Prefabricated Homes Market Expected to Reach $38.9 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Prefabricated Homes Market," The prefabricated homes market size was valued at $20.4 billion in 2022, and is estimated to reach $38.9 billion by 2032, growing at a CAGR of 6.7% from 2023 to 2032. In 2022, Asia-Pacific dominated the global prefabricated homes market, in terms of revenue and LAMEA is expected to grow at a highest CAGR during the forecast period.

Prefabricated homes encompass dwellings built in sections off-site, later transported and assembled at the final location. Constructed in a controlled factory environment, these homes utilize diverse materials such as steel, wood, or concrete for pre-made components such as walls, floors, and roofs. The streamlined manufacturing process ensures precision and quality, reducing construction time significantly compared to conventional methods. Offering flexibility in design, customization, and eco-friendly attributes, prefabricated homes maintain durability and cost-effectiveness. Skilled workers swiftly assemble these modular structures on-site, allowing for quicker occupancy and minimal environmental impact.

Benefits associated with prefabricated home construction products are easy to install, easy to transport, space constraints, and provide an aesthetic look. In addition, the manufacturers of prefabricated home construction have focused on business expansion and new projects as strategies to increase their prefabricated homes market share.

In December 2022, SG Blocks, Inc., a prominent company involved in developing, designing, and constructing modular buildings, disclosed today that it has finalized an agreement with a real estate investment firm to acquire approximately 25 acres in Denison, Texas. Upon completion of the transaction, SG Blocks is anticipated to become the exclusive owner of this property.

An increase in demand for prefabricated housing units, owing to reduction in construction cost & time and government initiative toward green building concept is predicted to cater to the  prefabricated homes market growth. Many competitors, architects, and builders have taken advantage of used shipping containers for building homes.

On the contrary, several players have expanded their business globally, owing to an augmented customer base, improved effective operations, expanded geographical reach, and developed product portfolio. For instance, In January 2023, the structures segment of ATCO Ltd. revealed its recent acquisition of Triple M Modular Housing, a prominent maker of factory-built housing located in Lethbridge, Alberta, in North America. Under ATCO Structures, Triple M is expected to function as a specialized housing division specifically within Canada.

In addition, many major players in the global prefabricated homes industry have offered solutions considering convenience factors to increase their sales. Governments across the globe increasingly recognize the importance of addressing housing challenges, affordability concerns, and sustainability goals. This recognition offers a significant opportunity for prefabricated home manufacturers and broader industry. Policies promoting affordable housing initiatives, coupled with incentives or subsidies directed toward sustainable and energy-efficient construction methods, can substantially bolster the demand for prefabricated homes. Government-backed programs that encourage or mandate the use of prefabricated construction in public housing projects, disaster relief efforts, or urban redevelopment schemes present a ripe opportunity for market expansion. All such factors are expected to offer lucrative opportunities for the market.

The prefabricated homes market is segmented on the basis of construction type, type, material, and region. On the basis of construction type, the market is bifurcated into single family, and multi-family. On the basis of type, the market is classified into permanent and relocatable.  On the basis of material, the market is classified into wood, concrete, and others. The wood segment generated the highest revenue in 2022.

Furthermore, surge in urbanization in the emerging markets, such as Indonesia, Nigeria, and China, is expected to boost spending for infrastructural sectors such as residential houses and commercial spaces. In addition, increased adoption of prefabricated home construction offers multiple advantages such as enhanced structural stability, rapid & quality construction, superior flexibility, improved wastage control, and less manpower requirement. All such instances are anticipated to provide lucrative opportunities for the growth of the prefabricated homes market.

On the basis of region, the prefabricated homes market forecast is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).

Key companies profiled in the prefabricated homes market analysis include Aakash Group, ATCO Ltd., Giant Containers, Inc., Honomobo Corporation Inc., Savills plc, SG Blocks, Inc., Skanska AB, Speed House Group of Companies Limited, Stillwater Dwellings, Inc. and Tempohousing B.V.

Key Findings of The Study

• The report provides an extensive analysis of the current and emerging global prefabricated homes market trends and dynamics.
• The report provides an extensive analysis of prefabricated homes market overview and segmentatiion.
• On the basis of construction type, the single family segment was the largest revenue generator in 2022.
• On the basis of type, the permanent segment was the largest revenue generator in 2022.
• On the basis of material, the wood segment generated the highest revenue in 2022.
• On the basis of region, Asia-Pacific is anticipated to dominate the global prefabricated homes market throughout the study period.