Belgium Prefabricated Buildings Industry - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

The Belgium Prefabricated Buildings Industry is expected to grow from USD 0.99 billion in 2024 to USD 1.37 billion by 2029, at a CAGR of 6.65% during the forecast period (2024-2029).

Space constraints in big cities, high profitability, increased demand for high-end and customized buildings are the driving factors of the prefabricated buildings industry.

The COVID-19 pandemic has brought serious uncertainty to many suppliers and contractors in the Belgium construction industry. Due to the blockade, some construction companies were forced to close their projects, while others witnessed delays in their projects. Due to COVID-19, only a few general construction sites were open, and the productivity of these sites was near 20% of the total planned daily output level. However, unlike remote construction, traditional buildings require a lot of labor, so choosing prefabricated buildings has become the best solution to avoid the spread of diseases.

Steel is the most widely used material in prefabricated construction in Belgium owing to its proven strength and durability. Although the residential sector in the area dominates, the demand for prefabricated parts in the non-residential sector is slightly higher. This is because commercial spaces such as shopping malls and hospitals need to be built quickly. Due to its lightweight, ductility, and recyclability, steel structures are used in prefabricated buildings at a high rate. These reconstructions are highly recognized in the architectural field because they can absorb wind turbulence and provide high resilience during earthquakes.

Belgium Prefabricated Buildings Market Trends

Labour Costs in Belgium has increased in 2020

The construction market (supplier side) remains highly competitive and is saturated with sophisticated players. As a result, labor costs remain high and margins low for contractors, pushing general contractors to cut back on their own Belgian labor force and work more and more with foreign subcontractors. Labor costs consist of wages & salaries and non-wage costs (e.g. employers' social contributions). Due to COVID-19 restrictions and lockdown imposed by the government, there is a shortage of labor force in Belgium. The labor force is an essential factor for Belgium's housing construction market. Belgium's labor productivity improved by 1.83 % YoY in March 2021, compared with a drop of 4.02 % in the previous quarter. The country's labor force participation rate dropped to 68.47 % in December 2020.

Increase in demand for prefabricated houses in Belgium

There is an increase in demand for prefabricated houses in Belgium due to the increase in population and the increasing urbanization in the country. Belgium is Europe's most urbanized nation. In 2019, 98.04 percent of Belgium's total population lived in urban areas and cities. Due to the increase in the urban population in the country, there is demand for new residential houses. The urban population is increasing due to increasing job opportunities and the easy availability of sources in the urban areas.

Belgium has one city (region), Brussels, with a population of over 1.1 million. Other major cities are Antwerp (508,000 population), Ghent (249,000 population), Charleroi (204,000 population) and Liege (196,000 population). They are followed by a lot of medium-sized cities.

Belgium Prefabricated Buildings Industry Overview

Belgium's prefabricated building industry is relatively fragmented. Several domestic and international players are active in the Belgium prefabricated building industry. The competition is expected to intensify further with an increase in product extensions, technological innovations, and M&A. The market is expected to grow during the forecast period due to the increase in the prefabricated construction building investments and upcoming major projects in the country and other few factors are driving the market.

Companies are using eco-friendly materials and manufacturing techniques to differentiate their offerings from their competitors. The focus on energy efficiency has led to the adoption of energy-absorbing materials such as micro homes. Major players are Containex, Wanty Group, ALHO Systembau, Artes Group, and Mathieu Gijbels.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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