Off-Site Prefabricated Building Global Market Report 2025

The off-site prefabricated building market size has grown strongly in recent years. It will grow from $112.42 billion in 2024 to $120.78 billion in 2025 at a compound annual growth rate (CAGR) of 7.4%. The growth in the historic period can be linked to growing emphasis on construction productivity, increasing investment in infrastructure modernization, rising popularity of modular housing solutions, expansion of industrial and commercial construction sectors, and increasing awareness of waste reduction in construction.

The off-site prefabricated building market size is expected to see strong growth in the next few years. It will grow to $158.78 billion in 2029 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be driven by rising adoption of smart and connected building systems, an increasing shift toward net-zero energy buildings, growing demand for rapid deployment construction in remote areas, expansion of public-private partnerships in housing and infrastructure, and increasing renovation and redevelopment of aging buildings using prefabricated methods. Major trends in the forecast period include advancements in lightweight and high-performance building materials, development of fully integrated modular building systems, increasing automation in factory-based construction, innovations in transport and on-site assembly technologies, and growing use of virtual reality and augmented reality for design and planning in prefabrication.

The growing emphasis on sustainable building practices is expected to drive the growth of the off-site prefabricated building market in the coming years. Sustainable building practices involve construction methods and design approaches that reduce environmental impact while enhancing resource efficiency and occupant well-being. This focus is intensifying due to strict government regulations and environmental policies aimed at lowering carbon emissions, as countries worldwide implement mandatory building codes and certification standards to address climate change. The adoption of sustainable building practices supports off-site prefabricated construction by promoting resource efficiency, minimizing material waste, reducing on-site environmental effects, and enabling improved quality control and energy performance throughout the building lifecycle. For example, in July 2024, the U.S. Green Building Council reported that more than 46,000 residential projects had been certified under the Leadership in Energy and Environmental Design (LEED) green building rating system, with 2023 seeing nearly a 5% increase in new LEED residential project registrations. Consequently, the rising focus on sustainable building practices is driving the growth of the off-site prefabricated building market.

Leading companies in the off-site prefabricated building market are concentrating on developing innovative solutions, such as modular construction systems, to accelerate project delivery and enhance efficiency. Modular construction involves producing building sections off-site and assembling them on-site, which helps reduce construction time, improve quality, lower costs, and enhance safety, while ensuring greater sustainability and efficiency. For instance, in May 2025, Turner Construction Company, a US-based international construction services firm, launched xPL Offsite, an off-site manufacturing business targeting high-complexity projects. The venture utilizes advanced design for manufacturing and assembly (DfMA) and off-site manufacturing (OSM) strategies to streamline project delivery, improve safety and quality, and shorten construction timelines. xPL Offsite combines Turner’s expertise in prefabrication, modular construction, and supply chain management to offer efficient, scalable solutions for complex projects such as data centers, airports, and large industrial facilities, enabling clients to achieve better cost certainty, higher productivity, and accelerated schedules while maintaining top standards of performance and sustainability.

In November 2024, B.PUBLIC PBC, a US-based manufacturer specializing in off-site prefabricated buildings, partnered with the Santa Fe Institute to design and construct a new lecture hall on SFI’s Miller campus in Tesuque, New Mexico. Through this collaboration, B.PUBLIC PBC and the Santa Fe Institute aim to create a sustainable, prefabricated lecture hall that encourages innovative research, fosters creativity, and integrates harmoniously with the natural surroundings. The Santa Fe Institute is a US-based research foundation dedicated to the study of complex systems and interdisciplinary scientific research.

Major companies operating in the off-site prefabricated building market are China Railway Group Limited, Bouygues Construction S.A., Daiwa House Industry Co. Ltd., Skanska AB, Balfour Beatty plc, Royal BAM Group NV, Lendlease Group, Dorce Construction Pvt. Ltd., Clark Pacific Inc., Z Modular Inc., Red Sea Housing Services Co. Ltd., Lester Building Systems Inc., Palomar Modular Buildings Inc., Allied Modular Building Systems Inc., Inland Buildings Inc., Modern Building Systems Inc., Dvele Inc., PortaFab Corporation, Alan Pre-Fab Building Corp, Turner Construction Company.

Asia-Pacific was the largest region in the off-site prefabricated building market in 2024, and it is expected to be the fastest-growing region in the forecast period. The regions covered in off-site prefabricated building report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the off-site prefabricated building 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.

The off-site prefabricated building market research report is one of a series of new reports that provides off-site prefabricated building market statistics, including off-site prefabricated building industry global market size, regional shares, competitors with the off-site prefabricated building market share, off-site prefabricated building market segments, market trends, and opportunities, and any further data you may need to thrive in the off-site prefabricated building industry. This off-site prefabricated building 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.

An off-site prefabricated building is a structure that is manufactured and partially or fully assembled in a factory before being transported to its final destination. It is designed to speed up construction, reduce on-site labor needs, and minimize material waste. The building consists of modular components that can be efficiently connected, allowing for flexible design options, easy scalability, and consistent quality control throughout the construction process.

The main product types of off-site prefabricated buildings include modular buildings, panelized structures, portable buildings, mobile homes, and container homes. Modular buildings are factory-produced sections (modules) that are assembled on-site to form complete structures, allowing for quicker and more adaptable construction compared to traditional methods. They utilize various material types, such as wood, steel, concrete, composite materials, and insulated panels, and incorporate construction methods including off-site fabrication and on-site assembly. These buildings serve a range of customer types, including government agencies, private developers, non-profit organizations, individual homeowners, and corporations, and are used by end users across residential, commercial, industrial, educational, and healthcare sectors.

The off-site prefabricated building market consists of sales of wall panels, roof panels, floor slabs, steel frames, concrete modules, prefabricated bathrooms, kitchen pods, container units, insulated sandwich panels, structural beams, façade systems, stair modules, window units, door assemblies, ceiling panels, utility cores, building envelopes, timber frames, and foundation blocks. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.

This product will be delivered within 3-5 business days.