Enjoy complimentary customisation on priority with our Enterprise License!
The prefabricated construction market size is forecast to increase by USD 66.92 billion, at a CAGR of 8.72% between 2023 and 2028. The growth rate of the market depends on several factors, including the high demand for it in healthcare, the high spending on renovation of homes, and the growing demand for lightweight materials. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.
Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
To Know more about the market report Request Free Sample
High demand in healthcare is the key factor driving market growth. Healthcare facilities often need to be built or expanded rapidly to meet growing demand or respond to emergencies such as pandemics or natural disasters. The modular structure allows for faster project delivery compared to traditional building methods, enabling healthcare providers to address urgent needs more quickly. Such a building is well-suited for the rapid deployment of temporary healthcare facilities, such as field hospitals, mobile medical units, or temporary quarantine facilities.
Further, the demand in healthcare is driven by the need for speed, flexibility, quality, infection control, cost-effectiveness, adaptability, and sustainability. As healthcare systems continue to evolve and face new challenges, prefabricated construction offers a modern and adaptable solution to meet the demands of patients, providers, and communities, which may have a positive impact on the growth of the market during the forecast period.
Sustainability gaining traction in the industry is the primary trend shaping the market. Prefabricated construction aligns with sustainable construction practices by reducing waste, utilizing eco-friendly materials, and optimizing energy efficiency. Additionally, the controlled factory environment allows for better management of resources, reduction in energy consumption, and incorporation of eco-friendly materials, aligning with sustainability goals. The controlled factory environment and optimized logistics contribute to a lower overall carbon footprint compared to traditional construction methods.
Moreover, the push for sustainability is a substantial driving force behind the popularity of this, which is expected to boost the development of the global market during the forecast period. Consequently, the demand for sustainability is a significant driver of shift in the market, as stakeholders increasingly recognize the environmental, economic, and social benefits of sustainable building practices. This trend is expected to continue as sustainability becomes a central focus in building and development projects worldwide, which will fuel the market expansion during the forecast period.
Shortage of skilled labor is a challenge that affects the market expansion. This relies heavily on skilled labor to manufacture building components off-site efficiently. The shortage of skilled workers can lead to reduced productivity in factories, resulting in longer lead times and delays in project delivery. Skilled workers play a vital role in ensuring quality standards in the fabrication process. Labor shortages led to compromised quality control, resulting in inconsistencies or defects in the manufactured modules, impacting the final product integrity. Shortages in skilled labor can limit the production capacity of modular fabrication facilities.
Moreover, shortages in skilled labor lead to delays in projects. When there are not enough skilled workers available to assemble or install modules on-site, project timelines may be extended, causing inconvenience and potential financial losses for stakeholders. The shortage of skilled labor can act as a barrier to the widespread adoption of such solutions. Developers and contractors may be hesitant to invest in prefabricated projects if they are concerned about the availability of skilled labor to execute the work effectively. Thus, a shortage of skilled labor may impede the development of the market during the forecast period.
The market share by the non-residential segment will be significant during the forecast years. Projects such as office buildings, retail spaces, warehouses, and factories can benefit from faster construction timelines and reduced costs. Non-residential projects often leverage cutting-edge technology and innovative methods. Such structure often results in less material waste and lower energy consumption during the building process.
The non-residential segment accounted for USD 67.64 billion in 2018. Additionally, the ability to use recycled materials and design for energy efficiency makes prefabricated buildings more environmentally friendly. Consequently, the demand in the non-residential sector continues to grow as developers, investors, and stakeholders recognize the numerous benefits it offers, including speed, cost savings, quality control, design flexibility, sustainability, adaptability, technological advancements, and improved health and safety outcomes which will fuel the market during the forecast period.
Get a glance at the market contribution of the End User segment Request Free Sample
The steel?segment will account for the largest share of this segment.?Steel is known for its strength and durability, making it an ideal building material, particularly in areas prone to natural disasters or extreme weather conditions. Steel components are manufactured off-site in controlled environments, allowing for faster construction timelines compared to traditional on-site methods. Additionally, steel structures can accommodate green building features such as solar panels and energy-efficient insulation systems. Steel prefabricated construction is suitable for a wide range of applications, including commercial buildings, industrial facilities, warehouses, retail centers, educational institutions, and healthcare facilities. Its adaptability makes it a versatile choice for diverse building projects, which will fuel the market during the forecast period.
APAC is estimated to contribute 36% to the growth of the global market during the projection period.
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
For more insights on the market share of various regions Request Free Sample
APAC is experiencing significant urbanization, with millions of people moving to cities each year. This influx of population creates a demand for infrastructure, housing, and commercial buildings, driving the need for efficient building methods to meet the growing demand quickly. APAC countries are investing heavily in infrastructure projects such as transportation networks, utilities, and public facilities. This allows developers to meet this demand efficiently while maintaining quality standards.
Moreover, sustainability and environmental considerations are increasingly important in the industry. Prefabricated construction offers advantages such as reduced material waste, energy efficiency, and the use of eco-friendly materials, making it an attractive option for environmentally conscious developers and governments in the APAC region. Thus, the combination of urbanization, population growth, cost efficiency, infrastructure development, technological advancements, and sustainability goals is driving the growth of the regional market in the APAC region during the forecast period.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Asian Prefab Construction Co., Black Diamond Group Ltd., Easi Set Worldwide, Everest Industries Ltd., Henan K Home Steel Structure Co. Ltd, M. A. Mortenson Co., Modular Genius, Morgan USA., Nadler Modular, NELSON CORPORATE, Panel Built Inc., Par-Kut International, Plant Prefab Inc., Satellite Shelters Inc., Specialty Modular, The Boldt Co., United Partition Systems Inc., United Rentals Inc., and VESTA Modular LLC
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028.
The prefabricated building systems and modular structures have reshaped the building and construction industry, offering efficient assemblies for various projects, from commercial spaces to public infrastructure. With time and cost constraints prevalent, the streamlined installation process on building sites drives adoption. Amid global economic boom, the prefabricated building system market thrives, fueled by the need for sustainable practices and reduced construction wastage.
Skeleton prefabricated building systems lead the market, lauded for their cost-effectiveness, high strength, and minimal CO2 emissions. They find applications across residential and nonresidential industries, catering to the burgeoning world population. As sustainable alternatives gain traction, both developed and developing regions embrace panel systems and other modular solutions to mitigate construction waste and emissions.
Innovations like modular construction offer swift responses to emergency situations such as the need for coronavirus hospitals. From corporate offices to special economic zones, prefabrication minimizes transportation costs and reliance on heavy machinery, mitigating damage and technical issues like weak joints and poor thermal insulation. With governments championing energy conservation and sustainable infrastructure, manufacturers of prefabrication solutions continue to reshape the construction landscape while elevating the standard of living worldwide.
This is a method of building in which components or modules of a structure are manufactured off-site in a factory-controlled environment and then transported to the construction site for assembly. These prefabricated components are typically manufactured using standardized processes and can include walls, floors, roofs, modules, and even entire rooms or sections of buildings.
Prefabricated Construction Market Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.72% |
Market Growth 2024-2028 |
USD 66.92 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.23 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abtech Inc., Asian Prefab Construction Co., Black Diamond Group Ltd., Easi Set Worldwide, Everest Industries Ltd., Henan K Home Steel Structure Co. Ltd, M. A. Mortenson Co., Modular Genius, Morgan USA., Nadler Modular, NELSON CORPORATE, Panel Built Inc., Par-Kut International, Plant Prefab Inc., Satellite Shelters Inc., Specialty Modular, The Boldt Co., United Partition Systems Inc., United Rentals Inc., and VESTA Modular LLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.