NEW YORK, May 23, 2024 /PRNewswire/ — The global prefabricated construction market size is estimated to grow by USD 66.92 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 8.72% during the forecast period.
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Forecast period |
2024-2028 |
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Base Year |
2023 |
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Historic Data |
2018 – 2022 |
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Segment Covered |
Application (Non-residential and Residential), Material (Steel, Concrete, Wood, and Others), and Geography (APAC, Europe, North America, Middle East and Africa, and South America) |
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Region Covered |
APAC, Europe, North America, Middle East and Africa, and South America |
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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 |
Key Market Trends Fueling Growth
Prefabricated construction is a sustainable building solution that minimizes waste, utilizes eco-friendly materials, and optimizes energy efficiency. In rural areas, this method promotes efficient material usage, reducing on-site construction activities and transportation needs.
Prefabricated modules can be customized for various projects, including multi-story buildings, affordable housing, healthcare, and commercial infrastructure. The controlled factory environment allows for cost savings, faster building schedules, and easier deconstruction for reuse. Prefabrication also incorporates reusable and recyclable materials, aligning with sustainability goals in the building industry during the conception to completion process.
Market Challenges
- Prefabricated construction in rural areas relies on skilled labor for efficient off-site manufacturing. Labor shortages can lead to reduced productivity, longer lead times, and compromised quality control in prefabricated factories. Skilled workers ensure consistency and defect-free manufacturing of prefabricated modules, which are crucial for project delivery and final product integrity. Labor shortages limit production capacity, leading to delays in fulfilling orders and meeting project timelines.
- Prefabrication offers benefits such as faster building schedules, reduced costs, and greater flexibility. However, labor constraints can hinder these advantages, particularly in the context of modular construction for affordable housing, healthcare, commercial infrastructure, and rapid urbanization. Skilled labor is essential for the production of prefabricated modules, whether for single-story or multi-story buildings, existing structures, or pre-engineered steel structures.
- In a controlled factory setting, skilled labor is necessary for the planning, designing, and assembly of weatherproof, pleasing appearance, and easy deconstruction modules. Transportation and logistics also play a role in the prefabricated construction market, making the availability of skilled labor a critical factor in the success of this industry.
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Segment Overview
- Application
- 1.1 Non-residential
- 1.2 Residential
- 2.1 Steel
- 2.2 Concrete
- 2.3 Wood
- 2.4 Others
- 3.1 APAC
- 3.2 Europe
- 3.3 North America
- 3.4 Middle East and Africa
- 3.5 South America
1.1 Non-residential- Prefabricated construction market segmentation by application encompasses various sectors, including rural areas, affordable housing, healthcare, commercial infrastructure, and rapid urbanization. In rural areas, prefabricated methods offer cost-effectiveness due to cheap labor and minimal transportation costs. Truck usage laws and customization requirements are crucial considerations in the design and style of utility-focused structures.
Planning and designing in a controlled environment of a factory setting enable greater flexibility and reuse, reducing material waste and adhering to cost constraints. Prefabricated modules, such as pre-engineered steel, are ideal for multi-story buildings and existing structures, offering faster building schedules and reduced costs. Modular construction, including off-site manufacture and assembly, is essential for weatherproof, pleasing appearance structures, ensuring efficient and precise project execution.
In the steel segment, prefabricated modules offer easy deconstruction and adaptability, making them suitable for various applications. Rapid urbanization and the building industry’s growing demand for faster construction schedules and reduced costs have led to the popularity of prefabricated construction. Prefabricated methods offer greater flexibility, less material waste, and the ability to meet specific design requirements, making them a preferred choice for various applications.
In summary, the prefabricated construction market segmentation by application includes rural areas, affordable housing, healthcare, commercial infrastructure, and rapid urbanization. Prefabricated methods offer cost-effectiveness, flexibility, and precision, making them a preferred choice for various applications in the building industry.
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Research Analysis
The prefabricated construction market is experiencing significant growth due to rapid urbanization and global expansion in various sectors, including affordable housing, healthcare, commercial infrastructure, and the industrial sector. New projects in the commercial and industrial sectors are increasingly turning to prefabricated solutions for their building needs, as they offer reduced costs, greater flexibility, and the ability to reuse and produce less material waste.
These cost constraints are particularly important in the context of transportation and logistics, which can be optimized through the use of modular structures. Prefabricated construction also offers customization options, allowing for unique designs, styles, and utility in both urban and rural areas. From conception to completion, prefabricated construction provides a cost-effective and efficient solution for a wide range of product types.
Market Research Overview
The prefabricated construction market refers to the production of building components off-site and transporting them to the construction site for assembly. This approach offers several advantages, including reduced construction time, improved quality, and cost savings. The prefabricated construction industry caters to various sectors, such as residential, commercial, and infrastructure.
The use of advanced technologies, like 3D printing and automation, is transforming the industry, enabling the production of complex structures with precision and efficiency. Sustainability is a key focus area, with prefabricated buildings offering energy efficiency and reduced waste. The market is expected to grow significantly due to increasing urbanization, the need for affordable housing, and the adoption of green building practices.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
- Non-residential
- Residential
- Material
- Steel
- Concrete
- Wood
- Others
- Geography
- APAC
- Europe
- North America
- Middle East And Africa
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
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SOURCE Technavio
