Off-site Construction Market: Global Industry Analysis and Forecast (2023-2029)

Off-site Construction Market size was valued at USD 249.15 Bn. in 2022 and the total Off-site Construction revenue is expected to grow by 5.8 % from 2023 to 2029, reaching nearly USD 369.72Bn.
Off-site Construction Market Overview:
Off-site construction is a construction method that includes the planning, designing, production, and shipping of prefabricated building pieces, as well as their rapid and high-quality assembly on-site. This level of accuracy is considerably superior to on-site construction. Offsite building construction uses a variety of materials, scales, and systems, as well as innovative manufacturing and fabrication technologies, digital software, and modern assembling techniques.

A customer preference for new houses and government assistance for offsite development are primarily driving the adoption of offsite construction technologies. Offsite housing construction has been marketed as a radical creative technique for improving house construction efficiency, quality, and environmental performance. For example, a Hong Kong study demonstrates that using prefabrication reduces waste output by 52% across all construction types. Similarly, a comprehensive examination of high-rise residential structures in the UK discovered that MMC cut overall construction time by 50%, waste by 70%, and cost savings by 30% on average when compared to traditional techniques. Additionally, research on the embodied carbon energy analysis of current techniques of the home building discovered that a house built using an off-site paneled wood frame resulted in a 34% reduction in embodied carbon when compared to traditional masonry construction of the same house. These are some driving factors of the off-site construction market.

Offsite Construction, also known as prefabrication, rapid build, Offsite Manufacturing (OSM), Precision Engineered Building Systems (PEBS), and Modern Methods of Construction, produces two-dimensional (2D) panelized systems or three-dimensional (3D) modular systems for use in building design and construction, which drive offsite construction market. Advances in digital technology are expected to significantly streamline the Offsite Construction process, saving time and money while improving overall quality.

Competitive Landscape

The market for off-site construction market is highly competitive, with many well-known players competing for supremacy. To obtain a competitive edge in the market, these companies are working incredibly hard to develop cutting-edge, energy-efficient products. PRESCIENT CO, FULLSTACK MODULAR, PLANT PREFAB, BLOKABLE are new market competitors joining the market who provide their clients with subspecialized customized multi-unit buildings, These companies use precision manufacturing technology, including robotics and laser cutting systems, to deliver also, provides production and supply chain solutions to help prefab home builders manage the end-to-end prefabrication process, from materials purchase to final installation. To diversify their product offerings, these companies are investing in R&D to produce new services and technology. To increase their market penetration, market players are concentrating on strategic alliances and collaborations.

The market outputs increase the competitiveness of construction organizations by delivering actual benefits, decreasing risks, increasing construction predictability, encouraging consistency, improving project execution, and allowing future performance enhancements. The study findings quantified the state of offsite construction practice, and the team proposed a list of technologies that organizations should invest in to capitalize on the rise in offsite construction and succeed in both the present and future offsite construction markets.

Some of the major players in the industry are ATCO, Anderco Pte. Ltd, Honomobo Corporation, Giant Containers Inc, SG Blocks Inc, Skanska AB, Lendlease Corporation, and Speed House Group of Companies.

This report assists companies in workforce planning and management, prioritizing training needs and programs, improving the quality of the workforce involved in offsite construction operations, identifying shortcomings in their offsite construction projects more accurately, and identifying which capabilities the organization needs to acquire to improve offsite construction performance and how much improvement might be achieved.To know about the Research Methodology :- Request Free Sample Report
Off-site Construction Market Dynamics:
Smart and Emerging technologies shaping future of the industry and off-site construction market

Building Information Modeling (BIM): Building planning and design is a collaborative process that includes involvement from a variety of stakeholders, including engineers, architects, builders, and customers. The old technique makes it impossible to visualize changes in real time because everyone is working on their own files. As a result, many copies of the same plan are generated, causing confusion. Advanced BIM systems address this issue by offering a centralized database and allowing everyone to collaborate on a single shared model. While 5D BIM provides for cost and time overlays, 6D BIM includes energy budgeting as well. These technologies detect conflicts early on and increase overall workflow efficiency. Building information modeling, in combination with AR and VR, provides rapid testing in virtual settings. Involvement of BIM creating new trends and opportunities for market players.

Construction Robotics: construction is one of the most critical and important sectors. It consists of several repetitive and time-consuming operations that may be completed more quickly with robotics and automation. Construction robots also decrease human-induced mistakes and fatigue losses.

Collaborative robots, for example, may precisely automate bricklaying, welding, rebar tying, painting, and other monotonous jobs. Heavy equipment and fleets are also automated using robotics solutions for excavation, transportation, load lifting, concrete work, and demolition. This improves construction worker safety while also reducing operational time dramatically. Construction automation with robots boosts overall project productivity, decreases labor requirements, and offers safety for dangerous or hazardous operations.



The popularity and increasing demand for smart, innovative technology in offsite construction techniques are growing. The findings also revealed that the top ten future technologies are as follows: (1) drones and remote monitoring; (2) smart sensors; (3) artificial intelligence, cognitive learning, and computer/machine vision; (4) extended reality (i.e., virtualization); (5) integrated real-time project management information systems; (6) wireless technology and nG networks; (7) big data, data analytics, and data ecosystem; (8) robotics; and (9) internet of things. This study contributes to the corpus of knowledge by assisting professionals in identifying strategic technologies that would shape the construction industry's and offsite construction's future. These trends and future impacts on the market are covered in the report.

Changing the off-site construction process creates an opportunity for new market players and highly competitive market players



future offsite construction processes will be different from the current state of practice. As the figure shows, the industry needs to move in several ways to deliver efficient offsite construction.

• From single-trade prefabrication to modularization
• From customized offsite components to standard offsite components
• From permanent offsite construction structures to portable/relocatable offsite construction structures
• From reliance on single-skilled labor to multi-skilled labor

On the other hand, as the bottom trend shows, the team found that there would be no change in the industry’s reliance on highly skilled labor. The report covered the changes that happened in the offsite construction market.
Off-site Construction Market Segment Analysis:
Based on Material, the off-site construction market is segmented into Steel, Wood, Concrete, and Other. Steel is expected to dominate the off-site construction market during the forecast period. Steel is widely used in a variety of industries, including building, infrastructure, mechanical equipment, automotive, and, aircraft and other transportation. Steel is increasingly being used in construction to create prefabs as well as the columns and beams that support structures. The need for building steel in the off-site construction market is also being fueled by rising urbanization and the growing infrastructure development. The global demand for steel from the construction market is expected to reach 930 million metric tons in 2021. Fossil fuel combustion produces greenhouse gases that trap sunlight and increase the temperature of the planet. The Light Steel Frame Association, established to influence rules and regulations, as well as to promote the general aims and growth of the off-site construction market, is boosting awareness of the performance and productivity benefits of steel framing systems in off-site construction. The light steel frame market is more flexible, innovative, and digitally aware than its outsourced material competitors.

High-performance steel framing systems are excellently positioned to fulfill construction industry growth as an innovative non-combustible alternative. Steel is a strong, rigid, and dimensionally stable material that is resistant to shrinkage, warping, movement, and moisture, which drives the demand for steel in the off-site construction market. Steel systems provide considerable advances in design capabilities while also providing cost and timeline certainty as an off-site construction alternative. The demand for Structural steel is today's most commonly used building material and a major element in the construction of skyscrapers that line the horizon in all major American cities. Structural steel is a material with one of the highest durability-to-weight ratios, which drives the off-site construction market demand globally.



Based on the Construction Type, the off-site construction is segmented into Residential, Commercial, and Industrial. Residential construction held the largest segment during the forecast period. Prefabricated construction has the potential to redevelop the construction sector by boosting productivity, recruiting new workers, and lowering embodied and operational carbon emissions. Prefabrication can lower project costs by 20% and expedite project timeframes by 50% in the residential building industry, which contributes $1.05 trillion to the US GDP. Nonetheless, prefabrication in the United States has just a 5% market share in the residential market. Upfront attention on and investment in automation, as well as an emphasis on both cost and quality, are instructive examples of how prefabricated housing may achieve a stable market foothold when investments are driven by long-term objectives in Sweden and Japan.

Sweden is largely recognized as the global leader in off-site construction methods. Prefabrication accounts for 84% of Sweden's market share in residential buildings. When contrasted to the Netherlands and Japan, which have 20% and 15% market shares of prefabricated homes, respectively, and 5% in the United States, United Kingdom, and Australia.

Japan has placed a major focus on marketing the high-quality improvements and longevity of prefabricated housing, which has been helped by standardization, building code updates, and industry-specific building inspections. 15% of newly constructed homes in Japan were produced off-site, and prefabricated homes sometimes sell for more than stick-built equivalents. The exceptional quality of modern industrialized building, along with a new generation of Japanese homeowners' demand for longer-lasting homes, has refueled the prefabricated sector to new heights.

Sekisui Hiems, one of the world's major prefabricated manufacturers, has profited from market changes. The company has eight facilities in Japan, each having the ability to create ten homes every day. This equates to 14,000 new dwellings every year. Sekisui Hiems employs assembly-line automation technology comparable to Lindbäcks Bygg to change home construction into something more similar to car manufacturing. Sekisui Hiems has branded itself and its prefabricated homes to the highest quality construction requirements, displaying an elephant standing on top of one of its steel-frames to advertise its building strength.
Off-site Construction Market Regional Insights:
North America is expected to dominate the off-site construction market during the forecast period. China and the United States are expected to dominate the offsite construction market during the forecast period. Thanks to the rising population, growing per capita income, and rising living standards in this region, which is expected that the manufacturing and construction market would see growth during the forecast period.

Demand for comfort features has increased, which is accelerating the market's growth for off-site construction. Construction is the act of building, whereas manufacturing is the result of the verb to make. The creation of marketing analytics tools and the emergence of established market players are further reasons that are fueling the growth of the off-site construction market. Additionally, businesses, organizations, third-party administrations, etc. are focusing their efforts on creating manufacturing and building goods that are focused on the requirements of the customer which will also help the Offsite Construction market in this region grow. Increased government investment, new and advanced technology, machines, and better marketing strategies, together with rising demand for buildings, agricultural or industrial structures, and even bridges, will probably lead the offsite construction industry to grow significantly.

Asia Pasific held second largest share in 2022. This growth is fueled by growing research activities, increasing manufacturing and construction demand, higher market players' initiatives to establish themselves in APAC, and rising offsite construction adoption in various APAC countries. The region has been more urbanized as a result of increases in GDP per capita and infrastructural growth, transforming rural regions into cities. The significant increase in demand has contributed to unsustainable spending patterns in the cities. The region is home to the top industry leaders in off-site construction. Due to the growing support from governmental organizations, the rising demand for new manufacturing and construction technology with unique features, and the existence of less restrictive regulations and data requirements (as compared to developed countries) in their respective healthcare systems, China and India are expected to offer significant growth opportunities for players operating in the offsite construction market.
Off-site Construction Market Scope: Inquiry Before Buying 



Off-site Construction Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US$ 249.15 Bn.


Forecast Period 2023 to 2029 CAGR:
5.8%
Market Size in 2029:
US$ 369.72 Bn.


 Segments Covered:
by Product
• Steel
• Wood
• Concrete
• Other


by Type
• Fixed
• Movable


by Application
• Residential
• Commercial
• Industrial



Off-site Construction Market, by Region
• North America (United States, Canada and Mexico)
• Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
• Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
• Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
• South America (Brazil, Argentina Rest of South America)
Off-site Construction Market, Key Players are:
• ATCO ( Canadian Utilities,)
• Anderco Pte. Ltd (Singapore )
• Giant Containers Inc (Canada)
• Honomobo Corporation (Alberta, Canada.)
• Lendlease Corporation (Sydney, Australia)
• SG Blocks Inc (United States)
• Skanska AB (Stockholm, Sweden)
• Blokable Inc.( United States)
• Blu Homes (Vallejo, California, United States .)
• Emagispace (United States)
• Falcon Structures (United States)
• FullStack Modular (United States)
• Modus Structures Inc (Canada)
• Nomodic(India)
• Plant Prefab, Inc.( United States .)
• Project Frog ( United States .)
• SG Blocks Inc..( United States)
• Bechtel Corporation (California,)
• Speed House Group of Companies (UAE)
• Supertech Industries LLC (UAE)
• Fluor Corporation(US)

Frequently Asked Questions:

1] What segments are covered in the Global Off-site Construction Market report?
Ans. The segments covered in the Off-site Construction Market report are based material, Construction Type, Application and Region.

2] Which region is expected to hold the highest share in the Global Off-site Construction Market?
Ans. The North America region is expected to hold the highest share in the Off-site Construction Market.

3] What is the market size of the Global Off-site Construction Market by 2029?
Ans. The market size of the Off-site Construction Market by 2029 is expected to reach US$ 369.72 Bn.

4] What is the forecast period for the Global Off-site Construction Market?
Ans. The forecast period for the Off-site Construction Market is 2023-2029.

5] What was the market size of the Global Off-site Construction Market in 2022?
Ans. The market size of the Off-site Construction Market in 2022 was valued at US$ 249.15 Bn.