(I-BusinessNews.Com, July 06, 2021 ) Prefabricated building systems market size is forecast to reach $18 billion by 2026, after growing at a CAGR of 6% during 2021-2026. Prefabricated building systems are gaining more popularity than calcium oxide owing to their extensive characteristics such as good quality, high strength, low weight, volume, affordability, and more. In addition, prefabricated building systems are often commended for energy efficiency and sustainable construction. Globally, the flourishing commercial and residential sector is increasing the demand for the ventilated thermal panel, which is the prime growth driver of the prefabricated building systems market. Also, the government initiatives such as Ã‚Â“Housing for AllÃ‚Â” and Ã‚Â“One Belt, One RoadÃ‚Â” is flourishing in the residential and commercial building sectors, which is anticipated to play a key role in driving the prefabricated building systems market during the forecast period.
Prefabricated Building Systems Market COVID-19 Impact
During this time when the COVID-19 pandemic is crippling various industries, public construction has been one of the few industries that have been maintained to some extent. While the operation is likely to continue in the short term, work is expected to stop soon due to numerous reasons, including disruption of supply chains, shortages of subcontractors and materials, and the termination of cost management contracts. There has been a temporary suspension of building and construction activities in various regions. For instance, the construction output in Great Britain fell by a record 35.0% in Quarter 2 (Apr to June) 2020 compared with Quarter 1 (Jan to Mar) 2020. This value decline was due to the Corona Virus pandemic. With the decrease in building and construction operation, the demand for prefabricated building systems has significantly fallen, which is having a major impact on the prefabricated building systems market.
Prefabricated Building Systems Market Segment Analysis Ã‚Â– By Product Type
The panel systems segment held the largest share in the prefabricated building systems market in 2020 and is growing at a CAGR of 6.5%, owing to the increasing demand for a panel system. The demand for panel system such as ventilated thermal panel is on an upsurge in the residential and non-residential sector owing to superior properties it offers such as short production time, easy services of transportation and installation, adaptable designs, easy re-location, can be used in any kind of environmental conditions, and more. In addition, the ventilated thermal panel (VTP) based wall and roof system offers homeowners and builders a faster and more energy-efficient building. Also, prefabricated building systems significantly reduce on-site waste removal costs while eliminating costly material overruns and delays caused by weather and material shortages. Thus, these extensive characteristics of panel systems are the key factors anticipated to boost the usage of prefabricated building systems during the forecast period.
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Prefabricated Building Systems Market Segment Analysis Ã‚Â– By End-Use Industry
The commercial segment held the largest share in the prefabricated building systems market in 2020 and is growing at a CAGR of 4% during 2021-2026, owing to increasing usage of prefabricated building systems in the commercial sector. Prefabricated building systems are widely used in the construction of railways, roads, mining, hydropower, petroleum, tourism, and military affairs such as office, accommodation, canteen, recreation, gym, and more. It is widely used in these applications as prefabrication takes less than half the time when compared to traditional construction. This is due to better upfront planning, elimination of on-site weather factors, subcontractor scheduling delays, and quicker fabrication as multiple pieces can be constructed simultaneously. Furthermore, the recovery in office and commercial construction, coupled with continued gains in institutional, industrial, and non-residential construction, will provide opportunities for the prefabricated building systems market. Thus, it is anticipated that this expansion will significantly drive the prefabricated building systems market growth in the commercial industry during the forecast period.
Prefabricated Building Systems Market Segment Analysis Ã‚Â– By Geography
Asia-Pacific region held the largest share in the prefabricated building systems market in 2020 up to 47%, owing to the flourishing commercial construction sector in the region. China is also looking to shift away from large scale infrastructure projects toward more locally oriented projects. In line with the 13th Five-Year Plan (FYP), projects such as water supply and treatment plants, road upgrades, urban metro systems, and public parks are aimed at reducing road traffic and pollution, redeveloping dilapidated housing, and encouraging the development of small and medium-sized towns. Japan’s Kansai International Airport looks to invest about 100 billion yen ($911 million) through 2025 to upgrade the larger terminal, seeking to boost capacity at the country’s No. 2 hub for foreign flights. In addition, the Indian government has aimed at making air travel affordable, improving regional connectivity, and developing regional airports. In February 2020, the Union Budget presented has proposed creating 100 new airports by 2024 to help growing air traffic under Centre’s Udan scheme. Thus, it is anticipated that with the flourishing commercial construction industry, there will be an upsurge in the demand for prefabricated building systems, which will subsequently drive the prefabricated building systems market growth in the Asia Pacific during the forecast period.
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Prefabricated Building Systems Market Drivers
Increasing Government Initiative Bolstering the Growth of Construction Industry
The building and construction industry is flourishing in countries such as India, and Singapore as governments are spending heavily on expanding the building and construction industry. According to the Australian trade and investment commission, the Singapore government spends at least S$2 billion on public infrastructure each month. Besides, the Government-wide program for a Circular Economy, aimed at developing a circular economy in the Netherlands by 2050 is boosting the construction sector in the country. Furthermore, the building and construction activities are also increasing owing to the various government initiatives such as Foreign Direct Investments (FDI). Prefabricated building systems offer several benefits, such as eco-friendly, flexibility, reduced site disruption, and financial savings, owing to which they are tremendously used in the construction of residential and non-residential buildings. Hence, with the increase in construction activities across the globe, the demand for prefabricated building systems such as ventilated thermal panel will be foreseen to grow enormously. Thus, such government investments and initiatives in the construction industry act as a driver for the market.
Extensive Advantages of Using Prefabricated Building Systems
In many developing economies, time and expense are the two parameters associated with construction operations that have long been considered a constraint on the growth of the industry. For several large construction industries around the world, overcoming this limitation has been one of the major obstacles. One of the main solutions to these concerns is the prefabricated building system. In today’s market, prefabricated construction systems can minimize construction time by 30-50% and offer an alternative solution. The method is cost-effective since the on-site operations require less labor. The substantially lower amount of waste produced is another indirect effect associated with the fewer on-site activities associated with the process. Prefabricated building system activities are gaining ground in the construction industry for such advantages. Moreover, for energy efficiency and sustainable design, prefabricated building systems are also commended. Traditional construction methods based on calcium oxide require additional materials that contribute to increased waste. However, when prefabricated sub-assemblies are built in a factory, it is possible to recycle in-house additional bulking agent materials. This is a major change when it comes to sending waste directly from a conventional construction site to a landfill. Thus, the extensive advantages of using prefabricated building systems act as a driver for the prefabricated building systems market.
Prefabricated Building Systems Market Challenges
Transportation Issue Associated With the Prefabricated Building Systems
The prefabricated design has come to be recognized as a quick, green, and cost-effective way of building construction. While this method has been used most prominently for small residential buildings, larger projects such as prefabricated towers and skyscrapers have now taken a turn. In the plant, prefabricated parts need to be assembled and then transported for assembly to the site. And this process entails a variety of risks, such as damaged delivery of goods, untimely delivery, expensive transportation, and more. In principle, prefabricated construction systems, built for performance, may seem perfect, but they lack personalization and detail. A disconnection occurs between the architect and the manufacturer by making parts off-site instead of on-site. Moreover, any low-cost alternative would pose a challenge to the demand for the prefabricated construction method. Thus, the transportation issues associated with the prefabricated building systems may hamper the market growth during the forecast period.
Prefabricated Building Systems Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the prefabricated building systems market. Major players in the prefabricated building systems market are Red Sea Housing Services, Algeco Scotsman, Butler Manufacturing Company, Champion Home Builders, Inc., Astron Buildings, Kirby Building Systems LLC, Lindal Cedar Homes, Inc., Ritz-Craft Corporation, Modern Prefab Systems Pvt. Ltd., Par-Kut International Inc., and United Partition Systems Inc.
Asia-Pacific dominates the prefabricated building systems market, owing to the increasing manufacturing & construction activities in APAC due to various government initiatives such as Ã‚Â“100 smart citiesÃ‚Â” and Ã‚Â“Housing for all by 2022Ã‚Â”.
With the rising migration of people towards urban areas, there is a strong need to develop residential homes, which will have a positive impact on the construction industry and thereby accelerating the demand for prefabricated building systems market during the forecast period.
Prefabricated building systems can be easily disassembled and relocated to different sites compared to silica aerogels. This significantly reduces the demand for raw materials, minimizes expended energy, and decreases overall time, which is driving the market growth.
Due to the Covid-19 pandemic, most of the countries have gone under lockdown, due to which various building and construction operations are disruptively stopped, which is hampering the prefabricated building systems market growth.
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