Application of Prefabricated Construction in Smart Cities Predicted to Boost the Global Prefabricated Construction Market Until 2019, Says Technavio

LONDON--()--According to the latest market research report by Technavio, the global prefabricated construction market is expected to grow at a CAGR of over to 6% until 2019.

In this report, Technavio covers the present scenario and growth prospects of the global prefabricated construction market for 2015-2019. The market size has been calculated based on the value of prefabricated construction components in the world. The report presents a detailed forecast for APAC, Europe, North America, and the Middle East.

“Smart cities are a pioneering concept that provide a sustainable and efficient environment within buildings. They have attained great popularity in developed as well as developing countries due to their ability to optimize energy-efficiency and improve security and facilities. Since prefabricated construction helps to achieve energy-efficiency and waste management, these units are being widely used for the construction of smart cities across the globe,” said Soumya Mutsuddi, one of Technavio’s lead industry analysts for construction research.

“The global prefabricated construction market is dominated by five leading international players, namely ACS Group, Balfour Beatty, Bouygues Construction, Julius Berger, and Komatsu House. However, there are a large number of small, domestic, country-specific vendors in the market as of 2015 who are also providing prefabricated building components. These vendors are offering affordable solutions to SMEs and small construction companies and developers that engage mainly in small-scale residential development projects,” added Soumya.

Global prefabricated construction market: Geographical segmentation 2015

APAC – 50.88%
North America – 11%
Europe – 33.54%
Middle East – 3.45%
ROW – 1.28%

Source: Technavio research

Largest contributor: prefabricated construction market in APAC

The growth of the prefabricated construction market in the region is directly proportional to the growth of the construction market. Rapid development of emerging economies in the region, such as China, India, Indonesia, and Singapore, has led to an increase in construction investment in APAC, thereby also booming the overall prefabricated construction market.

The prefabricated construction market in APAC is also the largest prefabricated construction market in the world. This region has immense scope for development and it stems from large scale construction activities in countries such as China, India, Indonesia, and Vietnam during the forecast period.

The market was valued at close to USD 78.69 million in 2015 and is likely to reach over USD 110 million by 2020. Technavio analysts predict the prefabricated construction market in APAC will grow at a CAGR of close to 7% during this period.

Second largest contributor: prefabricated construction market in Europe

The prefabricated construction market in Europe is the second largest prefabricated construction market in the world. In 2015, the prefabricated construction market in Europe was valued at close to USD 51.88 million. The growth of the prefabricated construction market in Europe is attributed to the steady recovery of the construction markets in the leading countries of the region, such as the UK and Germany.

In the UK, around 270 buildings (of 20 stories or more) have been planned for construction in the city of London alone during the forecast period. More than around 1,500 new residential towers are to be constructed in other regions of the country, such as Manchester, Liverpool, Bristol, Leeds, Edinburgh, and Glasgow, during the forecast period. Similarly, the construction market in Germany is also witnessing an increase in construction of high-rise buildings. Almost 75% of Germany’s population was residing in urban areas as of 2014. This has led to a rise in demand for housing in this country and this trend is likely to positively impact the prefabricated construction market until 2020.

Prefabricated construction market in North America

In order to fulfill the demand for residential and commercial space, in the US market in particular, construction companies are developing many high-rises for residential and commercial segments. As of 2014, New York City was estimated to have the highest number of high-rise buildings, reaching almost 6,000. In 2015 nearly USD 100 billion was envisaged for investment in the commercial sector itself.

In Canada, 28 new high-rise construction projects were commissioned as of 2015 and in Mexico, there are 11 new high-rise construction projects under construction. The Government of Mexico has launched its new National Housing Policy (PNV), which is aimed at reducing the housing deficit in the country. As of 2014, there was a shortage of about 9.2 million housing units in the country. These developments have led to a rise in the housing market, which in turn is expected to boost the demand for prefabricated units over the next four years.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com

Release Summary

According to the latest market research report by Technavio, the global prefabricated construction market is expected to grow at a CAGR of over to 6% until 2019.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com