Industrialization of the Construction Industry Supported by Time, Cost & Carbon Reduction Goals Spurs Growth of Modular Offsite Construction Methods

Myriad benefits and superior attributes in terms of construction efficiency and productivity, and perennial demand for optimally designed metal framed buildings are poised to drive the global market for Nonresidential Prefabricated Building Systems to reach US$95 billion by 2024.

Capital-intensive non-residential projects across the world today are getting increasingly larger in scope and complex, with a number of these projects facing challenges in terms of schedule delays and chronic cost overruns. Engineering and construction (E&C), as an industry, is almost acceptable to the fact that nothing could ever be built on budget or time. This situation, combined with the ongoing mass retirement of baby boomers and the consequent lack of industry knowledge and experience, is driving global attention of builders, investors, and property developers in prefabricated buildings. Offsite construction including modularization, prefabrication, preassembly, and offsite multi-trade fabrication, a trend that is in existence for decades, is emerging now as an important method for delivering projects cheaper, faster, and safer in the labor-constrained E&C landscape of today. Also supporting growth in demand are the myriad benefits of nonresidential prefabricated buildings systems in terms of superior quality structures, conformance to stringent building codes and regulations, reduced on-site works, reduced wastage of materials, lower capital costs, quicker installation, erection, commissioning and on time completion. As focus increasingly shifts towards the establishment of buildings to the highest environmental standards, the prefab revolution is getting underway in the construction industry.

Future growth in the market will be driven by the emerging wave of ‘Green Constructions’ as prefabrication is recognized as a greener and a relatively resource efficient method of construction. The ability to relocate and reuse a prefabricated unit is another factor that is making it an attractive green construction solution, as it saves on the need to build multiple facilities in addition to offering several pro-environmental advantages such as reduction in the amount of waste generated, as well as lessening of air and water pollution, dust, noise, and overall energy costs. Growing popularity of Building Information Modeling (BIM) technologies represent another important growth driver for their ability to facilitate better integration of construction components. Other important growth drivers include robust demand for Cross Laminated Timber (CLT) products, and rising penetration of modular steel framed structures. Supported by benefits of being reused, re-melted and recycled, steel can be easily separated from waste streams enabling higher recovery rates, reduced pollution and landfills. While economy and speed are clear benefits, the structural qualities that put CLT products on par with traditional contenders such as steel or masonry are driving strong market gains.

As stated by the new market research report on Nonresidential Prefabricated Building Systems, Asia-Pacific represents the largest market worldwide. Trailing a CAGR of 8.3% over the analysis period, the region also ranks as the fastest growing market, led by rising public and private investments in industrial, commercial, and institutional construction projects, growing investments in green building techniques, and rising interest in new construction technologies that promise enhanced productivity and competitiveness of construction projects.

Major players in the market include Alan Pre-Fab Building Corp., Algeco Scotsman, ALHO Systembau GmbH, Allied Modular Building Systems Inc., American Buildings Company, Brytex Building Systems Inc., Butler Manufacturing™ Company, Inc., Cadolto Fertiggebaude GmbH & Co. KG, Consolis Service Co SA NV, Flexator AB, Lester Building Systems, LLC, Madison Industries Inc., NCI Building Systems, Inc., Normerica Building Systems, Inc., Nucor Building Systems, Rollalong Ltd., United Structures of America Inc., Varco Pruden Buildings, Inc., Whitley Manufacturing Company, Inc., and Yves Cougnaud S.A. among others.

The research report titled “Nonresidential Prefabricated Building Systems - Market Analysis, Trends, and Forecasts” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and strategic industry activities of major companies. The report provides market estimates and projections for Nonresidential Prefabricated Building Systems in US$ for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, and Rest of Asia-Pacific), Latin America and Rest of World. Product types analyzed in the report include Metal Building Systems, Modular Building Systems, Panelized Precast Concrete Systems, and Others.

  

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