The global prefabricated housing market is expected to grow at a CAGR of approximately 6% during the forecast period. The market is driven by raising awareness of the high customizability and short construction times that prefabricated housing offers. Due to the high popularity of the product/service in North America and Asia, the growth trend of prefabricated houses and the growth of consumer demand in recent years are expected to promote the global prefabricated housing market. The global shortage of affordable housing will support the demand for cheap prefabricated housing units.
The COVID-19 pandemic has plunged the global economy into recession and led to a decline in the construction of new housing in many countries, as the lockdown measures and the need to adjust construction practices to accommodate social distance stopped or slowed down housing construction projects all over the world. The long-term slowdown in overall construction activity in China will continue to lead to a decline in demand for temporary housing, which is used to provide shelter for construction workers in long-term projects across the country.
In countries such as Brazil and India, demand for prefabricated houses has been on the rise because it provides a faster and more affordable solution to expand and upgrade the housing stock compared to most traditional housing. New housing construction in Europe and Japan is expected to decline, while the COVID-19 pandemic in Europe and Japan has exacerbated the pre-existing weakness, which will particularly affect the global demand for new prefabricated housing.
Key Market Trends
Prefabricated Housing Experiencing Expansion
Prefabricated housing construction is experiencing significant expansion all over the world. There is an increase in demand for prefabricated housing construction in the construction industry. Construction companies all over the world want to improve safety, productivity, quality, cost, and sustainability performance. Construction companies are facing challenges like workforce shortage and cost uncertainties. Many construction companies are considering prefabrication construction techniques because there are various benefits of prefabricated construction. In prefabricated construction, sites remain greener due to less waste being generated and this type of construction is safe because various parts of the building are constructed off-site.
Residential property prices are increasing in big cities all over the world. As of 2020, Hong Kong is the most expensive city for housing property, with the average residential property costing more than 1.25 million USD, Singapore also ranked highly as one of the most expensive property markets worldwide. For prefabricated housing construction required workforce is less as compared to on-site housing construction. So the cost related to workers in prefabricated housing construction is less. The cost of prefabricated houses is 20 to 25% less as compared to on-site built houses.
Increase in Awareness of the Advantages of Prefabricated Houses
The awareness of the advantages of prefabricated buildings and steel structures continues to increase, and people are increasingly accepting them because they are flexible, energy-efficient, and faster to complete. People are mainly accepting prefabricated houses because of sustainability, affordability, durability, and less build time. Shifting customer focus to minimizing emissions and waste management and increasing adoption of green building practices are other factors affecting the growth of the prefabricated housing market. The rapid development of the construction industry and the increase in disposable income are expected to drive the growth of the global prefabricated housing market during the forecast period. A large number of start-ups have entered the prefabricated housing construction industry and have gained huge interest from venture capital companies and angel investors.
The Global prefabricated housing market is highly competitive without dominant players. The market is fragmented, and the market is expected to grow during the forecast period due to the increase in the prefab construction building investments and upcoming major projects in the country and other few factors are driving the market. Companies are using environmentally friendly materials and manufacturing techniques to differentiate their products from competitors.
Companies are implementing effective production technologies to minimize product costs and reduce related risks. High capital requirements and rapid technological advancement are important barriers to entry for new participants. Major players are Daiwa House Industry, Sekisui House, Asahi Kasei Corporation, Skanska AB, and Peab AB.
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1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Technological Trends
4.3 Insights on Supply Chain/Value Chain Analysis of the Prefabricated Housing Industry
4.4 Cost Structure Analysis of the Prefabricated Housing Industry
4.5 Impact of COVID-19 on the Market
4.6 Insights on Different Types of Materials used in Prefabricated Housing Construction
5 MARKET DYNAMICS
5.4 Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers / Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6 MARKET SEGMENTATION
6.1 By Type
6.1.1 Single Family
6.1.2 Multi Family
6.2 By Region
6.2.1 North America
6.2.5 Rest of the World
7 COMPETITIVE LANDSCAPE
7.2 Company Profiles
7.2.1 Daiwa House Industry
7.2.2 Sekisui House
7.2.3 Asahi Kasei Corporation
7.2.4 Skanska AB
7.2.5 Peab AB
7.2.7 Swietelsky AG
7.2.8 Panasonic Homes
7.2.9 Laing O'Rourke
7.2.10 Champion Home Builders Inc.
7.2.11 Bouygues Batiment International
7.2.12 Derome AB*
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
9.1 Marcroeconomic Indicators (GDP breakdown by sector, Contribution of construction to economy, etc.)
9.2 Key Production, Consumption,Exports & import statistics of construction Materials
A selection of companies mentioned in this report includes:
- Daiwa House Industry
- Sekisui House
- Asahi Kasei Corporation
- Skanska AB
- Peab AB
- Swietelsky AG
- Panasonic Homes
- Laing O'Rourke
- Champion Home Builders Inc.
- Bouygues Batiment International
- Derome AB*