Global Panelized Modular Building Systems Market - 2022-2029

Market Overview

The global Panelized Modular Building Systems market reached US$ XX million in 2021 and is expected to record significant growth by reaching up to US$ XX million by 2029, growing at a CAGR of 2.9% during the forecast period (2022-2029).

Systems for panelized modular buildings pre-manufacture wall, floor and roof panels or whole 3-dimensional components of the building as a panel or piece in a factory and assemble them on site. Panelized modular building systems are a cost-effective way to increase construction production and speed. The need for offsite construction is rising, there is a rise in the demand for structural insulated panels for energy-efficient pre-fabricated homes and government incentives and policies are all contributing to this expansion. The benefits of panelized modular buildings, such as the need for less manpower and the cost and time savings, also drive the market.

Market Dynamics

The increasing adoption of pre-fabricated construction systems is a major market driver for the global Panelized Modular Building Systems market. However, transportation logistics requirements could be a major market restraint.

Increasing adoption of pre-fabricated construction systems

Pre-fabricated home is a broad term encompassing various construction methods. In theory, any home with construction components produced in a factory and assembled on-site qualifies as "prefab." Modular and panelized homes are types of pre-fabricated homes. With the advancements in prefab technology and dimensional accuracy, architects and engineers can create one-of-a-kind, ground-breaking structures of remarkable quality. Because the components can be altered, the prefab building method allows designers and engineers to prepare for future construction projects. Thus, prefab constructions are a popular choice in the forecast period and are expected to create market opportunities for panelized modular building systems, especially in countries like U.S. and Canada.

For instance, manufactured housing is a large segment with high demand in U.S. prefabrication construction market. Pre-fabricated housing types such as panelized, pre-cut and modular are also in high demand in the country's prefabrication sector. The need to make homes cheaper, particularly in high-demand locations like the San Francisco Bay Area, drives developers to use prefabrication methods. In the Indian construction business, the concept of prefabrication is gaining traction. Pre-fabricated homes have paved the way for innovative and technologically advanced construction and design methods for all buildings, including high rises, low rises, villas and mass townships, in India. However, India is currently lagging in introducing pre-fabricated structures into the real estate industry. India's poor prefabrication penetration is a mindset barrier, with most developers unwilling to invest in modular building technologies. However, the growing construction sector and government policies are expected to create future market opportunities in India.

Transportation logistics requirements

Furthermore, many building sites are located in metropolitan areas with limited storage capacity, necessitating the use of warehouses for temporary storage, so adding another layer of buffering to the supply chain structure. Adding another layer to the supply chain adds to the cost of the entire system, thus challenging the market growth in developing countries. In addition, poor transportation service in developing countries restricts market growth. Onshore modules typically weigh up to 5,000 tones, while the maximum size and weight that is used will vary from project to project depending on transportation route limitations and the availability of heavy-lift and transportation equipment in the region

In the shipping of pre-fabricated products, two major concerns are addressed. The first is how to make the most efficient use of truck capacity to use the fewest trucks possible. The second is how to postpone pre-fabricated product transportation. Furthermore, Meeting demand on modular construction sites can be difficult, as various delays might cause uncertainty. Delays in building schedules are unavoidable and directly linked to higher costs. Their causes can be connected to internal and external elements at building sites, such as human errors, equipment breakdowns and extreme weather conditions.

COVID-19 Impact Analysis

Before the coronavirus outbreak, the global panelized modular building systems market had seen unprecedented growth. The market showed the highest growth in the North American region in 2019, with a market share of US$ 41,392.41 million. The market's growth was the tremendously growing construction sector before the arrival of COVID-19 in various developing regions.

The ongoing COVID-19 pandemic has led to several challenges for the construction industry and disrupted the global economy. In 2020, the construction industry, particularly the new residential segment, was doing well and seeing a rise in activity across various sectors.

Many ongoing projects deemed necessary by government officials were not halted, but new residential construction permits were suspended due to the rising number of instances globally. Under the previous situation, builders and contractors have difficulty obtaining permits for new and ongoing building projects.

In addition, the government has requested that the building enterprise continue to work mindfully. As a result, work should continue until the situation stabilizes or the vaccine is available in every part of the world. The construction industry and all organizations should be aware of this and continue enhancing the economy and minimizing unemployment.

Segment Analysis

The global Panelized Modular Building Systems market is classified based on technology, material, application and region.

High-performance and energy-efficient passive designs, in addition to material and time efficiency, reduced waste and cost management

According to housing economists, 77% of homes built in U.S. are at extreme risk for some natural disaster. Rebuilding a city after a natural disaster must be efficient and cost-effective, with an eye toward future disaster resilience. Engineered wood construction solutions, such as glulam and cross-laminated timber or CLT, are adapted to address these objectives since they can be manufactured offsite and installed swiftly. Pre-fabricated wood components, which are used in wooden frames and mass timber constructions, have aided in the resolution of numerous design and engineering issues. Pre-fabricated wood elements offer high-performance and energy-efficient passive designs, material and time efficiency, reduced waste and cost management.

Pre-fabricated projects provide clients with options for traditional residential structures because the assembly is offsite. Each client can select a specific design and incorporate any service. Because wood is a versatile material with many design options, the user has a wide range of design options and finishes. The project's long-term viability is based on reduced waste, effective environmental performance and material adaptability. Wood's biophilic properties contribute to improved human well-being and environmental awareness. Pre-fabricated wood components may contain light-frame walls and roof trusses or mass timber elements such as cross-laminated timber panels, dowel-laminated timber panels, nail-laminated timber panels and glue-laminated timber columns and beams.

Lightwood frame construction has long been the preferred framing method for low and mid-rise residential and commercial structures. Lightwood frame building is North America's most prevalent style of wood construction because of its cost-effectiveness, material efficiency, ease of assembly, low environmental impact and quick availability of labor and supplies. Pre-fabricated wood construction is no longer limited to single-family housing and smaller temporary workspaces; they are now being built for tenants and owners looking for innovative buildings. Pre-fabricated construction is more common in sectors with redundancies, such as multifamily housing (e.g., condos, student housing and senior housing), education facilities, healthcare, commercial retail and institutional structures.

Some major advantages of using wood for pre-fabricated construction include aesthetics, reduced weight (relative to concrete), environmental performance, strength and rigidity and energy efficiency. Wood is particularly advantageous in pre-fabricated buildings because it possesses the structural simplicity required for cost-effective projects and design diversity. It can be quickly constructed with minimal waste. Pre-fabricated wood walls and floor panels offer easier handling and a high level of prefabrication speeds, which is a significant benefit, particularly in mid-rise buildings of five to ten floors. As lighter wood panels require smaller foundations, smaller cranes can be utilized to raise panels higher. Recently, four 60-foot-tall cross-laminated timber panels constituting one of the building's shear wall cores were lifted and put into position with a crane and attached to the foundation in one weekend at the John W. Olver Design Building at University of Massachusetts Amherst.

Geographical Analysis

North America dominated the global market share due to the strong growth of construction in the area

The region of North America dominated the global market share. Panelized modular construction is experiencing strong growth in the area, driven by the region's growing construction. The market for panelized modular building systems in North America is primarily driven by rising demand for pre-fabricated building structures and a growing emphasis on reducing overall construction costs and time. Panelized modular building systems employ construction techniques that use advanced technology, high-quality materials and a controlled work environment to construct energy-efficient homes in less time. Panelization also ensures more consistent quality and precise construction, resulting in a more substantial house and reducing construction time.

Furthermore, the growing number of infrastructure projects, such as healthcare facilities, corporate buildings, modern housing centers and educational institutes, is driving market growth. Furthermore, rising environmental concerns about increasing carbon emissions from traditional construction methods are driving the demand for modular construction in the region. The introduction of numerous government initiatives in U.S. and Canada to promote the construction of green buildings is also catalyzing the market. Furthermore, the region's high prevalence of extremely cold weather, which causes shorter daytime hours and heavy snowfall, drives the demand for modular construction.

Interest in panelized modular building systems has traditionally been high in the northeastern U.S., owing to lower shipping costs and the expansion of larger projects in the region. New investments have been made in Oakland for large-scale projects involving the construction of panelized modular system apartments. The Vancouver city council requested an additional 600 units in Canada, nearly doubling the city's temporary modular housing stock. Seven complexes with a total of 404 homes have been completed. A 98-unit complex is nearing completion. Two units with the potential to create another 101 homes are under construction and expected to be finished by 2019.

The country's rising residential construction and renovation projects are expected to demand panelized modular building systems. Panelized and modular construction are being used across U.S. to help alleviate housing shortages in cities such as San Francisco and New York City. Municipalities are embracing offsite construction amid one of the worst housing crises in American history. On average, a two-bedroom apartment in San Francisco costs between US$ 2,400 and US$ 3.650. The city is exploring collaborations with modular builders to address the housing shortage. At the same time, the New York City Department of Housing Preservation and Development (HPD) announced plans with Brooklyn-based FullStack Modular to develop 167 units of affordable housing on City-owned land in East New York.

Competitive Landscape

The global panelized modular building systems market is extremely competitive due to the presence of major players such as Robertson Group (Holdings) Limited, BARRATT DEVELOPMENTS PLC, Saint-Gobain, Inc., Sumitomo Riko Company Limited, WillScot, CHAMPION HOME BUILDERS, INC., Metek Plc., Thorp Precast Ltd, Hadley Industries PLC and SEKISUI HOUSE, LTD. The market is fragmented and market players employ market tactics such as mergers, acquisitions, product launches, contributions and collaborations to gain a competitive advantage and recognition.

For instance, on March 26, 2021, Saint-Gobain established a 60/40 joint venture company with InDeco to strengthen their long-term partnership in modular construction, one step further in the strategy of the sustainable construction industry.

Saint-Gobain

Overview: Saint-Gobain is a France-based company engaged in manufacturing, designing and providing materials. The company operates in the following business segments: Construction, Automotive, Health, Security and Protection, aeronautical and food & beverages sector. The company generates 75% of its sales from the construction sector. The company provides services in North Europe, the Americas, South Europe, the Middle East and the Asia-Pacific and operates in 70 countries. The company has over 100 subsidiaries and offers products and services in 5 categories, which insulation is categorized under the interior finishing category.

Product Portfolio:

• Partitions: The company offers a wide range of sustainable, efficient, lightweight partition and wall systems. The systems are primarily non-loadbearing and are made using dry lining techniques. The metal-framed partitions and walls can be utilized in all existing and new buildings, including residential and commercial properties and educational, healthcare, hospitality and leisure facilities.

Key Development:

• On March 02, 2021, Saint-Gobain, Germany, completed the acquisition of Bruggemann, a company specializing in pre-fabricated wood-based solutions. The strategic investment provides access to a wide range of sustainable solutions.

Why Purchase the Report?

• To visualize the global Panelized Modular Building Systems market segmentation based on technology, material, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global Panelized Modular Building Systems market by analyzing trends and co-development.
• Excel data sheet with numerous data points of Panelized Modular Building Systems market-level with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players

The global Panelized Modular Building Systems market report would provide approximately 61 tables, 56 figures and almost 161 pages.

Product Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies