Prefabricated Homes Market

Prefabricated Homes Market Outlook (2022-2032)

There is a growing consensus about home ownership among people living in developing countries. This is because they are attracted to the ability to raise funds quickly from banks and other financial institutions. This has led builders and architects to look for options to build homes faster and cheaper to fit their clients' budgets. One of his popular options that stands out in Combat is a prefabricated house. These are known as "modular homes", "prefabricated homes" or "prefabricated homes", they are manufactured at one location and then transported to a destination location.

These homes are usually faster to build and even cheaper than major ‘stick brick homes, thus making them an option of choice for many people. The less time required in manufacturing and ease of shifting is among the foremost factors driving the demand for prefabricated homes.

The global prefabricated homes market valuation is USD 149.52 Billion in 2022. The market is further expected to surpass a valuation of USD 288.68 Billion by end of 2032. The industry is anticipated to grow with a CAGR of 6.8% in the forecast period.

Report Attributes	Details
Market size (2022 A)	USD 149.52 Billion
Base Year for Estimation	2022
Forecast duration for this research	2022-2032
Forecasted Market value (2032 F)	USD 288.68 Billion
Global Market Growth rate (2022-2032 E)	CAGR of 6.8%
Key Companies Profiled	Champion Home Builders, Inc. Deltec Homes Lindal Cedar Homes, Inc Wisconsin Log Homes, Inc Cavco Industries Inc. Clayton Homes. Inc.

What are the drivers of the prefabricated homes market?

Prefabricated homes offer a quick, affordable path to owning a home. The added benefit of building a prefabricated home is material used is generally more sustainable than conventional materials used to build houses. Prefabricated homes also have the benefit that they can either be built completely and then transported or different panels can be transported to the site to be attached later.

Some of the prefabricated homes can even move, like containers are fitted with wheels’ can be taken from one place to another. Innovation carried out in building a prefabricated home is in the vertical of base material used, thermal insulation of walls, etc.

These innovations bring betterment in the final product thus making it more attractive for the customers. Thus, the ease of construction as well as utility has been augmenting the demand for prefabricated homes.

What restricts the prefabricated homes market?

The prefabricated building manufacturers are struggling with offsite manufacturing. The requirement for heavy investments is hindering market entrants. The companies find it difficult to gain stable growth. The manufacturers are facing issues with pre-planning and modularization procedures.

The extensive coordination of design and transportation are factors where manufacturers need more investment. The strategic preplanning manufacturing creates pressure for further planning and may affect market growth in the forecast period.

Segment wise Insights

“Steel-based prefabricated homes to stay at the top in terms of demand”

In terms of base materials used, the prefabricated homes market is categorized into wood, glass, steel, and others. Prefabricated homes are commonly divided into modular, panelized, pre-cut, shipping containers, and other types. Modular and panelized homes are generally constructed in pieces and assembled at the site.

Currently, these segments are most utilized while the market for shipping container-based prefabricated homes is showcasing a higher growth rate, with the ease in availability to build a home in it. Currently, prefabricated homes are largely built using steel as the base material, followed by glass. Other base materials can also be utilized significantly more in the future with the development of better alternatives coming into the fray.

Prefabricated homes which are fixed at a site hold the major share currently, although the movable prefabricated homes take large strides every passing year. The movable prefabricated homes add the benefits of reduced investment towards the land site, thus making them more liked by the millennial generation. This can also be confirmed by considering the rise in sales of shipping container-based prefabricated homes which are a type of movable prefabricated homes.

Based on the type of permanent modular construction expected to hold a major share in the market. This type of segment is anticipated to hold the fastest-growing segment in the building construction field. Temporary housing needs are likely to drive this segment’s market share. The trend of reuse and reprocessing have propelled the demand for prefabricated buildings. The time and cost efficiency associated with the segment are key impulses behind the major share gained by this market.

Competitive Landscape

The market of prefabricated homes market is consolidated in nature as only a few key companies operating in the construction industry hold the major share. The newer entrants are trying to capture the white space available through the development of better designs for prefabricated homes.

In the global market for prefabricated homes several developers, are primarily converging on developing advanced versions of homes. The companies engaged in the manufacturing and distribution of prefabricated homes are focused on expanding their business sustainability.

The companies like Red Sea Housing and Blu homes announced their merger in the field of manufacturing customized homes and layouts. As per the source these companies produce 40% of homes with technologies that ensure energy efficiency and features such as thermal insulation.

Recent developments

• In October 2022, Cavco announced the acquisition of Solitaire homes which included its manufacturing facilities and transportation operations. The merger is expected to bring mutual profit to both firms by expanding their manufacturing capacities and distribution network.
• In October 2022, the skyline champion honored with recognition for the industry leader position in the field of modular designs. This award is given for excellence in home designs and Marketing.

Regional Outlook

The USA in North America dominates the share in the prefabricated homes market owing to USD 20.2 Billion in 2021. The North American markets are anticipated to drive this industry owing to the rise in demand and the presence of major players. Europe is likely to get a major growth rate in the forecast period.

Germany is likely to dominate in the European region in forecast period. The market in Asia is anticipated to be led by China where it is likely to gain USD 38.2 Billion by 2026. China, Japan, and Canada are likely to gain the maximum share in the forecast period owing to growth in a cluster of the regional construction industry.

Asia Pacific is likely to gain a majority of share in this market as it is attributed to rising construction activities and demand in the commercial segment. Proactive government policies are promoting eco-friendly manufacturing which is likely to open opportunities for this market.

Prefabricated Homes Market : Segmentation

• By Material Type :

  • Wood
  • Glass
  • Steel

• By Type of Home : 

  • Modular
  • Penelised
  • Pre-cut
  • Shipping Container

• By Region :

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East & Africa (MEA)
  • Emerging Countries