Prefabricated Buildings Industry - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Prefabricated Buildings Industry - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The prefabricated buildings industry is expected to register a CAGR of more than 6.87% during the forecast period. All construction-related operations worldwide have been halted due to the COVID-19 pandemic and consequent lockdowns. As a result, modular construction projects in various construction segments, such as educational, residential, airports, and others, had decreased, thus significantly impacting demand for prefabricated buildings. In several places, the supply chain had also been interrupted, thus causing a delay in the delivery of construction material required and affecting the construction activities.

• The adoption of additive manufacturing in Europe is expected to significantly boost the prefabricated construction sector. Companies are embracing eco-friendly products and production practices to set themselves apart from the competition. The introduction of energy-absorbing materials such as micro dwellings resulted from the focus on energy efficiency.
• Another major factor driving market expansion in the region, particularly in Switzerland, the Nordics, and United Kingdom, is the introduction of turnkey solutions. The prefabricated building industry in Europe is dominated by Germany, the Nordic countries, and United Kingdom.
• United Kingdom is a prospective market for prefabricated building companies. The major players are investing in improved performance and productivity to capitalize on the market's growth potential and modular construction approaches. The existing shortage of skilled labor in the construction industry is a crucial element sustaining United Kingdom's position in the European prefabricated building industry.
• Prefab enterprises have a huge opportunity in India, where there is a need for hundreds or thousands more plants in the future. India is anticipated to be among the fastest-growing countries in terms of construction output over the next few years, making technology a critical component.
• India is projected to be the world's second-largest building market in the next five years. A continued government push for digitalization and the adoption of cutting-edge construction technology like BIM is a key driver for the adoption of prefabricated buildings. Government efforts such as "Digital India," "Housing for All," and "Bharatmala Pariyojana" have boosted the use of prefabricated buildings in India.

United Kingdom is a market leader in its high rate of modular construction adoption. According to industry projections, the United Kingdom modular construction market is likely to grow further over several years, owing to enormous ongoing investments in residential building development, a renewed focus on updating healthcare facilities, and a chronic shortage of trained workers. Meanwhile, shorter daytime hours and frigid climatic conditions in nations like Finland, Sweden, and Canada stifle the growth of conventional construction methods. As a result, modular construction has become a viable alternative to traditional methods.

Due to the region's booming construction industry, Asia-Pacific is experiencing strong growth. Commercial building construction is quickly rising in nations like India, China, and Indonesia because they are some of the greatest outsourcing and manufacturing centers. Compared to United States, the European region has a high level of interest in modular construction. As costs continue to rise to unaffordable levels and trustworthy labor remains rare, more cities (like New York City and San Francisco) and countries (like England, Singapore, and Hong Kong) are turning to modular construction to alleviate chronic housing shortages.

The Asia-Pacific prefabricated buildings market is estimated to witness the highest growth over the next five years. The prefabricated construction market in Japan is comparatively mature and developed compared to other regions of the world. The inspections by industry-specific trained professionals rather than a general building code have also contributed to the development of the Japanese prefabricated housing market. The concept of prefabrication is gaining prominence in the Indian construction market. The entry of prefabricated homes in India has paved the way for innovative and technologically advanced construction and design methods for all kinds of construction, such as villas and mass townships. With the population continuing to decline in Japan combined with an aging population, it is undeniable that the demand for new house construction also decreases. The companies are looking to capture the potential growth in China and other Asian countries as demand for new construction declines in the shrinking domestic market.

The major companies in the prefabricated buildings industry are covered in this research. The market is fragmented, but it is likely to grow during the forecast period as prefab construction building investments and upcoming significant projects in various developing and developed countries increase. The major players include Clayton Homes, Sekisui Homes, China Saite Group Company Limited, PEAB, and Barratt Developments PLC.

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