Frost and Sullivan - Prefab Market

Global Modular and Prefabricated Buildings Market,
Forecast to 2025
Increasing Labor Costs and Construction Timelines are Boosting the Adoption
of Prefabricated and Modular Buildings Across the Globe
Global Visionary Science Research Team at Frost & Sullivan
MED2-39
October 2019
Contents
Section Slide Number

Executive Summary 11
 Key Findings 12
 Strategic Factsheet 13
 Market Engineering Measurements 14
 CEO’s Perspective 16
Market Overview 17
 Market Definitions 18
 Geographic Scope 19
 Key Questions this Study will Answer 20
 Market Segmentation 21
 Material Segmentation 22
 Market Segmentation 23
Drivers and Restraints—Total Modular and Prefabricated Building Market 25
 Market Drivers 26
 Drivers Explained 27
 Market Restraints 31
MED2-39 2
Contents (continued)

 Restraints Explained 32
Forecasts and Trends—Total Modular and Prefabricated Buildings Market 35
 Market Overview 36
 Market Engineering Measurements 37
 Forecast Assumptions 38
 Unit Shipment and Revenue Forecast 39
 Unit Shipment and Revenue Forecast Discussion 40
 Pricing Trends and Forecast 41
 Pricing Trends and Forecast Discussion 42
 Percent Unit Shipment Forecast by Region 43
 Unit Shipment Forecast by Region 44
 Percent Revenue Forecast by Region 45
 Revenue Forecast by Region 46
 Unit shipment and Revenue Forecast Discussion by Region 47
 Percent Unit Shipment Forecast by Construction Type 48
 Percent Unit Shipment Forecast Discussion by Construction Type 49
MED2-39 3

 Percent Unit Shipment Forecast by Frame Type 50
 Percent Unit Shipment Forecast Discussion by Frame Type 51
 Key Materials Comparison 52
 Percent Unit Shipment Forecast by Material Type 53
 Percent Unit Shipment Forecast Discussion by Material Type 54
 Percent Unit Shipment Forecast by Sub-type—Wood 55
 Wood Applications in Buildings by Sub-type 56
 Percent Unit Shipment Forecast by Sub-type—Steel 57
 Steel Applications in Buildings by Sub-type 58
 Percent Unit Shipment Forecast by Sub-type—Concrete 59
 Concrete Applications in Buildings by Sub-type 60
 Percent Unit Shipment Forecast by Sub-Type—Composites and Plastics 61
 Percent Unit Shipment Forecast Discussion by Sub-Type—Composites and Plastics 62
 Other Prefabrication materials 63
 Value Chain 64
 Value Chain Description 65
MED2-39 4

Trends & Regulations—Total Modular and Prefabricated Buildings Market 66
 Key Technology Trends 67
 Regulations 69
 Dynamic SWOT Analysis 70
Market Share and Competitive Analysis—Total Modular and Prefabricated Buildings
71
Market
 Market Share 72
 Competitive Environment 73
 Notable Mergers & Acquisitions 74
Growth Opportunities and Companies to Action 75
 Growth Opportunity 1—Robust Growth in Construction Activity in Asia-Pacific 76
 Growth Opportunity 2—Skilled Labor Migration in Australia Driving Growth in
77
Prefabrication Manufacturing
 Growth Opportunity 3—Better Construction Timelines Leading to Higher Adoption Of
78
Offsite Construction
 Strategic Imperatives for Success and Growth 79
North America—Regional Analysis 80
 North America—Key Findings 81
MED2-39 5

 North America—Market Engineering Measurements 82
 North America—Unit Shipment and Revenue Forecast 83
 North America—Unit Shipment and Revenue Forecast Discussion 84
 North America—Percent Revenue Forecast by Country 85
 North America—Percent Revenue Forecast Discussion by Country 86
 North America—Percent Unit shipment Forecast by Frame Type 88
 North America—Percent Unit shipment Forecast Discussion by Frame Type 89
 North America—Percent Unit shipment Forecast by Material Type 90
 North America—Percent Unit shipment Forecast Discussion by Material Type 91
 North America—Percent Unit shipment Forecast by End Use Application 92
 North America—Percent Unit shipment Forecast Discussion by End-use Application 93
 North America—Competitive Environment 94
Europe—Regional Analysis 95
 Europe—Key Findings 96
 Europe—Market Engineering Measurements 97
 Europe—Unit Shipment and Revenue Forecast 98
MED2-39 6

 Europe—Unit Shipment and Revenue Forecast Discussion 99
 Europe—Percent Revenue Forecast by Sub-region 100
 Europe—Percent Revenue Forecast Discussion by Sub-region 101
 Europe—Percent Unit Shipment Forecast by Frame Type 103
 Europe—Percent Unit Shipment Forecast Discussion by Frame Type 104
 Europe—Percent Unit Shipment Forecast by Material Type 105
 Europe—Percent Unit Shipment Forecast Discussion by Material Type 106
 Europe—Percent Unit Shipment Forecast by End Use Application 107
 Europe—Percent Unit Shipment Forecast Discussion by End Use Application 108
 Europe—Competitive Environment 109
Asia-Pacific—Regional Analysis 110
 Asia-Pacific—Key Findings 111
 Asia-Pacific—Market Engineering Measurements 112
 Asia-Pacific—Unit Shipment and Revenue Forecast 113
 Asia-Pacific—Unit Shipment and Revenue Forecast Discussion 114
 Asia-Pacific—Percent Revenue Forecast by Country 115
MED2-39 7

 Asia-Pacific—Percent Revenue Forecast Discussion by Country 116
 Asia-Pacific—Percent Unit shipment Forecast by Frame Type 121
 Asia-Pacific—Percent Unit Shipment Forecast Discussion by Frame Type 122
 Asia-Pacific—Percent Unit Shipment Forecast by Material Type 123
 Asia-Pacific—Percent Unit Shipment Forecast Discussion by Material Type 124
 Asia-Pacific—Percent Unit Shipment Forecast by End Use Application 125
 Asia-Pacific—Percent Unit Shipment Forecast Discussion by End Use Application 126
 Asia-Pacific—Competitive Environment 127
Rest of the World—Regional Analysis 128
 Rest of the World—Key Findings 129
 Rest of the World—Market Engineering Measurements 130
 Rest of the World—Unit Shipment and Revenue Forecast 131
 Rest of the World—Unit Shipment and Revenue Forecast Discussion 132
 Rest of the World—Percent Revenue Forecast by Sub-region 133
 Rest of the World—Percent Revenue Forecast Discussion by Sub-region 134
 Rest of the World—Percent Unit Shipment Forecast by Frame Type 138
MED2-39 8

 Rest of the World—Percent Unit Shipment Forecast Discussion by Frame Type 139
 Rest of the World—Percent Unit Shipment Forecast by Material Type 140
 Rest of the World—Percent Unit Shipment Forecast Discussion by Material Type 141
 Rest of the World—Percent Unit Shipment Forecast by End Use Application 142
 Rest of the World—Percent Unit Shipment Forecast Discussion by End Use Application 143
 Rest of the World—Competitive Environment 144
The Last Word 145
 The Last Word—3 Big Predictions 146
 Legal Disclaimer 147
Impact of COVID-19 on the Global Modular and Prefabricated Building Market 148
• Impact of COVID-19 on the Modular and Prefabricated Building Market 149
• Key Forecast Criteria 150
• Global GDP from Construction Forecast 151
• Global Construction Industry Trends 152
• Forecast Scenarios 153
• Post-COVID-19 Forecast Scenario Discussion 154
MED2-39 9

• Prefab Case Studies 155
Companies to Action and Growth Opportunities 157
• Growth Opportunity 1: Labor Shortage Because of the Pandemic 158
• Growth Opportunity 2: Demand from the Healthcare Industry 160
Appendix 162
 Market Engineering Methodology 163
 Abbreviations and Acronyms Used 164
 List of Exhibits 166
MED2-39 10
Executive Summary
Return to contents
MED2-39 11
Key Findings
The global prefabricated and modular building market is expected to grow robustly during the
forecast period because of the increasing requirement for the industry to meet construction
deadlines.
Regulations by entities, such as the Uniform Building Code for building construction and the CE
label for prefabricated materials, have a strong influence on the market. These specifications aim to
restrict the use of environmentally harmful chemicals to ensure product lifecycle sustainability.
Moderate capital investment is required for product development and commercialization, leading
to low-entry barriers for new/emerging companies, while incumbents are continuously engaged in
development and commercialization of products on the basis of changing customer needs.
High growth in volume consumption is expected from the developing countries of Asia-Pacific and
Latin America due to increased construction activities due to increasing urbanization and
industrialization.
The construction additives market is expected to witness the future consolidation with increasing
merger and acquisition (M&A) activities happening in the modular building space.
Source: Frost & Sullivan
MED2-39 12
Strategic Factsheet
• The global modular and • The global modular and prefabricated building
prefabricated building market was market is expected to reach $215.01 billion by
valued at $140.44 billion in 2018. 2025.
• Market demand is driven by • This revenue increase will be mainly
increased construction activities in attributed to the high-volume growth in
many regions around the world. Asia-Pacific, Latin America, and in the
Middle East.
• Prices would increase gradually
although competitive pricing for • Furthermore, increasing labor
Market Market costs in the construction
prefabricated construction is
expected in the medium term.
Size Potential industry is expected to drive
demand in this market.
• The market is fragmented with • The recovering economies of

both regional and local Market Latin America (such as Brazil,
Market Mexico, and Argentina) along with
participants. Regional and local Opportunities
suppliers gain market share
Competition high-growth markets of Eastern
through their wider local reach to Europe, India, and Southeast Asia
end-customers. are expected to provide lucrative
market opportunities.
• Market leader, Skanska, has a
• With a constantly evolving regulatory
major focus in the developed landscape, adopting more environmentally
regions of North America and
sustainable and regulatory-compliant
Europe, which are mature market
construction practices are expected to drive
regions.
revenue for the more mature markets of
Western Europe and North America.
MED2-39 13
Market Engineering Measurements
Total Modular and Prefabricated Buildings Market: Market Engineering Measurements, Global, 2018
Market Overview
Market Size for
Market Average Price
Market Stage Market Revenue Last Year of
Units/Volume Per Unit
Study Period
Growth $140.44 B 3.70 B Sq.ft $38.0/Sq.ft $215.01 B
(2018) (2018) (2018) (2025)
Base Year Compound Degree of

Customer Price Market
Market Growth Annual Growth Technical
Sensitivity Concentration
Rate Rate Change
6.0% 6.3% 5.5 7 ~26–33%

(% of market share held by top
(CAGR, 2018–2025) (scale:1 [low ] to 10 [high]) (scale:1 [low ] to 10 [high]) 3 companies )
Decreasing Stable Increasing For a tabular version, click here

Note: All figures are rounded. The base year is 2018. Source: Frost & Sullivan
MED2-39 14
Market Engineering Measurements (continued)
Competitor Overview Industry Advancement

Average
Number of Product
Competitors Development
Time
>50 <1Year
(active market competitors in
base year)
Decreasing Stable Increasing

MED2-39 15
CEO’s Perspective
High economic growth in Asia-Pacific and the Middle East

1 drives demand in the prefabricated buildings market, especially
in large economies such as China, India, and Saudi Arabia.
The industry is expected to experience consolidation with

multiple merger and acquisition activities happening in the
2 future. Design software company, Autodesk, has also invested
in the field by acquiring a US prefabrication manufacturer.
Increased delay in construction timelines and demand for

3 houses due to growing population, is leading to higher adoption
of prefabricated and modular buildings across the globe.
Establishing a sustainable construction practice is a key

4 attribute for end-customers, as they focus on green and
durable solutions.
The market is fragmented with several regional and smaller

5 participants due to the relative ease of setting up a business in
this space at low capital expenditure.
MED2-39 16
Market Overview
Return to contents
MED2-39 17
Market Definitions
• Prefabricated building systems are structures and

Scope
components of a building structure that are fabricated
Geographic Coverage Global in a factory and then transported and assembled at
Study Period 2015–2025 the required site.
Base Year 2018 • Prefabricated systems offer shorter construction
Forecast Period 2019–2025 times compared to on-site construction, as the
modules have been constructed offsite and only need
Monetary Unit US Dollars
to be assembled on-site.
• Prefabricated systems produce less waste material during construction compared to an on-site
construction system. These factory-built systems also offer better precision and insulation compared to
on-site construction systems.
• Additionally, factory-built systems offer financial savings, as manufacturers often tend to buy raw
materials from suppliers at a bulk discount rate, thus reducing the overall cost of production as well.
Additionally, reduced construction times compared to on-site construction, offers significant savings on
the project.
• Prefabricated systems offer flexibility, as they can be easily disassembled from a site and then
re-assembled at another site.
• The scope of this study is confined to the analysis and study of modular and prefabricated buildings
only. Source: Frost & Sullivan
MED2-39 18
Geographic Scope
The following regions are covered in this study:
North America: The United States

and Canada
Europe: Eastern Europe and
Western Europe ROW: Middle East, Latin America (including Mexico),
Russia, and Turkey
Asia-Pacific: China, Japan, India,
Australia and Rest of Asia which includes Northeast Asia, Southeast Asia and Indian
Sub-continent barring India Source: Frost & Sullivan
MED2-39 19
Key Questions this Study will Answer
What is the status of the modular and prefabricated buildings market lifecycle? How is it expected to
grow through the forecast period?
What are the growth opportunities for the different market segments?
What are the key factors driving and restraining growth in this market?
What are the key technological developments observed across major segments?
What are the competitive factors affecting the market and how will the structure of the market
change with time?
MED2-39 20
Market Segmentation
• This research service examines the materials and products used by modular and prefabricated
construction industry, across the globe.
• The various segments considered in the study are as follows:
Modular and Prefabricated Buildings

Segmentation
Construction Type Material Type Frame Type End-Use Applications

• Permanent • Wood • Skeletal Systems • Residential
Construction
• Relocatable • Steel • Panel Systems
• Non-residential
• Concrete • Cellular Systems
Construction
• Plastics and Composites • Combined Systems*
• Others (Mineral Wool, Fiberglass, and
Drywalls)
*Systems that combined either of the skeleton, panel or cellular systems together Source: Frost & Sullivan
MED2-39 21
Material Segmentation
• The various segments for materials considered in the study are as follows:
Material Segmentation
Wood Steel Concrete Plastics & Composites

• Engineered Wood • Structural Steel • Normal Strength • Structural
Concrete Insulated Panels
• Lumber • Rebar Steel
• Precast Concrete • Aluminum
• Mild Steel
Composites
• Reinforced
Concrete • Wood Plastic
Composites
• Other Plastics*
*Other plastics include polystyrene, polyurethane, and phenolic foams.

MED2-39 22
Market Segmentation
Key Takeaway: The growing population in the developing regions of Asia-Pacific and the Rest of the
World is expected to drive the share for both the regions for modular and prefabricated buildings.
Total Modular and Prefabricated Buildings Total Modular and Prefabricated Buildings Market:
Market: Percent Unit Shipment by Region, Percent Unit Shipment Forecast by Region,
Global, 2018 Global, 2025
Rest of the
Rest of the North America North America
World
World 16.2% 15.1%
26.3%
25.8%
Europe
Europe 25.4% 25.3%
Asia-Pacific Asia Pacific

32.6% 33.3%
ROW include the Middle East, Latin America (including Mexico), Russia, and Turkey
MED2-39 23
Market Segmentation (continued)
Key Takeaway: The markets in North America and Europe are expected to witness slower growth
than the markets in Asia-Pacific and ROW due to higher construction activities in developing
regions.
Total Modular and Prefabricated Buildings Total Modular and Prefabricated Buildings
Market: Percent Revenue by Region, Market: Percent Revenue Forecast by Region,
North America
Rest of the Rest of the 15.3%
North America world
World
16.4% 25.7%
25.3%
Europe Europe
28.1% 28.0%
Asia-Pacific
Asia-Pacific
30.2%
31.0%
MED2-39 24
Drivers and Restraints—Total Modular and
Prefabricated Building Market
Return to contents
MED2-39 25
Market Drivers
Total Modular and Prefabricated Buildings Market: Key Market Drivers, Global, 2019–2025
Drivers 1–2 Years 3–4 Years 5–7 Years

Significant cost and time savings in offsite
construction compared to on-site construction drives H H H
demand for offsite construction.
Movement of the healthcare industry towards
community-friendly services drives adoption of H H H
prefabricated buildings in the industry.
Shortage of skilled laborers in the construction
H H H/M
industry drives growth in the prefabricated market.
The use of timber as a building material drives growth in
H H M
the prefabricated building market.
Impact Ratings: H = High, M/H = Medium/High, M = Medium, L/M = Low/Medium, L = Low
MED2-39 26
Drivers Explained
Significant Cost and Time Savings in Offsite Construction Compared to On-site Construction
Drives Demand for Offsite Construction
• Despite increased construction costs for an off-site construction, a net saving of up to 7% is possible
because of the shortened construction period, which results in savings from inflation costs in
construction.
• Pure modular projects can be completed in half the time of traditional schemes once on-site, as the
finishing work is already carried out in the factory.
• This driver is expected to have a high impact on the market over the short, medium, and long terms of
the forecast period.
Typical Traditional Project Schedule
Site
Design Permits & Building Site
Start Development & End
Engineering Approvals Construction Restoration
Foundations
Prefabricated Building Project Schedule

Site
Design Permits & Development Install Site & Savings
Start End
Engineering Approvals & Restoration
Foundations
Building Construction
at Plant
MED2-39 27
Drivers Explained (continued)
Movement of the Healthcare Industry Towards Community-friendly Services Drives Adoption of

Prefabricated Buildings in the Industry
• The healthcare industry in North America and Europe is adopting community-based services, such as
outpatient clinics, micro-clinics, and wellness centers. The healthcare industry is decentralizing from a
single-point medical center and adopting prefabricated building modules at a rapid pace to implement
faster and cost-effective construction practices.
• The share of modular construction in North America grew from 0.9% in 2014 to 1.3% in 2016.
• One of the primary reasons for the healthcare industry to adopt modular construction is the growing
needs of the increasing population owing to which health facilities are always expanding, renovating, or
initiating new construction. Thus, modular construction offers flexibility in terms of relocation and
expansion of medical facilities.
• This driver is expected to have a high impact on the market over the short, medium, and long terms of
the forecast period, as the healthcare industry continues to grow to cater to the growing global
population.
MED2-39 28
Shortage of Skilled Laborers in the Construction Industry Drives Growth in the Prefabricated
Market
• The construction industry has been experiencing a significant labor shortage since 2008; this is proving
to be a major roadblock to the booming construction sector.
• Approximately 2 million construction workers were let go in the United States between 2007 and 2011
and the industry has not been able to yet fill this shortage.
• The Federation of Master Builders of the United Kingdom has revealed, through a report, an acute
shortage of skilled construction workers such as bricklayers, carpenters, plumbers, and electricians owing
to rising out-flux of EU workers from the country as a result of Brexit. The United Kingdom accounts for
approximately 20-25% of the prefabricated building market by volume and Brexit is expected to adversely
impact the share for the same.
• The labor shortage has led to high adoption of prefabricated buildings, as automated processes in the
manufacturing of buildings utilizes less labor compared to on-site construction.
• This driver is expected to have a high impact on the market over the short and medium terms and a
high/medium impact during the long term of the forecast period, as the construction industry looks to
develop the skillsets to meet the challenges of labor shortages.
Source: Federation of Master Builders (UK); Frost & Sullivan
MED2-39 29
Modular and Prefabricated

The Use of Timber as a Building Material Drives 14.0 Buildings Market: Average
Average CO2 emissions

Growth in the Prefabricated Building Market 12.0 Carbon-dioxide Emissions For
• Governments across the globe are increasingly 10.0
Building Materials In Tonnes,
Global, 2018
focusing on sustainability in building materials and
(Tonnes)
8.0
hence, give special emphasis on adopting renewable
6.0
and energy efficient. Thus, an increasing demand for
green building materials from construction project 4.0
owners can be observed, which the suppliers are 2.0
seeking to meet through innovative product 0.0
development, such as the use of timber as a building Concrete Steel Aluminum Timber
Material
material.
• Wood has one of the lowest carbon-dioxide emissions amongst building materials. Wood is also
considered a renewable source, owing to the protected and well-managed forestation activities in the
region of Western Europe, hence wood is a preferred prefabricated material in the region.
• The European construction industry thus, is gradually moving towards the use of engineered wood
products, primarily Cross Laminated Timber (CLT), owing to their exceptionally high strength-to-weight
ratio compared to concrete or Reinforced Cement Concrete (RCC) elements.
• This driver is expected to have a high impact on market volumes in the near and medium terms and a
medium impact in the long term of the forecast period, as composites increasingly find preference in
prefabricated buildings as well.
Source: Stora Enso, Frost & Sullivan
MED2-39 30
Market Restraints
Total Modular and Prefabricated Buildings Market: Key Market Restraints, Global, 2019–2025
Restraints 1–2 Years 3–4 Years 5–7 Years

Perceptions surrounding the high initial cost of
construction and transportation deters the growth of the H M M
prefabricated construction market.
Design rigidity leads to lower adoption of prefabricated

H M M
buildings.
There is a lack of skilled labor to manufacture

H M M
prefabricated materials in developing regions.
Impact Ratings: H = High, M/H = Medium/High, M = Medium, L/M = Low/Medium, L = Low
MED2-39 31
Restraints Explained
Perceptions Surrounding the High Initial Cost of Construction and Transportation Deters the Growth
of the Prefabricated Construction Market
• Negative perceptions about prefabricated construction with regards to initial costs of construction and
transportation has led to slow adoption of prefabricated construction methods by construction developers
and project owners.
• An increased need for co-ordination of build sequences to ensure timely delivery and installation is
anticipated to lead to an increase in construction costs.
• Additionally, factories manufacturing these homes are typically located far away from the actual site of
construction. Companies, such as Estonia-based Welement, that manufacture wooden prefabricated
homes export these products to other countries—primarily in Western Europe. The enhanced cost of
transportation adds to the overall cost of prefabricated buildings.
• Therefore, manufacturers are required to create awareness about other cost benefits, such as time and
labour cost savings, amongst construction industry stakeholders such as architects, project owners, and
construction developers.
• This restraint is expected to have a high impact in short term and medium impact in medium and long
terms, as the initial cost of construction will reduce due to the use of energy and cost-efficient building
materials. Source: Frost & Sullivan
MED2-39 32
Restraints Explained (continued)
Design Rigidity Leads to Lower Adoption of Prefabricated Buildings
• Prefabricated buildings offer lower flexibility to design changes once the construction phase for
prefabricated buildings begins at the factory.
• The buildings are typically manufactured in a factory in a controlled environment and hence, design
changes might lead to changes in the manufacturing processes, thereby leading to escalation in costs
and delays in the delivery of the project.
• Additionally, the prefabrication construction industry has multiple stakeholders including designers,
specifiers, project owners, building contractors, and manufacturers and it is difficult to co-ordinate with all
the stakeholders pertaining the last-minute design changes further leading to project delays.
• Thus, there is an increasing need for the use of tools that aid in change management during a
construction project, as customers increasingly demand customization to suit their requirements.
• This restraint is expected to have a high impact in the short term and a medium impact in the medium
and long terms, as industry stakeholders increasingly adopt digital tools to streamline the construction
project management process.
MED2-39 33
Restraints Explained (continued)
There is a Lack of Skilled Labor to Manufacture Prefabricated Materials in Developing Regions
• Prefabricated buildings are typically manufactured in a factory-automated environment. Operating the

machines requires a specific skillset, which is currently in shortage in the industry.
• The current need for additional training for technicians is expected to add to the overall time taken for the
completion of a project.
• For instance, in countries such as Australia, the skilled workforce that was once involved in the car
manufacturing industry is now switching to the prefabricated manufacturing industry, as the skillsets of
manufacturing are easily being adopted by the prefabrication industry. Such personnel are required to be
adequately trained before manufacturing operations begin.
• This restraint is expected to have a high impact in the short term and a medium impact in the medium
and long terms, as the prefabrication industry looks to develop the skillsets over a period of time.
MED2-39 34
Forecasts and Trends—Total Modular and
Prefabricated Buildings Market
Return to contents
MED2-39 35
Market Overview
Key Takeaway: The prefabricated buildings market comprises approximately 2% of the total
construction market excluding infrastructure in the construction market.
• Increasing global environmental awareness related Important Market Characteristics

to the control of climate change and persistent Factors Assessment Trend
carbon-dioxide emissions from buildings have led to
Opportunity size
the innovation of green building materials in the 5.56 ▲
(Billion Sqft)*
prefabricated construction industry. Durability, aesthetics,
–
Primary needs efficiency, and ease
• One of the major requirements for end-users is to be of transportation
able to meet the deadline requirements of a
Price and ●
construction project. Purchase Influencers
performance
• The use of digital tools such as building information Price sensitivity Medium ▲
management (BIM) systems and design for Direct selling and
Distribution structure –
manufacturing practices (DfMA) are making the distribution
prefabricated buildings market attractive compared Demand for

Medium to high ▲
innovation
to the traditional buildings market.
▼ ● ▲
*Opportunity size refers to the unit shipment for 2025. Source: Frost & Sullivan
MED2-39 36
Market Engineering Measurements
Total Modular and Prefabricated Buildings Market: Market Engineering Measurements, Global, 2018
Market Overview
Measurement Name Measurement Trend
Market stage Growth –
Market revenue (2018) $140.44 B ▲
Market units/volume (2018) 3.70 B sq.ft ▲
Average price per unit (2018) $38.0/sq.ft ▲
Market size for last year of study period (2025) $215.01 B ▲
Base year market growth rate (Revenue) 6.0% ▲
Compound annual growth rate (CAGR, 2018–2025) (Revenue) 6.3% –
Customer price sensitivity (scale of 1 to 10, low to high) 5.5 ▲
Degree of technical change (scale of 1 to 10, low to high) 7 ▲
Market concentration (base year market share controlled by top 3 competitors) ~26-33% ●
Total number of competitors 50+ ▲
Average product development time <1 year ●

▼ ● ▲ Note: All figures are rounded. The base year is 2018. Source: Frost & Sullivan
MED2-39 37
Forecast Assumptions
• Historical additives consumption trend

• Emergence of products
Forecast • Trend in construction industry spends

Assumptions for
Unit Shipment • Regional GDP growth expectations
• Growth trends in end-use sectors

• Growth trends in regional markets
• Historical price trends

• Regulatory environment
Forecast
Assumptions for • Inflation rates and increasing raw material prices
Price and Revenue
• Volatility in oil prices
• Dynamics in product mix
MED2-39 38
Unit Shipment and Revenue Forecast
Key Takeaway: Stakeholders in the value chain of prefabricated buildings are increasingly driving
the penetration of modularization in the construction industry by creating awareness about the
benefits of modularization.
Total Modular and Prefabricated Buildings Market: Unit Shipment and Revenue Forecast,
Global, 2015–2025
250.0 Unit Shipment CAGR, 2018–2025 = 6.0% 6.0
Revenue CAGR, 2018–2025 = 6.3%
5.0
200.0
Units (Billion Sqft)

Revenue ($ Billion)
4.0
150.0
3.0
100.0
2.0
50.0
1.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenue 118.22 125.14 132.52 140.44 148.96 158.22 168.31 179.35 190.73 202.57 215.01
Units 3.13 3.31 3.50 3.70 3.91 4.15 4.40 4.67 4.96 5.25 5.56
Year
MED2-39 39
Unit Shipment and Revenue Forecast Discussion
• The comparative share of modular and prefabricated construction to total construction has been on the
rise over the last 5 years.
• There is advancing demand for sustainable practices in the construction industry. Prefabricated buildings
are increasingly being perceived as sustainable solutions for construction projects due to growing usage
of materials, such as timber and aluminum composites, that are more energy efficient than concrete.
• Additionally, manufacturing prefabricated buildings in controlled factory environments lead to better

construction quality in prefabricated buildings compared to on-site construction.
• Manufacturers, such as Katerra and Welement, are increasingly adopting automation and design tools to
increase the quality and precision in their construction and also to deliver the product to end-customers
faster than through on-site construction.
MED2-39 40
Pricing Trends and Forecast
Key Takeaway: The prices of prefabricated buildings is expected to stay competitive to grow as an
alternative to on-site construction.
Total Modular and Prefabricated Buildings Market: Average Price, Global, 2015–2025
CAGR, 2018–2025 = 0.3%
45.0 0.4
40.0
35.0
Average Price ($/Sqft)
0.3
Growth Rate (%)

30.0
25.0
0.2
20.0
15.0
0.1
10.0
5.0
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Average Price 37.8 37.8 37.9 38.0 38.1 38.2 38.3 38.4 38.5 38.6 38.7
Growth Rate - 0.18 0.18 0.20 0.23 0.25 0.28 0.31 0.30 0.27 0.22
Year
MED2-39 41
Pricing Trends and Forecast Discussion
• The average pricing of modular homes is dependent on various factors such as the type of home being
built, materials being incorporated, and the cost of transportation of the prefabricated home from the
factory to the installation site.
• Prefabricated homes typically tend to cost more than traditional homes because of the additional costs of
transportation. However, savings can be achieved through the reduced time of the overall construction
phase and reduced labor costs.
• Future prices of prefabricated homes are expected to remain competitive as the prices of materials
involved, such as wood, steel, plastics, and composites are expected to stay stable in the near to medium
term.
• Countries such as Germany, the Netherlands, and countries of the Scandinavian region are importing
prefabricated wooden houses from Estonia, which offers competitive prices due to the abundance of
timber in the region, despite the added import costs.
• Affordable housing is being adopted in various countries across the globe—most notably in India, China,
and Australia. Schemes for affordable housing have been in practice in the United States since World War
II. Affordable housing incorporates parts of or entire modular construction elements to reduce construction
costs and thereby make houses affordable.
MED2-39 42
Percent Unit Shipment Forecast by Region
Key Takeaway: The growing population in the developing regions of Asia-Pacific and the Rest of the
World is expected to drive the share for both the regions for modular and prefabricated buildings.
Total Modular and Prefabricated Buildings Total Modular and Prefabricated Buildings Market:
Market: Percent Unit Shipment by Region, Percent Unit Shipment Forecast by Region,
Rest of the
Rest of the North America World North America
World 16.2% 26.3% 15.1%
25.8%
Europe
Europe 25.4% 25.3%
Asia Pacific
Asia-Pacific
33.3%
32.6%
MED2-39 43
Unit Shipment Forecast by Region
Total Modular and Prefabricated Buildings Market: Unit Shipment Forecast by Region,
Global, 2015–2025
North America Europe Asia-Pacific ROW Total
Year (Billion Sq.ft) (Billion Sq.ft) (Billion Sq.ft) (Billion Sq.ft) (Billion Sq.ft)
2015 0.52 0.79 1.01 0.80 3.13
2016 0.55 0.84 1.07 0.85 3.31
2017 0.57 0.89 1.14 0.90 3.50
2018 0.60 0.94 1.21 0.95 3.70
2019 0.63 0.99 1.28 1.01 3.91
2020 0.66 1.05 1.36 1.08 4.15
2021 0.69 1.12 1.45 1.14 4.40
2022 0.73 1.19 1.54 1.22 4.67
2023 0.77 1.26 1.64 1.30 4.96
2024 0.80 1.33 1.74 1.38 5.25
2025 0.84 1.41 1.85 1.46 5.56
CAGR 5.0% 6.0% 6.3% 6.3% 6.0%
MED2-39 44
Percent Revenue Forecast by Region
Key Takeaway: The markets in North America and Europe are expected to witness slower growth
than the markets in Asia-Pacific and ROW due to higher construction activities in developing
regions.
Market: Percent Revenue by Region, Market: Percent Revenue Forecast by
Global, 2018 Region, Global, 2025
North America
Rest of the Rest of the
North America 15.3%
World world
16.4% 25.7%
25.3%
Europe Europe
28.1% 28.0%
Asia-Pacific
Asia-Pacific
30.2%
31.0%
MED2-39 45
Revenue Forecast by Region
Total Modular and Prefabricated Buildings Market: Revenue Forecast by Region, Global, 2015–2025
North America Europe Asia-Pacific ROW Total

Year ($ Billion) ($ Billion) ($ Billion) ($ Billion) ($ Billion)
2015 19.91 33.20 35.50 29.62 118.22
2016 20.90 35.15 37.66 31.44 125.14
2017 21.92 37.24 39.96 33.39 132.52
2018 22.99 39.49 42.45 35.50 140.44
2019 24.13 41.88 45.19 37.77 148.96
2020 25.38 44.46 48.16 40.23 158.22
2021 26.75 47.30 51.36 42.91 168.31
2022 28.25 50.38 54.89 45.83 179.35
2023 29.71 53.51 58.58 48.92 190.73
2024 31.20 56.80 62.46 52.11 202.57
2025 32.83 60.25 66.58 55.35 215.01
CAGR 5.2% 6.2% 6.6% 6.6% 6.3%
MED2-39 46
Unit shipment and Revenue Forecast Discussion by
Region
• Asia-Pacific is expected to be the biggest market for modular and prefabricated buildings, and also one
of the fastest growing over the forecast period.
• Factors such as industrialization and urbanization are expected to drive the markets of Asia-Pacific and
Latin America.
• Europe is expected to witness robust demand for prefabricated buildings due to new construction
activities in Eastern Europe and remodeled construction in Western Europe, as the region is witnessing
economic upheaval. Events such as the Euro2020 and the Summer Olympics 2024 in Paris are
expected to drive the growth of infrastructure activities in France.
• North America is expected to witness the slowest growth amongst the regions, as construction activity
is still affected by the recession of 2008, but is slowly picking up.
• The Middle East is anticipated to witness strong growth with Mega Trends, such as the FIFA World Cup
2022 in Qatar and World Expo Dubai 2020, and the development of holy cities and economic cities in
Saudi Arabia acting as key growth drivers.
MED2-39 47
Percent Unit Shipment Forecast by Construction Type
Key Takeaway: Permanent construction is predominant in the United States and Western Europe,
while relocatable construction is predominant in the emerging countries of Asia-Pacific and the
Middle-East.
Total Modular and Prefabricated Buildings Market: Total Modular and Prefabricated Buildings Market:
Percent Unit Shipment by Construction Percent Unit Shipment Forecast by Construction
Type, Global, 2018 Type, Global, 2025
Permanent Permanent
41.0% 41.7%
Relocatable Relocatable
59.0% 58.3%
MED2-39 48
Percent Unit Shipment Forecast Discussion by
Construction Type
• In the past, prefabricated construction was typically used to make relocatable construction, such as
construction site offices and camps. It serves primary markets such as healthcare, education, retail, and
telecommunication.
• The use of prefabrication construction practices in developing relocatable buildings has led to the
perception of prefabrication construction as less permanent in nature and thus, acts as a growth
constraint in the market.
• However, modular and prefabricated construction is also presently being used for building permanent
buildings. Houses in the United States and a significant share of residential buildings in Scandinavia
involve the use of modular construction and the use of prefabricated materials.
• The decreased time of construction compared to on-site construction has led to the adoption of modular
construction techniques across permanent construction and commercial construction. For instance,
Marriott International announced plans to construct 13% of its North American developments in a
modular or prefabricated fashion.
MED2-39 49
Percent Unit Shipment Forecast by Frame Type
Key Takeaway: Cellular systems are typically utilized in residential construction applications while
panel and skeletal systems are utilized in non-residential construction applications.
Percent Unit Shipment by Frame Type, Percent Unit Shipment Forecast by Frame Type,
Combined
Skeletal Skeletal
Combined Systems
Systems Systems
Systems 6.2%
13.6% 13.2%
6.6%
Cellular
Systems
Cellular
40.7%
Systems
40.4%
Panel Panel
Systems Systems
39.5% 39.9%
MED2-39 50
Percent Unit Shipment Forecast Discussion by Frame
Type
• Cellular modular homes involve the development of 3D cellular units containing a roof, floor, and walls
in a single module. These are typically applied in multi-residential applications. New construction in
residential spaces is boosted by growth in multi-family homes, which typically comprise multi-story
buildings. This is expected to advance growth for types of cellular frames for prefabricated buildings.
• Panel systems comprise 2D elements such as walls and slabs. These systems are used for commercial
applications, such as healthcare, education, and in office buildings. The impetus on growth for modular
construction for healthcare application is expected to drive the growth of panel systems.
• Skeletal systems comprise elements such as columns, beams, and slabs and are used for industrial
applications such as warehouse and showrooms.
• Combined systems comprise two or more frame types. However, their application is limited as cellular
and panel frame types dominate the market.
MED2-39 51
Key Materials Comparison
Key Takeaway: Wood is an energy efficient material and is also easy to install compared with other
materials, such as concrete, steel, composites, and plastics.
Total Modular and Prefabricated Buildings Market: Key Materials Comparison, Global, 2018
1 2 3
Ease of Average Carbon-
Material Recyclability
Installation dioxide Emission
(5–6
Steel
Tonnes)
Concrete (10–12
Tonnes)
Wood (1–2
Tonnes)
Composites &
(2–6
Plastics
Tonnes)
Impact: High Medium High Medium Low

MED2-39 52
Percent Unit Shipment Forecast by Material Type
Key Takeaway: Wood is considered a renewable material because of afforestation activities; it is

increasingly preferred as a prefabricated material by end users.
Percent Unit Shipment by Material Type, Percent Unit Shipment Forecast by Material Type,
Others Others
5.8% 5.7%
Wood Wood
26.6% Composites 26.8%
Composites & Plastics
& Plastics 25.8%
25.4%
Concrete Concrete
Steel 23.2% Steel 22.7%
19.1% 19.0%
Others include mineral w pol, fiberglass, dryw all
MED2-39 53
Percent Unit Shipment Forecast Discussion by Material
Type
• Prefabricated houses in the emerging countries of Asia-Pacific and Middle-East typically utilize materials
such as steel and concrete, which are also utilized in on-site construction.
• However, markets in Western Europe, North America, and Australia have increasingly started adopting
wood and timber as preferred prefabricated building material. The material utilization trend is becoming
increasingly popular for wood, plastics, and composites—especially in developed regions—as these
materials are lightweight and therefore easier to transport from factory to the installation site.
• Additionally, the European construction industry is gradually adopting engineered wood products,
primarily cross laminated timber (CLT), due to the exceptionally high strength-to-weight ratio of these
materials compared to concrete or RCC elements.
• Additionally, the impetus on sustainability is leading end users to prefer alternatives for concrete, as
concrete emits significant levels of carbon-dioxide during manufacture as well as post-construction of
the building.
• Materials such as mineral wool and fiberglass are typically used for insulation purposes (thermal and
sound).
• Drywall is typically a manufactured wall made from gypsum and installed to reduce the transmission of
sound through walls and ceilings; it is also used for thermal insulation.
MED2-39 54
Percent Unit Shipment Forecast by Sub-type—Wood
Key Takeaway: Engineered wood is increasingly being preferred in prefabricated buildings. This is
because unlike lumber, engineered wood can be processed to acquire various shapes and sizes and
also the strength of engineered wood can be enhanced by increasing layers in the wood.
Percent Unit Shipment by Sub-type—Wood, Percent Unit Shipment Forecast by Sub-type—Wood,
Lumber
Lumber 23.7%
25.8%
Engineered Engineered
Wood Wood
74.7% 76.3%
MED2-39 55
Wood Applications in Buildings by Sub-type
Key Takeaway: Wood typically comprises lumber, which is standard wood in set shapes and sizes,
and engineered wood, which can be processed to form specific shapes and designs.
• Lumber is a type of wood that is extracted

after cutting trees and is processed into
beams and planks.
• Lumber is typically used in structural or Lumber
wood-framing applications, while
constructing a wooden building.
• Engineered wood is a type of wood that is

manufactured by binding or fixing multiple
strands or boards of wood together to form
a composite material.
• Engineered wood is designed for precise Engineered
applications including flooring, wall Wood
cladding, and even joints and beam
applications.
MED2-39 56
Percent Unit Shipment Forecast by Sub-type—Steel
Key Takeaway: The use of structural steel for prefabricated buildings is expected to go down over
the forecast period due to the use of alternative materials, such as composites and plastics and
engineered wood.
Percent Unit Shipment by Sub-type—Steel, Percent Unit Shipment Forecast by Sub-type—Steel,
Rebar
Rebar Steel
Steel 29.8% Structural
30.2%
Structural Steel
Steel 44.8%
45.3%
Mild Steel
Mild Steel 25.4%
24.5%
MED2-39 57
Steel Applications in Buildings by Sub-type
Key Takeaway: Steel is a critical material used in various construction applications. There are
various types of steel being utilized.
Total Modular and Prefabricated Buildings Market: Steel Applications in Buildings by Sub-type,
Global, 2018–2025
Steel
Various types of steel
used in construction are:
• Structural steel
• Mild steel or carbon
steel Mild Steel
• Rebar steel Frequency of
Usage Medium to high
Heating and cooling and
interior ducting
Key Applications
applications and sheet
applications
Rebar Steel
Frequency of
Structural Steel Usage Medium to low
Frequency of Structural reinforcement,
Key Applications
Usage High gripping to concrete
Beams, columns, flanges,
Key Applications
and sections Source: Frost & Sullivan
MED2-39 58
Percent Unit Shipment Forecast by Sub-type—Concrete
Key Takeaway: Precast concrete is highly preferred in the modular and prefabricated construction
because precast concrete can be used in making various construction components of different
shapes and sizes.
Market: Percent Unit Shipment by Market: Percent Unit Shipment Forecast by
Sub-type—Concrete, Global, 2018 Sub-type—Concrete, Global, 2025
Normal Normal
Strength Strength
Concrete Concrete
Reinforced 14.7% Reinforced 14.5%
Concrete Concrete
31.0% 29.8%
Precast Precast
Concrete Concrete
54.3% 55.7%
MED2-39 59
Concrete Applications in Buildings by Sub-type
Key Takeaway: Concrete is a critical material in the construction industry due to the ability of the
material to take varied shapes and sizes.
1 • This is the basic type of concrete

3 obtained by mixing cement, water, and
aggregates. The strength varies from
10-40 Mpa and key applications include
flooring and slab applications.
Normal
Strength
Reinforced
Concrete 2 • Precast concrete is manufactured as per
Concrete
the specifications of the design of the
building and is typically used as concrete
blocks, staircase units, and various other
elements for a prefabricated building.
1
3 • Reinforced concrete is concrete that is
2 Precast Concrete typically reinforced using materials, such
as steel and fibers to bear the tensile
strength of the building. Reinforced
concrete is used to make concrete frames
in a building.
MED2-39 60
Percent Unit Shipment Forecast by Sub-Type—Composites
and Plastics
Key Takeaway: Composites comprise multiple types of sandwich materials, each with specific
applications in the building.
Market: Percent Unit Shipment by Market: Percent Unit Shipment Forecast by
Sub-type—Composites & Plastics, Global, 2018 Sub-type—Composites & Plastics, Global, 2025
Other
Other Plastics
Plastics 22.6% Structural
Structural
23.2% Insulated Insulated
Panels Panels
44.3% 44.6%
Wood
Plastic
Composites Wood Plastic
5.7% Composites
5.9%
Aluminum
Aluminum
Composites
Composites
26.9%
26.8%
Others Plastics include Polystyrene, Polyurethane, Phenolic Foams
MED2-39 61
Percent Unit Shipment Forecast Discussion by
Sub-Type—Composites and Plastics
• Structural insulated panels (SIPs) are composite materials comprising a polystyrene foam board
compressed between two sheaths of oriented strand boards. SIPs are used in residential applications and
are used in the application of thermal insulation and increasing energy efficiency of the house.
• Aluminum composite panels (ACPs) are panels composed of two aluminum sheets bonded to a
non-aluminum core—typically, polyethylene or polyurethane. ACPs are typically used in cladding
applications, such as external building cladding as well as in partitions and false-ceilings.
• Wood plastic composites are made up of wood fibers and plastics, such as polyethylene, PVC, and
polypropylene. These are comparatively new materials and are used primarily for outdoor deck floors.
They also find applications in railings, fences, and cladding.
• As building codes are evolving, the use of insulation materials is also increasing in building applications to
include acoustic and fire resistance. SIPs and ACPs are expected to witness higher utilization because of
their resistance to fire; however, the growth of wood composites will be propelled by their excellent sound
absorption properties.
• Other plastics being used are phenolic resin foams, polystyrenes, and polyurethanes, which are typically
used for insulation applications. However, stakeholders have started using recyclable materials, such as
mineral wool and fiberglass in insulation applications. The use of plastics is expected to decline over the
next few years.
MED2-39 62
Other Prefabrication materials
• Mineral wool is a porous material that traps air, thus making

it a popular insulating material.
Mineral Wool
• The material is incombustible and is also used to minimize
the spread of fire as well.
• It is a fiber-reinforced plastic using glass as a reinforcing

Material Fiberglass material.
Types • It is primarily used in thermal insulation.
• Drywall is a panel made up of plaster mixed with or without

additives to enhance the strength of the product.
Drywalls • Drywall finds critical application in North America, where it is
used as a vertical wall to separate rooms; it is also used
horizontally in ceiling applications.
MED2-39 63
Value Chain
Prefabrication Material Distributors

Total Modular and Prefabricated Buildings Suppliers
Market: Value Chain, Global, 2018 • Cassone Leasing Inc.
• Bluescope Steel
• Woodplastic • BD Modular Sales and
Prefabrication Material
• Songwon Plastics Leasing
Suppliers
• InStone Products
• Advanced Modular
Distributors • James Hardile Building
Structures Inc.
Products
• Laticrete • ÈMH Environmental Inc.
Modular and Prefabricated Building • Mule-Hide Products Inc.
• Affordable Structures
Manufacturers Modular and Prefabricated
Buildings Manufacturers Project Owners
Architects/Designers • Skanska
• Marriott International
• Kirby Building Systems
• Welement • Aberdeen Capital
• Guerdon Modular Management
Distributors/Installers
• Bluescope Steel
• AECOM
• Amtex Corp
• Britco • Google
• Katerra Inc.
• Palomar Modular Buildings • Longriver Investments
Project Owners
LLC
• Williams Scotsman
Note: The companies included in the table above constitute a representative and not an extensive list of participants in each of the mentioned categories.
MED2-39 64
Value Chain Description
• Modular and prefabricated buildings incorporate several materials comprising wood, steel, aluminum,
plastics, and composites. Prefabricated material suppliers provide materials, such as aluminum sheets,
steel bars and rods, and timber logs to manufacturers, who then design and process these materials into
a prefabricated building.
• Bluescope Steel is a company, which is backward-integrated with its own facility to manufacture steel
products used in buildings, which utilize a lot of steel.
• Companies such as Katerra and Welement use distribution channels to supply their products to the end
client. Welement exports the products to countries such as Sweden, Denmark, and Germany.
• Katerra also has partnered with various architectural firms to provide design support to the client as an
additional service point to end customers.
• The industry is witnessing mergers and acquisitions. Autodesk, a design software provider, invested in
FactoryOS, a prefabrication manufacturer based in the United States, in July 2019. Williams Scotsman
acquired ModSpace in March 2018 to benefit from cost synergies and an expanded distribution network
after the merging two prefabrication manufacturing companies.
• Construction Contractor Skender also ventured into the industry with the idea of developing their own
prefabricated manufacturing facility in Chicago in July 2018.
MED2-39 65
Trends & Regulations—Total Modular and
Prefabricated Buildings Market
Return to contents
MED2-39 66
Key Technology Trends
Use of Digital Tools In Start-ups, such as Katerra from the

Manufacturing United States, have emerged in the
construction space by utilizing
Increased adoption of building information building information modeling (BIM)
management (BIM) systems for and modular construction
construction project management. methodologies in their construction
projects. They have been able to
reduce the time taken for a
construction project by 40%.
Design for Manufacturing

Assembly The DfMA process is being adopted
by prefabrication manufacturers; this
Adoption of design for manufacturing enables them to have a longer design
assembly by offsite industry to reduce plan compared to traditional
construction time. construction. However, detailed
design release at one go helps in a
shorter construction period.
MED2-39 67
Key Technology Trends (continued)
Use of 3D printing in developing 3D printing is still in a nascent stage

prefabricated materials for the construction market; however,
the Swiss design firm, Fuseproject,
and construction technology firm,
3D printing enables the increased use of Icon, have developed a JV New
plastics in developing and installing Story in Latin America to develop a
modular and prefabricated buildings. housing solution for the homeless
using 3D printing. They developed a
350 sq.ft concept model for the same
in May 2019.
MED2-39 68
Regulations
Key Takeaway: The CE Label and International Building Codes are major regulations that govern the
construction of modular and prefabricated buildings.
Total Modular and Prefabricated Buildings Market: Regulations, Global, 2018
Major Regulatory
Region Bodies Description
The
• The international building code covers all aspects of building
United International
construction, such as the usage of materials, constructing foundations,
States, Building Code
roofs and walls, interior finishing, fire protection, and thermal insulation.
Europe
CE Label for
• Products or kits/materials used in the development of a modular or a
European modular and
prefabricated building require the CE label before being installed or
Union prefabricated
used in Europe.
buildings
MED2-39 69
Dynamic SWOT Analysis
Total Modular and Prefabricated Buildings Market: Dynamic SWOT Analysis, Global, 2018
Strengths Weaknesses
• There is growing construction • The low awareness with regards to
Key Growth activities in Asia-Pacific owing to modular and prefabricated buildings
Strategies from rapid industrialization and in developing regions of the globe,
urbanization. leads to low penetration in overall
SWOT Model construction.
• The developing economy ATTACK Strategies REINFORCE Strategies

• Expand in countries such as China, India,
Opportunities
of Asia-Pacific drives • Focus on increasing awareness on the

demand growth. and those in Southeast Asia where the benefits of prefabricated construction and
• The increasing urban construction sector is seeing high growth increase the penetration of modularity in
population and high • Strengthen relationship with major traditional construction techniques to cut
infrastructure contractors and distribution networks by back on time and costs
development are boosting offering training and collaborative product
growth for prefabricated development
construction.
• Set up supplier-owned distribution networks
DEVELOP Strategies AVOID Strategies
• Develop relationships with raw material • Avoid dependency on materials that are not
• Growing raw material
suppliers and distributors to minimize the sustainable and have less recyclability
costs are disrupting
Threats
degree of impact on raw material price quotient

profitability for suppliers in
a price-sensitive market. increases to some extent
• Environment restrictions • Focus more on rapidly urbanizing cities and
might lead to a clamp regions of larger developing economies
down on the usage of
some materials.
MED2-39 70
Market Share and Competitive Analysis—Total
Modular and Prefabricated Buildings Market
Return to contents
MED2-39 71
Market Share
Key Takeaway: The market for modular and prefabricated buildings is fragmented with various
regional and local level participants across the globe.
Total Modular and Prefabricated • The market is greatly fragmented with several smaller
Buildings Market: Percent Revenue by and regional suppliers with wide market coverage.
Participant, Global, 2018
Skanska
• Skanska is a market leader with a large market reach
10-15% and world-renowned products. It is actively involved in
Bouygues projects across Europe and the United States.
Construction
9-10% • Bouygues provides its prefabricated and modular
building portfolio across the globe with a strong foothold
in Asia-Pacific.
• Bluescope Steel is a leading steel prefabricated building
Bluescope supplier with a presence in more than 100 countries
Steel
across the globe.
7-8%
Others*
67-74%
• Many small and regional participants influence the
overall pricing and distribution patterns in regional
markets, especially in Latin America, the Middle-East,
and Asia-Pacific.
*Others include Taisei Corporation, Astron Buildings, Everest Industries, QHaus, Welement, Shangdoong Group, L&T, Guerdon Enterprises, Kirby Building Systems ,
Katerra, Palomar Modular, Julius Berger, Zamil Steel Building and other small and regional participants
MED2-39 72
Competitive Environment
Total Modular and Prefabricated Buildings Market: Competitive Structure, Global, 2018
Number of Companies in the More than 50

Market
Competitive Factors Design support, better turnaround time, ease of installation, cost
effectiveness, and energy efficiency
Key End-user Groups Construction contractors and project owners
Notable Market Participants Skanska, Bouygues Construction, Bluescope Steel, Taisei Corporation,
and Astron Buildings
Other Important Market Everest Industries, QHaus, Welement, Shangdoong Group, L&T,
Participants Guerdon Enterprises, Kirby Building Systems, Katerra, Palomar Modular,
Julius Berger, and Zamil Steel Buildings
Distribution Structure Direct sales and distributors
MED2-39 73
Notable Mergers & Acquisitions
Total Modular and Prefabricated Buildings Market: Notable Mergers & Acquisitions, Global, 2017–2019
Acquired Company
Primary Company /Business Unit Deal Value Year
Autodesk acquired the
Autodesk FactoryOS US-based company to enter the
2019
prefabrication manufacturing
space
Williams Scotsman Modspace $1.2 billion 2018
The technology company
merged with a prefabricated
Katerra KEF Infra manufacturer to provide 2018
prefabricated building services
in India and the Middle East.
The company acquired Touax
Solutions Modulaires (TSM), to
Algeco Touax expand its position in Europe to 2017
more than 18 countries in the
region.
Source: Autodesk; Williams Scotsman; Katerra; Algeco; Frost & Sullivan
MED2-39 74
Growth Opportunities and Companies to Action
Return to contents
MED2-39 75
Growth Opportunity 1—Robust Growth in Construction
Activity in Asia-Pacific
Applicable
Segments Modular and Prefabricated Buildings
Applicable
Regions
Asia-Pacific
Vision Transformation
Context and Opportunity Call to Action
Mega Trends’ Impact
• The average income of the urban • Companies must establish
Disruptive Applications population in the high-growth markets manufacturing facilities in these
of Asia-Pacific, such as China and India countries to enable economical local
Business Models is on a constant rise year-on-year. production to cater to the growing
Moreover, increasing industrialization demands of these markets.
Current Offerings and economic growth are propelling
infrastructure development in these • Companies must create strong
countries, and promoting construction relationships with contractors and
New Capabilities distribution partners to ensure
activities in the region.
long-term customer retention.
Value-add Services • Governmental initiatives such as the
Smart Cities and Make in India and the
Vertical Integration One Belt One Road (China) will boost
industrial, commercial, and residential
Geographic Expansion construction in the region.
• Katerra is looking to expand its
Partnerships presence in India and will open a
second manufacturing facility in the
Investment/M&A country by 2020.
MED2-39 76
Growth Opportunity 2—Skilled Labor Migration in
Australia Driving Growth in Prefabrication Manufacturing
Applicable
Applicable
Regions
North America Europe
• Australia is slowly moving from • Companies will have to ensure a similar
Disruptive Applications conventional manufacturing, such as transition of labor ousted from other
automobile and consumer durables to industries due to shutdowns to
Business Models alternative manufacturing industries prefabricated manufacturing. They will
including modular and prefabricated be able to cover the skilled labor gap in
Current Offerings buildings manufacturing. the prefabricated building industry.
• As automobile and durable • Manufacturers need to ensure

New Capabilities up-skilling labor to high-technology
manufacturing companies exit the
country to look for better manufacturing and manufacturing
Value-add Services manufacturing opportunities in South processes.
Asia, the skilled labor from these
Vertical Integration industries is migrating towards
high-technology manufacturing
Geographic Expansion leading to the development of
prefabricated buildings in the country.
Partnerships
Investment/M&A
MED2-39 77
Growth Opportunity 3—Better Construction Timelines
Leading to Higher Adoption Of Offsite Construction
Applicable
Applicable
Regions
Global
• Offsite construction offers a reduction • Constructors must focus on
Disruptive Applications of approximately 33% of construction development of broadening of
time when compared with on-site capabilities and introducing Design
Business Models construction, leading to construction for Manufacturing and Assembly in
savings as well. construction techniques.
Current Offerings
• Traditional construction contractors • They must establish strong
are looking at adopting prefabrication relationships with raw material
New Capabilities suppliers and distribution partners to
and modularization in their
construction techniques because of arrive at optimal prices for products.
Value-add Services the benefits these techniques offer.
• Companies must focus on developing
Vertical Integration • Skender, a construction contractor sustainable manufacturing practices
ventured in the field of prefabricated to meet greater regulatory
Geographic Expansion buildings by opening an advanced compliances.
building manufacturing facility in
Partnerships Chicago in 2018.
Investment/M&A
MED2-39 78
Strategic Imperatives for Success and Growth
Manufacturers should look at promoting more cost-effective and

environmentally sustainable solutions that are compliant with regulations
mandated by international organizations.
Companies may gain wider market coverage by improving their portfolios with
products, which can be customized to end-user specifications and also
promote ease of installation.
Critical Manufacturers may expand operations that have high-growth prospects to

Success Asia-Pacific due to the region’s growing infrastructure and construction
Factors development.
Revenue growth in developing countries will be enhanced if global companies

could offer products, which are comparative with those offered by regional and
local manufacturers.
Manufacturers will be under pricing pressure, especially in developing

countries to be able to compete with on-site construction, as the labor in the
developing countries is cheaper, leading to lower prices in on-site construction.
MED2-39 79
North America—Regional Analysis
Return to contents
MED2-39 80
North America—Key Findings
Key Takeaway: The North American market is expected to grow due to increased construction
spending in the United States.
• North America accounted for approximately Important Characteristics
16.2% of the global prefabricated and modular
Factors Assessment Trend
building market by volume in 2018.
Opportunity size
0.84 ▲
• Permanent construction dominates the market (Billion sq.ft)*
as more construction projects in the residential, Aesthetics, ease of
hotel, and healthcare sectors have been Primary needs installation, and –
adopting prefabricated construction methods to design support
achieve shorter construction times. Price and
performance, and
●
Purchase Influencers
• The North American market is expected to be level of services
driven towards $1.34 trillion by US construction
Price sensitivity Medium ●
spending in 2019. This is an increase of 1.5%
over the construction spending of 2018. Direct selling and
Distribution structure
distribution
–
• However, events such as the recent US Demand for
government shutdown and intensifying trade innovation
Medium ●
wars between the United States and China Decreasing Stable Increasing
might affect market growth in the short term. ▼ ● ▲
MED2-39 81
North America—Market Engineering Measurements
Modular and Prefabricated Buildings Market: Market Engineering Measurements, North America, 2018
Market Overview
Total number of competitors 30+ ●

Base year market growth rate (revenue) 4.9% ●
Compound annual growth rate (CAGR, 2018–2025) (revenue) 5.2% –
Customer price sensitivity (scale of 1 to 10, low to high) 5 ●

Degree of technical change (scale of 1 to 10, low to high) 5 ●
Market concentration (base year market share controlled by top 3 competitors) ~30% ●
▼ ● ▲
MED2-39 82
North America—Unit Shipment and Revenue Forecast
Key Takeaway: Unit shipment is expected to increase for the majority of the forecast period, as US
construction spending picks up.
Modular and Prefabricated Buildings Market: Unit Shipment and Revenue Forecast,
North America, 2015–2025
Unit shipment CAGR, 2018–2025: 5.0%
35.0 Revenue CAGR, 2018–2025: 5.2% 0.9
0.8
30.0
0.7
Revenue ($ Billion)
Units (Billion sqft)

25.0
0.6
20.0 0.5
15.0 0.4
0.3
10.0
0.2
5.0
0.1
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenue 19.91 20.90 21.92 22.99 24.13 25.38 26.75 28.25 29.71 31.20 32.83
Units 0.52 0.55 0.57 0.60 0.63 0.66 0.69 0.73 0.77 0.80 0.84
Year
MED2-39 83
North America—Unit Shipment and Revenue Forecast
Discussion
• The growth rate of the prefabricated building market in North America is expected to be higher than that
of the construction industry over the next 5 years. The market ratio of prefabricated construction to total
construction is negligible; however, stakeholders are focused on increasing their market share, which is
expected to double over the next few years by propagating the cost benefits of prefabricated
construction.
• Prefabricated and modular building manufacturers are partnering with architects to provide solutions to
the end customer right from the design phase to installation phase. E.g., Katerra partnered with Michael
Green Architecture and Lord Aeck Sargent as design partners, while Katerra focuses on innovations in
the prefabricated market.
• Building codes and regulations play a decisive role in the development of prefabricated buildings in
North America; the buildings need to be inspected by an administrative agency or third-party inspection
agencies to be approved.
MED2-39 84
North America—Percent Revenue Forecast by Country
Key Takeaway: The US market for modular and prefabricated buildings is expected to witness
higher growth than the Canadian market due to the slow growth of the Canadian real estate market.
Modular and Prefabricated Buildings Market: Modular and Prefabricated Buildings Market:
Percent Revenue by Country, Percent Revenue Forecast by Country,
North America, 2018 North America, 2025
Canada
Canada 19.7%
19.8%
US US
80.2% 80.3%
MED2-39 85
North America—Percent Revenue Forecast Discussion
by Country
United States
• The US market is larger due to the significant size of its construction industry compared to that of
Canada.
• The National Association of Realtors expects the sales of homes to flatten with an expected increase
of 1% year-on-year in 2019, to approximately 5.4 million housing units.
• The new construction market in the country is expected to witness a slowdown in growth due to
persistent high costs; this is further expected to increase by over 3% year-on-year till 2020. The
persistent high costs coupled with labor shortages presents opportunity for growth of the
prefabricated building market in the United States.
• The multi-family housing market presents significant opportunities for prefabricated building vendors
in Virginia, West Virginia, Pennsylvania, Delaware, and New Jersey. Approximately $22 billion worth
of multi-family construction opportunities are present in regions of Florida, Georgia, Alabama,
Mississippi, and Tennessee. The multi-family homes market is expected to have approximately
one-third share in the United States for prefabricated buildings.
Source: National Association of Realtors; Frost & Sullivan
MED2-39 86
North America—Percent Revenue Forecast Discussion
by Country (continued)
Canada
• Canadian construction prospects were affected by a moderate GDP growth rate for 2018 at 1.9%.
• Non-building construction, which includes infrastructure construction, grew robustly at 6% in 2018
over 2017, followed by non-residential construction at 4%. However, residential construction in the
country grew moderately at 2% in 2018.
• Home owners in Canada prefer wood as a building material over concrete; hence, there is immense
opportunity for prefabricated buildings, as wood is a major prefabricated building material.
• Canada’s real estate market is affected by rising interest rates and stringent mortgage rules, as new
rules have been implemented by financial institutions that require “stress tests” for home loan
borrowers with uninsured loans to ensure they can withstand higher interest rates.
• However, growth is expected from non-residential buildings. Toronto is witnessing new office tower
projects, with 8 million square feet of office space currently under construction. The growing
technology cluster will continue to support robust growth for office space over the next 5 years from
2018–2023. This is expected to drive growth in the prefabricated market in the country.
Source: Financial Post; Frost & Sullivan
MED2-39 87
North America—Percent Unit shipment Forecast by
Frame Type
Key Takeaway: Due to high demand for modular homes from residential applications, demand for
cellular systems is expected to dominate the market in North America.
Percent Unit shipment by Frame Type, Percent Unit shipment Forecast by Frame Type,
Skeletal Skeletal
Combined Systems
Combined Systems Systems
Systems 11.3% 11.2%
7.2%
7.5%
Cellular Panel
Cellular Panel Systems Systems
Systems Systems 43.9% 37.8%
43.8% 37.4%
MED2-39 88
North America—Percent Unit shipment Forecast
Discussion by Frame Type
• High demand for residential applications in the United States, especially multi-family residential buildings,
is expected to drive growth for cellular-frame prefabricated buildings. However, these 3D modules need
to face certain restrictions pertaining to height, width, and length as per building codes.
• While most multi-family buildings are one-to-four stories, recent trends in the country point towards
demand growth for modular buildings of more than ten stories as well. For instance, in 2016, a thirty-two
story apartment building was inaugurated in Brooklyn, New York, comprising prefabricated modules
made with steel frames.
• High demand for non-residential and office applications in Canada, as well as rising requirements for
prefabricated construction from education and healthcare sectors in the United States is expected to
drive the growth of panel systems in North America.
• Skeletal systems are primarily used in warehouse applications; growth is expected to be stagnant, as
more complex systems such as combined systems, panel systems, and cellular systems are adopted
across industries.
MED2-39 89
North America—Percent Unit shipment Forecast by
Material Type
Key Takeaway: Prefabricated building users are looking at solutions that are more lightweight and
easier to transport than traditional concrete and steel material solutions.
Percent Unit shipment by Material Type, Percent Unit shipment Forecast by Material Type,
Others Others
5.9% 5.4%
Wood Plastics & Wood

Composites &
22.7%
Plastics
22.5%
Steel
Steel 12.1%
12.3%
Concrete
Concrete 26.9%
27.2%
*Others include mineral w ool, fiberglass, dryw all
MED2-39 90
Discussion by Material Type
• Typically, prefabricated buildings use materials similar to those used by on-site construction, such as
steel and concrete. However, the transportation of manufactured modules from factory to installation site
is a key aspect for the prefabricated industry; hence, the prefabricated industry is witnessing the
adoption of materials that are lighter in weight and easier to transport and install, while also being
structurally strong in comparison to steel and concrete.
• Timber or wood is primarily used in cold regions in the United States and Canada as a preferred material
in this market. Apart from being easy to design and install, these materials offer better freeze-thawing
and cold resistance properties when compared with steel or concrete.
• Development of composite materials such as aluminum composites, SIPs and WPCs have led to higher
adoption of composites as prefabrication materials in the construction industry. These materials, apart
from the property of being lightweight, are also more energy efficient when compared with conventional
materials, such as steel and concrete.
• Other materials are used for insulation purposes; however, their utilization might be limited due to
greater use of composite materials, which also act as excellent insulators.
MED2-39 91
North America—Percent Unit shipment Forecast by End
Use Application
Key Takeaway: Adoption of prefabricated construction by multi-family housing is expected to drive

market growth in the residential segment in North America.
Percent Unit shipment by End User Application, Percent Unit shipment Forecast by End User
North America, 2018 Application, North America, 2025
Residential Residential
47.3% 48.4%
Non- Non-
52.7% 51.6%
MED2-39 92
Discussion by End-use Application
• Non-residential application dominates the demand for prefabricated buildings with major demand coming
from the healthcare, educational, hospitality, and office sectors. Office construction is also on the rise in
Canada and is expected to drive demand for prefabrication in the country.
• Residential application is expected to grow on the back of rising multi-family construction in the US
market, especially in New York and California where several multifamily projects were started in 2018.
• As the perception of permanency for modular and prefabricated buildings increases, the benefits
pertaining to prefabricated buildings in terms of cost and energy efficiency are propagated, residential
applications for prefabricated buildings are expected to grow over the forecast period.
MED2-39 93
North America—Competitive Environment
Modular and Prefabricated Buildings Market: Competitive Structure, North America

Market
Competitive Factors Design support, better turnaround time, ease of installation, and thermal
insulation
Notable Market Participants Skanska, Bouygues Construction, and Bluescope Steel
Other Important Market Guerdon Enterprises, Katerra, Palomar Modular, Red Sea Housing
Participants Services, Laing O Rourke and other regional participants
MED2-39 94
Europe—Regional Analysis
Return to contents
MED2-39 95
Europe—Key Findings
Key Takeaway: The European market is expected to grow due to economic development in both
Eastern and Western Europe.
• Europe accounted for approximately 25.4% of Important Characteristics

the global prefabricated building market by Factors Assessment Trend
volume in 2018. Opportunity size
1.41 ▲
• The market in Western Europe is expected to (Billion sq.ft)*
grow due to the increasing residential Aesthetics, ease of
requirements for migrants from emerging installation, design
Primary needs
support, and energy
–
countries, as well as the growth of the
efficiency
metropolitan regions of Paris, Berlin, and London
amongst others. Price and
Purchase influencers performance, and ●
• The market in Eastern Europe is expected to level of services
grow due to new construction activities. Overall,
Price sensitivity Medium ●
growth is expected in the region because of the
Direct selling and
falling interest rates and rising income levels. Distribution structure
distribution
–
• However, Brexit can be considered a restraint in
Demand for
the growing market, as Britain accounts for Medium to high ▲
innovation
almost 20–25% of the prefabricated market by
volume. ▼ ● ▲
MED2-39 96
Europe—Market Engineering Measurements
Modular and Prefabricated Buildings Market: Market Engineering Measurements, Europe, 2018
Market Overview

Base year market growth rate (revenue) 6.0% ●
Customer price sensitivity (scale of 1 to 10, low to high) 5 ●

Degree of technical change (scale of 1 to 10, low to high) 6.5 ▲
▼ ● ▲
MED2-39 97
Europe—Unit Shipment and Revenue Forecast
Key Takeaway: The unit shipment is expected to increase throughout the forecast period in Europe
as more prefabricated elements are incorporated in construction due to their improved costs and
energy efficiency.
Europe, 2015–2025
70.0 Unit shipment CAGR, 2018–2025: 6.0% 1.6
Revenue CAGR, 2018–2025: 6.2%
60.0 1.4
1.2
Revenue ($ Billion)

50.0
1.0
40.0
0.8
30.0
0.6
20.0
0.4
10.0 0.2
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenue 33.20 35.15 37.24 39.49 41.88 44.46 47.30 50.38 53.51 56.80 60.25
Units 0.79 0.84 0.89 0.94 0.99 1.05 1.12 1.19 1.26 1.33 1.41
Year
MED2-39 98
Europe—Unit Shipment and Revenue Forecast
Discussion
• The European prefabricated building market is expected to increase with the growth of zero energy
buildings, i.e. buildings with zero net energy consumption. The European Union has built and developed
standards based on the nearly Zero Energy Building (nZEB) concept and has plans to implement the
same by 2020.
• The focus on energy efficiency is leading to the higher adoption of prefabricated elements in new
construction, as precision manufacturing of prefabricated building elements results in higher energy
efficiency compared with on-site construction.
• Prefabricated manufacturers based in Europe are increasingly adopting automation to manufacture

homes to serve customers with more accuracy and shorter turnaround time. Welement is one such
company based in Estonia, which is using third-party design and project management tools and
machines, such as lathes and cutting machines to design and manufacture wooden homes for the
customers.
MED2-39 99
Europe—Percent Revenue Forecast by Sub-region
Key Takeaway: The market for modular and prefabricated buildings in Europe is expected to grow
with demand emanating from both Eastern and Western European sub-regions because of the push
for a sustainable and circular economy in construction.
Percent Revenue by Sub-region, Percent Revenue Forecast by
Europe, 2018 Sub-region, Europe, 2025
Eastern Eastern
Europe Europe
44.8% 44.7%
Western Western
Europe Europe
55.2% 55.3%
MED2-39 100
Europe—Percent Revenue Forecast Discussion by
Sub-region
Western Europe
• The construction market in Western Europe is more oriented towards renovation activities and less
towards new construction activities.
• The new construction market in Germany is driven by an influx of immigrants in the country. This
influx of immigrants is expected to drive the prefabricated building market in Germany, as houses with
a shorter construction cycle would be required to meet the growing demands for housing.
• The UK construction market, despite Brexit, is expected to grow for the next few years. However, the
market can be severely restrained because of the lack of skilled labor due to the Brexit out-flux. The
shortage of skilled labor will drive growth for prefabricated construction, which utilizes less labor in
building a house when compared with on-site construction.
• The residential market in France improved due to the rising income levels resulting from benefit
schemes introduced in 2017 and interest-free home loans and affordable housing schemes are
expected to drive the growth of the prefabricated construction market.
MED2-39 101
Europe—Percent Revenue Forecast Discussion by
Sub-region (continued)
Eastern Europe
• Eastern Europe as a region relies heavily on funding from the European Union while 2016 saw the
funding stop temporarily owing to the overall economic uncertainty in Europe. However, funding was
revived after 2017 and the region is expected to be a growing market for the construction industry.
• The construction industry in Bulgaria is buoyed due to improved employment and real disposable
income, as well as increasing urbanization. These factors will drive residential as well as
non-residential construction in the country.
• The construction industry in Serbia is also expected to register an uptick, owing to the inflow of FDI to
the country, as well as a drive by its government to boost the infrastructure in the country.
• However, industrial construction in Croatia is expected to be subdued as the cost of construction has
been on a rise and is expected to further increase in the coming years till 2023. Construction in the
hospitality, education, and healthcare sectors is expected to grow at a steady pace in the country.
• Overall, the growth in new construction activities for Eastern Europe for both residential and
non-residential applications will augur the demand for prefabricated housing in the region.
Source: Financial Post, Frost & Sullivan
MED2-39 102
Europe—Percent Unit Shipment Forecast by Frame Type
Key Takeaway: High penetration of residential applications for prefabricated buildings in Europe
results in higher use of cellular and panel frames.
Europe, 2018 Europe, 2025
Skeletal Skeletal
Combined Systems Systems
Systems 12.5% Combined
Systems 11.2%
9.4%
9.4%
Cellular Panel Panel

Cellular
Systems Systems Systems
Systems
42.7% 35.4% 35.7%
43.7%
MED2-39 103
Europe—Percent Unit Shipment Forecast Discussion by
Frame Type
• The prefabricated residential market is a mature market in Europe when compared with other regions
across the globe. The sub-regions of Scandinavia and larger countries of Western Europe including
Germany and the United Kingdom have been developing prefabricated residential buildings over the
past few decades.
• Due to the high preference of prefabricated construction in residential markets, the typical frame types
utilized are cellular and panel systems.
• Industrial growth in countries or sub-regions, such as Spain and Eastern Europe, is expected to be
caused due to the adoption of skeletal system frame types especially for factory applications.
• The growth of combined systems is limited to niche applications in residential and non-residential
construction and is also dependent on the recommendations of the architect/designer.
MED2-39 104
Europe—Percent Unit Shipment Forecast by Material
Type
Key Takeaway: Prefabricated building users prefer wood as a material, because of its renewability
and energy efficiency when compared with other materials.
Europe, 2018 Europe, 2025
Others Others
5.9% 5.8%
Wood Plastics & Wood

Composites &
Plastics 23.0%
22.5%
Steel Steel
12.3% 11.9%
Concrete Concrete
24.2% 23.3%
MED2-39 105
Material Type
• Wood is a preferred material for prefabricated construction because of various attributes, such as its
excellent freeze-thawing for colder climates and lightweight nature when compared with concrete or
steel enabling easier installation and transportation.
• Composites and plastics offer attributes such as a lightweight nature and excellent mechanical strength
along with low thermal conductivity. The adoption of composites is also increasing because of their
ability to be molded into various shapes and sizes and thereby enhancing the aesthetics of the building.
• A high preference towards wood, plastics, and composites is leading to the lower utilization of steel and
concrete, especially in the prefabricated buildings market. The perception of concrete as an energy
inefficient material also adds to the low utilization of these materials. However, concrete, with the help of
additives, can be utilized as an energy-efficient material for the prefabricated buildings in the future.
Companies such as Chryso and BASF have introduced concrete admixtures, which enhances the
energy efficiency of concrete.
• Other materials such as mineral wool and fiber-glass are typically used for insulation applications in the
manufacturers are directing their efforts to enhance the recyclability of these materials to promote a
circular economy in the construction industry.
MED2-39 106
Europe—Percent Unit Shipment Forecast by End Use
Application
Key Takeaway: Prefabricated houses are increasingly perceived as modern forms of buildings in
Europe, leading to higher growth in residential applications.
Percent Unit shipment by End Application, Percent Unit shipment Forecast by End Use
Europe, 2018 Application, Europe, 2025
Non- Non-
42.7% 41.4%
Residential
Residential
57.3%
58.6%
MED2-39 107
End Use Application
• Residential applications dominate demand for prefabricated buildings with major demand coming from
the 2-Flat and multifamily housing market. The housing market is expected to grow due to persistently
low interest rates for home loan finance in the United Kingdom, Germany, and France amongst others.
• Prefabricated construction is prevalent in the education, office, warehousing, retail, and healthcare
industries for non-residential applications. Growth in the non-residential construction sector is prevalent
in Eastern Europe, as the governments in Poland, Slovenia, Bulgaria, and Romania are investing in
healthcare and education infrastructure by availing funding from the European Union.
MED2-39 108
Europe—Competitive Environment
Modular and Prefabricated Buildings Market: Competitive Structure, Europe, 2018

Market
Competitive Factors Design support, better turnaround time, ease of installation, thermal
insulation, energy efficiency, and recyclability
Notable Market Participants Skanska, Bouygues Construction, Bluescope Steel, and Astron Buildings
Other Important Market Welement, QHaus Katerra, Laing O Rourke, and other regional
Participants participants
MED2-39 109
Asia-Pacific—Regional Analysis
Return to contents
MED2-39 110
Asia-Pacific—Key Findings
Key Takeaway: Increasing urbanization and industrialization in the region is expected to push the
adoption for prefabricated and modular buildings.
• Asia-Pacific accounted for approximately 32.6% of Important Characteristics

the global prefabricated building market by
Factors Assessment Trend
volume in 2018.
Opportunity size
• China is the biggest market for modular and 1.85 ▲
(Billion sqft)*
prefabricated construction in Asia-Pacific, while
Space management,
Japan is a mature market adopting the Primary needs ease of installation, –
prefabrication and modular processes to and low cost
withstand the high seismic activity in the country.
Price and
• Affordable housing schemes in regions, such as Purchase Influencers performance, and ●
the Indian sub-continent and Southeast Asia are level of services
expected to boost the growth of prefabricated and Price sensitivity High ▲
modular construction in residential applications.
Direct selling and
Distribution structure –
• Overall, efforts are being made by governments to distribution
encourage modular and prefabricated Demand for
construction across Asia-Pacific to meet the Medium ▲
innovation
growing housing demands of the increasing Decreasing Stable Increasing
population in the region. ▼ ● ▲
MED2-39 111
Asia-Pacific—Market Engineering Measurements
Modular and Prefabricated Buildings Market: Market Engineering Measurements, Asia-Pacific, 2018
Market Overview
Market Stage Growth –
Market Revenue (2018) $42.45 B ▲

Base Year Market Growth Rate (Revenue) 6.2% ▲
Compound annual growth rate (CAGR, 2018–2025) (Revenue) 6.6% –
Customer price sensitivity (scale of 1 to 10, low to high) 7 ▲
▼ ● ▲
MED2-39 112
Asia-Pacific—Unit Shipment and Revenue Forecast
Key Takeaway: Unit shipment is expected to pick up on the basis of higher adoption of prefabricated
and modular construction in countries of India, Singapore as well as the region of Southeast Asia.
Asia-Pacific, 2015–2025
Unit shipment CAGR, 2018–2025: 6.3%
70.0 2.0
Revenue CAGR, 2018–2025: 6.6%
1.8
60.0
1.6

Revenue ($ Billion)
50.0 1.4
1.2
40.0
1.0
30.0
0.8
20.0 0.6
0.4
10.0
0.2
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenue 35.50 37.66 39.96 42.45 45.19 48.16 51.36 54.89 58.58 62.46 66.58
Units 1.01 1.07 1.14 1.21 1.28 1.36 1.45 1.54 1.64 1.74 1.85
Year
MED2-39 113
Asia-Pacific—Unit Shipment and Revenue Forecast
Discussion
• Barring China and Japan, prefabricated building market in Asia-Pacific is a nascent one and is expected to
pick up pace as awareness regarding the advantages of prefabricated construction increases in the
region.
• Despite recent trends of slowdown in China, the major region for Asia-Pacific, the year on year growth is
still expected to be approximately 6-7% over the next 4-5 years due to higher economic growth leading to
increased new construction activities in the region, which will drive the prefabricated construction market
as well.
• Focus on new design elements for buildings as well as customizability for the homes is attracting the
young population of the region to adopt prefabricated and modular construction. The young population of
the region have immense home buying potential owing to rise in wages on the back of economic growth.
MED2-39 114
Asia-Pacific—Percent Revenue Forecast by Country
Key Takeaway: The Rest of Asia, which includes the mature markets of Korea and Singapore as well
as the high-growth markets of Indonesia, Malaysia, and Vietnam are expected to push the growth for
the prefabrication market in Asia-Pacific, despite slowdown in China.
Percent Revenue by Country, Percent Revenue Forecast by Country,
Asia-Pacific, 2018 Asia-Pacific, 2025
China China
28.2% RoA* 27.9%
RoA*
34.2%
33.8%
Australia Australia
10.1% 10.1%
India India
6.7% 6.7%
Japan Japan
21.2% 21.0%
*RoA comprises Northeast Asia, Southeast Asia and Indian sub-continent barring India
MED2-39 115
Asia-Pacific—Percent Revenue Forecast Discussion by
Country
China
• China is one of the biggest construction markets globally. The construction industry has been buoyed
by investments in the country owing to its government’s relaxation of real-estate regulations and
credit availability. These initiatives will boost the real estate market in China.
• While the population of China is shifting towards urban areas, the government is also implementing
programs such as its smart city initiative, which will help in the adoption of green building construction
materials. Thus, there is a push towards eco-friendly products in the country.
• China produces more concrete than the rest of the world combined and accounts for approximately
60% of the world’s cement production. However, increasing environment regulations in the country
has led to a clampdown on cement production, with the 13th Five Year Plan mandating a 25% cut in
cement enterprises in the country by 2020.
• Environmental regulations is also expected to increase the adoption of modular and prefabricated
construction, which is progressively being perceived as a sustainable construction practice.
• However, the overall slowdown in the economy and manufacturing, along with trade disputes with the
United States, is expected to restrain the growth of the prefabricated building market for the
short-to-medium terms of the forecast period.
MED2-39 116
Country (continued)
Japan
• Japan is a mature market for residential applications of prefabricated construction. As the country is
prone to earthquakes, the construction techniques that withstand earthquakes and minimize or
quickly restore the damages caused by earthquakes are utilized.
• Japan is hosting the Olympics in 2020, which has led to an increase in construction activities in the
country and this is expected to drive the prefabricated building market in Japan. The government
estimates an expenditure requirement of approximately $8.4 billion to develop games-related
infrastructure by 2020.
• As a result of the games, the hotel market in the country is expected to rise, as Japan is becoming a
key destination for travelers from abroad. The developing hotel market will drive the prefabricated
buildings market in the country, as hotels are increasingly adopting modular construction to efficiently
meet construction timelines.
• Japan is currently focusing on developing various logistics centers across the country, and new
centers are expected to come up from 2017 until 2022 in various phases. These developments will
drive the prefabricated construction market.
• Labor issues as well as the increasing cost of construction can be considered as a key driver to the
growth of modular and prefabricated construction industry in Japan.
MED2-39 117
Country (continued)
Australia
• The Australian housing market is an opportunity for first-home buyers, as the prices in the main
markets of Sydney and Melbourne have decreased in recent times owing to lesser demand resulting
from credit tightening by financial regulator, Apra.
• Demand for office buildings has risen over the past few years over the increasing business
confidence in the country. The commercial demand is expected to drive the prefabricated building
market.
• Australia in recent years, have shifted from traditional manufacturing and towards alternate
manufacturing including modular and prefabricated building manufacturing. The alternate
manufacturing industries utilize controlled manufacturing practices and growth in this manufacturing
activity will propel the prefabricated buildings market in Australia.
• Additionally, the experienced labor from automotive and consumer goods manufacturing are shifting
to high-tech manufacturing and are bringing their manufacturing skillsets to manufacturing houses.
MED2-39 118
Country (continued)
India
• India is expected to witness high growth in the construction market. The residential construction
market in India is growing fast due to factors, such as the smart city initiative of the government and
affordable housing schemes in semi-urban and semi-rural areas.
• The country is expected to invest approximately $1.3 trillion in the residential real estate by 2025
under the housing for all initiative of the government, and approximately 60 million homes are
expected to be constructed during the period. This demand coupled with the need for affordable
housing will witness the increase in share of modular and prefabricated construction to overall
construction by 2025.
• The trend of cohabitation or office-sharing in non-residential construction is increasing in metropolitan
areas such as Mumbai, Delhi, and Bengaluru. This trend is expected to increase modularity
component in office real-estate for the country.
• The country also faces demand from basic medical facilities in semi-rural and rural areas under the
Ayushman Bharat Scheme launched in 2018. This is expected to drive the growth of modular
construction in healthcare construction applications in the country.
MED2-39 119
Country (continued)
Rest of Asia
• Urban Indonesia is amongst the fastest growing regions in Asia-Pacific and by 2025 approximately
68% of the Indonesian population is expected to be urbanized. As a result, there is significant
demand growth observed in residential housing driven by increasing affordability and boosting
affordable housing initiatives by the government.
• Apart from Indonesia, South Korea, Malaysia, Vietnam, and Taiwan are also witnessing the high rate
of industrialization and urbanization. These markets are also driving the modular and prefabricated
building market in Asia-Pacific.
• Bangladesh has been using steel-structure buildings for their industrial buildings in the past few
decades; the industrial growth in the country is expected to further the use of steel structural
buildings. Prefabricated construction in Pakistan is expected to be boosted by investments from
China in the country under the China Pakistan Economic Corridor (CPEC) initiatives, introduced in
the year 2015.
MED2-39 120
Asia-Pacific—Percent Unit shipment Forecast by Frame
Type
Key Takeaway: Increasing demand from residential applications across the region will drive growth
for cellular and panel frame types in Asia-Pacific.
Skeletal Skeletal
Combined Combined Systems
Systems
Systems Systems 14.1%
14.2%
5.0% 4.6%
Cellular
Cellular
Systems
Systems
41.8%
41.6%
Panel Panel
Systems Systems
39.2% 39.4%
MED2-39 121
Asia-Pacific—Percent Unit Shipment Forecast Discussion
by Frame Type
• The prefabricated residential market is a nascent one in India, Australia, and the rest of Asia, while it is a
matured market in Japan and China.
• Matured markets utilize more complex structures in prefabricated construction, such as cellular and
panel systems, while nascent markets opt for simple structures such as skeletal systems.
• Nascent markets are increasingly adopting panel and cellular systems to fully utilize modularity and
prefabrication in construction projects and reduce the overall construction time for a project.
• Combined systems are used in niche and complex applications for construction projects; typically, the
application is found in matured markets in the region.
MED2-39 122
Asia-Pacific—Percent Unit Shipment Forecast by
Material Type
Key Takeaway: The market in Asia-Pacific still focuses on the usage of traditional materials for the
manufacture of prefabricated and modular buildings.
Others
Others 6.0%
5.9% Wood
Wood 22.2%
22.1%
Plastics &
Composites & Composites
Plastics 26.9%
26.5%
Concrete Concrete
21.2% 20.9%
Steel Steel
24.3% 24.0%
MED2-39 123
Asia-Pacific—Percent Unit Shipment Forecast
• Wood is a preferred material for prefabricated construction in Japan due to its lightweight nature and
ease of installation; this is a requirement, as the country faces regular damages to buildings due to high
seismic activity. Additionally, wood acts as an excellent sound insulator by absorbing the shocks
emanating from earthquakes.
• Both India and China are the largest producers of steel and concrete globally, and the usage of these
materials is reflected in prefabricated construction. KEF Infra, based in South India, manufactured and
supplied 400+ modular canteens around Bengaluru in 2017. These canteens utilized prefabricated
concrete blocks as a primary building material and aluminum composites for façade and windows.
• Concrete is usually the preferred material in the region because of its ability to be molded in various
shapes and sizes, thereby enhancing the aesthetics and functionality of the building.
• However, the region will increasingly adopt sustainable and lightweight materials, such as composites
and wood over the forecast period, as the governments are increasingly pushing for sustainable houses.
• Australia has started using wood as a prefabricated material over last 5 years and has shifted from using
steel and concrete, as the end users and manufacturers in the country find wood to be a lightweight and
sturdy material that is easier to transport and install when compared with steel or concrete.
MED2-39 124
Asia-Pacific—Percent Unit Shipment Forecast by End
Use Application
Key Takeaway: Non-residential applications dominate the prefabrication construction in the region
although residential application is expected to gain momentum to meet the demand of the growing
population in the region.
Percent unit shipment by End Use Application, Percent unit shipment Forecast by End Use
Asia-Pacific, 2018 Application, Asia-Pacific, 2025
31.8% 32.2%
Non- Non-
68.2% 67.8%
MED2-39 125
Asia-Pacific—Percent Unit Shipment Forecast
Discussion by End Use Application
• Regions such as the Indian sub-continent and Southeast Asia prefer the on-site construction of
residential buildings, as prefabricated construction is perceived to be temporary. Traditionally,
prefabricated construction in the region has been used solely in relocatable buildings.
• Prefabricated construction in Asia-Pacific is typically observed in non-residential applications, such as

healthcare institutions, education centers, and offices.
• However, initiatives to introduce affordable and sustainable housing by governments in the region are
expected to boost the market for prefabricated and modular construction in residential applications.
MED2-39 126
Asia-Pacific—Competitive Environment
Modular and Prefabricated Buildings Market: Competitive Structure, Asia-Pacific, 2018

Market
Competitive Factors Design support, better turnaround time, ease of installation, and cost
effectiveness
Notable Market Participants Bouygues Construction, Bluescope Steel, and Taisei Corporation
Other Important Market Everest Industries, Shangdoong Group, L&T, Kirby Building Systems,
Participants Katerra and other regional participants
MED2-39 127
Rest of the World—Regional Analysis
Return to contents
MED2-39 128
Rest of the World—Key Findings
Key Takeaway: Latin America and the Middle East are witnessing significant growth in construction
activities with the demand towards residential housing boosting growth in modular building markets
in these regions.
• Rest of the world (ROW) which includes markets Important Characteristics

such as Latin America (Including Mexico) and the Factors Assessment Trend
Middle East, which is one of the fastest growing Opportunity size
1.46 ▲
markets for the construction industry across the (Billion sqft)*
globe. Space management,
• The Middle East is expected to drive high Primary needs ease of installation, –
and low cost
commercial construction growth due to the
development of hotels, malls, and townships in the Price and
Kingdom of Saudi Arabia (KSA) and Qatar. Purchase Influencers performance, and ●
level of services
• The Middle East typically utilizes modular
Price sensitivity Medium ▲
construction to provide accommodation to the
Direct selling and
laborers and to build temporary offices. Distribution structure
distribution
–
• Latin America also focuses on relocatable modular
Demand for
buildings. However, permanent modular building Medium ▲
innovation
construction is also picking up in the region. Decreasing Stable Increasing
▼ ● ▲
MED2-39 129
Rest of the World—Market Engineering Measurements
Modular and Prefabricated Buildings Market: Market Engineering Measurements,

Rest of the World, 2018
Market Overview
Market units/volume (2018) $0.95 B sq.ft ▲

Base year market growth rate (revenue) 6.3% ▲
Customer price sensitivity (scale of 1 to 10, low to high) 6.5 ▲
▼ ● ▲
MED2-39 130
Rest of the World—Unit Shipment and Revenue Forecast
Key Takeaway: Unit shipment is expected to improve because of the push for modular construction
emanating from key countries of the region, namely, Saudi Arabia, Brazil, and Mexico.
Rest of the World, 2015–2025
60.0 Unit Shipment CAGR, 2018–2025: 6.3% 1.6
Revenue CAGR, 2018–2025: 6.6%
1.4
50.0
1.2

Revenue ($ Billion)
40.0
1.0
30.0 0.8
0.6
20.0
0.4
10.0
0.2
0.0 0.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenue 29.62 31.44 33.39 35.50 37.77 40.23 42.91 45.83 48.92 52.11 55.35
Units 0.80 0.85 0.90 0.95 1.01 1.08 1.14 1.22 1.30 1.38 1.46
Year
MED2-39 131
Rest of the World—Unit Shipment and Revenue Forecast
Discussion
• The market for modular and prefabricated buildings is still nascent as major construction in the region
relies on on-site techniques.
• The countries in South America such as Peru, Ecuador, Colombia, and Chile offer immense potential for
growth of modular buildings and spaces. The Presidents of these countries launched ambitious plans
pertaining to the development of schools in 2017, a major portion of which will utilize modular and
prefabricated construction.
• The market in Russia has been experiencing an economic slowdown post the 2018 FIFA World Cup.
However, the construction industry is anticipated to grow on the back of remodeling of Soviet-era
houses during the forecast period.
• Turkey is in a crisis on the economic front in the medium term. However, in the long term, as political
stability increases, the country is expected to be back on the growth trajectory, boosting growth of new
construction while providing opportunities for modular and prefabricated construction.
MED2-39 132
Rest of the World—Percent Revenue Forecast by Sub-
region
Key Takeaway: Latin America is expected to be the fastest growing market owing to strong
economic growth as well as strong growth in residential construction.
Percent Revenue by Sub-region, Percent Revenue Forecast by Sub-region,
Rest of the World, 2018 Rest of the World, 2025
Latin America
Latin America 36.5%
36.1% Middle East
Middle East
44.3%
44.2%
Turkey Turkey
4.3% 4.2%
Russia Russia
15.3% 15.1%
MED2-39 133
Rest of the World—Percent Revenue Forecast Discussion
by Sub-region
Middle East
• The construction market in the Middle East is expected to be driven by various initiatives of the local
governments as well as macro-events, such as the Expo2020 in Dubai and FIFA World Cup 2022 in
Qatar leading to the development of new buildings with modular construction to reduce the overall
construction timelines.
• Recent pressures on oil prices have forced the local governments towards developing non-oil sectors
in their countries. As a result a slew of strategic visions were introduced by Saudi Arabia (Vision
2030), Qatar (Vision 2030), and Oman (Vision 2020), with a focus on development of non-oil sectors
such as tourism, building and construction, and sports.
• Approximately 85% of the population in GCC stays in urban areas and approximately 90% of the
population is expected to be urbanized by 2050. KSA leads this trend with its development of cities
such as King Abdullah Economic City (KAEC) and Jazan Economic City (JEC).
• For instance, Katerra in May 2019 won a project to develop more than 4,000 modular and
prefabricated homes throughout Saudi Arabia under the development housing initiative of the country
under Saudi’s Vision 2030.
MED2-39 134
by Sub-region (continued)
Latin America
• Latin America boasts favorable demographics as over 400 million people in countries including Brazil,
Peru, Chile, Mexico, and Colombia comprise the young and growing population entering the
workforce.
• Approximately 315 million people are expected to live in urbanized areas in Latin America by the year
2025 and the per capita GDP of these urbanized areas is expected to be $23,000. This rising
urbanization is expected to drive the growth of the residential housing market in the region.
• The housing front in these countries is also expected to be driven by greater housing affordability
over the years due to increased availability of long-term mortgages of over 30 years.
• On the economic front, Brazil is facing recessionary pressures and the construction market is
expected to taper down since the end of 2016 Rio Olympics. Moreover, political instability in
Venezuela is adding pressure to the economic growth of the region. However, growth in Chile,
Colombia, Mexico, and Peru acts as catalysts for overall market growth in the region.
• In August 2018, Mexico renegotiated a deal and entered into a bilateral trade agreement with the
United States, which is expected to drive the economy of Mexico and this will help in the development
of industrial construction in the country.
MED2-39 135
Russia
• Over 50% of Russia’s population lives in more than 50-year old housing blocks, developed during the
Soviet-era; approximately 75% of the population is urbanized, accounting for the immense housing
potential within the country.
• The government, however, has lowered its economic growth forecast to 1.4% for 2019 from
previously stated 2.2% as Russia plans to raise the VAT rate to 20.0% from 18.0% in 2019, which
could spur inflation and impact consumer spending.
• The Russian housing market has faced significant pressures due to over supply in the past. The
situation has aggravated since the recession of 2015-2016, partially, owing to the drop in oil prices.
The market is expected to be stagnant despite the growth in oil prices, due to increasing VAT by the
Russian government.
• The renovation of housing blocks is being considered to be a growth opportunity for the prefabricated
and modular buildings market, as the government seeks affordable solutions to refurbish these
houses in a short span of time.
MED2-39 136
Turkey
• The Turkish Lira lost one-third of its value in August 2018. The Lira has lost approximately 76% of its
value against the USD since January 2018, leading to a currency crisis in the country.
• High inflation levels have forced the Central Bank to enforce high interest rates; this, in turn, is forcing
debt-driven private companies to bankruptcy and simultaneously decreasing the demand for real
estate in the country.
• Turkey has approximately 2 million unsold houses, with a backlog worth three times the average new
housing sales. The slump in the economy and real-estate sector does not augur well for the growth of
the prefabricated and modular building market in short-medium terms. However, the economy might
grow in the long term with greater co-operation from the European Union and increased political
stability.
• The only positive in the real-estate sector for Turkey is foreign investment owing to the opportunity
provided by the devalued Turkish Lira to the foreign investors. The investors are getting properties at
a cheaper rate.
MED2-39 137
Rest of the World—Percent Unit Shipment Forecast by
Frame Type
Key Takeaway: Panel system frame type usage is more prominent as the region focuses more on
relocatable construction; also, because simpler frame types are easier to dismantle and reinstall.
Combined Skeletal Combined Skeletal
Systems Systems Systems Systems
5.2% 15.3% 4.7% 15.2%
Cellular
Cellular Systems
Systems
34.4%
34.3%
Panel
Panel Systems
Systems 45.6%
45.2%
Note: All figures are rounded. The base year is 2018. Frost & Sullivan
MED2-39 138
Rest of the World—Percent Unit Shipment Forecast
Discussion by Frame Type
• The prefabricated residential market is a nascent market in majority of the region and is focused more
towards non-permanent applications. As a result, there is higher preference for panel and skeletal
system frame types.
• As the residential applications for prefabricated and modular buildings is lesser in this region, the usage
of cellular frame types is lower when compared with the global usage.
• However, the residential applications are expected to increase in the future and this is expected to drive
the usage of cellular, combined, and panel frame types.
MED2-39 139
Material Type
Key Takeaway: The market in the rest of the world prefers using traditional materials for
manufacturing prefabricated and modular buildings.
Others Others
5.7% Wood 5.2% Wood
20.3% 20.4%
Plastics & Plastics &

Composites Composites
28.5% 28.9%
Concrete
Concrete
22.1%
22.2%
Steel
Steel 23.4%
23.3% *Others include mineral w ool, fiberglass, dryw all
MED2-39 140
• Steel is a preferred prefabrication material in the Middle East along with composite and plastic materials.
Steel acts as a frame for buildings with the walls, roofs, and floors made of plastics and composites and
windows comprising aluminum composites. Kirby Building Systems is one of the pioneers in
pre-engineered steel building systems and has a significant presence in the Middle-East and is a
subsidiary of Al-Ghanim Industries, a construction conglomerate in the region. Kirby has manufacturing
facilities in Kuwait as well as Ras-Al-Khaimah.
• Modular buildings in Latin America are primarily used for commercial spaces and utilize materials such
as steel and composites.
• Wood is utilized in countries such as Peru (a seismic zone) and Russia, which is prone to cold climatic
conditions.
MED2-39 141
End Use Application
Key Takeaway: Non-residential applications dominate the prefabrication construction in the region,
as residential applications still prefer traditional construction techniques.
Percent Unit Shipment by End use Application, Percent Unit Shipment Forecast by End Use
Rest of the World, 2018 Application, Rest of the World, 2025
27.4% 27.7%
Non- Non-
72.6% 72.3%
MED2-39 142
Discussion by End Use Application
• The non-residential construction accounts for a major portion of prefabricated buildings in the region,
with a major utilization in hospitals, schools, offices, showrooms, and warehouses.
• There is low penetration for prefabrication and modularization in residential construction, as most
customers perceive modular buildings as lightweight and less sturdy when compared to on-site
construction. Additionally, the labor cost in Latin America and the Middle East is significantly lower
when compared with the developed regions of North America and Europe, leading to higher
affordability of on-site construction for residential applications.
• However, awareness about the prefabricated buildings is expected to increase amongst end users,
which will lead to higher adoption of prefabrication and modularization in residential applications over
the forecast period.
MED2-39 143
Rest of the World—Competitive Environment
Modular and Prefabricated Buildings Market: Competitive Structure, Rest of the World, 2018

Market
Competitive Factors Design support, better turnaround time, ease of installation, cost
effectiveness, and energy efficiency
Notable Market Participants Bouygues Construction and Bluescope Steel
Other Important Market Everest Industries, Shangdoong Group, Kirby Building Systems, Katerra,
Participants Palomar Modular, Julius Berger, and Zamil Steel Buildings
MED2-39 144
The Last Word
Return to contents
MED2-39 145
The Last Word—3 Big Predictions
The modular and prefabricated building market is expected to grow on the basis of
1 lesser labor being utilized and the faster meeting of deadlines leading to cost benefits
when compared with on-site construction.
High growth is expected in the residential applications especially from Asia-Pacific

2 and the Middle East, which have been traditionally been using modular and
prefabricated construction in non-residential applications.
There is increasing focus on the use of sustainable materials which emit less
3 carbon-dioxide and are also recyclable, thus addressing a circular economy in the
construction industry.
MED2-39 146
Legal Disclaimer
Frost & Sullivan is not responsible for any incorrect information supplied to us by
manufacturers or users. Quantitative market information is based primarily on interviews and
therefore is subject to fluctuation. Frost & Sullivan research services are limited publications
containing valuable market information provided to a select group of customers. Our
customers acknowledge, when ordering or downloading, that Frost & Sullivan research
services are for customers’ internal use and not for general publication or disclosure to third
parties. No part of this research service may be given, lent, resold or disclosed to
noncustomers without written permission. Furthermore, no part may be reproduced, stored in
a retrieval system, or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise, without the permission of the publisher.
For information regarding permission, write to:

Frost & Sullivan
3211 Scott Blvd, Suite 203
Santa Clara, CA 95054
© 2019 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan.
No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
MED2-39 147
Impact of COVID-19 on the Global Modular and
Prefabricated Building Market
Return to contents
MED2-39 148
Impact of COVID-19 on the Modular and Prefabricated
Building Market
• This addendum to the modular and prefabricated
building market report discusses the impact of the
pandemic and the current and future opportunities. How will the pandemic affect the prefab market?
• The pandemic-induced lockdowns led to closure of Lack of labor for on-site
construction projects. The ensuing lack of labor or construction Two good reasons for
building materials slowed down projects, created
Skilled labor from other developing a prefab
productivity challenges and caused a significant
industries (e.g., auto market
disruption in the global construction industry.
assembly) being made
• The overall growth of the construction industry will
redundant and needing
slow down during the medium term of the forecast. Several design initiatives
new career opportunities
However, the demand for modular and prefabricated are being developed by
buildings will continue to grow, as developers architects in response to
incorporate modular and prefab technologies to speed The type of buildings we
want to be in, will change our changing views,
up projects. which could create
after Covid.…*
• The insight covers the global modular and opportunities for prefab.
prefabricated building market, with a base year of
2019 and a forecast period from 2019 to 2026. … However, much of China is focused on
the government stimulus infrastructure stimulus.
• Market revenue is measured in US dollars.
money could go to UK is likely to focus on
• We have assumed two forecast scenarios, aspirational reinvestment in schools.
projects where prefab is
and conservative, depending on the time frame by
less relevant. Residential housing will
which the pandemic will be contained and production
will return to pre-COVID-19 levels. be one of the hardest-hit
segments of
• This study presents an assessment of the current construction.
status and the future prospects for the global modular
and prefabricated building market.
Sources: *‘How the Coronavirus Will Reshape Architecture,’ The New Yorker, June 17, 2020; Frost & Sullivan
MED2-39 149
Key Forecast Criteria
• Frost & Sullivan’s forecasts are the weighted average of the impact COVID-19 has on key market
trends. It is assumed that growth rates are likely to be affected by the following risks:
o Currency: Market size is in US dollars. Actual market revenue will vary with the relative value of the
US dollar.
o Economy: Frost & Sullivan forecasts are predicated on a global economic recovery as well as
existing economic conditions. Persistent fragility may have a negative impact on the market.
o COVID-19 Containment: Frost & Sullivan has assumed aspirational and conservative scenarios for
COVID-19 containment. In the aspirational scenario, we have assumed the COVID-19 virus will be
contained by early 2021 and businesses will resume operations at full capacity by Q2 2021. In the
conservative scenario, the COVID-19 virus is expected to be contained by Q2 2021 and businesses
will resume operations at full capacity by Q3 2021.
MED2-39 150
Global GDP from Construction Forecast
The construction industry will be greatly impacted by the significant disruption to global economic
activity, which is likely to eventually result in considerable reduction in investment, in addition to
stalling or delaying of planned projects between 2020 and 2021.
GDP from Construction ($ Billion), Global, 2016–2026

CAGR, 2019–2026: Pre-COVID-19=3.5%; Aspirational=1.1%; Conservative=(1.1%)
18,000
16,000
14,000
12,000
$ Billion
10,000
8,000
6,000
4,000
2,000
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Year
Pre-Covid-19 Aspirational Scenario Conservative Scenario

Note: All figures are rounded. The base year is 2019, Source: World Bank; IMF; Frost & Sullivan
MED2-39 151
Global Construction Industry Trends
• As of December 2019, the US had procured about 30% of its construction material from China, with
some firms dependent on China for up to 80% of their construction materials. Production is expected to
pick up pace by early 2021, following China opening up businesses by August 2020.
• Global supply-chain disruption rendered US contractors unable to execute projects that were either
planned or underway already. The construction of residential buildings will be severely affected, with
even non-residential building construction firms seeing revenue losses of 15% to 25% over the next few
months.
• Construction activity in Europe showed signs of a decline as early as February 2020, with construction
output decreasing by 0.9% year-over-year the same month, despite an increase of 6.9% in January
2020.
o Building construction activity, in particular, dropped 1.9% in February, in contrast to a 5.4% rise in
January 2020.
• By March 2020, construction activities in Europe had declined by 60% to 70%. After the lockdown was
lifted in phases, construction picked up sharply in May 2020 with a month-over-month increase of
21.2%.
• In India, despite the very many adverse effects the pandemic has had on the economy, construction
activities resumed in July 2020, as the lockdown was lifted to boost economic activities.
MED2-39 152
Forecast Scenarios
The COVID-19 pandemic has disrupted a number of businesses, particularly the prefabricated
building manufacturing for residential and non-healthcare commercial applications, which in turn
affects the construction activities for these end-user markets, leading to lower construction output.
Total Modular and Prefabricated Building Market ($ Billion), Global, 2016–2026
CAGR, 2019-2026: Pre-COVID-19=6.3%; Aspirational Scenario=3.9%; Conservative Scenario=2.1%
250
200
$ Billion
150
100
50
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Year
Pre-Covid-19 Aspirational Scenario Conservative Scenario
Note: All figures are rounded. The base year is 2019, Source: Frost & Sullivan
MED2-39 153
Post-COVID-19 Forecast Scenario Discussion
• Should COVID-19 be contained by early 2021 and global markets recover by Q2 2021, the market will
generate $141.5 billion in 2020 and grow at a CAGR of 3.9% until 2026. However, the conservative
forecast anticipates normal by Q3 2021; under this scenario, the market will generate about
$134.1 billion in 2020 and grow at a CAGR of 2.1% until 2026.
• The growing number of COVID-19 patients and the demand for healthcare facilities to treat the virus will
drive the demand for modular and prefabricated buildings. The need for dedicated medical facilities that
can be set up in weeks has led widespread adoption of modular and prefabricated construction practices.
• After the virus is contained and economies reopen, modular and prefabricated construction will pick up
pace alongside general construction activities across the world. Project developers are also likely to
prefer modular and prefabricated construction over traditional general construction in the future.
• The use of modular and prefabricated construction just might help close the labor gap and speed up the
construction pipelines affected by the lockdowns.
• Construction companies have started using more prefabricated boxes or modules that are manufactured
in a factory and later assembled on site. Majority of these modules come with pre-fitted interiors and just
require onsite installation leading to reduced construction turnaround time.
MED2-39 154
Prefab Case Studies
Prefabricated Prefabricated Hospitals Nightingale

Hospital, Developed by CEMEX, Hospitals, UK
Wuhan, China Mexico
In January 2020, the city of CEMEX, a Mexican To fight the pandemic, the UK
Wuhan, the epicenter of the manufacturer and supplier of government refurbished
COVID-19 outbreak, building materials realized the exhibition centers and
constructed a 25,000-square- critical need for hospitals in converted them into
meter–1,000-bed hospital in a the country and developed ‘Nightingale’ hospitals. These
matter of two weeks using prefabricated hospitals. The hospitals added thousands of
prefabricated modules. The idea for creating prefab beds to care for COVID-19
use of automation tools and hospitals was born from the patients. They were
Building Information Modeling need to develop subsidized developed using modular and
helped in rapid design and prefab housing for employees prefabricated technologies
construction of the facility. working on remote sites. The and within a period of two
company automated design weeks.
and manufacturing processes
and built 6 mobile hospitals
using anti-bacterial prefab
concrete in 15 days by April
2020.
MED2-39 155
Prefab Case Studies (continued)
Real Estate Avenue South

Projects, Tesla Factory, Germany Residences Project,
Mumbai, India Singapore
Large construction project Tesla is utilizing prefabricated Singapore-based ADDP

developers have been construction techniques to set Architects is using
deploying prefabricated up its Giga factory in Berlin, Prefabricated Prefinished
structures in Mumbai, as the Germany. The project for Volumetric to develop two
pandemic-induced lockdowns setting up the factory began in high-rise towers of 56 storeys.
led to restricted movement of January 2020, and despite This building is touted to be
labor and building materials. the pause in construction, the the tallest prefabricated
With the construction project factory is expected to be structure in the world. 80% of
pipeline in a limbo, completed in time to start the construction is being
prefabricated elements are production by Q2 2021. developed off site and
expected to overcome the assembled on site. The
productivity challenges project is expected to be
created by the virus outbreak. completed by 2026.
MED2-39 156
Companies to Action and Growth Opportunities
Return to contents
MED2-39 157
Growth Opportunity 1—Labor Shortage Because of the
Pandemic
Frost & Sullivan has identified 10 key Growth Opportunity Levers to determine and evaluate Growth
Opportunity Options in terms of relevancy to a given company and its current capabilities. These represent
specific focus areas or strategic business initiatives that can be tailored and leveraged to drive growth for
your company in this market.
Geographic Vertical Market

Expansion Expansion
Vision Research &
Growth Transformation Development
Distribution Strategic
Opportunity Channel Partnering
Levers Megatrends Current
Impact Offerings
Merger & Business
Acquisition Models
Applicable Segments Applicable Regions

Modular and Prefabricated Building Markets Global
MED2-39 158
Growth Opportunity 1—Labor Shortage Because of the
Pandemic (continued)
Context and Definition Call to Action

• The COVID-19 pandemic has slowed down the • Focus on broadening capabilities and
construction industry considerably and has introducing ‘design for manufacturing and
affected the construction labor force to a very assembly’ into current construction techniques.
large extent.
• Use automation tools such as Building
• The dearth of skilled labor will encourage Information Modeling (BIM) Systems to speed
developers to incorporate elements from up design and approval processes for faster
modular and prefabricated construction to arrival at construction phase.
speed up construction productivity.
• Establish strong relationships with raw material
• This trend is already being observed in the suppliers and distribution partners to arrive at
emerging construction markets, particularly optimal prices for products.
Latin America and India.
• Focus on developing sustainable manufacturing
o The residential market in India is governed by practices to meet greater regulatory
strict completion regulations, and builders are compliances.
using faster construction methods to complete
projects within timelines.
MED2-39 159
Growth Opportunity 2—Demand from the Healthcare
Industry
Frost & Sullivan has identified 10 key Growth Opportunity Levers to determine and evaluate Growth
Opportunity Options in terms of relevancy to a given company and its current capabilities. These represent
specific focus areas or strategic business initiatives that can be tailored and leveraged to drive growth for
your company in this market.
Geographic Vertical Market

Expansion Expansion
Vision Research &
Growth Transformation Development
Distribution Strategic
Opportunity Channel Partnering
Levers Megatrends Current
Impact Offerings
Merger & Business
Acquisition Models
Applicable Segments Applicable Regions

Modular and Prefabricated Building Markets Global
MED2-39 160
Growth Opportunity 2—Demand from the Healthcare
Industry (continued)
Context and Definition Call to Action

• The growing number of COVID-19 patients has • Establish manufacturing facilities in the
overwhelmed hospitals and health care COVID-19 countries to enable economical local
providers. production. This will build brad and lead to
long-term modular and prefab projects in the
• Shortage of beds and medical resources has region.
led to the demand for temporary healthcare
facilities which are being set up in large areas; • Utilize existing resources and competencies, as
in Indian and Brazil, they are being called ‘ in the case of CEMEX, for faster design
Jumbo COVID Centers.’ approvals and rapid construction of COVID-19
healthcare facilities.
• Higher use of prefabrication was observed even
in the COVID-19 hospitals in developed • Establish strong relationships with contractors
markets, such as the UK and the US. and distribution partners to ensure long-term
customer retention.
• There is a growing need for faster construction
and quicker turnarounds in the construction of
such facilities, typically weeks.
MED2-39 161
Appendix
Return to contents
MED2-39 162
Market Engineering Methodology
One of Frost & Sullivan’s core

deliverables is its Market Engineering
studies. They are based on our
proprietary Market Engineering
Methodology. This approach, developed
across the 50 years of experience
assessing global markets, applies
engineering rigor to the often nebulous art
of market forecasting and interpretation.
A detailed description of the methodology

can be found here.
MED2-39 163
Abbreviations and Acronyms Used
ACP Aluminum Composite Panel
BIM Building Information Management
CE European Conformity
CLT Cross Laminated Timber
CPEC China-Pakistan Economic Corridor
DfMA Design for Manufacturing and Assembly
EU European Union
FDI Foreign Direct Investment
JEC Jazan Economic City
KAEC King Abdullah Economic City
KSA Kingdom of Saudi Arabia
MED2-39 164
Abbreviations and Acronyms Used (continued)
nZEB nearly Zero Energy Building
PVC Ply Vinyl Chloride
RCC Reinforced Cement Concrete
SIP Structural Insulated Panel
VAT Value Added Tax
WPC Wood Plastic Composite
MED2-39 165
List of Exhibits
Exhibit Slide Number

Total Modular and Prefabricated Buildings Market: Market Engineering Measurements, Global, 2018 14
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment by Region, Global, 2018 23
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment Forecast by Region,
23
Global, 2025
Total Modular and Prefabricated Buildings Market: Percent Revenue by Region, Global, 2018 24
Total Modular and Prefabricated Buildings Market: Percent Revenue Forecast by Region, Global, 2025 24
Total Modular and Prefabricated Buildings Market: Key Market Drivers, Global, 2019–2025 26
Modular and Prefabricated Buildings Market: Average Carbon-dioxide Emissions For Building Materials In
30
Tonnes, Global, 2018
Total Modular and Prefabricated Buildings Market: Key Market Restraints, Global, 2019–2025 31
Total Modular and Prefabricated Buildings Market: Market Engineering Measurements, Global, 2018 37
Total Modular and Prefabricated Buildings Market: Unit Shipment and Revenue Forecast,
39
Global, 2015–2025
Total Modular and Prefabricated Buildings Market: Average Price, Global, 2015–2025 41
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment by Region, Global, 2018 43
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment Forecast by Region,
43
Global, 2025
Total Modular and Prefabricated Buildings Market: Unit Shipment Forecast by Region, Global, 2015–2025 44
Total Modular and Prefabricated Buildings Market: Percent Revenue by Region, Global, 2018 45
Total Modular and Prefabricated Buildings Market: Percent Revenue Forecast by Region, Global, 2025 45
MED2-39 166
List of Exhibits (continued)

Total Modular and Prefabricated Buildings Market: Revenue Forecast by Region, Global, 2015–2025 46
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment by Construction Type,
48
Global, 2018
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment Forecast by Construction Type,
48
Global, 2025
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment by Frame Type, Global, 2018 50
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment Forecast by Frame Type,
50
Global, 2025
Total Modular and Prefabricated Buildings Market: Key Materials Comparison, Global, 2018 52
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment by Material Type, Global, 2018 53
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment Forecast by Material Type,
53
Global, 2025
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment by Sub-type—Wood,
55
Global, 2018
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment Forecast by Sub-type—Wood,
55
Global, 2025
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment by Sub-type—Steel,
57
Global, 2018
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment Forecast by Sub-type—Steel,
57
Global, 2025
Total Modular and Prefabricated Buildings Market: Steel Applications in Buildings by Sub-type,
58
Global, 2018–2025
MED2-39 167

Total Modular and Prefabricated Buildings Market: Percent Unit Shipment by Sub-type—Concrete,
59
Global, 2018
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment Forecast by Sub-type—
59
Concrete, Global, 2025
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment by Sub-type—Composites &
61
Plastics, Global, 2018
Total Modular and Prefabricated Buildings Market: Percent Unit Shipment Forecast by
61
Sub-type—Composites & Plastics, Global, 2025
Total Modular and Prefabricated Buildings Market: Value Chain, Global, 2018 64
Total Modular and Prefabricated Buildings Market: Regulations, Global, 2018 69
Total Modular and Prefabricated Buildings Market: Dynamic SWOT Analysis, Global, 2018 70
Total Modular and Prefabricated Buildings Market: Percent Revenue by Participant, Global, 2018 72
Total Modular and Prefabricated Buildings Market: Competitive Structure, Global, 2018 73
Total Modular and Prefabricated Buildings Market: Notable Mergers & Acquisitions, Global, 2017–2019 74
Modular and Prefabricated Buildings Market: Market Engineering Measurements, North America, 2018 82
83
North America, 2015–2025
Modular and Prefabricated Buildings Market: Percent Revenue by Country, North America, 2018 85
Modular and Prefabricated Buildings Market: Percent Revenue Forecast by Country, North America, 2025 85
Modular and Prefabricated Buildings Market: Percent Unit shipment by Frame Type, North America, 2018 88
MED2-39 168

Modular and Prefabricated Buildings Market: Percent Unit shipment Forecast by Frame Type,
88
North America, 2025
Modular and Prefabricated Buildings Market: Percent Unit shipment by Material Type, North America, 2018 90
Modular and Prefabricated Buildings Market: Percent Unit shipment Forecast by Material Type,
90
North America, 2025
Modular and Prefabricated Buildings Market: Percent Unit shipment by End User Application,
92
North America, 2018
Modular and Prefabricated Buildings Market: Percent Unit shipment Forecast by End User Application,
92
North America, 2025
Modular and Prefabricated Buildings Market: Competitive Structure, North America 94
Modular and Prefabricated Buildings Market: Market Engineering Measurements, Europe, 2018 97
Modular and Prefabricated Buildings Market: Unit Shipment and Revenue Forecast, Europe, 2015–2025 98
Modular and Prefabricated Buildings Market: Percent Revenue by Sub-region, Europe, 2018 100
Modular and Prefabricated Buildings Market: Percent Revenue Forecast by Sub-region, Europe, 2025 100
Modular and Prefabricated Buildings Market: Percent Unit shipment by Frame Type, Europe, 2018 103
Modular and Prefabricated Buildings Market: Percent Unit shipment Forecast by Frame Type, Europe, 2025 103
Modular and Prefabricated Buildings Market: Percent Unit shipment by Material Type, Europe, 2018 105
105
Europe, 2025
Modular and Prefabricated Buildings Market: Percent Unit shipment Forecast by End Use Application,
107
Europe, 2025
MED2-39 169

Modular and Prefabricated Buildings Market: Percent Unit shipment by End Application, Europe, 2018 107
Modular and Prefabricated Buildings Market: Competitive Structure, Europe, 2018 109
Modular and Prefabricated Buildings Market: Market Engineering Measurements, Asia-Pacific, 2018 112
Modular and Prefabricated Buildings Market: Unit Shipment and Revenue Forecast, Asia-Pacific,
113
2015–2025
Modular and Prefabricated Buildings Market: Percent Revenue by Country, Asia-Pacific, 2018 115
Modular and Prefabricated Buildings Market: Percent Revenue Forecast by Country, Asia-Pacific, 2025 115
Modular and Prefabricated Buildings Market: Percent Unit shipment by Frame Type, Asia-Pacific, 2018 121
121
Asia-Pacific, 2025
Modular and Prefabricated Buildings Market: Percent Unit shipment by Material Type, Asia-Pacific, 2018 123
123
Asia-Pacific, 2025
Modular and Prefabricated Buildings Market: Percent unit shipment by End Use Application,
125
Asia-Pacific, 2018
Modular and Prefabricated Buildings Market: Percent unit shipment Forecast by End Use Application,
125
Asia-Pacific, 2025
Modular and Prefabricated Buildings Market: Competitive Structure, Asia-Pacific, 2018 127
Modular and Prefabricated Buildings Market: Market Engineering Measurements, Rest of the World, 2018 130
Modular and Prefabricated Buildings Market: Unit Shipment and Revenue Forecast, Rest of the World,
131
2015–2025
MED2-39 170

Modular and Prefabricated Buildings Market: Percent Revenue by Sub-region, Rest of the World, 2018 133
Modular and Prefabricated Buildings Market: Percent Revenue Forecast by Sub-region,
133
Modular and Prefabricated Buildings Market: Percent Unit shipment by Frame Type,
138
138
Modular and Prefabricated Buildings Market: Percent Unit shipment by Material Type,
140
140
Modular and Prefabricated Buildings Market: Percent Unit Shipment by End use Application,
142
Modular and Prefabricated Buildings Market: Percent Unit Shipment Forecast by End Use Application,
142
Modular and Prefabricated Buildings Market: Competitive Structure, Rest of the World, 2018 144
GDP from Construction ($ Billion), Global, 2016–2026 151
Total Modular and Prefabricated Building Market ($ Billion), Global, 2016–2026 153
MED2-39 171

Frost and Sullivan - Prefab Market

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Frost and Sullivan - Prefab Market

Uploaded by

Copyright:

Available Formats

Global Modular and Prefabricated Buildings Market,

Global Visionary Science Research Team at Frost & Sullivan

Section Slide Number

Section Slide Number

Section Slide Number

Section Slide Number

Section Slide Number

Section Slide Number

Section Slide Number

Section Slide Number

Section Slide Number

Source: Frost & Sullivan

• The market is fragmented with • The recovering economies of

Growth $140.44 B 3.70 B Sq.ft $38.0/Sq.ft $215.01 B

(2018) (2018) (2018) (2025)

Base Year Compound Degree of

6.0% 6.3% 5.5 7 ~26–33%

Decreasing Stable Increasing For a tabular version, click here

Competitor Overview Industry Advancement

Decreasing Stable Increasing

High economic growth in Asia-Pacific and the Middle East

The industry is expected to experience consolidation with

Increased delay in construction timelines and demand for

Establishing a sustainable construction practice is a key

The market is fragmented with several regional and smaller

• Prefabricated building systems are structures and

The following regions are covered in this study:

North America: The United States

Source: Frost & Sullivan

• The various segments considered in the study are as follows:

Modular and Prefabricated Buildings

Construction Type Material Type Frame Type End-Use Applications

Wood Steel Concrete Plastics & Composites

*Other plastics include polystyrene, polyurethane, and phenolic foams.

Asia-Pacific Asia Pacific

Drivers 1–2 Years 3–4 Years 5–7 Years

Impact Ratings: H = High, M/H = Medium/High, M = Medium, L/M = Low/Medium, L = Low

Source: Frost & Sullivan

Prefabricated Building Project Schedule

Movement of the Healthcare Industry Towards Community-friendly Services Drives Adoption of

Source: Frost & Sullivan

Source: Federation of Master Builders (UK); Frost & Sullivan

Modular and Prefabricated

Average CO2 emissions

Restraints 1–2 Years 3–4 Years 5–7 Years

Design rigidity leads to lower adoption of prefabricated

There is a lack of skilled labor to manufacture

Impact Ratings: H = High, M/H = Medium/High, M = Medium, L/M = Low/Medium, L = Low

Source: Frost & Sullivan

Design Rigidity Leads to Lower Adoption of Prefabricated Buildings

Source: Frost & Sullivan

There is a Lack of Skilled Labor to Manufacture Prefabricated Materials in Developing Regions

• Prefabricated buildings are typically manufactured in a factory-automated environment. Operating the

Source: Frost & Sullivan

• Increasing global environmental awareness related Important Market Characteristics

prefabricated buildings market attractive compared Demand for

Market stage Growth –

Market revenue (2018) $140.44 B ▲

Market units/volume (2018) 3.70 B sq.ft ▲

Average price per unit (2018) $38.0/sq.ft ▲

Market size for last year of study period (2025) $215.01 B ▲

Base year market growth rate (Revenue) 6.0% ▲

Compound annual growth rate (CAGR, 2018–2025) (Revenue) 6.3% –