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Prefabricated construction is steadily emerging as a dominant player in the construction market. and is expected to reach US$ 2.3 trillion by 2023, at a compound annual growth rate (CAGR) of 21.4% during the forecast period of 2019-2023.
The prefab or modular construction market aims to move from conventional construction that involves heavy materials, delays, and increasing costs to a modern approach that is cost effective, light weight, energy efficient and sustainable. Construction companies are realizing that the incorporation of prefab with technologies will offer customers easy customizations in homes, offices and other infrastructure thereby reducing time and labour.
The most significant drivers for prefabricated construction industry include the demand for new housing and office units that is accelerating increased investment in infrastructure. Increased spending on construction segment further drives global and regional economies thereby promoting modernization and commercialization.
Safety in work-zone to reduce fatality rate is also one of the key drivers in the industry. Modular construction reduces the challenges as it aims reduces risks related to accidents and liabilities related to workers.
The demand for upgrade in the construction industry has pushed prefab segment to integrate with technology to offer viable solutions to emerging markets. Technologies provided through drones, 3D printing and self driving vehicles amongst others is helping the industry become more in sync for better output. Increased focus on sustainability is gaining momentum in emerging markets as well, which is driving demand for prefabricated / precast construction. According to ConsTrack360’s Q4 2018 Global Prefabricated Survey, spend on Building Information Modelling (BIM) is expected to increase across key developed and high growth markets.
‘Smart Cities’ is also one of the growing trends that is popularizing prefab construction. With green construction and sustainability being key ingredients of smart city projects, it has led to increased demand for prefab construction. There are a number of smart city projects across markets, representing significant opportunity over the medium to long term.
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