Prefabricated Building and Structural Steel Market

Global Prefabricated Building and Structural Steel Market:

The global prefabricated building and structural steel market size reached US$ 235.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 381.8 Billion by 2032, exhibiting a growth rate (CAGR) of 5.4% during 2024-2032. The growing demand for modular construction, rapid urbanization, sustainability and green building practices, ongoing technological advancements, and the surging popularity of high-rise steel buildings are primarily driving the market’s growth.

Prefabricated Building and Structural Steel Market Analysis:

• Major Market Drivers: Significant growth in the construction industry, an increase in infrastructural activities, and technological advancements in the construction process represent some of the key factors positively influencing the market. In addition, rising awareness among individuals about the benefits of using prefabricated material and structural steel, such as flexibility, durability, energy efficiency, and faster completion, is creating a positive outlook for the market.
• Key Market Trends: The shifting focus toward waste management and minimizing harmful emissions is increasing the adoption of green building practices, which, in turn, is driving the demand for these materials. Moreover, the growing traction of smart cities is catalyzing the need for prefabricated buildings and structural steel, which is expected to propel the market demand.
• Competitive Landscape: The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market companies have also been provided.
• Geographical Trends: According to the prefabricated building and structural steel market dynamics, Asia Pacific currently dominates the overall market. The region is home to some of the world’s most rapidly urbanizing countries, such as China, India, Indonesia, Vietnam, etc. As populations in these regions grow and shift toward urban centers, there is a rising demand for residential, commercial, and industrial buildings. Prefabricated buildings and structural steel solutions offer faster construction times, making them ideal for meeting the increasing demand for housing and infrastructure in densely populated urban areas.
• Challenges and Opportunities: High initial costs associated with prefabricated construction and structural steel solutions and a shortage of skilled labor are hampering the market’s growth. However, the increasing need for affordable housing, particularly in urban areas of developing countries, offers a huge opportunity for the prefabricated building market.

Prefabricated Building and Structural Steel Market Trends:

Rising Demand for Modular Construction

Modular construction, a subset of prefabrication, is gaining traction due to its ability to deliver high-quality, factory-built components that can be rapidly assembled on-site. For instance, according to IMARC, the global modular construction market size reached US$ 86.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 137.2 Billion by 2032, exhibiting a growth rate (CAGR) of 5.2% during 2024-2032. Structural steel is also frequently used in modular construction because of its durability, flexibility, and high strength-to-weight ratio. These factors are expected to propel the prefabricated building and structural steel market share in the coming years.

Shortage of Workforce in the Construction Industry

Many regions across the globe are facing skilled labor shortages in the construction industry. For instance, according to CNBC, the construction industry is approximately 650,000 workers short of what it requires to complete assignments on time. Similarly, according to Statista, in 2023, the average shortage ratio of skilled construction workers in Japan stood at 1.4%. Prefabrication reduces the dependence on skilled labor by shifting much of the work off-site, further encouraging the market growth. These factors further positively influence the prefabricated building and structural steel market forecast.

Surging Smart Cities Initiatives

The concept of smart cities is gaining traction worldwide, especially in urbanized regions. Moreover, the government of various economies are spending significantly on smart city initiatives. For instance, according to Statista, in fiscal year 2022, expenditure on the Smart City Mission in India was approximately INR 53 billion, and it is expected to exceed INR 68 billion in fiscal year 2023. Prefabricated buildings and structural steel frameworks are well-suited to meet these demands as they can be easily adapted to smart building technologies such as energy-efficient designs, renewable energy integration, and advanced construction methods, thereby boosting the prefabricated building and structural steel market revenue.

Global Prefabricated Building and Structural Steel Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global prefabricated building and structural steel market report, along with forecasts at the global and regional levels from 2024-2032. Our report has categorized the market based on component and end-use sector. 

Breakup by Component:

• Prefabricated Building
  • Floors and Roofs
  • Walls
  • Staircase
  • Panels and Lintels
  • Others
• Structural Steel
  • H-Type Beam
  • Columns
  • I-Type Beam
  • Angles
  • Others
     

Floors and roofs dominate the prefabricated building market whereas H-type beams currently exhibit the largest share of structural steel market 

The report has provided a detailed breakup and analysis of the prefabricated building and structural steel market based on the component. This includes prefabricated buildings (floors and roofs, walls, staircase, panels and lintels, and others), and structural steel (H-type beam, columns, I-type beam, angles, and others). According to the report, floors and roofs dominate the prefabricated building market whereas H-type beams currently exhibit the largest share of the structural steel market.

According to the prefabricated building and structural steel market outlook, floors and roofs are often designed in standardized modules that can be easily prefabricated off-site and assembled on-site, making the process faster and more efficient compared to traditional construction methods. Moreover, prefabricated floors and roofs provide structural stability and can be customized to fit different building designs, whether for residential, commercial, or industrial projects. Furthermore, H-type beams are designed with wide flanges, which distribute loads more evenly across the structure. This gives them a higher load-bearing capacity compared to other steel beams like I-beams, making them ideal for applications where heavy loads are involved, such as high-rise buildings, bridges, and industrial structures.

Breakup by End-Use Sector:

• Residential
• Institutional
• Commercial
• Industrial
   

The report has provided a detailed breakup and analysis of the prefabricated building and structural steel market based on the end-use sector. This includes residential, institutional, commercial, and industrial.

According to the prefabricated building and structural steel market overview, with increasing urbanization, particularly in emerging markets, there is a growing demand for affordable housing. Prefabricated buildings offer a solution by providing cost-effective and quick construction methods, further driving the demand in the residential sector. Moreover, prefabricated buildings are commonly used in the construction of classrooms, administrative buildings, and student housing for schools and universities. Prefabrication offers the ability to quickly assemble temporary or permanent structures, particularly in remote locations or in response to rapid population growth. Besides this, structural steel is the dominant material used in the construction of commercial high-rise office towers due to its ability to support tall structures with minimal columns.

Breakup by Region:

• Asia Pacific
• North America
• Europe
• Middle East and Africa
• Latin America
   

Asia Pacific currently dominates the global market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America, Asia Pacific, Europe, Middle East and Africa, and Latin America. According to the report, Asia Pacific currently dominates the global market.

According to the prefabricated building and structural steel market statistics, the Asia-Pacific region is undergoing rapid urbanization as populations move to cities in search of better economic opportunities. This has created a substantial demand for housing, commercial buildings, and infrastructure, which are being built using prefabricated construction and structural steel for faster delivery. Moreover, the region’s growing middle class is driving demand for residential developments in urban areas, where prefabrication helps meet the need for mass housing projects more efficiently. Besides this, many governments in Asia-Pacific are making large-scale investments in infrastructure and smart city projects to boost economic development. For instance, in August 2024, India's Cabinet Committee on Economic Affairs (CCEA), approved 12 additional smart city projects under the National Industrial Corridor Development Programme (NICDP), totaling INR 286.02 billion (US$3.41 billion).

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market companies have also been provided.

Prefabricated Building and Structural Steel Market Recent Developments:

• September 2024: Karmod, a Turkish prefabricated housing company, started a steel construction house project in Lisbon, Portugal, as part of its continued growth throughout Europe.
• July 2024: Finance Minister of Fiji reduced the fiscal duty on prefabricated buildings from 32% to 5%.
• July 2024: Continental launched its first prefabricated house. The ContiHome, a 30-square-meter, one-and-a-half-story tiny house, is located in northern Germany on Lake Belau between Kiel and Lübeck.
• April 2024: Walker Modular received a £5 million contract to deliver all of the build-to-rent steel-framed bathroom pods for Belfast's Loft Lines project.

Prefabricated Building and Structural Steel Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the prefabricated building and structural steel market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global prefabricated building and structural steel market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the prefabricated building and structural steel industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.