Global Prefabricated Buildings Industrial Market 2023-2030

Global Prefabricated Buildings Industrial Market 2023-2030

Global Prefabricated Buildings Market Size, Share & Trends Analysis Report by Material Type (Concrete, Glass, Metal, Timber, and Others), and by End-User (Residential, Commercial, and Industrial) Forecast Period (2023-2030)

The global prefabricated buildings market is anticipated to grow at a considerable CAGR of 7.5% during the forecast period. One of the factors contributing to the modular construction industry includes rising infrastructural development globally. Urbanization is one of the key factors that is enhancing the infrastructural development activities in the cities. According to the United Nations in 2018, 55% of the urban population lives in the urban area, which was around 4.2 billion. It is expected to be 68% by 2050, which will be more than 6 billion people. As per World Urbanization Prospects by the United Nations (UN), the largest urban growth will take place in India, China, and Nigeria.

Managing urban areas is one of the most important development challenges for the government in the upcoming period. The urbanization is increasing at a significant level as in 2014 there were only 28 mega-cities (a city with more than 10 million people) which is expected to reach 43 by 2030. As cities are getting denser, building construction is getting tougher due to lack of space for building material. Strict government regulation regarding air and noise pollution is also motivating contractors to work at a remote location from the construction area, which will augment the market.

Segmental Outlook

The global prefabricated buildings market is segmented based on material type, and end-user. Based on material type, the market is sub-segmented into concrete, glass, metal, timber, and others which includes fiberglass and steel. Based on end-user, the market is sub-segmented into residential, commercial, and industrial.

Residential Sub-Segment is Anticipated to Exhibit the Fastest CAGR Over the Forecast Period

Based on end-user, the residential segment held considerable share. The high demand for prefab buildings in residential sector owing to their low cost is a key contributor to the regional market growth. The existence of the Zero Carbon policy that intents to create a kind of ecological balance to neutralize greenhouse gas emissions has further contributed to the growth of this market segment. Several studies report that the construction sector is one of the main responsible for the unbalance. Therefore, residents are focusing on adopting prefab homes that takes low construction time and cost as well.

Regional Outlook

The global prefabricated buildings market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Among these, North America held considerable share in the global market, owing to the substantial government support. For instance, in November 2023, the Queensland government has announced that seven prefabricated homes have been built at VOLO Modular at Yatala on the Gold Coast for delivery to Eidsvold. The houses will be delivered by truck and as used as social housing. VOLO will build 27 of the two-bedroom homes in total. The high adoption of prefab buildings across the region is driving the regional market growth.

The Asia-Pacific Region is Anticipated to Exhibit the Highest CAGR in the Global Prefabricated buildings Market

Asia-Pacific is estimated to be the fastest-growing region owing to the rapid adoption of prefabricated buildings to increase productivity of construction sector. The growing adoption of prefabricated buildings to deal with unforeseen situations is driving the growth of the regional market. For instance, in August 2023, Manipur government announced to construct, 3,000 prefabricated houses for people displaced due to ethnic violence.

Market Players Outlook

The major companies serving the global prefabricated buildings market include Cisco Systems Inc., Wenco International Mining Systems Ltd., SAP SE, Rockwell Automation Inc., and Komatsu Mining Corp. Among others. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in August 2023, Emart24, the convenience store chain under South Korean retail giant Emart Inc., has partnered with YMK Construction to sell prefabricated housing products for the first time in the industry. The modular homes come in three variants - single-story 15-pyeong (49.6-square meter) homes and two-story 20 and 25-pyeong homes. Emart24 is offering different sized homes for customers interested in unique and flexible living spaces. To make a purchase, customers can visit Emart24’s offline stores nationwide and submit applications until the end of this month.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global prefabricated buildings market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.