ID: MRFR/CO/3733-CR | October 2020 | Region: Global | 132 pages
Prefabricated Buildings Market is projected to be worth USD 161.9 billion by 2027, registering a CAGR of 6.85% during the forecast period (2021 - 2027), The market was valued at USD 109.2 billion in 2020.
The prefabricated building is a process of manufacturing buildings by using various building systems. The building systems are set up to establish as a component where the main structure needs to be inserted onsite or the building systems.
It comprises modular components such as roofs, windows, doors, frames, walls, and panels. The prefabricated buildings are largely used in developing countries. It is expected that the Prefabricated Buildings Market will grow at an exponential rate due to its numerous benefits. The prefabricated buildings are relatively less costly than the regular process. It also helps to save substantial space and time needed for construction as well.
The prefabricated buildings are easily available in pre-made and it just needs to be installed when needed. They can be altered according to the needs and can easily withstand any weather. Various materials such as wood, fiber, steel, glass, and composites are used for making the frames. They are easily available and perfect for the middle-class population. The rapid speed of urbanisation among the developing countries is one of the major reasons for growth.
It can easily survive earthquakes or severe climatic conditions. The prefabricated market trends are observed in countries like Iran, China, India, Nepal, Japan, Indonesia, Mexico, and Turkey. Also, the rising awareness about reducing construction waste has led to the growth of the prefabricated industry. However, some restraints such as poor performances, technical issues can hinder the Prefabricated Buildings Market growth to a certain extent.
The COVID-19 disease has led to disruption in construction works across the world. Various difficulties have been faced by the manufacturing companies due to a shortage of raw materials. It happened because the imposition of lockdown in various countries across the world led to the disruption in the supply chain. Also, the construction contracts were stopped that led the Prefabricated Buildings Market to decline at a significant rate.
One of the major drivers of the prefabricated buildings market is the rising demand for conventional techniques. The prefabricated building materials are cheap and cost-effective. The countries in the Asia-Pacific region are developing rapidly. Also, the key players are highly investing in these products which will promote market growth. It has been observed that the prefabricated industry has recorded an increase in the Foreign Direct Investment (FDI) in this region. However, the support from the governments from every region is expected to propel the prefabricated buildings market revenue.
There are several restraints that can hinder the growth of the prefabricated buildings market. For instance, the requirement of skilled labour for the perfect installation of every component is very important. So, it is anticipated that this factor will have a severe impact and hinder the growth to a certain extent.
The supportive initiatives and policies from different countries are expected to boost the Prefabricated Buildings Market. One of the important positive factors is that with the help of prefabricated building components, the time consumption has been reduced by 30-50%. It also requires fewer efforts and labour and efforts. Other than that, it also reduced the amount of construction waste in a large amount.
One of the major challenges that the prefabricated building industry is expected to face is transportation. The lack of knowledge and expertise to assemble every component in detail and precisely can be very risky. Also, the products can get damaged during transportation that can lead to more expenses. Also, various alternatives are effective and low cost that can pose a challenge to a certain extent.
Cumulative Growth Analysis
The rising growth of macro homes and various benefits such as cost-effectiveness, durability, etc. projected to fuel the Prefabricated Buildings Market. Also, various policies by several governments, such as India, China, Japan, Singapore, etc. will help to promote the growth. Consumers are also inclining towards sustainable and durable products to construct their homes. The global prefabricated buildings market is projected to expand its value up to USD 135,945.6 Million. The Compound Annual Growth Rate (CAGR) of the Prefabricated Buildings Market is expected to register around 5.54% during the forecast period 2020-2027.
Value Chain Analysis
The prefabricated building's components are very valuable and it is projected that its market size will expand in the future. Due to rising concerns regarding sustainable livings, development of small or macro homes, the market will generate substantial revenue during the forecast period. Along with that, the technological advancements in this market will increase the demand for prefabricated building materials.
The global prefabricated buildings market share is divided on the basis of application, product, and module type.
On the basis of application, the market is further divided into commercial, industrial and residential. In this segment, the commercial category held the largest share in the global prefabricated industry.
The category of product is further segmented into panel system, combined system, panel system, and cellular system. The panel system held the largest share in the prefabricated buildings industry during 2016. It is expected that this segment will grow in the upcoming years.
Based upon the module type, the global prefabricated industry is divided into the kitchenette, bathroom pods, and others. In this segment, the bathroom pods also held a substantial stake during 2016.
Geographically, the prefabricated buildings industry is divided into North America, South America, Asia-Pacific, Europe, and the rest of the world. It is expected that the Asia-Pacific region will hold the largest share in the prefabricated buildings industry. Due to the rapid urbanisation among developing countries like India, China will help to increase the prefabricated buildings market revenue. Recently, the Indian government announced various changes in the policy that supports the growth of the prefabricated buildings industry.
The North American region is expected to contribute a significant share for the prefabricated buildings market share. The rising usage of materials that efficiently absorbs the energy for example the micro homes is expected to boot the Prefabricated Buildings Market. Also, various key players are investing in real estate that has a positive effect on for future.
The European region is expected to grow at a significant rate during the forecast period. Consumers are inclined towards new solutions which are sustainable, durable, and low cost as well. They are focusing on the use of such materials that can be easily fixed without any hassle. These above-mentioned factors are expected to increase the prefabricated buildings market size.
Several companies are emerging with various solutions to increase their business and generate more revenue. They regularly introduce various strategies such as mergers, collaborations, new ventures, acquisitions, new product launches, etc. Some of the major key players in the prefabricated industries are- Modern Prehab Systems, Red Sea Housing Services, Astron Buildings among others. The Red Sea Housing Services has acquired various companies to increase more revenue and geographical foothold.
Some of the major key players in the Prefabricated Buildings Market are-
The report overview of the global Prefabricated Buildings Market is as follows-
Report Score and Segmentation
The scope of the report is to provide information regarding the subject of prefabricated industry. This report provides insight into the strength and potential of the market in the future. The report provides information about the recent developments by the key players.
By Product Type
By Module Type
|Market Size||2027: USD 161.9 billion|
|CAGR||6.85% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product, Module type and Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Red Sea Housing Services, Algeco Scotsman, Butler Manufacturing Company, Champion Home Builders, Inc., Astron Buildings, Kirby Building Systems LLC, Lindal Cedar Homes, Inc., Ritz-Craft Corporation, Modern Prefab Systems Pvt. Ltd., Par-Kut International Inc., United Partition Systems|
|Key Market Opportunities||Highly influenced by the construction sectors|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
It is expected that the prefabricated market will touch USD 161.9 billion by 2027
It is anticipated that the prefabricated market will register a CAGR of 6.85% during the forecast period 2020-2027.
It is expected that the Asia-Pacific region will hold the largest stake in the global prefabricated market share.
Some of the major key players in the global prefabricated buildings market are- Lindal cedar Homes Inc., Red Sea Housing Services, Astron Buildings, United Partition Systems, Butler Manufacturing Company, Ritz-Craft Corporation, Champion Home Builders, Kirby Building Systems LLC, Par-Kut Internationals, Algeco Scotsman, Modern Prefab Systems, and others.