Panelized Modular Building Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Global Panelized Modular Building Systems Market was valued at USD 97,414. 44 million in 2020 and is expected to grow with a CAGR of 6. 31% during the forecast period (2021-2026). The market is negatively impacted by COVID-19 in 2020.

New York, Jan. 25, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Panelized Modular Building Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06221860/?utm_source=GNW
The construction industry is one of the industries that are badly impacted by COVID-19. Because of a lack of funds, labor shortage, and lockdown regulations, many projects were halted in 2020. Due to a ban on inter-state travel, an exodus of migrant workers, also known as informal sector workers, wreaked havoc on the supply chain. Owing to these factors, the panelized modular building systems market is hindered by the impact of COVID-19. However, demand for prefabricated hospitals and patient bed facilities had increased during the peak of the pandemic in 2020, which had enhanced the demand for panelized modular building systems, as these types of construction need a very less amount of completion time.

Key Highlights
Over the short term, rising demand for off-site construction, increasing demand for structural insulated panels in energy-efficient prefabricated homes, and supportive government incentives and policies are expected to drive the market’s growth.
On the flip side, transportation logistics requirements and unfavorable conditions arising due to the COVID-19 impact are likely to hamper the growth of the studied market.
Residential construction dominated the market. It is likely to grow during the forecast period, due to the rising demand for residential dwellings in Asia-Pacific, North America, and Europe.
Asia-Pacific dominates the global market and is likely to witness the highest growth during the forecast period, owing to the residential and commercial construction activities.

Key Market Trends

Residential Segment to Dominate the Market

Panelized modular building systems incorporate construction techniques that use advanced technology, quality materials, as well as a controlled work environment for building up energy-efficient homes in less time.
Panelization also provides more consistent quality, offers precise construction resulting in a stronger house, and helps in reducing the construction time.
Residential construction has been witnessing strong growth in regions, like North America, Asia-Pacific, and Europe.
In Asia-Pacific, residential construction is increasing in the countries, including India, China, Indonesia, Singapore, and Vietnam.
Whereas, North America and Europe are witnessing growth in residential construction, widely driven by high demand for residential houses in North America.
The construction sector in the Asia-Pacific region is the largest in the world and is increasing at a healthy rate, owing to the rising population, increase in middle-class income, and urbanization.?
In South Korea, the government outlined its plan to build 300,000 housing units at the end of 2018, which will be delivered to the public by the end of 2021 onward, with plans to build 35,000 housing units in the first phase. ?
Furthermore, India is likely to witness an investment of around USD 1.3 trillion in housing, over the next seven years, during which, it is likely to witness the construction of 60 million new homes. The rate of availability of affordable housing is expected to rise by around 70%, in 2024. The Indian government’s ‘Housing for All by 2022’ is also a major game-changer for the industry. This initiative aims to build more than 20 million affordable homes for the urban poor by 2022. This will provide a significant boost to housing construction. This is expected to provide various opportunities for the growth of the panelized construction market.
In India, the residential construction sector is estimated to drastically slow down due to COVID-19 for financial years 2020 and 2021. The growth in this sector is expected to speed up after 2021 and continuing its growth trajectory during the forecast period. ?
According to the Canadian Real Estate Association, the number of housing units sold in Canada in 2019 were 489 thousand and is expected to reach 583 thousand in 2021.?
With the increasing popularity of the Off-site construction method, using panelized components in Europe, these factors are expected to provide numerous opportunities for the growth of the market studied.
All such growth depicting factors in the construction sectors are likely to significantly impact the demand for panelized modular building systems, during the forecast period.

Asia-Pacific Region to Dominate the Market

The Asia-pacific region dominated the global market share. Modular construction is witnessing strong growth in the region, and the growth is driven by the growing residential, commercial, and infrastructure construction in the region.
In Asia-Pacific, China holds the largest share. The rising household income levels, combined with the population migrating from rural to urban areas, are expected to continue to drive the demand for residential construction in the country. The increased focus on affordable housing by both the public and private sectors is driving the growth in the residential construction sector.
Non-residential infrastructure is expected to grow considerably. The aging population in the country is creating a demand for the construction of healthcare facilities and new hospitals. The structural changes happening in the Chinese economy over the past few years, with the service sector taking a larger share in the total GDP, gave rise to the construction of huge commercial and office spaces.
According to the National Bureau of Statistics of China, the construction output in the country increased from CNY 9.6 trillion in 2010 to CNY 26.39 trillion in 2020 and is likley to increase in the coming years, which will further enhance the demand for the market studied.
Moreover, during recent years, there has been a strong push for prefabricated and modular buildings in China. For instance, in Hefei city, several policies were introduced to support prefabricated and panelized building enterprises, attracting leading brands, such as Anhui Construction Engineering Group (ACEG), Mhome Group, and Tongji Construction Group. It has been reported that Anhui will foster more than 10 provincial prefabricated building industry bases.
According to Hainan Province Building Industrialization Development Plan (2018-2022), by 2022, the province’s total prefabricated construction area will reach 61 million sq.m. Based on this calculation, in 2022, Hainan’s demand for prefabricated components will hit 27.6291 million m2.
Gemdale (one of China’s leading real estate developers) developed 55 prefabricated building projects, constructing over 5.26 million sq.m of prefabricated constructions in 2019.
Furthermore, Japan also holds significant share in the studied market. Prefabricated housing is common in Japan, from multi-unit apartments in Tokyo to modest bungalows in far-out villages to expansive luxury homes in the suburbs. The panelized modular construction market in Japan is comparatively matured and developed when compared to other regions of the world. In Japan, around 15% of new housing construction is related to prefabricated construction.
The construction sector in Japan is expected to expand at a moderate pace in the country over the next five years, owing to the increasing investments in the public and private infrastructure and commercial projects.
In Japan, one of the biggest redevelopment projects includes Yaesu redevelopments project for old buildings to new offices, hotels, residential, retail, and educational facilities, which are due to be completed by 2023. Shibaura Chome redevelopment and new Shimbashi building redevelopments are other such projects.
Moreover, in February 2019, Kansai International Airport planned investment of about JPY 100 billion (USD 909.5 million) to increase its capacity by around 10 million passengers by 2025. As of October 2020, the project was on track to be completed by 2025. Such growing construction projects are creating a potential demand for the studied market, in Japan.
Thus, such a market scenario is estimated to continue during the forecast period, fuelling the demand for panelized modular building systems in the region.

Competitive Landscape

The panelized modular building systems market is fragmented in nature, with numerous players holding insignificant shares to individually affect the market demand. Some of the noticeable players in the market include Kingspan Timber Solutions (Kingspan Group), Robertson Group Ltd, Etex Building Performance, Hunter Douglas Group, and Metek Plc, among others.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06221860/?utm_source=GNW

About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.

__________________________

CONTACT: Clare: clare@reportlinker.com US: (339)-368-6001 Intl: +1 339-368-6001