Prefabricated Building System Market - Growth, Trends, and Forecast (2020 - 2025)
The prefabricated building system market is expected to grow at a CAGR of more than 6% during the forecast period. One of the major factors driving the growth of the market studied is the increasing demand for building construction in the AsiaPacific region. On the flipside, technical issues associated with prefabrication, such as weak joints and poor thermal insulation performance, are expected to hinder the market growth.
The implementation of building information modeling is likely to act as an opportunity in the future.
AsiaPacific dominated the market across the world with large consumption from countries, such as China and Japan.
Key Market Trends
NonResidential Segment to Expand at a Lucrative Rate
The market for industrial modular buildings is growing at a faster pace, due to the larger benefits of offsite construction. Offsite constructions are becoming more popular in the developing nations, due to accelerated project timelines, greater flexibility, more economical pricing, safer and greener construction technology, and the ability to service remote locations.
The demand for prefabricated building systems in the industrial/institutional sector has increased, as it fulfill the shortterm necessities at lower costs. The buildings of permanent prefabricated building systems include manufacturing facilities, hospital facilities, educational classrooms, police stations, fire stations, etc.
The government of the United Kingdom had announced initiatives to construct new schools as a top priority. According to a publication by the United Kingdom government, there will be an addition of almost 7,30,000 schoolage children by 2020. Around 24,287 additional classrooms are needed to accommodate this growing schoolage population. According to a spokeswoman of the Department of Education, an investment of around GBP 7 billion is expected to be made on new constructions, by 2021.
Various regions in the United States, including Florida, San Diego, and Chicago, are constructing new hospitals, or expanding their original base, in recent years. Additionally, according to the survey by the Health Facilities Management, the construction of outpatient facilities has significantly increased across boards, when compared to the previous year.
Further, such expansions can be expected in the forecast period, thereby increasing the demand for the prefabricated building system market.
AsiaPacific Region to Dominate the Market
AsiaPacific 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 of the Chinese construction industry in the recent years.
As the construction industry is dominated by stateowned and private enterprises, the increased government and private spending in this regard are expected to push the industry toward global primacy. In recent years, the entry of major construction players (from the European Union) in China has further fuelled the growth of this industry.
Modular buildings are majorly used as they are often completed 3050% faster than conventional structures. This significantly reduces the overall time and cost. The Japanese construction sector remains positive in terms of shortterm growth, owing to the increasing demand triggered by a sudden rise in residential construction projects related to the Tokyo Olympics 2020.
The Japanese government is also constantly focusing on major longterm projects, like the Maglev railway longterm and shortterm development plans. The country is expected to witness up gradation of highway networks, and also of a new rail link to Haneda Airport in Tokyo.
Hence, such positive growth trends are anticipated to boost the demand for market studied.
The prefabricated building systems market is highly fragmented, with no player having a significant share to influence the market. The major companies include Algeco Scotsman, Skyline Champion Corporation, Lindal Cedar Homes, Kirby Building Systems LLC, and Astron Buildings, among others.
Reasons to Purchase this report:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook