Asia-Pacific prefabricated housing market is expected to grow at a CAGR of approximately 6% during the forecast period. The market is mainly driven by the demand for low to mid-rise residential buildings, project homes, and public housing. Rising concerns over the green infrastructure and sustainable living to accommodate the needs of the increasing population will be the other driving factor.
Large-scale social restrictions imposed by the government to contain the spread of COVID-19 and the global travel restrictions had affected the availability of manpower and raw materials. It impacted Asia-Pacific prefabricated housing industry's growth in the first half of 2020. Asia-Pacific prefabricated housing industry has been impacted by the delays in project implementations.
The prefabricated construction market in Japan is comparatively matured and developed when compared to other regions of the world. The inspections by industry-specific trained professionals rather than a general building code have also contributed to the development of the Japanese prefabricated housing market. The concept of prefabrication is gaining prominence in the Indian construction market. The entry of prefabricated homes in India has paved the way to innovative and technologically advanced construction and design methods for all kinds of construction, such as villas, and mass townships. Prefab, as a concept, got a boost in Australia when Australia’s tallest timber building, the 10-story 45 meter tall, 25 King, an office and residential tower in Brisbane, was opened in 2019. As per PrefabAUS prediction 10 percent of Australian homes will be prefabricated by 2030.
Some of the factors that constrained the growth of the prefabrication buildings industry in China include high initial cost, high-cost pressure without appropriate economic scale effects, and lack of regulations addressing prefabricated construction practices.
Key Market Trends
Investment to Support the Growth and Innovation in the Housing Sector in Australia
In June 2019, the Australian government announced support for the manufacturing and building, and construction sectors, with support for the prefabricated building industry. It has announced a new collaborative lab to help manufacturers design innovative new prefabricated buildings that are more eco-friendly, affordable, and significantly reduce the time for construction. PrefabAus, the peak body for Australia’s off-site construction industry received USD 21.27 million grant from the Australian government to deliver better buildings, that are more cheap, efficient, and safer. The outcomes of this initiative are to reduce the project delay by 40%, reduce the CO2 emissions by 50%, and reduce the building waste by 80%. The ARC Training Centre for Advanced Manufacturing of Prefabricated Housing, administered by the University of Melbourne, has attracted funding of USD 6 million over four years, including a significant investment from the Australian Research Council.
Shrinking Number in Population Might Impact Construction of New Prefabricated Houses
The Population in Japan is shrinking, with researchers predicting the loss of about 16 million citizens in a little more than two decades. According to the data from the world bank, Japan’s population has aged more and more, to the point where more than a quarter of Japanese were 65 years and older in 2018. Approximately, 27.6% of the total population in Japan were aged more than 65 years in 2018. The aging population in the country also indicates that there are fewer young people trying to buy properties in suburban or rural areas.
With the population continue to decline in Japan combined with an aging population, it is undeniable that the demand for new house construction also decreases. The companies are looking to capture the potential growth in China and other Asian countries, as demand for new construction declines in the shrinking domestic market.
Asia-Pacific 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. Major players are Daiwa House Industry, Sekisui House, Ichijo, Panasonic Homes, and Toyota Housing Corporation.
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Table of Contents
1.2 Scope of the Study
2.2 Research Phases
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
5.4 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
6.1.1 Single Family
6.1.2 Multi Family
6.2 By Country
6.2.4 Rest of Asia-Pacific
7.2 Company Profiles
7.2.1 Daiwa House Industry
7.2.2 Sekisui House
7.2.4 Panasonic Homes
7.2.5 Toyota Housing Corporation
7.2.6 Ausco Modular Construction
7.2.7 Shanghai Star House
7.2.9 Anchor Homes
7.2.10 Aussie Modular Solutions*
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
- Panasonic Homes
- Toyota Housing Corporation
- Ausco Modular Construction
- Shanghai Star House
- Anchor Homes
- Aussie Modular Solutions*