Global Panelized Modular Building Systems Market Grows Steadily at a CAGR of 6.41%

Introduction

Panelized and modular building systems, whose components are manufactured in factories and delivered to the construction site to be assembled to create homes, are used to construct structures. These include wood kits, wall frames, floors, roof trusses, stairs, and other structures. The benefits of panelized modular buildings, such as their low labor requirement, an advantage in time and cost savings, and others, drive the global market.

Market Dynamics

Increasing Need for Structurally Insulated Panels Drives the Global Market

Two structural skins and a rigid foam insulation core make up the structural insulated panels (SIPs). Some of the main components of SIPs include extruded polystyrene, polyurethane, polyisocyanurate (polyiso), and expanded polystyrene (EPS). All these materials, continuous within the panel with only a small amount of framing lumber in between, offer high insulation levels. SIP skins are typically made of oriented strand board (OSB). SIPs play a significant role in the energy state of homes because, with the enabling building envelope they provide, the idea of zero-energy homes is practical. Whether used to increase the efficiency of the typical home, multifamily building, or commercial building, SIPs can help reduce energy consumption and help the world move toward a sustainable future. The demand for SIPs in energy-efficient prefabricated homes will drive the market for panelized modular building systems because they are essentially single-shell structures that are load-bearing, thermally efficient, and offer a lot more internal space.

Increasing Investment in Commercial Construction and Infrastructure Creates Tremendous Opportunities

The Nest Modular Housing project in Ho Chi Minh City, Vietnam, employs modular construction techniques to address the current social and economic issues in Vietnam's cities. With 225 modular homes and a building height of 639 meters, the project's 7,500-square-foot sites will also include shops, community facilities, and gardens. The estimated construction cost of about USD 21,500,000 is driving the market demand for panelized modular building systems. As a result, the ongoing and completed projects in developing economies, as well as the promotion of modular construction and the use of panelized modular systems to address these economies' growing populations, are altering the public's perception of modular construction and giving it the potential for high design and a modern high-tech image, which is what will ultimately drive the market demand soon.

Regional Analysis

Asia-Pacific isthe highest revenue contributorand is anticipated to expand at a CAGR of 7.41% during the forecast period. Due to the economy's rapid expansion, rising labor costs, accuracy and quality of prefabricated components, improvements in construction technology and management standards for assembly buildings, and the promotion of national policy factors, prefabricated buildings have become more and more popular over the past ten years. Rising household incomes and population shifts from rural to urban areas are expected to continue to be the main drivers of the demand for residential construction in the country. The increased emphasis on affordable housing in both the public and private sectors is fueling the expansion of the residential construction sector. It is anticipated that non-residential infrastructure will grow significantly. The country’s aging population primarily drives the need for new hospitals and healthcare facilities. The structural changes in the Chinese economy over the past few years, which have seen the service sector account for a more significant portion of the GDP, have led to the construction of enormous commercial and office buildings.

Europe is anticipated to grow at a CAGR of 5.24% over the forecast period. The British government highly values the construction industry. The construction sector contributed about 6% of the country's GDP in 2019. As capacity and confidence grow, the prefabrication construction market is evolving in the United Kingdom. Out of the 200,000 homes built each year, 15,000 prefab homes, according to an industrial source, are built in the country. This is primarily due to how poorly locals have embraced prefab housing. Manufacturers say this number may increase significantly over the forecast period, including Legal and General, Berkeley Homes, Urban Splash, IKEA, and Huf Haus (among others). Prefab housing could help the country's housing shortage by allowing for the construction of more structures.

Key Highlights

• The global panelized modular building systems market size was valued at USD 106,487.20 million in 2022. It is expected to reach USD 186,268.49 million by 2031, growing at a CAGR of 6.41% during the forecast period (2023–2031).

• Based on product type, the global panelized modular building systems market is bifurcated into timber frames, light gauge structural steel framing, and concrete. The light gauge structural steel framing segment is the highest contributor to the market and is expected to grow at a CAGR of 8.02% during the forecast period.

• Based on the end-user industry, the global panelized modular building systems market is bifurcated into residential, commercial, infrastructure, industrial,and institutional. The residential segment is the highest contributor to the market and is expected to grow at a CAGR of 7.26% during the forecast period.

• Based on the panel type, the global panelized modular building systems market is bifurcated into wall modules, roof panels, and floor panels.
• Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 7.41% during the forecast period.

Competitive Players

Competitive Players

The global panelized modular building systems market’s major key players are Algeco, SAINT-GOBAIN BrüggemannHolzbau GmbH, Etex Building Performance, Frame Homes UK, Fusion Building Systems, Hunter Douglas Group, Innovare, Kingspan Timber Solutions (Kingspan Group), KLH UK Limited, Merronbrook Ltd, Metek Plc, Modern Prefab Systems Pvt. Ltd Inc., Oregon Timber Frame Ltd, Pinewood Structures, Robertson Group Ltd, SIP Building Systems, SIPs Eco Panel Systems Ltd, Taylor Lane Timber Frame Limited, Thorp Precast Ltd, and Walker Timber Engineering.

Recent Developments

Market News

• In January 2023, Enterprise and Wells Fargo Foundation announcedUSD 20M Housing Affordability Breakthrough Challenge.

• In January 2023, Weston stated first MMC homes would start rolling off the production line by spring.

Segmentation

Global Panelized Modular Building Systems Market: Segmentation

By Product Type

• Timber Frame

• Light Gauge Structural Steel Framing

• Concrete

By End-User Industry

• Residential

• Commercial

• Infrastructure

• Industrial and Institutional

By Panel Type

• Wall Modules

• Roof Panels

• Floor Panels

By Regions

• North America

• Europe

• Asia-Pacific

• South America

• The Middle East and Africa