Economic growth and urbanization will be one of the major factors boosting the prefabricated building system growth in the Africa region.
Arizton’s recent market research report on prefabricated building market provides comprehensive industry analysis, trend forecasts, and competitive analysis. The study includes insights by Application (residential and non-residential), Material (steel, concrete, wood, and others), System (skeleton, panel, cellular, combined, and others), and Geography (APAC, North America, Europe, Middle East & Africa, and Latin America)
The prefabricated building market is expected to grow at a CAGR of over 8% during the forecast period 2019–2025.
“Prefab” is not a manufacturing concept but is an amalgamation of panelized and modular building systems that are well developed are built before construction initiation and framework installation. Prefabs are made of composite materials, which are manufactured from several materials containing plastics, concrete, and steel. Pre-engineered buildings (PEBs) are extremely durable and withstand the effect of wind and termites. Manufactured homes can be used for permanent, semi-permanent, or temporary applications because of their longer service life and affordable costs. Furthermore, prefabricated construction cuts create time significantly. They are more stable, stronger, and easier than conventional buildings.
The leading drivers and trends driving the growth of the prefabricated building market are discussed below:
Growth in Housing and Township Projects
Several governments across the world are taking initiatives to provide affordable housing. For instance, the government of India is planning to provide housing for all by 2022, which requires the construction of around 30 million low-cost houses. Similarly, the launch of the Naya Pakistan Housing Program (NPHP) in Pakistan has attracted several foreign investors and construction companies to construct reasonable housing for the poor and the homeless. Saudi Arabia has a homeownership strategy, which estimates 70% of residents possessing homes by 2030. The Singapore public housing development process has more value for other countries to understand the usage and implementation of prefabricated material for housing projects. In 2019, the bathrooms of most of the newly launched Housing and Development Board’s flats were assembled off-site in Singapore. Prefabricated building system will play a bigger role in the Housing and Development Board's (HDB) efforts to boost construction productivity, which is to improve 25% by 2020 from 2010 levels. Hence, such initiatives are a major driving factor for prefabricated material companies.
Increase in Demand for Branded Designers
As technology continues to make inroads in every sphere of activity, conventional construction methods are also transforming. Nowadays, houses are designed using several software. Homeowners are given a wide range of options to choose from, with readymade home designs made in collaboration with top architects. Software can also help the consumer to choose one room from one designer and another room from another designer. This gives customers and builders a high customizable option. Builders are making use of prefabricated materials, which are designed by renowned designers to attract customers. As prefabricated building system reduces the overall construction cost, the price of readymade homes is low, thereby increasing the demand among consumers. Improved functionalities, superior design, and weather-resistance properties are some of the main factors which are increasing the demand for prefab homes.
Increased Application of Prefabricated Materials Worldwide
Recovering economies of Latin America along with the high-growth market of Eastern Europe, India, and Southeast Asia are expected to provide lucrative market opportunities. The prefabricated building system growth will be witnessed in Africa due to economic growth and urbanization. The demand for prefabricated construction in the institutional sector has grown because it fulfills the necessities at low costs. Examples of institutions using prefabricated construction include classrooms, educational, fire stations, hospital facilities, manufacturing facilities, and police stations. The UK government has announced its initiative to build new schools in addition to around 730,000 school-age children by 2020. More than 24,287 additional classrooms are needed to accommodate the growing school-age population. An investment of around GBP 7 billion is likely to be made on new constructions by 2021. Currently, several regions in the US, including Chicago, Florida, San Diego are constructing new hospitals or expanding their original base. According to the survey by the Health Facilities Management, the construction of outpatient facilities has significantly increased. In addition, such expansion can be expected to be seen during the forecast period, thereby increasing the demand for the prefabricated building system.
Algeco Scotsman, ATCO, Bouygues Construction, and Red Sea Housing are identified as prominent vendors in the global prefabricated building market.
The complete overview of the latest market research report on the global prefabricated building market by Arizton is now available.
The report offers a detailed study of major trends, drivers, challenges and provides market sizing and forecast for major geographical regions and key countries.
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