Global Prefabricated Building Market Overview, 2024-29

Market Dynamic

Market Drivers • Urbanization and population growth: The quickening rate of urbanization and population expansion around the world is one of the main factors driving the prefabricated building industry worldwide. The need for housing and infrastructure in cities is only going to grow as more people move there in quest of better prospects. To address this demand, prefabricated buildings provide a scalable and effective option that lets developers build institutional, commercial, and residential facilities quickly and affordably. Prefabricated buildings are well-suited to address the housing shortages and infrastructure deficiencies common in rapidly expanding urban centers because they can be produced in large quantities and assembled onsite in a fraction of the time required for traditional construction methods by utilizing off-site manufacturing techniques. • Technological advancements in manufacturing: The prefabricated construction business has seen a transformation with the introduction of modern production technologies, which have spurred innovation, cost savings, and increased efficiency throughout the value chain. The design, fabrication, and assembly of building components have been revolutionized by advances in robotic automation, computer-aided design (CAD), building information modeling (BIM), and sophisticated materials. Higher levels of accuracy, customization, and quality control are made possible by these technologies, which shorten project schedules and produce higher-quality final goods. Technological developments in manufacturing have made prefabricated structures more competitive when compared to traditional construction methods, which has led to their broad adoption in markets across the globe by optimizing production processes and reducing waste. Market Challenges • Regulatory hurdles and standards: Prefabricated construction techniques are not widely used because of the broad range of building requirements and regulations. Sometimes the special qualities of prefabricated buildings are not sufficiently addressed by current a law, which cause delays or raises the cost of compliance. In order to overcome these legislative obstacles, industry participants and legislators must work together to create uniform policies and regulations that support prefabricated buildings while guaranteeing sustainability, quality, and safety. • Cost competitiveness: Although prefabricated construction can result in labor, time, and waste reduction cost benefits, attaining cost competitiveness in the global market is still a challenge. Prefabricated buildings can be more or less cost-effective overall than traditional construction methods, depending on a number of factors, including economies of scale, production efficiency, and material costs. Furthermore, some stakeholders may be discouraged from using prefabrication due to upfront costs associated with infrastructure, technology, and manufacturing facilities. Market Trends • Sustainable construction practices: The prefabricated building business is not an exception to the global construction industry's focus on sustainability. Demand for sustainable prefabricated solutions is being driven by strict legislation, green construction certifications, and a growing awareness of environmental issues. In order to reduce their negative effects on the environment, manufacturers are using more and more environmentally friendly materials, such as recycled steel, wood, and engineered wood products. Additionally, to improve prefabricated building systems environmental credentials, energy-efficient designs, the integration of renewable energy, and waste reduction programs are being added. • Customization and Design Flexibility: An increasing number of products are aiming to provide more customization and design freedom. Architects and designers may now develop highly customized prefabricated components that are matched to specific project requirements thanks to advancements in manufacturing technologies like 3D printing and digital fabrication. Homeowners in the residential sector are especially displaying this trend as they seek distinctive and customized apartments. Additionally, prefabricated solutions are becoming more and more popular in a variety of applications, such as offices, schools, and healthcare facilities, due to the flexibility with which they may be adapted for new uses or integrated into existing structures.

Key Development

• September 2023: The city of Malmö in southern Sweden is set to welcome a new student housing project, Unity Malmö, comprised of 5 building blocks and 450 micro-living apartments, where Forta PRO delivered 269 modules, a total of 9,671.9 m2. Forta PRO is a world-leading modular construction company, providing advanced state-of-the-art solutions for the construction and expansion of apartments, healthcare solutions, hotels, student accommodation, rental apartments, and more with minimal disruption to the operations of surrounding facilities. • February 2023: Modular Group Investments Ltd. (MGI) announced the acquisition of Oakland Glass Ltd. This is a key strategic addition to the Group, which adds significant capacity and capability in insulated double-glazed unit production and provides established routes to market for Oakland Glass through MGI’s existing and future channels.