Multifamily Modular and Prefabricated Housing Construction Global Market Report 2020-30: COVID-19 Growth and Change
NEW YORK, July 9, 2020 /PRNewswire/ --
Major players in the multifamily modular and prefabricated housing construction market are Guerdon Modular Buildings, ATCO, Laing O'Rourke, Red Sea International Company, VINCI Construction Grands Projets, Bouygues Construction, Skanska AB, KLEUSBERG GmbH & Co. KG, Algeco, and Katerra.
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The global multifamily modular and prefabricated housing construction market is expected to decline from $21.13 billion in 2019 to $18.79 billion in 2020 at a compound annual growth rate (CAGR) of -11.1%. The decline is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities. The entire supply chain has been disrupted, impacting the market negatively. The market is then expected to recover and reach $25.35 billion in 2023 at a CAGR of 10.5%.
The multifamily modular and prefabricated housing construction market consists of sales revenue earned by companies that are engaged in the construction of multifamily modular and prefabricated homes. Modular construction is a process wherein units are built and inspected offsite in a manufacturing facility while podium, foundation, and infrastructure are built onsite. This method is used to increase housing production by accelerating construction time and reducing construction costs.
Europe was the largest region for the multifamily modular and prefabricated housing construction market in 2019. Asia Pacific is expected to be the fastest-growing region in the forecast period.
In May 2018, Bouygues Batiment International, a subsidiary of Bouygues Construction, announced the acquisition of AW Edwards Pty Limited, an Australian construction company, for an undisclosed amount. With the acquisition, Bouygues Construction is aiming towards strengthening its position in the construction market in Australia. AW Edwards Pty Limited was founded in 1921 and is engaged in providing construction services for private, public, government, and institutional clients.
The multifamily modular and prefabricated housing construction market covered in this report is segmented by type into permanent, relocatable, and by material into steel, precast concrete, wood, plastic, others.
The transportation of prefabricated and huge structures along with the weight restrictions imposed by several country governments is predicted to limit the growth of the multifamily modular and prefabricated housing construction market during the period. Trucking modules and shipping them over long distances is a major challenge faced by the modular and prefabricated housing construction companies. Moreover, weight restrictions imposed by governments are expected to restraint the growth of the market during the forthcoming years. For instance, the Washington State Department of Transportation guide lists the criteria for determining the maximum weight of the truck. This scenario is projected to serve as a major challenge for industry players in the near future.
Initiatives by governments across countries to promote sustainable buildings and wastage reduction along with mandating the use of modular and prefabricated systems is a major trend shaping the growth of the multifamily modular and prefabricated housing construction market. According to The Building and Construction Authority (BCA), a Singapore government agency website, the Singapore government mandated Prefabricated Prefinished Volumetric Construction (PPVC) acceptance framework to be used at development sites. PPVC suppliers and manufacturers are instructed to ensure that their PPVC systems and in-built bathrooms meet the PPVC performance requirements. Thus, the rising government initiatives to promote green buildings and the use of modular housing is expected to remain a key trend for the industry.
The benefits associated with modular construction is projected to contribute to the growth of the multifamily modular and prefabricated housing construction market. There are multiple advantages offered by modular and factory-built housing such as cost and time saving, reducing material wastage, assembly-line quality control, reduced strain on the site neighborhood, and construction safety. According to the Modular Construction for Multifamily Affordable Housing report published in February 2018, the manufacturers report 20% of cost-saving and 40-50% of time-saving along with the reduced cost for on-site labor and construction materials. Therefore, advantages associated with the modular and prefabricated construction are anticipated to increase the focus of multinational construction companies on modular housing construction, generating higher revenue for the multifamily modular and prefabricated housing construction market during the forecast period.
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