Market Size of United States Prefabricated Buildings Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 6.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Prefabricated Building Market Analysis
The size of the US Prefabricated Buildings Market is USD 21.2 billion, and it is anticipated to register a CAGR of over 6% during 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 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.
