US PREFABRICATED BUILDINGS MARKET - GROWTH, TRENDS, COVID-19 IMPACT, and Forecasts (2023 - 2028)

The US Prefabricated Buildings market is segmented by Type (Concrete​, Glass​, Metal​, Timber​, and Other Material Types) and by Application (Residential​, Commercial​, and Other Applications (Infrastructure and Industrial)). The report offers the market size and forecasts in values (USD billion) for all the above segments.

US Prefabricated Buildings Industry Overview

United States Prefabricated Buildings Market Summary
Study Period: 2019 - 2028
CAGR: > 4.5 %

Major Players

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*Disclaimer: Major Players sorted in no particular order

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US Prefabricated Buildings Market Analysis

The US prefabricated buildings market is anticipated to register a CAGR of more than 4.5% over the forecast period.

  • Prefabrication in construction is becoming more popular due to the construction sector's explosive growth in automation. Due to a lack of qualified labor and the need to raise building quality, the construction business, mainly residential construction, is moving toward prefabricated construction approaches. The most significant issues with housing today include lengthy waiting lines, exorbitant rents, thousands of homeless people, millions living in unsafe or inappropriate accommodations, and a generation of young people priced out of the market.
  • Home prices countrywide are increasing at the double the income rate and triple the inflation rate as supply cannot keep up with demand. The affordable housing dilemma is still a big issue in the United States, and it only worsens yearly. A sector that generates more than 640 billion USD in GDP employs about 7 million people, and yearly builds USD 1.3 trillion worth of construction, as reported in 2021, cannot afford the cost of doing anything to address the issue.
  • The total market share of off-site built single-family homes (modular and panelized), according to research by the National Association of Home Builders (NAHB) and the Census Bureau, was 2% of single-family completions in 2021. Despite the significant demand for non-site-built construction, this percentage has been consistently dropping since the early 2000s. Out of the 970,000 completed single-family dwellings, 24,000 modular (10,000) and panelized/pre-cut (14,000) construction-method single-family units were created in 2021. Although the market share is tiny, there is room for growth.
  • Even though there is a labor shortage and another crisis in the country, the demand for modular or prefabricated buildings is high due to ease of construction, cost optimization, and installation. The upward trend in the modular construction and the real estate sector is expected to drive the market over the forecast period.

US Prefabricated Buildings Industry Segments

A modular building is a prefabricated structure made up of repeatedly placed components known as modules. When a structure is modular, pieces are built elsewhere and transported to the desired location. The prefabricated parts are installed onsite. A complete background analysis of the US prefabricated buildings market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is included in the report.

The US prefabricated buildings market is segmented by type (concrete​, glass​, metal​, timber​, and other material types) and by application (residential​, commercial​, and other applications (infrastructure and industrial)). The report offers the market size and forecast in values (USD billion) for all the above segments.

By Type
Concrete
Glass
Metal
Timber
Other Material Types
By Application
Residential
Commercial
Other Applications (Infrastructure and Industrial)

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US Prefabricated Buildings Market Trends

This section covers the major market trends shaping the US Prefabricated Buildings Market according to our research experts:

Increased demand for residential houses driving the market

  • According to a joint statement from the US Census Bureau and the US Department of Housing and Urban Development, fewer Americans are buying new houses. The seasonally adjusted annual sales of new single-family homes in July 2022 was 511,000, which is 12.6% less than the revised June rate of 585,000 and 29.6% less than the expected July 2021 of 726,000. Despite declining demand for new homes, prices have grown in July rather than decreased. The median sales price of new residences increased from USD 402,400 in June 2022, when prices fell to their lowest point in a year following a record high of USD 458,000 in April to USD 439,400 in July 2022.
  • A good supply is also visible in the housing inventory. At the end of July 2022, the seasonally adjusted estimate of new homes for sale was 464,000. At the current sales rate, this represents a supply of 10.9 months, meaning the current supply will run out in 10.9 months. After the Fed raised interest rates several times, the housing market experienced a rapid rise in home values, followed by a severe decline. Even the housing construction industry is slowing down, as evidenced by the decrease in new construction sales during July 2022.
  • According to the National Apartment Association, 4.6 million more units would be needed to meet demand by 2030. Even though this year's 490,000 new apartment listings are the largest since the Great Recession, it's still insufficient. For investors in apartment buildings, rising prices provide a fantastic opportunity. Given that rents and housing prices are rising, this is the best moment to buy. The trend will surely slow down but most likely be moderated due to recent increases in Federal funds rates, which are projected to reach 3.4% by the end of the year.
USA Prefabricated Buildings Market - Number of owner occupied housing units, United States , in millions, 2018-2021

Modular construction growing in the country driving in the market

  • The housing affordability issue in the United States is more pronounced than ever after two years of skyrocketing real estate prices, mortgage rates, and rents. Households in the United States have been looking for solutions to the strain caused by rising housing expenses. One option is to build more manufactured houses. Manufactured housing is defined as housing built in a factory and then transported to its ultimate location. These units are far less expensive than site-built dwellings because they typically have simple designs and cost-effective materials. 
  • Industry insiders estimate that a manufactured home costs USD 57 on average per square foot, which is significantly cheaper than the USD 119 cost of a site-built home. This less expensive choice holds a lot of appeal for families with lower and moderate incomes. Approximately 1 in 10 new homes built in the United States each year are prefabricated, and 22 million Americans already live in them. Additionally, improved designs, better materials, and higher energy efficiency have all improved the quality of manufactured homes.
  • The popularity of manufactured houses varies across the United States, but the South stands out for having a higher proportion of them. Fast-growing, densely populated southern states like Texas, Florida, and North Carolina take the top spot for annual shipments of prefabricated homes. However, the most popular locations for new single-family homes are in lower-income states like Mississippi, West Virginia, and Kentucky, whose residents may be more inclined to construct homes as a cheap alternative.
USA Prefabricated Buildings Market - Average Sales Price of New Manufactured Homes, U.S.A, in '000 USD, 2014-2021

US Prefabricated Buildings Market Competitor Analysis

The US prefabricated buildings market is highly fragmented with the presence of a large number of international players operating in the country. In recent years there has been a shift from services to price-based competition. The major international players operating in the country are Southern Structures, Inc., Walters Buildings, Rubb Building Systems, Safety Storage, Inc., and Commercial Structures Corp. among others. 

Technology has recently been shown to be a growth enabler for the US Prefabricated Buildings Market. The sector is improving its current operations thanks to some of these technical developments, like cloud-based software solutions, drone dependability, and prefabricated materials, among others.

US Prefabricated Buildings Market Top Players

  1. Southern Structures, Inc.

  2. Walters Buildings

  3. Rubb Building Systems

  4. Safety Storage, Inc.

  5. Commercial Structures Corp.

*Disclaimer: Major Players sorted in no particular order

United States Prefabricated Buildings Market Concentration

US Prefabricated Buildings Market Recent Developments

October 2022: Knauf is at the forefront of the change in timber frame construction. This development toward prefabricated and modular building systems is being driven by a unique partnership between Knauf Gips and Knauf Insulation within the Knauf Group, creating a wall system that is prepared for the future of timber frame construction and prefabrication. The approach provides a single point of contact for specialized builders, developers, and architects to get high-quality timber frame walls from a reliable partner.

April 2022: Walters Inc. has been awarded the structural building contract for an electric arc steelmaking facility (EAF) by Algoma Steel Group Inc. (Algoma). Algoma is a leading Canadian producer of hot and cold rolled steel sheet and plate products. Walters will be responsible for fabricating and erecting the main building structure and the necessary dust collection hoods.

US Prefabricated Buildings Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Method

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS DYNAMICS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Technological Advancements in Prefabricated Buildings Market

    6. 4.6 Pricing Analysis and Revenue Analysis of Prefabricated Buildings Market

    7. 4.7 Insights on Types and Features of Prefabricated Buildings

    8. 4.8 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Concrete

      2. 5.1.2 Glass

      3. 5.1.3 Metal

      4. 5.1.4 Timber

      5. 5.1.5 Other Material Types

    2. 5.2 By Application

      1. 5.2.1 Residential

      2. 5.2.2 Commercial

      3. 5.2.3 Other Applications (Infrastructure and Industrial)

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Southern Structures, Inc.

      2. 6.2.2 Walters Buildings

      3. 6.2.3 Rubb Building Systems

      4. 6.2.4 Safety Storage, Inc.

      5. 6.2.5 Commercial Structures Corp.

      6. 6.2.6 Panel Built, Inc.

      7. 6.2.7 PortaFab Corp.

      8. 6.2.8 Shea Concrete Products, Inc.

      9. 6.2.9 Deluxe Building Solutions

      10. 6.2.10 Modular Connections, LLC

      11. 6.2.11 Cavco Industries

      12. 6.2.12 Palm Harbor Homes*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

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US Prefabricated Buildings Market Research FAQs

The US Prefabricated Buildings Market is studied from 2019 - 2028.

The US Prefabricated Buildings Market is growing at a CAGR of >4.5% over the next 5 years.

Southern Structures, Inc., Walters Buildings, Rubb Building Systems, Safety Storage, Inc., Commercial Structures Corp. are the major companies operating in US Prefabricated Buildings Market.

US Prefabricated Buildings Industry Reports

In-depth industry statistics and market share insights of the US Prefabricated Buildings sector for 2020, 2021, and 2022. The US Prefabricated Buildings research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the US Prefabricated Buildings report PDF.

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