South Korea Prefabricated Building Market Overview, 2029

South Korea's experience with prefabricated structures is relatively limited when compared to other industrialised countries, however the notion of modular construction is rapidly gaining acceptance due to a variety of circumstances. One of the key factors is rising housing expenses, which are particularly expensive for younger generations. Prefabricated homes provide a more cost-effective alternative to traditional construction methods. Furthermore, they have shorter building times, satisfying the increased need for swift project completion. Furthermore, modern prefabricated structures offer higher quality and design advantages, such as improved insulation, seismic resistance, and greater design freedom. In recent years, the industry has seen considerable changes and trends. In 2021, the government increased its support for prefabricated construction projects, reflecting a commitment to encouraging innovation and efficiency in the construction industry. Following that, in 2022, there was a significant increase in interest in prefabricated buildings for commercial applications, indicating a wider acceptance of prefabrication beyond residential projects. Furthermore, 2023 witnessed an increase in innovation, with a focus on incorporating new technologies like 3D printing into prefabrication processes. These accomplishments highlight the dynamic nature of South Korea's prefabricated building industry, which is primed for continued expansion and innovation in the years ahead. According to the research report “South Korea Prefabricated Building Market Overview, 2029," published by Bonafide Research, the South Korea Prefabricated Building market is forecasted to reach market size of more than USD 7.50 Billion by 2029. Several main factors are driving growth in the South Korean prefabricated construction sector. To begin, government initiatives are increasingly supportive of modular building due to its efficiency and potential for meeting social housing demands. Furthermore, the country's ageing population creates an opportunity for prefabricated buildings to serve senior care institutions and speed up infrastructure construction. Furthermore, the construction sector is dealing with labour shortages, and prefabrication provides a solution by minimising the need for onsite personnel. Despite its potential expansion, South Korea's prefabricated building business has several hurdles. One major barrier is public opinion, with some people viewing prefabricated buildings as less durable or visually beautiful than traditional ones. Furthermore, financing constraints exist, as traditional lenders may be unfamiliar with prefabricated construction technologies, making it difficult to get money for projects. Furthermore, standardisation remains a crucial issue, as the implementation of common norms and regulations is required for the widespread use of prefabricated buildings in South Korea. Addressing these issues will be critical to the future expansion and success of South Korea's prefabricated construction business.

Prefabricated buildings encompass a diverse range of construction solutions, categorised primarily by the materials used and the intended applications. Steel, renowned for its strength and versatility, serves as a foundational material in prefabricated construction, offering robustness particularly suitable for industrial and commercial applications. Concrete and cement-based prefabricated elements provide durability and structural integrity, making them ideal for a wide array of applications including residential and commercial projects. Wood, cherished for its natural aesthetics and sustainability, finds extensive use in residential and commercial prefabricated structures, offering warmth and character to the built environment. Additionally, other materials such as composite panels or innovative alloys may also be employed, often catering to specialised needs or architectural preferences. Across these material classifications, prefabricated buildings find applications in residential, commercial, and industrial sectors, offering efficient, sustainable, and customizable solutions to meet diverse construction needs. The South Korean government aggressively promotes prefabricated construction through a variety of techniques. One approach is to update building codes, which are now being revised to accept prefabricated constructions while maintaining safety and quality standards. These revisions demonstrate the government's commitment to upgrading the construction industry and adopting innovative building approaches. Furthermore, financial assistance is provided through government initiatives that encourage developers and builders to use prefabricated construction technologies. Prefabricated buildings in South Korea have a wide variety of pricing, based on size, materials used, and level of customization. Low-cost prefabricated homes often start at $50,000 and appeal to individuals or families looking for economical dwelling options. Mid-range alternatives dominate the market, with prices ranging depending on market dynamics and consumer preferences, although more market research can help define an average price point. Premium prefabricated homes, which can cost $250,000 or more, provide exclusivity and sophistication to selective purchasers. South Korea has a significant steel sector, which provides an important raw material for prefabricated buildings. However, the country also meets its construction needs by importing specific building materials. Compared to regional peers, South Korea's prefabricated construction business may be less mature than China's, which has greater production capacity. Furthermore, Japan has a longer history of prefabricated construction and places a high value on earthquake resistance in these structures. The COVID-19 pandemic had a mixed impact on South Korea's prefabricated construction sector. Initially, disruptions occurred owing to supply chain concerns and manpower shortages, causing temporary delays in construction projects. However, the epidemic raised the requirement for temporary structures, like prefabricated hospitals and quarantine facilities, to meet healthcare needs. In the long run, the pandemic may have increased the use of prefabricated construction systems. This acceleration can be due to the industry's emphasis on efficiency, rapid deployment, and strict sanitary standards, which were especially important during the pandemic. As a result, prefabricated buildings are increasingly seen as feasible options for future development projects in South Korea.

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Prashant Tiwari

Research Analyst

Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Prefabricated Building market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Materials • Steel • Concrete & Cement • Wood • Other Materials

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By Application • Residential • Commercial • Industrial The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Prefabricated Building industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.