Global Prefabricated Building Market Overview, 2024-29

Global Prefabricated Building Market Overview, 2024-29

The prefabricated building business, which is revolutionizing the design, manufacturing, and assembly of structures, is at the forefront of innovation and efficiency in the construction sector worldwide. Prefabricated buildings, also known as modular construction, are constructed with their component parts manufactured in a controlled factory setting before being transported to the construction site for final assembly. In comparison to conventional on-site building, this technology has many benefits, including shorter project schedules, lower costs, better quality control, and less environmental impact. The prefabricated construction business has grown significantly across the world in recent years due to a combination of causes, including growing urbanization, technological developments, and sustainability concerns. With rapid urban population growth projected to continue, particularly in emerging economies, the demand for affordable and efficient construction solutions has never been higher. Prefabricated buildings present an attractive solution to meet this demand, offering the flexibility to scale production to match evolving market needs while ensuring consistent quality standards. Modern manufacturing technologies are one of the main forces behind the prefabricated construction industry's expansion. The manner in which building components are developed, made, and assembled has been completely transformed by innovations like robotic automation, computer-aided design (CAD), and building information modeling (BIM). With the use of these technologies, construction projects can be completed more quickly and with lower labor costs thanks to increased precision, customization, and efficiency throughout the process. Prefabricated structures are becoming a viable substitute for conventional construction techniques as a result of the growing emphasis on sustainability and environmental stewardship, which has also led to a shift towards more environmentally friendly construction processes. Compared to normal construction, prefabricated structures decrease waste, consume less energy, and emit fewer greenhouse gases by utilizing off-site production procedures. Additionally, the modular nature of prefabricated components facilitates the incorporation of energy-efficient features and renewable materials, further enhancing their environmental credentials.

According to the research report, “Global Prefabricated Building Market Overview, 2024-2029” published by Bonafide Research, the market is anticipated to cross USD 345 Billion by 2029, increasing from USD 228.29 Billion in 2023. The market is expected to grow with 7.33% CAGR by 2024-29. The prefabricated construction industry's global situation is indicative of a dynamic environment with strong growth and changing market dynamics. Prefabricated building sales have historically been concentrated in North America and Europe because of a number of variables, including strict construction codes, a strong emphasis on quality and sustainability, and a high level of industrialization. However, in order to meet their infrastructure needs and keep up with fast urbanization, emerging economies in the Middle East, South America, and Asia-Pacific are starting to adopt prefabricated construction technologies more frequently. Prefabricated building demand is being driven by Asia-Pacific's fast urbanization, population growth, and infrastructural development, especially in nations like China, India, and Indonesia. These nations are witnessing significant investments in residential, commercial, and institutional projects, driving the adoption of prefabricated construction to meet tight timelines and address housing shortages. Moreover, government initiatives promoting sustainable building practices and modular construction technologies are further catalyzing market growth in the region. The need for prefabricated buildings in the residential, commercial, and industrial sectors is being driven by the Middle East's increasing urbanization, population increase, and infrastructure development. Prefabricated buildings are being used by nations like Saudi Arabia, Qatar, and the United Arab Emirates to shorten project schedules, improve quality assurance, and reduce labor dependency. Furthermore, the utilization of prefabricated buildings is encouraged by the region's severe climate and strict construction codes because these structures can be made to endure harsh weather and high temperatures.

Market Drivers

• Urbanization and population growth: The quickening rate of urbanization and population expansion around the world is one of the main factors driving the prefabricated building industry worldwide. The need for housing and infrastructure in cities is only going to grow as more people move there in quest of better prospects. To address this demand, prefabricated buildings provide a scalable and effective option that lets developers build institutional, commercial, and residential facilities quickly and affordably. Prefabricated buildings are well-suited to address the housing shortages and infrastructure deficiencies common in rapidly expanding urban centers because they can be produced in large quantities and assembled onsite in a fraction of the time required for traditional construction methods by utilizing off-site manufacturing techniques.

• Technological advancements in manufacturing: The prefabricated construction business has seen a transformation with the introduction of modern production technologies, which have spurred innovation, cost savings, and increased efficiency throughout the value chain. The design, fabrication, and assembly of building components have been revolutionized by advances in robotic automation, computer-aided design (CAD), building information modeling (BIM), and sophisticated materials. Higher levels of accuracy, customization, and quality control are made possible by these technologies, which shorten project schedules and produce higher-quality final goods. Technological developments in manufacturing have made prefabricated structures more competitive when compared to traditional construction methods, which has led to their broad adoption in markets across the globe by optimizing production processes and reducing waste.

Market Challenges

• Regulatory hurdles and standards: Prefabricated construction techniques are not widely used because of the broad range of building requirements and regulations. Sometimes the special qualities of prefabricated buildings are not sufficiently addressed by current a law, which cause delays or raises the cost of compliance. In order to overcome these legislative obstacles, industry participants and legislators must work together to create uniform policies and regulations that support prefabricated buildings while guaranteeing sustainability, quality, and safety.

• Cost competitiveness: Although prefabricated construction can result in labor, time, and waste reduction cost benefits, attaining cost competitiveness in the global market is still a challenge. Prefabricated buildings can be more or less cost-effective overall than traditional construction methods, depending on a number of factors, including economies of scale, production efficiency, and material costs. Furthermore, some stakeholders may be discouraged from using prefabrication due to upfront costs associated with infrastructure, technology, and manufacturing facilities.

Market Trends

• Sustainable construction practices: The prefabricated building business is not an exception to the global construction industry's focus on sustainability. Demand for sustainable prefabricated solutions is being driven by strict legislation, green construction certifications, and a growing awareness of environmental issues. In order to reduce their negative effects on the environment, manufacturers are using more and more environmentally friendly materials, such as recycled steel, wood, and engineered wood products. Additionally, to improve prefabricated building systems environmental credentials, energy-efficient designs, the integration of renewable energy, and waste reduction programs are being added.

• Customization and Design Flexibility: An increasing number of products are aiming to provide more customization and design freedom. Architects and designers may now develop highly customized prefabricated components that are matched to specific project requirements thanks to advancements in manufacturing technologies like 3D printing and digital fabrication. Homeowners in the residential sector are especially displaying this trend as they seek distinctive and customized apartments. Additionally, prefabricated solutions are becoming more and more popular in a variety of applications, such as offices, schools, and healthcare facilities, due to the flexibility with which they may be adapted for new uses or integrated into existing structures.

Based on material segment market includes steel, concrete and cement, woods and other materials. Wood material type is expected to lead grow at fastest rate in global prefabricated building market. Based on application segment market is divided into residential, commercial and industrial. Residential application is projected to grow at fastest rate in global prefabricated building market.

Timber construction techniques have regained popularity in recent years, owing to advances in wood engineering, prefabrication technology, and construction methodologies. Modern timber products, such as cross-laminated timber (CLT) and glued-laminated timber (glulam), have higher strength, durability, and fire resistance than traditional wood materials, making them appropriate for a wide range of prefabricated building applications. Prefabricated wood houses save significant time when compared to traditional construction methods. Off-site manufacture of wood components enables simultaneous site preparation and assembly, decreasing construction timetables and labor costs. This rapid building pace is especially beneficial in urban locations with high demand for housing and commercial space, where time to market is critical. Wood is a flexible building material that allows freedom in design and construction. Prefabricated wood components can be easily customized to meet project specifications, allowing architects and designers to create unique and innovative building solutions. Whether it's modular housing units, office spaces, or educational facilities, wood-based prefabricated buildings offer endless design possibilities to suit diverse architectural styles and functional requirements. Prefabricated structures can be built significantly faster than traditional buildings because off-site manufacturing technologies allow for simultaneous site preparation and factory production. This accelerated construction timeline is especially useful for residential projects, as developers want to reduce building time and get housing units to market as soon as possible. Prefabricated buildings allow developers to achieve tight project timelines and adjust quickly to shifting market needs. Prefabricated buildings are built in controlled factory environments utilizing precise production procedures, ensuring uniform quality and longevity. High-quality materials and strict quality control systems ensure that prefabricated structures meet or exceed industry standards for structural integrity, energy efficiency, and safety. As a result, prefabricated houses provide long-term and dependable housing choices for homeowners, leading to their expanding popularity in the residential market.

Based on report market includes five major regions North America, Europe, Asia-Pacific, South America and Middle East & Africa. North America is expected to grow at fastest rate in global prefabricated building market.

Prefabricated building options have gained popularity in recent years, causing a paradigm shift in the construction industry in North America. Prefabrication, also referred to as modular building, offers a number of advantages, such as reduced construction timelines, cost-effectiveness, enhanced quality assurance, and sustainability. The importance of sustainability in North American construction techniques has grown. Prefabricated structures are a great fit for the expanding need for sustainable infrastructure since they are often constructed using eco-friendly materials and productive manufacturing techniques. Green building principles are promoted by regulatory initiatives, which in turn foster this trend. The need for effective and scalable construction solutions has grown as a result of North American cities' rapid urbanization and population expansion. Modular building projects are becoming more common in North America nowadays, spanning numerous industries. Due to factors like urbanization, population growth, and the need for sustainable infrastructure solutions, the region holds a significant share of the global prefabricated building industry. With over 80% of the population living in cities, North America is one of the most urbanized regions in the world. Because of the growing urbanization trend, there is a greater need for affordable and scalable construction technologies, which makes prefabricated buildings a practical choice for rapidly growing cities. The market for prefabricated buildings in North America is mostly driven by sustainability. Prefabricated structures provide an environmentally friendly alternative by using renewable resources, decreasing waste, and lowering carbon emissions. This is in line with strict building regulations that support green construction and the growing awareness of environmental problems.


Recent Developments

• September 2023: The city of Malmö in southern Sweden is set to welcome a new student housing project, Unity Malmö, comprised of 5 building blocks and 450 micro-living apartments, where Forta PRO delivered 269 modules, a total of 9,671.9 m2. Forta PRO is a world-leading modular construction company, providing advanced state-of-the-art solutions for the construction and expansion of apartments, healthcare solutions, hotels, student accommodation, rental apartments, and more with minimal disruption to the operations of surrounding facilities.
• February 2023: Modular Group Investments Ltd. (MGI) announced the acquisition of Oakland Glass Ltd. This is a key strategic addition to the Group, which adds significant capacity and capability in insulated double-glazed unit production and provides established routes to market for Oakland Glass through MGI’s existing and future channels.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Prefabricated Building market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Materials
• Steel
• Concrete & Cement
• Wood
• Other Materials

By Application
• Residential
• Commercial
• Industrial

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Prefabricated Building industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.
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