Prefabricated Housing Market Size, Share & Trends Analysis Report By Type, By Application, By Region, and Segment Forecasts, 2021-2027

The global Prefabricated Housing market size is projected to reach USD 17210 million by 2027, from USD 13940 million in 2020, at a CAGR of 2.6% during 2021-2027. Key drivers of the prefabricated housing market include the growing trend toward prefabricated housing owing to several benefits. The rising consumer demand due to the shortage of affordable housing will boost the growth of the prefabricated housing market during the forecast period. 

The demand for sustainable housing will drive the expansion of the market in the upcoming years. The increasing investments will boost the market's growth prospects in the subsequent years.

Trends Influencing the Global Prefabricated Housing Market

Advantages of prefabricated housing

Constructing a new house can be an overwhelming process. Due to work pressures and lack of time consumers do not want to invest their money, and efforts into a long, frustrating process. Prefabricated houses come without any traditional building materials, and delays in contractor scheduling. As they are ready-made in factories the material supplies, structural equipment, and truck traffic are not needed at all. The continuous hassles related to noise, pollution, and waste dumping are avoided completely. This in turn speeds up the overall construction time thereby giving customers a fully furnished accommodation within weeks. The designs are built from scratch with the best possible interior quality, insulation properties, and energy efficiency. Personal designs and customized products can easily be fitted into the house without the lack of proper space. This removes the limitations as one can create the type of house one wants easily. These types of houses are made from steel a highly recyclable material and depend on exact specifications resulting in no usage of excess materials and dumping of wastage. Fewer foundations lead to fewer redevelopment costs ultimately providing an efficient modular house complete with all necessary amenities.  Moreover, single-storied prefabricated apartments require lower maintenance as they are made with highly precise machinery with strict quality inspection protocols. They are weather-resistant, do not corrode, are leakproof, and are not susceptible to pest attacks.  Such factors will boost the growth of the prefabricated housing market during the forecast period. 

Consumer demand

The covid-19 pandemic has accelerated the global housing shortage due to delays in construction for developers owing to subsequent lockdowns. The supply chain bottlenecks have exacerbated the problem leading to huge land prices. The lack of space and rush of consumers to find affordable housing has sent the entire industry into a spiral. This has created a huge supply-demand mismatch both in rental and sales markets. Banks and other financial institutions lending norms have become stricter affecting the income levels of millennials. Upfront costs and downpayment has risen significantly. Hence consumers are shifting toward cheaper prefabricated solutions. These homes are not built on final property sites as they come ready-made and assembled onsite once they reach the final destination. They do not take up much space and are comfortable enough to accommodate multiple families. As home ownership expense rises and individual debt levels move upwards buyers can work with prefabricated manufacturers to strike a better deal than traditional home loans. One just has to pay the base price and the additional shipping cost. The only time needed is to install and put it up on your lot. Hence these factors will augment the growth of the prefabricated housing market in the forthcoming years.

Eco-friendly and sustainable housing

Due to rising environmental concerns, the demand for sustainable housing solutions is on the rise. Building a new home or renovating an existing property can prove to be detrimental to the environment. Hence the growing eco-conscious population are demand energy-efficient residential spaces where dumping of wastage is minimal or does not exist. Moreover, the lot building and installation are much less complicated than constructing an entire house from scratch. The house can be modified multiple times as per the choices of the consumers. This in turn will surge the growth of the prefabricated housing market in the upcoming years.

Surging investments

Construction companies around the world are facing multiple issues related to stalled construction projects, a massive shortage of workforce, and uncertainties related to payments.  Hence these companies are shoring up their investments in the prefabricated market. The demand for cheap housing units is expected to boost immensely thereby fueling the growth of the prefabricated housing market during the forecast period.

Prefabricated Housing Market Share

Based on type, the segmentations include single-section homes and multi-section homes.

Based on application, the residential segment will grow the highest in the prefabricated housing market share due to the growing demand for prefabricated solutions by homeowners.

Based on region, North America is expected to dominate in the prefabricated housing market share due to increasing awareness and shortage of cheaper housing options. 

Prefabricated Housing market is segmented by company, region (country), by Type, and by Application. Players, stakeholders, and other participants in the global Prefabricated Housing market will be able to gain the upper hand as they use the report as a powerful resource. The segmental analysis focuses on revenue and forecast by Type and by Application in terms of revenue and forecast for the period 2016-2027. 

Prefabricated Housing Market by Type

• Single Section Homes
• Multi-Section Homes

Prefabricated Housing Market by Application

• Residential
• Commercial

Major Players in the Prefabricated Housing Market

• Lindal Cedar Homes
• Algeco
• Butler Manufacturing Company
• Astron Buildings
• Bouygues SA
• Ritz-Craft Corporation
• Cavco Industries
• Skyline Corporation