Offsite Construction Market

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. 

The COVID-19 pandemic has negatively affected the global offsite construction market mainly due to the halt in manufacturing activities, prolonged lockdown, international trade, and ceased construction processes.

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.

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. 

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.

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.

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