate greater social distancing stopped or slowed projects in the country. Rapid urbanization and the need to overcome housing shortages have provided market space for prefabricated structures.
- The market has some limitations, such as durability issues and a need for appropriate financing options for prefabricated living spaces. Sweden's prefabricated houses are mostly timber-framed, which means they are not radically different from most mid-grade structures design-wise. However, when it comes to production, the process is different from the current industry standard of crews erecting stick-built houses piece by piece. For production, measurements and specifications are planned by computer.
- The demand for low and medium-rise residential buildings, project housing, and public housing drives the market. About 84% of detached houses in Sweden use prefabricated timber elements. Prefabricated metal products are also used to meet modern architectural needs, where the structure of the building has decorative elements with unique shapes. Due to cost-effectiveness and time constraints, the construction sector has an increasing trend to use prefabricated components.
- In 2022, wooden skyscrapers witnessed significant growth in the country. In September 2022, a 20-story, 75-meter-high Sara Cultural Centre opened in the country. This project has six theater stages, a library, two art galleries, a conference center, and a 205-room hotel, and the project is built with 12,000 cubic meters of wood harvested from the nearby forest. This project is eco-friendly and caused significantly fewer carbon emissions during construction. Thus, the prefabricated sector is witnessing significant growth in Sweden.
