In an ever-evolving world, the global panelized modular building systems market holds remarkable growth potential, offering powerful insights for astute senior executives. The ongoing transition from traditional construction methods to prefabricated, panelized building systems underscores the vitally essential nature of this advanced technology in modern architecture and infrastructure development.
With rising demands for affordable, energy-efficient residential and commercial spaces, panelized modular building systems present an opportunity for streamlined, durable, and cost-effective solutions. Evolving government incentives worldwide are further propelling this market into the forefront of sustainable initiatives. However, the real power lies in the anticipated growth and investment in infrastructure across developing economies, making this a market that simply cannot be overlooked in forward-facing business strategy. The future of construction lies in innovative, sustainable, and efficient methods - don’t miss your opportunity to understand and leverage these industry shifts.
The COVID-19 pandemic in 2020 and the first half of 2021 drastically curtailed the global construction sector due to imposed government bans and restrictions, thereby limiting the panelized modular building systems market growth. Residential real estate was the worst hit as strict lockdown measures across significant cities resulted in the suspension of home registrations and slow home loan disbursements. However, the construction sector has been recovering well since restrictions were lifted. An increase in house sales, new project launches, and increasing demand for new offices and commercial spaces have been leading the market recovery.
- Over the medium term, the rising demand for off-site construction and increasing demand for structural insulated panels in energy-efficient prefabricated homes are the major driving factors augmenting the growth of the market studied. Furthermore, favorable government incentives and policies supporting energy-efficient building construction are propelling the project contractors to incorporate panelized building systems in new and renovation constructions.
- On the flip side, the requirement of transportation logistics to bring the prefabricated materials on-site is the key factor anticipated to restrain the growth of the target industry over the forecast period.
- Nevertheless, the increasing investment in infrastructure and commercial constructions in developing economies and the implementation of building information modeling (BIM) will likely create lucrative growth opportunities for the global market soon.
- Asia-Pacific is expected to dominate the market during the forecast period. This growth is attributed to the bullish demand for roof panels, floor panels, wall modules, and various other products in the residential, commercial, industrial, and infrastructure sectors.
Panelized Modular Building Systems Market Trends
Residential Segment to Dominate the Market
- The residential industry is the primary end-user industry for the global panelized modular building systems market. These systems offer design flexibility and precision in building with controlled costs and reduced construction time. This advantage goes well with the growing demand for permanent housing and rising preference for a shorter delivery time of construction projects.
- Factors like minimized hassles due to reduced debris from home construction and demolition activities, home builders’ continued pursuit of maintaining a profitable construction pace, and growing awareness toward the construction of energy-efficient residential places which are in perfect sync with the prefabricated construction practices are driving the market penetration of the panelized modular building systems in the residential segment.
- The rising number of migrants in the United States and European countries has increased the pressure on existing residential infrastructure. Hence, these countries, dwelling with advanced infrastructure and real estate spaces, are witnessing a gradual lead in reconstruction and renovation projects and new residential constructions.
- In 2022, the US government announced its plans to invest USD 3.16 billion to transform around 450,000 homes in low incomes areas to energy-efficient structures to cut down the country’s utility bills.
- To cut down energy use and GHG emissions, the European Union policymakers, in 2021, have recommended renovations of all worst energy-rating buildings by 2030, keeping residential buildings on priority.
- In Germany, the new coalition government has planned to build 400,000 new housing units every year, of which 100,00 units will be publicly subsidized.
- China is the world’s largest construction market. As China recovered from the pandemic doom, many residential constructions kick-started in the country. China’s Evergrande Group has committed to building 600,000 homes in 2022. The housing authorities of Hong Kong launched several measures to push start the construction of low-cost housing. The officials aim to provide 301,000 public housing units in 10 years till 2030.
- India is likely to witness an investment of around USD 1.3 trillion in housing over the next seven years. It is likely to witness the construction of 60 million new homes. The availability of affordable housing is expected to rise by around 70% in 2024. The Indian government's ‘Housing for All by 2022’ is also a significant game-changer for the industry. This initiative which aimed to build more than 20 million affordable homes for the urban poor by 2022, has been extended to 2024 with a target of delivering 29.5 million pucca houses.
- Considering all the above facts and factors, the usage and demand of panelized modular building systems for residential construction applications are expected to grow in the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific dominated the worldwide market with a significant market share and is projected to maintain its dominance during the forecast period. The Asia-Pacific region, with low manufacturing costs, cheap labor sourcing, and a remarkably large customer base, has a substantial inflow of FDI, with India and China being the primary beneficiaries. The region's favorable economic climate has boosted demand for houses, hotels, shopping malls, high-rise buildings, and stadiums.
- As per the forecast given by the Ministry of Housing and Urban-Rural Development, China’s construction sector is expected to maintain a 6% share of the country’s GDP going into 2025. Considering the given forecasts, the Chinese government unveiled a five-year plan in January 2022 focused on making the construction sector more sustainable and quality driven. China plans to increase the construction of prefabricated buildings to reduce pollution and waste from construction sites. Further, the construction industry will be transitioning to modernized practices, establishing low carbon-production modes and improving the quality of buildings, consequently increasing the demand for panelized modular building systems in the country.
- Additionally, the Chinese government has rolled out massive construction plans, which include making provisions for the movement of 250 million rural people to its new megacities over the next ten years, creating significant scope for panelized modular building systems in the future.
- As per the Invest India Report, India’s construction industry is heading to reach USD 1.4 trillion market size by 2025, supported by schemes about the smart city mission targeting the transformation of 100 cities and affordable housing. Under National Investment Promotion, India has an investment budget of USD 1.4 trillion on infrastructure - 24% on renewable energy, 19% on roads and highways, 16% on urban infrastructure, and 13% on railways.
- Japan is a significant area in the field of skyscrapers and high-rise buildings. Many luxury apartments and residential complexes are under construction in Japan. For instance, Mitsubishi State is constructing Japan’s tallest building, comprising 50 luxury apartments, each generating USD 43,000 monthly rent. The project is being built near the Tokyo station and will reach completion by 2027.
- The South Korean government has outlined its plan to execute large-scale redevelopment projects to supply 830,000 housing units in Seoul and other cities by 2025. From the planned construction, Seoul will get 323,000 new houses, and 293,000 will be built near Gyeonggi Province and Incheon. Significant cities like Busan, Daegu, and Daejeon will also benefit with 220,000 new houses in 4 years.
- All factors above are likely to fuel the growth of the panelized modular building systems market in Asia-Pacific over the forecast period.
Panelized Modular Building Systems Market Competitor AnalysisThe panelized modular building systems market is fragmented, with many players holding insignificant shares to individually affect the market demand. Some of the major players in the market (in no particular order) include Kingspan Timber Solutions (Kingspan Group), Robertson Group Ltd, Etex Building Performance, Hunter Douglas Group, and Metek PLC.
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Table of Contents1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1.1 Rising Demand for Off-site Construction
4.1.2 Increasing Demand for Structural Insulated Panels in Energy-efficient Prefabricated Homes
4.1.3 Supportive Government Incentives and Policies
4.2.1 Transportation Logistics Requirements
4.3 Industry Value-Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Technological Snapshot
4.6 Regulatory Policy Analysis
5 MARKET SEGMENTATION (Market Size in Revenue)
5.1 By Panel Type
5.1.1 Wall Modules
5.1.2 Roof Panels
5.1.3 Floor Panels
5.1.4 Other Panel Types
5.2 By Product Type
5.2.1 Timber Frame
5.2.2 Light Gauge Structural Steel Framing
5.2.4 Other Product Types
5.3 By End-user Industry
5.3.4 Industrial and Institutional
5.4 By Geography
220.127.116.11 South Korea
18.104.22.168 ASEAN Countries
22.214.171.124 Rest of Asia-Pacific
5.4.2 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
5.4.4 South America
220.127.116.11 Rest of South America
5.4.5 Middle East and Africa
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 Rest of Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.2 Etex Building Performance
6.4.3 Frame Homes UK
6.4.4 Fusion Building Systems
6.4.5 Hunter Douglas Group
6.4.7 Kingspan Timber Solutions (Kingspan Group)
6.4.8 KLH UK Limited
6.4.9 Merronbrook Ltd
6.4.10 Metek PLC
6.4.11 Modern Prefab Systems Pvt. Ltd Inc.
6.4.12 Oregon Timber Frame Ltd
6.4.13 Pinewood Structures
6.4.14 Robertson Group Ltd
6.4.15 Saint- Gobain Bruggemann Holzbau GmbH
6.4.16 SIP Building Systems
6.4.17 SIPs Eco Panel Systems Ltd
6.4.18 Taylor Lane Timber Frame Limited
6.4.19 Thorp Precast Ltd
6.4.20 Walker Timber Engineering
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Increasing Investment in Infrastructure and Commercial Constructions in Developing Economies
7.2 Implementation of Building Information Modeling (BIM)
A selection of companies mentioned in this report includes:
- Etex Building Performance
- Frame Homes UK
- Fusion Building Systems
- Hunter Douglas Group
- Kingspan Timber Solutions (Kingspan Group)
- KLH UK Limited
- Merronbrook Ltd
- Metek PLC
- Modern Prefab Systems Pvt. Ltd Inc.
- Oregon Timber Frame Ltd
- Pinewood Structures
- Robertson Group Ltd
- Saint- Gobain Bruggemann Holzbau GmbH
- SIP Building Systems
- SIPs Eco Panel Systems Ltd
- Taylor Lane Timber Frame Limited
- Thorp Precast Ltd
- Walker Timber Engineering