The global pre-engineered buildings market size was valued at USD 21,216.38 million in 2022. It is estimated to reach USD 68,994.57 million by 2031, growing at a CAGR of 14% during the forecast period (2023–2031). The reduced construction cost and time and the demand for new development due to population growth and fast urbanization promote market growth.
An enclosure system for buildings is a pre-engineered construction. It consists of certain building construction, roof, and wall coverings. It is created by pre-engineered construction manufacturers using the best raw material inventory tailored to the client's needs. Rigid frames, plate steel, roof beams, and columns make up the structural systems of this building. In structural engineering, a pre-engineered building (PEB) is created by a PEB maker or supplier using a single design that can be constructed using various materials and fabrication techniques to meet structural and aesthetic design specifications. In opposition to this, a building is constructed according to a design developed just for that building.
Pre-engineered structures are sometimes known as pre-engineered metal buildings (PEMB) in certain geographic and industrial sectors or engineered metal buildings (EMB) in others, as pre-engineering is less frequent in custom computer-aided designs.
| Report Metric | Details |
|---|---|
| Base Year | 2022 |
| Study Period | 2021-2031 |
| Forecast Period | 2023-2031 |
| CAGR | 14% |
| Market Size | USD 68,994.57 million by 2031 |
| Fastest Growing Market | Europe |
| Largest Market | Asia Pacific |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
| Geographies Covered |
|
Buildings can be constructed more affordably using pre-engineered materials, including masonry blocks, roll-formed profiled steel sheets, tensioned fabric, glass curtainwall, and precast concrete. Precast concrete is frequently utilized to build these structures since it is readily available in the market and affordable. The steel sheet and tensioned cloth are also less expensive than other building supplies used in conventional construction. The glass curtainwall also comes in the ideal shape and can easily be built into pre-engineered structures.
Pre-engineered structures can, therefore, be erected for less money than conventional dwellings made of brick and mortar. Pre-engineered buildings also require the least amount of structural work, which shortens the time needed to build a structure. For instance, the construction of pre-engineered buildings can be finished in about 2-3 weeks instead of 4-6 months for brick-and-mortar structures. These factors are anticipated to accelerate the market's expansion during the projected period.
Industrial and commercial construction investments play a significant role in the market growth for construction products. Due to the expansion of the investment industries, there is a significant need to construct commercial buildings, complexes, and workshops. Moreover, population increase and fast urbanization drive the need for pre-engineered buildings. The rising demand for repairing ancient warehouses and structures drives the need for affordable and effective pre-engineered buildings. The building industry's health can also impact how the economy develops.
The high cost of ownership or exorbitant pricing is one of the market constraints. Depending on the size and other features, pre-engineered building materials cost varies. Additionally, rising raw material costs raise production costs overall, which could raise the market price of pre-engineered buildings. Worldwide, customers pay more for raw materials because of the rising costs. The world market for iron ore and other metals is dominated by the three suppliers, Rio Tinto, BHP Billiton, and CVRD.
Therefore, rising prices for key pre-engineered building components, including columns, metal sheets, and others, are anticipated to hamper the market's expansion in the upcoming years. Global economic conditions and changing foreign currency exchange rates still impact manufacturers' profit margins for pre-engineered buildings. Therefore, the market expansion over the projection period is anticipated to be hampered by fluctuating raw material prices.
In the projection period of 2022 to 2029, the market players will have lucrative opportunities due to the different advances made by the market players and considerable investments in R&D activities that further improve product applications. The e-retailers are also building warehouses to improve their distribution, which will further boost the market for pre-engineered buildings in the future.
Based on region, the global pre-engineered buildings market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Asia-Pacific is the most significant global pre-engineered buildings market shareholder and is estimated to exhibit a CAGR of 14.6% over the forecast period. The construction industry in this region is anticipated to be driven by population increase, fast urbanization, and strong economic expansion. This further stimulates the market for pre-engineered buildings. Additionally, variables like shortened building times and costs, compact size, and transportation fuel market expansion adaptability in the area. One of Asia-Pacific's most valuable building markets is China, where spending on construction is anticipated to rise by USD 13 trillion by 2030. Due to the country's rising income levels, fast urbanization, and industrialization, the non-residential construction sector is also anticipated to develop.
Moreover, India and China are the most populous nations in the Asia-Pacific region, with a dense population overall. Due to increased demand for non-residential buildings, developing economies like China, India, and Indonesia are predicted to sustain market expansion. Pre-engineered buildings are also simple to erect. Thus, demand for them as warehouses and emergency shelters in disaster zones is anticipated to drive market expansion.
Europe is anticipated to exhibit a CAGR of 12.7% over the forecast period. Since 2014, the European construction sector has been recovering. Pre-engineered building demand is anticipated to rise as construction investment in the infrastructure segment rises in Eastern European nations like Bulgaria, Romania, and Slovakia. The development of stadiums, hotels, and retail buildings in Russia accounts for almost 50% of all construction spending in Eastern Europe, and this spending is anticipated to increase, accelerating market growth. Pre-engineered construction demand is therefore anticipated to increase significantly during the projection period.
North America emerged as one of the fastest-growing regions in the global market. There will be a greater need for reasonably priced buildings and structures due to the predicted rise in population and rapid urbanization. The huge rise in demand for industrial infrastructure in Mexico is also anticipated to fuel regional growth. Furthermore, the market for pre-engineered structures in North America is driven by improvements in general economic conditions. Additionally, the industry's growth is anticipated to be supported by investments in commercial projects, government infrastructure, and renewable energy infrastructure.
In LAMEA, the market expansion is driven by increased demand for commercial and industrial infrastructure due to urbanization. The market for pre-engineered buildings is anticipated to expand more quickly due to the substantial growth of the construction sector and infrastructural development. Additionally, the market is growing due to an improved business climate and increased building spending, primarily from Latin American and African nations. With the highest level of industrialization and one of the top ten largest economies worldwide, Brazil is one of the important markets in the LAMEA area. Pre-engineered structures are most popular in Latin America, part of LAMEA. In addition, the UAE and Qatar remain lucrative investment locations due to population growth, rising disposable income, and rapid urbanization. The Brazilian government has created several programs promoting the real estate market expansion, including FINAME. These elements primarily drive the market for pre-engineered buildings in the area.
The global pre-engineered buildings market is bifurcated into structure and application.
Based on the structure, the global pre-engineered buildings market is bifurcated into single-story and multi-story.
The single-story segment dominates the global market and is projected to exhibit a CAGR of 13.7% over the forecast period. Compared to factory-made homes or RCC construction, single-story pre-engineered buildings can be produced more quickly and for less money. These one-story pre-engineered structures are immediately constructible and can change their designs to suit the requirements. Because single-story infrastructure can be built thanks to transportation's adaptability, these little pre-engineered structures are more in demand as emergency shelters in disaster zones. Creating temporary kitchens, vocational houses, and other facilities also uses these.
Single-story pre-engineered structures are becoming increasingly popular because they are inexpensive and in short supply of affordable space. The market for these inexpensive single-story pre-engineered structures is also rising due to government initiatives promoting green building concepts since they incorporate eco-friendly features and use less energy and water during construction.
Based on application, the global pre-engineered buildings market is bifurcated into commercial and industrial.
The commercial segment owns the highest market share and is predicted to exhibit a CAGR of 14.8% over the forecast period. Commercial spaces such as office buildings, warehouses, and retail structures like shops and shopping centers are all included in the commercial buildings. Pre-engineered structures are preferred over RCC buildings in the commercial sector because they are more affordable, stronger, more durable, recyclable, and take less time to construct. They are also commonly utilized in commercial warehouses, cold storage, and many more applications.
Additionally, the development of the industry is fueled by current initiatives in developing nations like China and India. For instance, Everest Industries Ltd., a company located in India, invested about USD 7.2 million in May 2016 to advance pre-engineered building technology and support pre-engineered building projects in other parts of India.
Additionally, the market leaders' new acquisition-focused tactics are anticipated to increase their customer bases and demand for pre-engineered structures shortly.
