Prefabricated House Market Report 2025

The prefabricated house market size has grown strongly in recent years. It will grow from $132.74 billion in 2024 to $142.99 billion in 2025 at a compound annual growth rate (CAGR) of 7.7%. The growth during the historic period can be attributed to rapid urban population increases, a rising demand for affordable housing, a growing number of single-person households, an expanding need for temporary or emergency housing, and heightened demand in remote and rural areas.

The prefabricated house market size is expected to see strong growth in the next few years. It will grow to $189.96 billion in 2029 at a compound annual growth rate (CAGR) of 7.4%. The projected growth in the forecast period is driven by increasing demand for eco-friendly and energy-efficient housing, greater use of sustainable building materials, a reduced carbon footprint in prefabricated construction, support for green building certifications, and the integration of solar panels and renewable energy systems. Key trends expected in the forecast period include the adoption of building information modeling, incorporation of smart home technologies, advancements in 3D printing for modular components, enhancements in transportation and logistics, and increased automation in factory production.

The increasing focus on sustainable construction practices is anticipated to drive the growth of the prefabricated house market in the coming years. Sustainable construction involves building and managing structures in ways that reduce environmental harm, conserve resources, and support long-term ecological balance. This trend is gaining momentum due to growing environmental concerns, as it helps lower carbon emissions and reduce the ecological impact of buildings. Prefabricated houses support these practices by reducing material waste through precise manufacturing in controlled environments. They also cut down on-site pollution and energy use, resulting in a smaller carbon footprint. For example, in April 2024, Saint-Gobain S.A., a France-based construction materials company, reported that 85% of professionals surveyed are engaged in sustainable construction, and 92% are expected to be involved within five years. Additionally, 51% have undergone sustainable construction training, a six-point rise from the 2023 barometer. As a result, the increasing focus on sustainability is propelling the growth of the prefabricated house market.

Leading companies in the prefabricated house market are developing innovative products such as prefabricated tiny homes to provide flexibility for homeowners who prioritize mobility and evolving lifestyles. These compact units are built in factories and transported to their final location for quick and easy installation. For instance, in July 2024, Continental AG, a Germany-based mobility solutions provider, introduced ContiHome, a prefabricated tiny house. Covering 30 square meters, this one-and-a-half-story structure features smart technology and sustainable materials, offering an energy-efficient and customizable living space. Designed for eco-conscious and mobile users, it uses modular construction, enabling easy relocation and expansion based on user preferences. This innovation meets the rising demand for affordable, mobile, and eco-friendly housing options.

In September 2024, ATCO Structures and Logistics Ltd., a Canadian modular construction firm, acquired NRB Limited for $40 million. This acquisition enhances ATCO’s ability to offer permanent modular building solutions by integrating NRB Limited’s specialized knowledge and expanding its footprint across North America. NRB Limited is a Canadian company specializing in modular and prefabricated building solutions.

Major players in the prefabricated house market are Daiwa House Industry Co. Ltd., Asahi Kasei Corporation, Seikisui House Ltd., Cemex S.A.B DE C.V., Laing O’Rourke Co., Atco Ltd., Yahgee Modular House Co. Ltd., Champion Home Builders Inc., Cavco Industries Inc., Butler Manufacturing Company, Astron Buildings S.A., Red Sea Housing Services Co. Ltd., Kirby Building Systems LLC, Skyline Champion Corporation, Bien‑Zenker GmbH, Hanse Haus GmbH & Co., Huf Haus GmbH & Co. KG, Modern Prefab Systems Pvt. Ltd, Par‑Kut International Inc., ALHO Systembau AG, United Partition Systems Inc.

North America was the largest region in the prefabricated house market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in prefabricated house report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the prefabricated house market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the construction sector, particularly in materials procurement and project costs. Higher duties on imported steel, aluminum, lumber, and machinery have driven up expenses for builders, contractors, and infrastructure developers, leading to increased project bids and delayed timelines. Construction equipment manufacturers face similar challenges, with tariffs on essential components and raw materials inflating production costs and squeezing margins. Additionally, retaliatory tariffs in international markets have curtailed exports of U.S.-made construction equipment and materials, further affecting profitability. The sector must now prioritize local sourcing, modular construction techniques, and supply chain diversification to control costs and ensure project viability amid ongoing trade uncertainties.

A prefabricated house is a residential building constructed from components produced off-site in a factory, then transported to the final site for assembly. These homes are designed to enable faster construction, improve cost efficiency, and minimize environmental impact compared to traditional on-site construction. The primary goal of prefabricated houses is to offer affordable, customizable, and time-saving housing options.

The primary categories of prefabricated houses include modular, panelized, pre-cut, and mobile types. Modular prefabricated houses are assembled from separate box-like sections called modules. They utilize various construction materials, such as wood, steel, concrete, and hybrid materials, and can be built as permanent or relocatable structures. These homes cater to several target groups, including first-time buyers, retirees and downsizers, investors and developers, and vacation homeowners, while serving a range of end users such as residential, commercial, industrial, and institutional sectors.

The prefabricated house market research report is one of a series of new reports that provides prefabricated house market statistics, including prefabricated house industry global market size, regional shares, competitors with a prefabricated house market share, detailed prefabricated house market segments, market trends and opportunities, and any further data you may need to thrive in the prefabricated house industry. This prefabricated house market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The prefabricated house market includes revenues earned by entities by constructing pre-built wall panels, prefabricated floor system, portable cabins, structural frames, and interior partition systems. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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