Print
Email
The prefabricated construction market is poised to record accelerated growth globally over the next few years. According to ConsTrack360 estimates, the prefabricated construction output is projected to reach US$171.26 billion by 2027. Factors such as rising conventional construction costs, global supply chain delays, and the affordable housing crisis are among the various factors that are expected to drive the growth of the prefabricated construction industry worldwide.
The market growth will be also driven by the growing government investment in the sector. Hong Kong government, for instance, announced a multi-billion-dollar investment for the development of prefabricated housing projects. In Canada and the United States, too, government investment in the segment has been growing over the last few years. Amid the high-growth potential in the sector, even private firms are increasing their investment to support the growing demand for prefabricated units.
In Latvia, Forta Pro already has two factories in the cities of Jelgava and Ventspils. Both factories make elements for the construction of high-rise buildings. Samsung's investment in the Latvian market is aimed at increasing the prefabricated modules' production capacity in collaboration with the local government.
In January 2023, Samsung C&T also entered into a strategic collaboration with the Saudi Public Investment Fund (PIF). The collaboration will see the development of new factories making modular building elements in the Kingdom. Both Samsung and PIF will jointly invest in the development of a new manufacturing facility, which will be primarily used for the construction of giga projects, including the Qiddiya resort in Riyadh and The Line which is part of the US$500 billion Neom project.
The collaboration will not only enable Samsung C&T to establish a foothold in the Kingdom mega project sector but will also enable the firm to grow its market share in the prefabricated construction market.
Over the last 12 months, many of the leading prefabricated construction firms have announced investment toward the expansion of manufacturing capacities worldwide. Modulex Modular Buildings Plc., for instance, announced that the firm plans to build 20 factories in 15 countries. The United Kingdom-based prefabricated construction firm plans to expand its geographical footprint, including in countries like India, Brazil, South Korea, and Saudi Arabia, from the short to medium-term perspective. The geographical expansion plan is part of the firm's strategy to tap into the potentially lucrative high-growth industry over the next five years.
Other United Kingdom-based prefabricated housing developers such as TopHat and ilke Homes have also announced significant investments in the development of new manufacturing facilities.
In the United States and India, as well, similar trends are emerging in the fast-growing prefabricated construction market. Startups in the sector have been seen raising venture capital and private equity funding to invest and develop new manufacturing facilities to scale their operations and accelerate business growth.
As the construction segment continues to record strong growth, ConsTrack360 expects more conventional construction developers like Samsung C&T to increase their investment in the market. From developing new production facilities to forging strategic alliances, more and more traditional construction firms are expected to enter the market over the next three to four years. This will not only drive the competitive landscape but will also lead to growing mergers and acquisition deals in the segment. Overall, the market is poised for accelerated growth from the medium to long-term perspective.
To know more and gain a deeper understanding of the global prefabricated construction market, click here.
