Prefabricated Building Systems Market Forecasts to 2028 – Global Analysis By Product Type (Skeleton system, Panel System, Cellular System, Combined System and Other Product Types), Type (Permanent and Relocatable), Component (Metal, Non-Metal and Other Co

Prefabricated Building Systems Market Forecasts to 2028 – Global Analysis By Product Type (Skeleton system, Panel System, Cellular System, Combined System and Other Product Types), Type (Permanent and Relocatable), Component (Metal, Non-Metal and Other Components), Weight, Application and By Geography

According to Stratistics MRC, the Global Prefabricated Building Systems Market is accounted for $148.58 billion in 2022 and is expected to reach $247.13 billion by 2028 growing at a CAGR of 8.85% during the forecast period. Prefabricated building systems are modular structures or assemblies of elements and components used in the construction and building sectors. These systems are often manufactured and assembled in factories before being brought to the construction site and installed or used to create structures. Metal, wood, glass, polymers, concrete, and other materials are employed in the manufacture of these systems. Prefabricated building systems are becoming a new trend in the building and construction industries, from setting up industrial facilities to creating residences and commercial spaces

Market Dynamics

Driver

Increasing Government Initiative Bolstering the Growth of Construction Industry

Building and construction industries are thriving in nations such as India and Singapore, where governments are investing extensively in growing the industry. The Singapore government spends at least S$2 billion every month on public infrastructure, according to the Australian Trade and Investment Commission. Furthermore, the government-wide circular economy program, which aims to build a circular economy in the Netherlands by 2050, is increasing the country's construction sector. Building and construction activity is also expanding as a result of different government efforts, such as foreign direct investment (FDI). Because of their eco-friendliness, flexibility, decreased site interruption, and cost advantages, prefabricated building systems are widely employed in the construction of residential and non-residential buildings.

Restraint

Transportation and Logistics

Shipping prefabricated building components over long distances can be expensive. The cost of transportation, including fuel, permits, tolls, and handling fees, can add to the overall project expenses. For projects located in remote areas or with limited access, transportation costs may be even higher. Additionally, the availability and condition of transportation infrastructure, such as roads, bridges, and ports, can affect the logistics of transporting prefabricated building components. Inadequate infrastructure can result in delays, additional handling requirements, and increased transportation costs, which would impede the market's expansion.

Opportunity

Growing infrastructure investments

The growing infrastructure investments are anticipated to boost the growth of the modular construction market because of the increase in industrialization and urbanization in developing nations like China, Vietnam, and India. Additionally, growing commercial real estate investments are anticipated to positively impact the prefabricated construction market's income. The industry is driven by advancing government initiatives to cut down on construction waste and promote green buildings. In addition, the government gives businesses subsidies that help standardize contemporary construction techniques. Shortly, the prefabricated construction industry is anticipated to be driven by rising R&D expenditures for innovative construction solutions.

Threat

High Initial Costs

Prefabricated building systems can provide long-term cost savings the upfront costs can be relatively high. Setting up manufacturing facilities, investing in specialized machinery, and developing supply chains require significant capital investment. This initial cost barrier can deter some potential customers from adopting prefabricated systems, which may further restrict the growth of the market.

Covid-19 Impact

During the COVID-19 pandemic is crippling many industries, public construction has been one of the few that has been able to function at some level. While the operation is expected to continue in the short term, work is projected to cease soon due to a variety of factors, such as supply chain disruption, shortages of subcontractors and materials, and the cancellation of cost management contracts. Building and construction activities have been temporarily halted in some places. For example, construction output in the United Kingdom declined by a record 35.0% in Quarter 2 2020 compared to Quarter 1 2020. This decrease in value was caused by the corona virus epidemic. The drop in building and construction operations has drastically reduced demand for prefabricated building systems, which is having a severe influence on the prefabricated building systems industry.

The Panel systems segment is expected to be the largest during the forecast period

The panel systems segment held the largest share in the prefabricated building systems market owing to the increasing demand for panel systems. The demand for panel systems such as ventilated thermal panels is on the rise in the residential and non-residential sectors owing to the superior properties they offer, such as short production times, easy transportation and installation services, adaptable designs, easy relocation, the ability to be used in any kind of environmental conditions, and more. In addition, the ventilated thermal panel (VTP)-based wall and roof system offers homeowners and builders a faster and more energy-efficient building. Also, prefabricated building systems significantly reduce on-site waste removal costs while eliminating costly material overruns and delays caused by weather and material shortages. Thus, these extensive characteristics of panel systems are the key factors anticipated to boost the usage of prefabricated building systems during the forecast period.

The Commercial segment is expected to have the highest CAGR during the forecast period

The commercial segment had the highest CAGR in the prefabricated building systems market, owing to the rising use of prefabricated building systems in the commercial sector. Prefabricated building systems are widely utilized in the construction of railways, highways, mining, hydropower, petroleum, tourism, and military affairs such as offices, accommodations, canteens, recreation, gyms, and more. It is extensively employed in these situations since prefabrication takes less than half the time that traditional construction does. This is due to better upfront planning, the elimination of on-site weather factors, subcontractor scheduling delays, and faster manufacturing because numerous sections may be manufactured simultaneously.

Region with largest share

The Asia Pacific region dominated the global market share. With growing residential and industrial activities, the demand for prefabricated building systems is increasing in the region. Despite volatile growth in the real estate sector, the significant development of rail and road infrastructure by the Chinese government in order to withstand the demand stemming from the growing industrial and service sectors has resulted in significant growth in the Chinese construction industry in recent years. As the construction industry is dominated by state-owned and private enterprises, increased government and private spending in this regard is expected to push the industry toward global primacy.

Region with highest CAGR

North America will continue to dominate the Prefabricated Building Systems market during the forecast period. The prefabricated building systems market in North America has been steadily growing due to factors such as cost-efficiency, time savings, sustainability, and advancements in manufacturing technologies. Prefabricated building systems have gained traction in the residential sector, particularly in the construction of single-family homes, multi-family housing, and affordable housing units. Prefabricated homes offer faster construction time, reduced labor costs, and improved energy efficiency. Moreover, the integration of Building Information Modelling (BIM), robotics, automation, and digitalization has enhanced the design, production, and installation processes in the prefabricated building systems market. These advancements have improved accuracy, productivity, and customization capabilities.

Key players in the market

Some of the key players in Prefabricated Building Systems market include Abtech Inc., Algeco Scotsman, Alta-Fab Structures, Art’s Way Manufacturing, Astron Buildings, Butler Manufacturing Company, Champion Home Builders, Inc., Cimc Modular Building Systems Holding, Clayton Homes, Inc., DuBox, Fleetwood Australia, GRAITC Groups, Guerdon Modular Buildings, Hickory Group, Horizon North Logistics, Katerra, Kirby Building Systems LLC, Kleusberg GmbH & Co KG, KOMA Modular, Laing O'Rourke, Lendlease Corporation, Lindal Cedar Homes, Inc., Modern Prefab Systems Pvt. Ltd., Modular Engineering, Niko Prefab Building Systems Pvt. Ltd., Par-Kut Internationals, Red Sea Housing Services, Ritz-Craft Corporation, Inc., Schulte Building Systems Inc., Skyline Champion Corporation, United Partition Systems Inc. and Vardhman Pre-Engineered Building Systems.

Key Developments

In March 2023, DuBox, has opened a new factory at Rabigh, Saudi Arabia. Spread over a 70,000-sq-m area, it will design, manufacture and assemble safer, greener and smarter buildings

In April 2022, Art’s Way Manufacturing launches new branding and branding initiative, positioning the company as a legacy-leaving, forward-thinking power player in equipment manufacturing

In March 2021, ScotBilt shipped over 1,600 homes from its two manufacturing facilities in Georgia providing affordable housing throughout Alabama, Florida, Georgia and the Carolinas

Product Types Covered
• Skeleton system
• Panel System
• Cellular System
• Combined System
• Other Product Types

Types Covered
• Permanent
• Relocatable

Components Covered
• Metal
• Non-Metal
• Other Components

Weights Covered
• Light Weight (less than 2 tons)
• Heavy Weight (more than 2 tons)

Applications Covered
• Residential
• Commercial
• Non-Residential
• Industrial
• Other Applications

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities,Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements