PHILIPPINES PREFABRICATED BUILDINGS INDUSTRY - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

PHILIPPINES PREFABRICATED BUILDINGS INDUSTRY - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The prefabricated buildings industry in the Philippines is expected to register a growth rate of more than 13% during the forecast period. Although the constitution and the government agencies in the Philippines encourage the use of innovative technology, such as prefabricated housing components, its demand remained low in the early parts of 2000. The demand is increasing gradually with the current government’s infrastructural developments. The government’s ‘Build, Build, Build’ program around Metro Manila and other parts of the country will dictate the strategies of the real estate developers. Hence, more offices and residential units outside Metro Manila are expected to be constructed. Owing to the demand for construction activities in several key cities in the country, multinational corporations (MNCs) have been snapping up commercial spaces, as the country is an outsourcing destination for global companies. This creates a ripple effect on the related industries, most significantly in the flooring industry.

Key Market TrendsMetal Prefabricated Buildings Dominate the Market

As per the analysis, metal prefabricated buildings accounted for major shares in the Philippines market. Philippines steel consumption jumped about 9% in 2018 to a record of 10.5 million tons, driven by public and private construction projects. Philippines imports about 70% of its steel, with half of that coming from the world's top producer and exporter China. China's steel shipments to the Philippines accounted for 7% of its total steel exports to 66.9 million tonnes in 2018. The Philippine metal sector sees about double-digit growth in 2020, with demand for steel expected to continue growing amid more construction activities. Steel has become a mainstay in the field of structural construction in the Philippines. It is a material that is cherished by many companies because it has a wide range of positive traits and benefits. Because of these aspects, it is multi-purpose enough to be shaped and used in different ways. Capacity for steel is also set to expand in step with the implementation of BBB, yet the Philippines remains a regional laggard in terms of steel production and consumption. Domestic mills almost exclusively produce rebar, and the country relies on imports for roughly 70% of consumption. On the production side, Chinese steelmakers are actively exploring new investment opportunities overseas, including in the Philippines, in the face of a prolonged trade dispute with the US and environmental limitations on expanding domestic capacity.

Commercial Buildings Sector Holds Largest Share in the Market

As per the analysis, commercial prefabricated buildings accounted for more than 50% in the Philippines market. Non-residential construction placed second in approved building permits at 24,381 or 14.1% of the total constructions. This figure is up by 14.2% from the 21,349 constructions recorded in 2017. Commercial building construction registered the greatest number of constructions with 14,674 or 60.2% of the total non-residential constructions. The Rainbow Tree, a modular mass timber condominium tower in Cebu City, Philippines. Revealing the cultural and natural Filipino heritage, the project, named after an iconic and colorful tree from the Philippines the Rainbow Eucalyptus, was entirely conceived in a way to reduce the carbon footprint of the building.

Metro Manila office’s demand drivers are likely to remain diversified in 2020. Prior to the entry of Philippine Offshore Gaming Operators (POGOs), outsourcing firms such as call centers and shared service providers easily accounted for more than 50% of all office leasing deals. Traditional occupiers, business process outsourcing (BPO), knowledge process outsourcing (KPO) firms (such as health information management and software engineering firms), and POGOs are likely to dominate Metro Manila office space take-up in 2020.

Competitive Landscape

The Philippines prefabricated buildings industry is fragmented in nature, with none of the major players having a significant share to influence the market. Prefabricated and building industry is also embracing technology at a faster pace. Owing to this, construction companies are partnering with technology startups to increase productivity and efficiency. Compared to other countries the Philippines have fewer companies into prefabricated building construction that provides an opportunity for new players to enter the market with less competition and introduce new prefabricated building structures in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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