Thailand Prefabricated Buildings Industry Market Size

Thailand Prefabricated Buildings Market Analysis

The Thailand prefabricated buildings industry is estimated to register a CAGR of greater than 5% during the forecast period (2023-2028).

• The construction industry in Thailand took a hit due to the pandemic. Residential Construction investment (accounting for 50% of the total private construction value) value contracted by 1.8%, in line with the number of newly registered completed residential projects in Bangkok and its vicinity and the four major regional provinces (Chiang Mai, Chonburi, Khon Kaen and Phuket) in 2021, with a 14.2% decrease in overall due to property developers delaying the opening of new projects in both low-rise and condominium projects, consumer purchasing power stagnating severely following the economic recession and the emergency law temporarily halting the construction in some construction camps, especially Bangkok and its vicinity, with some migrant and provincial workers leaving the construction site and not returning to the area altogether. As a result, many construction projects were postponed, impacting the prefab buildings sector as well. However, commercial buildings Construction investment increased by 3.8% in 2021, partly driven by the expansion of investments in factory construction and office buildings in industrial estates, especially the EEC.
• Prefabrication plays an important role in the modern world of every building today. In Thailand, Prefabs are gaining popularity in the commercial buildings and residential buildings sectors. In Thailand, prefabricated building systems have been recognized as one of the alternatives that increase the speed of construction. Prefabrication for residential construction has been used in Thailand for less than two decades, but it has grown very fast in the past five years.
• Thai developers see prefabrication as the future and are ready to invest more in this type of construction. Recently, many new developers and contractors have switched from traditional buildings to prefabricated buildings to adapt to this new trend in the Thai residential market. Due to the shortage of skilled workers and the quality control of construction work, real estate operators in Thailand have turned to "precast concrete parts systems" in various types of construction work, especially housing projects and high-rise building construction, in order to quickly deliver quality work to customers.
• In December 2022, Sansiri - a construction company in Thailand - expanded its precast factory to full capacity. The production capacity for precast concrete used in residential construction increased to 5,000 units/year from the previous 3,500 units/year under the total investment budget of THB 2,500 million (USD 76.22 million).
• The outlook of the Thailand prefabricated buildings market looks positive considering the increasing popularity of prefab construction and increasing construction investments. Some of the factors that constrain the growth of the prefabrication buildings industry in Thailand include high initial cost, high-cost pressure without appropriate economic scale effects, lack of regulations addressing prefabricated construction practices, and others.