North America Prefabricated Buildings Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 48.17 Billion |
| Market Size (2029) | USD 64.82 Billion |
| CAGR (2024 - 2029) | 6.12 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Prefabricated Buildings Market Analysis
The North America Prefabricated Buildings Market size is estimated at USD 48.17 billion in 2024, and is expected to reach USD 64.82 billion by 2029, growing at a CAGR of 6.12% during the forecast period (2024-2029).
- Prefabricated construction accounts for nearly 20% of the US overall construction projects. The rising awareness of construction wastage and its impact on the environment is encouraging the adoption of prefabricated buildings globally. This factor is anticipated to bolster the market, predominantly in developed regions like the US.
- The COVID-19 pandemic has caused immense disruptions in construction works across North America. Manufacturing companies have faced a range of challenges owing to the shortage of raw materials. This is owing to the imposition of lockdowns across North America that resulted in disruptions in the supply chain. Trade in prefabricated buildings are minimal due to costs associated with shipping huge portions of building units over long distances. Many small, prefabricated building producers operate only in a limited geographic range, while larger producers have many production facilities spread across the US.
- The introduction of numerous government initiatives for promoting the construction of green buildings across the United States is also catalyzing the market. Moreover, the high prevalence of extreme cold weather in the region, leading to shorter days and heavy snowfall that inhibit on-site construction methods, is also propelling the need for modular construction. Nonresidential prefabricated building system demand in the US is expected to increase during the forecast period. The recovery in office and commercial construction, coupled with continued gains in institutional, industrial, and agricultural construction, will provide opportunities
North America Prefabricated Buildings Market Trends
Population Growth and Rapid Urbanization to Drive Demand for Prefabricated/Modular Construction in the US
In 2022, the degree of urbanization worldwide was at 57%. North America was the region with the highest level of urbanization, with over four-fifths of the population residing in urban areas.
There is an increase in the urban population of the US. The estimated population of the US was approximately 339.96 Million in 2023. It continues to increase, and the country is the third most populous globally, behind China and India. California was the state with the highest population in 2023. Western parts of the US are the most urbanized, and the majority of cities and urban areas can be found here. The Northeast is also highly urbanized, with New York being the most populous city in the US.
In 2023, about 83.1% of the total US population live in cities and urban areas. As urbanization in the country is increasing, there is an increase in demand for buildings for residential and commercial purposes. This demand is giving a boost to prefabricated buildings. The rapid growth and development of urban housing require more precise planning timelines and reduced prices. Due to this, construction firms are adopting cost-effective, proven precast technologies to ensure the highest standards and uniform quality, which can be met by prefabricated technology, thus driving the prefabricated construction market.
Growth in Residential Construction Driving the Market
Limited mortgage rates, robust demand for larger living spaces, and a meager housing inventory in the market continue to boost the sector. Home renovation, in addition to home construction, is a significant aspect of residential construction.
By 2023, the yearly value of residential building upgrades in the United States is expected to exceed USD 205 billion. More than 330,000 new rental units are scheduled to be supplied nationwide, comparable to the previous four years of a construction boom. Eight metros are expected to set five-year highs in new apartment deliveries, despite the pandemic's hurdles.
The continued expansion of the new home market implies that new homes are still being built, but mostly in locations where the market moves quickly. New York, Pennsylvania, and New Orleans are examples of this.
In March 2021, Canada's average home selling price increased by 31.6% Y-o-Y, setting a new high as sales rose to an all-time high. During the pandemic, record-low loan rates and a desire for greater room fueled demand for detached homes in smaller communities.
According to the Conference Board of Canada, low mortgage rates and strong population growth drive high home construction demand. In March 2021, residential construction investment climbed for 11 months, rising 7.6% to CAD 14.0 billion (USD 10.99 billion).
In the first quarter of 2021, total building construction investment increased by 9.3% to CAD 53.1 billion (USD 41.67 billion), owing to ongoing strength in the residential sector (+12.4%). Increased spending on single units in Ontario (+21.8%) and Quebec (+24.9%) boosted residential building investment to CAD 39.5 billion (USD 30 billion).
Following a 6.0% drop in the previous quarter, non-residential investment increased by 1.1% to CAD 13.6 billion (USD 10.2 billion) in the first quarter of 2021.
North America Prefabricated Buildings Industry Overview
The North American prefabricated buildings market is highly competitive with no major players. The market is expected to grow during the forecast period due to increased prefab construction building investments and upcoming major projects in the region.
Major players operating in the market are implementing effective production technologies to minimize product costs and reduce related risks. High capital requirements and rapid technological advancements are important barriers to entry for new participants. However, the change in trends to support sustainability and ecological balance is giving rise to the rapid adoption of green modular building concepts, thus, providing opportunities to market players.
North America Prefabricated Buildings Market Leaders
-
Clayton Homes鈥�
-
Zekelman Industries鈥�
-
Skyline Champion Corporation鈥�
-
Cavco Industries鈥�
-
Wells Concrete Products Co.鈥�
*Disclaimer: Major Players sorted in no particular order
North America Prefabricated Buildings Market News
- February 2023: McGrath RentCorp, a leading business-to-business rental company in North America, announced that it has signed a definitive agreement under which it acquired Vesta Modular, a portfolio company of Kinderhook Industries, for USD 400 million, subject to certain adjustments, and sold Adler Tank Rentals to Ironclad Environmental Solutions, a Kinderhook portfolio company, for a cash sale price of USD 265 million, subject to certain adjustments. By this acquisition, the company will have access to a range of products and will be able to offer its services across various locations
- October 2022: Black Diamond Group Limited, a leading provider of space rental and workforce accommodation announced the acquisition within its Modular Space Solution segment. Target is a modular building rental company located in Ontario with 1,851 units primarily focused on the education and government sector. The purchase price for Target was USD 54.5 million, including the assumption of debt. This acquisition will help the company to further accelerate its growth and diversification within the MSS business by adding roughly 1,850 units primarily in the education sector, to the company's rental fleet in Central Canada.
North America Prefabricated Buildings Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Method
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS DYNAMICS
4.1 Current Market Scenario
4.2 Market Overview
4.3 Market Dynamics
4.3.1 Drivers
4.3.1.1 Demand for sustainable green buildings boosting the market
4.3.1.2 Increasing infrstructure projects in north america
4.3.2 Restraints
4.3.2.1 High investment costs are inhibiting the growth of the market
4.3.2.2 High dependency on substitute materials
4.3.3 Opportunities
4.3.3.1 Increasing green intiatives boosting the market
4.3.3.2 Demand for network infrastructure projects
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Application
5.1.1 Building Construction
5.1.2 Infrastructure
5.2 By Type
5.2.1 Green Materials
5.2.2 Technically Advanced
5.3 By Material
5.3.1 Advanced Cement and Concrete
5.3.2 Cross-laminated Timber
5.3.3 Structural Insulated Panel
5.3.4 Sealants
5.3.5 Other Materials
6. MARKET CONCENTRATION
6.1 USG Corporation
6.2 Vulcan Materials Company
6.3 CEMEX
6.4 Martin Marietta Materials
6.5 CRH plc
6.6 Summit Materials
6.7 HeidelbergCement Group锟�
6.8 Granite Construction
6.9 Oldcastle Materials
6.10 Eagle Materials Inc.
7. FUTURE OF THE MARKET
8. APPENDIX
North America Prefabricated Buildings Industry Segmentation
Prefabricated buildings (also known as prefabs) are building structures manufactured offsite and transported to the on-site assembly location. This report covers market insights, such as market dynamics, drivers, restraints, opportunities, technological innovations, their impact, Porter's five forces analysis, and the impact of the COVID-19 pandemic on the market. The report also provides company profiles to understand the competitive landscape in the market.
The North American prefabricated buildings market is segmented by application (residential, commercial, and industrial) and geography (United States, Canada, and Mexico). The report offers the North America Prefabricated Buildings Market sizes and forecasts in terms of revenue (USD) for all the above segments.
| By Application | |
| Building Construction | |
| Infrastructure |
| By Type | |
| Green Materials | |
| Technically Advanced |
| By Material | |
| Advanced Cement and Concrete | |
| Cross-laminated Timber | |
| Structural Insulated Panel | |
| Sealants | |
| Other Materials |
North America Prefabricated Buildings Market Research FAQs
How big is the North America Prefabricated Buildings Market?
The North America Prefabricated Buildings Market size is expected to reach USD 48.17 billion in 2024 and grow at a CAGR of 6.12% to reach USD 64.82 billion by 2029.
What is the current North America Prefabricated Buildings Market size?
In 2024, the North America Prefabricated Buildings Market size is expected to reach USD 48.17 billion.
Who are the key players in North America Prefabricated Buildings Market?
Clayton Homes鈥�, Zekelman Industries鈥�, Skyline Champion Corporation鈥�, Cavco Industries鈥� and Wells Concrete Products Co.鈥� are the major companies operating in the North America Prefabricated Buildings Market.
What years does this North America Prefabricated Buildings Market cover, and what was the market size in 2023?
In 2023, the North America Prefabricated Buildings Market size was estimated at USD 45.39 billion. The report covers the North America Prefabricated Buildings Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Prefabricated Buildings Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Prefabricated Buildings Industry Report
Statistics for the 2024 North America Prefabricated Buildings market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. North America Prefabricated Buildings analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
