Prefabricated Homes Market growing at a CAGR of 6.7% is projected to reach USD 38.9 billion by 2032

Despite growth prospects, the market faces challenges such as a shortage of skilled labor, inadequate infrastructure in developing nations

WILMINGTON, DE, UNITED STATES, February 4, 2025 /EINPresswire.com/ -- 𝐌𝐚𝐫𝐤𝐞𝐭 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐆𝐫𝐨𝐰𝐭𝐡 𝐏𝐫𝐨𝐣𝐞𝐜𝐭𝐢𝐨𝐧

The global 𝐩𝐫𝐞𝐟𝐚𝐛𝐫𝐢𝐜𝐚𝐭𝐞𝐝 𝐡𝐨𝐦𝐞𝐬 market was valued at USD 20.4 billion in 2022 and is projected to reach USD 38.9 billion by 2032, registering a compound annual growth rate (CAGR) of 6.7% from 2023 to 2032. This growth is fueled by increased industrialization, urbanization, and the demand for cost-effective and sustainable housing solutions worldwide.

𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐏𝐃𝐅 𝐒𝐚𝐦𝐩𝐥𝐞 𝐂𝐨𝐩𝐲@ https://www.alliedmarketresearch.com/request-sample/A290156

𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐞𝐟𝐢𝐧𝐢𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐈𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧

Prefabricated homes, also known as modular homes, are constructed offsite in a controlled environment before being transported and assembled at the final location. These homes are built using materials such as steel, timber, and concrete, ensuring high accuracy, reduced construction time, and cost-effectiveness compared to traditional methods. The popularity of prefabricated homes is growing due to their durability, environmental benefits, and customizable designs.

In addition to urban settings, prefabricated homes serve as an ideal solution for remote areas where conventional construction is challenging. The market is gaining traction due to advantages such as minimal waste generation, high flexibility, quality control, and increased acceptance in the construction sector.

𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐲𝐧𝐚𝐦𝐢𝐜𝐬

𝐆𝐫𝐨𝐰𝐭𝐡 𝐃𝐫𝐢𝐯𝐞𝐫𝐬

The prefabricated homes market is experiencing robust growth due to the rising global population and increased demand for affordable housing. Developing regions, including Africa, China, and India, are witnessing rapid urbanization, driving the demand for modular housing solutions. Additionally, the need for employment opportunities, infrastructure, and essential services such as clean water, transportation, and social services further propels market expansion.

In September 2023, Mighty Buildings, a startup specializing in prefabricated homes with eco-friendly technology, secured $52 million in funding. Such investments indicate growing confidence in the prefabricated housing industry, further driving market growth.

𝐄𝐧𝐪𝐮𝐢𝐫𝐞 𝐁𝐞𝐟𝐨𝐫𝐞 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞@ https://www.alliedmarketresearch.com/purchase-enquiry/A290156

𝐌𝐚𝐫𝐤𝐞𝐭 𝐑𝐞𝐬𝐭𝐫𝐚𝐢𝐧𝐭𝐬

Despite its advantages, the prefabricated homes market faces certain challenges. The lack of trust in modular construction in earthquake-prone areas hinders its adoption. Additionally, the COVID-19 pandemic led to temporary disruptions in the construction sector, negatively impacting market growth. However, with industries returning to full-scale operations, the modular construction sector is expected to regain momentum.

𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 𝐟𝐨𝐫 𝐌𝐚𝐫𝐤𝐞𝐭 𝐄𝐱𝐩𝐚𝐧𝐬𝐢𝐨𝐧

The market is poised for expansion due to rising infrastructure investments and a growing focus on green building concepts. Governments worldwide are promoting modular housing as an eco-friendly solution to address housing shortages. Countries such as Germany, France, and India are witnessing increased spending on modular construction, boosting demand for prefabricated homes.

Furthermore, modular housing's affordability and portability appeal to urban populations seeking cost-effective living solutions. In October 2023, an Indonesian startup specializing in modular homes secured $10 million in funding, demonstrating strong investor interest in the sector.

𝐌𝐚𝐫𝐤𝐞𝐭 𝐒𝐞𝐠𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧

The prefabricated homes market is segmented based on construction type, material, and region.

𝐁𝐲 𝐂𝐨𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐨𝐧 𝐓𝐲𝐩𝐞

Single-family homes

Multi-family homes (dominated the market in 2022)

By Type

Permanent

Relocatable

By Material

Steel

Wood

Concrete (highest revenue generator in 2022)

Others

𝐁𝐲 𝐑𝐞𝐠𝐢𝐨𝐧

North America (highest revenue in 2022)

Europe

Asia-Pacific

LAMEA (anticipated to register the highest CAGR during the forecast period)

𝐔𝐩𝐚𝐝𝐭𝐞 𝐎𝐧 𝐃𝐞𝐦𝐚𝐧𝐝@ https://www.alliedmarketresearch.com/request-for-customization/A290156

𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐋𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞

Leading players in the prefabricated homes market include:

Aakash Group

ATCO Ltd.

Giant Containers, Inc.

Honomobo Corporation Inc.

Savills plc

SG Blocks, Inc.

Skanska AB

Speed House Group of Companies Limited

Stillwater Dwellings, Inc.

Tempohousing B.V.

These companies are expanding their market presence through partnerships, acquisitions, and product innovations.

𝐊𝐞𝐲 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 𝐛𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐏𝐥𝐚𝐲𝐞𝐫𝐬

Acquisitions and Expansions

January 2023: ATCO Ltd. acquired Triple M Modular Housing, a leading factory-built housing manufacturer in Canada. This acquisition strengthens ATCO’s modular housing segment.

December 2022: SG Blocks, Inc. acquired 25 acres of land in Denison, Texas, to develop modular housing projects.

May 2022: SG Blocks expanded its modular construction techniques to support affordable housing initiatives, joining the Tiny House Alliance USA.

David Correa
Allied Market Research
+ 1 800-792-5285
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