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Prefabricated Building Market To Reach USD 255.48 Billion By Year 2032

The Global Prefabricated Building Market Size Was Valued at USD 137.8 Billion in 2023 and is Projected to Reach USD 255.48 Billion by 2032, Growing at a CAGR of 7.1 % From 2024-2032.

11-07-2024
Swati Kalagate
Manufacturing and Construction
AkViS Intelligence LLP

According to a new report published by AkVis Intelligence, titled, “Prefabricated Building Market by Product, Module Type, Application: Global Opportunity Analysis and Industry Forecast, 2024–2032,” The Global Prefabricated Building Market Size Was Valued at USD 137.8 Billion in 2023 and is Projected to Reach USD 255.48 Billion by 2032, Growing at a CAGR of 7.1 % From 2024-2032. The prefabricated building market is rapidly growing due to its cost-effectiveness and time efficiency. Buildings are manufactured off-site in controlled environments, then transported and assembled on-site, reducing construction time, waste, and improving quality control. Key drivers include urbanization, demand for affordable housing, and sustainability. Prefabricated buildings are popular in residential, commercial, and industrial sectors for their flexibility, durability, and eco-friendliness. Technological advances like Building Information Modeling (BIM) and modular construction are boosting market growth. Asia-Pacific and North America, particularly China, India, and the United States, lead in adoption. Government initiatives supporting green building practices also drive growth. Challenges include high initial costs and labor shortages, but ongoing R&D and growing awareness of prefabrication benefits are expected to drive market expansion.

According to the global Prefabricated Building market analysis, the market is segmented into Product, Module Type, Application, and region. Product The market is categorized into (Skeleton System, Panel System, Cellular System, and Combined System), Module the market is categorized into (Bathroom pods and kitchenettes), and Application the market is categorized into (Industrial, Commercial, and Residential). By region, it is analyzed across North America (U.S.; Canada; Mexico), Eastern Europe (Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; Netherlands; Italy; Russia; Spain; Rest of Western Europe), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).

Increasing urbanization drives the demand for housing and infrastructure, making prefabricated buildings increasingly essential. These structures assembled off-site and then delivered, offer rapid, cost-effective solutions compared to traditional construction methods. They address urban challenges such as space constraints and the need for sustainable practices.

Prefabricated buildings can optimize space and integrate eco-friendly materials, meeting sustainability goals crucial in urban development. By minimizing waste through controlled manufacturing processes and enhancing energy efficiency, they align with environmental priorities and stringent regulations. This approach appeals to eco-conscious clients and supports large-scale, sustainable projects, ensuring faster construction timelines and reduced site disruptions. Thus, prefabricated construction not only meets urbanization demands efficiently but also promotes environmental integrity in modern building practices.

Global Prefabricated Building Market, Segmentation

The Prefabricated Building market is segmented based on Product, Module Type, Application and region

Product:

The Skelton System segment is driving significant growth in the Prefabricated Building System Market. Its dominance stems from several key factors. Offering exceptional design flexibility, it caters to varied architectural styles for both residential and commercial projects. Known for structural integrity and durability, it's favored in high-rise buildings and large infrastructures, providing resilience against natural disasters. Efficiency in material and labor use reduces construction time and costs, enhancing economic appeal. Technological advancements have improved component precision and construction quality. Growing emphasis on sustainability benefits the Skelton System, promoting resource efficiency and waste reduction. Government support through favorable policies further accelerates its adoption in construction practices.

Module Type:

Bathroom pods are poised to dominate the Prefabricated Building Market due to their efficiency, cost-effectiveness, and widespread demand across construction sectors. These prefabricated units, assembled off-site and installed as complete modules, significantly accelerate project timelines. Unlike traditional methods involving sequential trades, bathroom pods arrive fully assembled, slashing labor costs and accelerating project completion. Their manufacture in controlled factory settings ensures consistent high quality and precision, crucial in sectors like hospitality, healthcare, and residential buildings. Moreover, bathroom pods enhance site safety by minimizing on-site work, reducing accidents and construction waste. This eco-friendly approach aligns with the growing emphasis on sustainable construction practices, making bathroom pods a preferred choice for modern construction projects.

Region:

North America leads the prefabricated building market due to robust construction activity, sustainable building trends, and strict regulations. Technological advancements in manufacturing and materials enhance efficiency and customization. Prefabricated buildings reduce construction time, labor costs, and environmental impact, ensuring higher quality control than traditional methods. Government initiatives supporting affordable housing and infrastructure also propel market growth. Residential and commercial sectors benefit, with prefabricated structures meeting urban and rural housing needs and serving as offices, retail spaces, and industrial facilities.

Some of the leading Prefabricated Building market players are

  • Laing O'Rourke (United Kingdom)
  • Red Sea Housing Services (Saudi Arabia)
  • Algeco Scotsman (United States)
  • Butler Manufacturing (United States)
  • Champion Home Builders (United States)
  • Cavco Industries (United States)
  • Clayton Homes (United States)
  • Modulaire Group (United Kingdom)
  • Sekisui House (Japan)
  • Skyline Champion Corporation (United States)
  • Wernick Group (United Kingdom)
  • Wolf System (Austria), and Other Major Players.

Key Industry Developments:

  • In February 2023, Leading building materials manufacturer Everest Industries Ltd. announced that its Board has approved a capital expenditure of INR125 crore for setting up a new manufacturing facility in Andhra Pradesh. The new investment will help the company to enhance its existing capacity of 72,000 MTPA to 1,14,000 MTPA for the Steel Buildings Division. The capital expenditure is likely to be operational by March 31, 2024, and shall be funded through a mix of debt and internal accruals.

Key Findings of the Study

  • The prefabricated building market was valued at USD 137.8 billion in 2023 and is projected to reach USD 255.48 billion by 2032, growing at a CAGR of 7.1% from 2024 to 2032.
  • North America leads the market with robust construction activity, sustainable building trends, and supportive regulations. Government initiatives for affordable housing and infrastructure further boost growth.
  • Advancements like Building Information Modeling (BIM) and modular construction improve efficiency and customization while meeting sustainability goals through reduced waste and enhanced energy efficiency
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