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2021

Offsite Construction Market

Offsite Construction Market Size, Share, Competitive Landscape and Trend Analysis Report by Material and Application : Global Opportunity Analysis and Industry Forecast, 2021-2030

CM : Engineering, Equipment and Machinery

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Author's: Priyanka Khandelwal | Sonia Mutreja
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The offsite construction market is expected to reach $235,467.6 million by 2030 from $130,409.1 million in 2020, registering a CAGR of 5.9% from 2021 to 2030.Offsite construction is also called modular construction of prefabricated construction. Steel, wood, concrete, and plastic are some of the materials used to complete offsite construction activities. Offsite construction uses tools, such as flexible cranes, to maximize the productivity and reduce time required for complete offsite construction activities. Offsite construction is used for base camp, storage, office, and commercial purposes. It is easy to install, easy to transport, and cost-effective. 

Rise in need for protection of architecture from environmental impacts, increase in government focus on green building concepts, and offsite construction for space constraints in large cities are anticipated to drive the growth of the offsite construction market. In addition, rising infrastructure spending in various countries, such as Germany, France, India, and others, surges the demand for offsite construction, and thus drives the growth of the offsite construction market. For instance, in Hesse region, a total of 6,796 buildings were completed in 2018, out of which 1,640 included prefabricated homes. A rise in focus toward affordable housing structures and increase in need for offsite construction, owing to features, such as quicker build, easy to relocate, and portability, are anticipated to provide lucrative growth opportunities for the offsite construction market. In addition, urban population is focusing on offsite construction to afford cheaper living as these containers require less cost as compared to traditional container houses. In 2018, the U.S. government's housing program funded around $10 million to build offsite construction buildings. In addition, scarcity of housing units in developing economies, such as Africa and India, is expected to provide lucrative opportunities for the growth of the offsite construction market during the forecast period.

Offsite-Construction-market-2021-2030

Moreover, developed countries, such as the U.S., Japan, the UK, and others, had implemented initiatives that focus on building, designing, and installing green building concept. This offsite construction has features, such as cost-effective and energy-effective prefabricated products, for construction, which, in turn, drive the growth of the offsite construction market.     

Factors, such as reduced cost and time required for offsite construction and rise in demand for prefabricated products for residential and commercial construction activities, drive the growth of the offsite construction market. 

In addition, increase in urban population and industrialization in developed countries, such as the U.S., Japan, France, and Canada, surges the demand for offsite construction, owing to features such as space issues, movability, and easy of transport. Offsite construction is compact and easy to move from one place to other, which drives the growth of the offsite construction market. However, modular or prefabrication products need to install heating ventilation and air conditioning systems in extreme cold and hot regions, which is anticipated to hamper the growth of the market. Conversely, upsurge in demand for new construction and increase in focus toward affordable housing structures are anticipated to provide lucrative opportunities for the growth of the offsite construction market. 

Offsite Construction Market
By Material
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Steel segment holds dominant position in 2020

The offsite construction market is segmented based on material, application, and region. Based on material, the market is classified into steel, wood, concrete, and others. The steel segment generated the highest revenue in 2020. Based on application, the market is divided into residential, commercial, and industrial. The residential segment generated the highest revenue in 2020. Based on construction type, the market is divided into fixed and movable. Fixed segment dominates the market in 2020. 

Region-wise, offsite construction market analysis is conducted across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, and Rest of Europe), Asia-Pacific (China, India, Japan, and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). In 2020, North America region was the highest contributor to the offsite construction market, and is anticipated to secure a leading position during the forecast period.

Offsite Construction Market
By Construction Type
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Movable segment is expected to grow at a significant CAGR

Competition Analysis

The major players, such as ATCO, Anderco Pte. Ltd, Giant Containers Inc, Honomobo Corporation, Lendlease Corporation, SG Blocks Inc, Skanska AB, and Speed House Group of Companies, are engaged in offering offsite construction products to the market.

Major players, such as ATCO, SG Blocks Inc, and Skanska AB, are adopting partnership as key developmental strategy to improve their product portfolio of offsite construction products to the market. For instance, in September 2018, SGB and its subsidiary, SG Residentials, entered into a partnership with Capital Plus Financial (CPF), one of the largest Community Development Financial Institutions (CDFI) in the U.S. and a subsidiary of Crossroads Systems, Inc. With this partnership, SGB is aiming to provide affordable housing at low-to-moderate-income areas across the country and Puerto Rico.

Offsite Construction Market
By Region
2030
North America 
Europe
Asia-Pacific
LAMEA

North America Region is expected to dominate the market during the forecast period.

Key Benefits For Stakeholders

  • The report provides an extensive analysis of the current and emerging offsite construction market trends and dynamics.  
  • In-depth market analysis is conducted by the offsite construction market estimations for the key market segments between 2021 and 2030. 
  • Extensive analysis of the offsite construction market is conducted by following key product positioning and monitoring of the top competitors within the market framework.
  • A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
  • The offsite construction market forecast analysis from 2021 to 2030 is included in the report.
  • The key market players within the offsite construction market are profiled in this report and their strategies are analyzed thoroughly, which help understand the competitive outlook of the offsite construction market.

Offsite Construction Market Segments

By Material

  • Steel
  • Wood
  • Concrete
  • Others

By Construction Type

  • Fixed
  • Movable

By Application

  • Residential
  • Commercial
  • Industrial

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

Offsite Construction Market Report Highlights

Aspects Details
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By MATERIAL
  • Steel
  • Wood
  • Concrete
  • Others
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By CONSTRUCTION TYPE
  • Fixed
  • Movable
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By APPLICATION
  • Residential
  • Commercial
  • Industrial
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
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Key Market Players

ANDERCO PTE. LTD., SPEED HOUSE GROUP OF COMPANIES, SKANSKA AB, BECHTEL CORPORATION, LENDLEASE CORPORATION, Modulaire Group, Fluor Corporation, SG BLOCKS, INC., GIANT CONTAINERS INC., ATCO, SUPERTECH INDUSTRIES LLC

Analyst Review

Offsite construction is also known as prefabrication. Offsite construction is used in modular construction, modular offices, restrooms, bathrooms, locker rooms, workplace housing, mobile cafes, flat rack components, bathrooms, bedrooms, and entire building. It is also used in oil & gas field and power plant industries. It has features such as shorter building time, lower risk, higher quality, and required low cost.

Surge in demand for construction of prefabricated construction, owing to affordable housing structures drives the growth of the offsite construction market. There has been a rise in demand for offsite construction products, owing to reduction in cost and time required for construction, ease of installation, and lack of space in large cities. This, in turn, drives the growth of the offsite construction market. Increase in focus toward affordable residential, commercial, and industrial spaces has significant impact on the market growth. Moreover, offsite construction buildings are developed using containers that protect from changes in external environment and are easy to install & relocate.

Rise in number of population shifts from rural to urban areas, which need more shopping complexes and modular shelters is expected to provides a significant opportunity for the offsite construction market, thereby fueling the growth of the offsite construction market.

However, lack of reliability on modular construction in earthquake prone regions and dearth of skilled labor in developing countries are anticipated to hamper the growth of the offsite construction market. Moreover, increase in investment in infrastructure is anticipated to provide lucrative opportunities for the growth of the offsite construction market.

Author Name(s) : Priyanka Khandelwal | Sonia Mutreja
Frequently Asked Questions?

The Global offsite construction market size was $130,409.1 million in 2020 and is projected to reach $234,467.6 million in 2030, growing at a CAGR of 5.9% from 2021 to 2030.

The forecast period considered for the Global offsite construction market is 2021 to 2030, wherein, 2020 is the base year, 2021 is the estimated year, and 2030 is the forecast year.

The base year considered in the Global offsite construction market is 2020.

The report for Global offsite construction market doesn’t provides Value Chain Analysis, but if there is a requirement for the same, it could be added as an additional customization.

On the basis of construction type, the fixed segment is expected to be the most influencing segment growing in the Global offsite construction market report.

Based on material, steel segment generated the highest revenue, accounting for 45.70% of the market share, and is projected to grow at a CAGR of 6.4% from 2021 to 2030.

The report contains an exclusive company profile section, where the leading 10 companies in the market are profiled. These profiles typically cover company overview, geographical presence, and market dominance (in terms of revenue and volume sales).

North America is expected to provide more business opportunities for Global offsite construction market in the future.

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Offsite Construction Market

Global Opportunity Analysis and Industry Forecast, 2021-2030