China Prefabricated Buildings Market Size & Share Analysis - Key Trends, Future Opportunities, Growth Strategies, and Forecasts (2025 - 2032)

The Chinese prefabricated buildings market was valued at USD 40.8 billion in 2024 and is poised to expand at a steady CAGR of 8.3% during 2025-2032, reaching an estimated USD 76.1 billion by 2032. This robust growth is fueled by increasing urbanization, government-driven infrastructure development, and rising demand for sustainable, cost-effective construction solutions.

Backed by national initiatives, such as the 14th Five-Year Plan mandating that 30% of new urban construction be prefabricated by 2025, the industry is witnessing unprecedented support. Tax benefits, green-building certifications, and low-interest financing are driving broader adoption across China. The widespread use of digital tools and a focus on clean infrastructure further boost the market's momentum. With the urban population projected to exceed 70% by 2030, prefabricated solutions are emerging as a key enabler of China's urban expansion and environmental goals.

Key Insights

The panel category dominated the market in 2024 with a 35% share, driven by its flexibility, ease of installation, and quick project turnaround, making it ideal for large-scale residential and commercial projects.

The cellular category, comprising kitchen units, 3D modules, and bathroom pods, is forecast to grow at the fastest CAGR of 8.3%, favored for high-quality, factory-produced solutions in hotels and healthcare facilities.

Residential buildings accounted for 40% of market revenue in 2024 due to the rising demand for affordable housing in densely populated cities. Government-backed rental housing initiatives for the urban youth further support this segment.

The commercial sector will exhibit the highest CAGR of 9.5%, bolstered by the need for quickly constructed, cost-effective buildings such as offices, malls, and hotels, particularly in tier-1 and tier-2 cities.

Bathroom pods led the modules segment in 2024 with a 55% share and are expected to grow at a 10% CAGR, owing to their pre-assembled design, labor efficiency, and widespread application in institutional projects.

Concrete remains the dominant construction material, with a 55% share in 2024, attributed to its strength, thermal efficiency, and compatibility with modular designs. Meanwhile, metal structures are gaining traction, growing at a 9.2% CAGR due to their lightweight nature and adaptability in modern commercial projects.

Regionally, East China led the market with a 35% share in 2024 and is projected to grow at 8.5% annually. Key cities like Shanghai and Shenzhen benefit from advanced infrastructure, government incentives, and a favorable climate for prefab construction.

Leading manufacturers in the market include CIMC Modular Building Systems, Hangxiao Steel Structure, Ningbo Deepblue Smart House, and Suzhou Cozy International House Tech Co., Ltd. The market remains fragmented, with numerous local firms specializing in component manufacturing and regional services.

Private sector involvement is rising, with notable prefab projects such as Mini Sky City in Changsha and Unicorn Island in Chengdu illustrating the trend toward faster, sustainable urban development.

Environmental goals are a major driver, with the government's Dual Carbon Goals targeting net-zero emissions by 2060. Prefabricated construction plays a pivotal role, supported by BIM and LCA tools that minimize lifecycle carbon emissions.

Recent strategic moves include partnerships between CIMC and international firms to develop integrated modular solutions and digital design tools, showcasing China's commitment to combining innovation with green growth.