Prefabricated Buildings Market size was over USD 151.34 billion in 2023 and is poised to exceed USD 360.3 billion by the end of 2036, witnessing over 6.9% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of prefabricated buildings is evaluated at USD 159.69 billion.
Prefabricated construction is based on the strategy to make components off-site in a factory and then are transported and put together on-site to create a structure. Its extensive characteristics such as good quality, high strength, low weight, volume, affordability, and more are gaining higher popularity. In January 2019, India's construction sector had a contribution of over 2.7 trillion Indian rupees to the country's GDP. This was an all-time high contribution recorded through the sector. In 2019, railway sector in the nation received the highest ever budgetary allocation.
Though due to COVID-19 market has seen a dip due to temporary suspension in construction activities in various regions and shortage in the supply chain. But the prefabricated buildings market will recover soon.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024–2036 |
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CAGR |
6.9% |
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Base Year Market Size (2023) |
USD 151.34 billion |
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Forecast Year Market Size (2036) |
USD 360.3 billion |
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Regional Scope |
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The prefabricated buildings market is segmented on the basis of Product Type into Skeleton System (H formed frames, T formed frames and others), Panel Systems (Large Panel and Small Panel), Cellular Systems (Complete Cellular Systems, and Incomplete Cellular Systems), Combined Systems and others. Among them panel system holds the largest share in the market followed by the cellular systems. Ventilated thermal panel system is highly adopted by the residential and non-residential sector. As it offers some of the major advantages as it can be easily transported, short production time, easy installation, adaptable designs, easy relocation and can be used in any environmental condition. In addition it also offers homeowners and builders to produce faster and more energy efficient buildings. These reasons are boosting the market of prefabricated panel systems. Cellular systems is used for the production of multi-dimensional structures, it provides isolations in building.
On the basis of Component Type prefabricated buildings market can be segmented into Metal (steel, aluminum and others) and Non- Metal (concrete, glass, timber and others). Application of concrete is highly appreciated in prefabricated construction as it provides thermal barrier allowing the heat to escape and increase the energy efficiency of the entire frame work. Application of wood is also boosting the market of prefabricated construction like engineered joists, columns, and wall and floor structures. As it is provides easy shipping, recyclable, lightweight and also increase the strength of the framework.
The prefabricated buildings market is segmented by the End-user Industry Type into Residential (Private Dwellings, Apartments, Consortium, and Others), Commercial (Hospitals, Schools, Hotels, Shopping Malls, Retails, Banks, Airport, and Others), Industrial (Oil Refineries, Manufacturing Plants, Chemical Processing Plants, and Others). Out of all, commercial application is owning the highest share of market. Prefabricated construction is highly used in the construction of malls, hotels, airports, gyms, hospitals and others. As it takes less than half the time when compared to traditional construction. This is due to better upfront planning, elimination of on-site weather factors, subcontractor scheduling delays, and quicker fabrication as multiple pieces can be constructed simultaneously. Followed by industrial application and then residential application. As developing countries are investing highly on industries, we can see development of manufacturing plants, chemical process plants and other, highly adopting the process of prefabricated construction. With the increase in industries more people are moving to urban areas resulting in the growth of residential prefabricated construction.
Our in-depth analysis of the global prefabricated buildings market includes the following segments:
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By Product Type: |
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By Component Type: |
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By End-User Industry Type: |
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Geographically, the prefabricated buildings market is segmented into North America, Latin America, Europe, Asia Pacific and the Middle East & Africa region. The market in the Asia Pacific is predicted to grow at the highest CAGR over the forecast period.
North America holds the highest share in terms of fabricated construction market, followed by Europe. Labours are not easily available in North America thus there pace of construction is slow, this is the major reason for the companies of this region to shift to fabricated construction to complete the project faster.
However, prefabricated construction in Asia pacific region is expected to grow significantly in next 5 years. The concept of affordable housing with high sustainability is likely to be increasingly adopted by the growing middle-class population in this region. Moreover, government initiatives in several countries such as Singapore, China, India, Hong Kong, and Pakistan are expected to drive prefabricated buildings market growth in the region.
In addition, the government of India has aimed to make air travel affordable by improving regional connectivity and developing regional airports. In February 2020, the Union Budget proposed creating of 100 new airports by 2024 to help growing air traffic under Centre's Udan scheme. Thus, it is anticipated that with the flourishing commercial construction industry, there will be an upsurge in the demand for prefabricated building systems, which will subsequently drive the prefabricated building systems prefabricated buildings market growth in the Asia Pacific during the forecast period.
Author Credits: Shweta Patidar
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