Saudi Arabia Prefabricated Buildings Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.36 Billion |
| Market Size (2029) | USD 5.16 Billion |
| CAGR (2024 - 2029) | 8.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Prefabricated Buildings Market Analysis
The Saudi Arabia Prefabricated Buildings Market size is estimated at USD 3.36 billion in 2024, and is expected to reach USD 5.16 billion by 2029, growing at a CAGR of 8% during the forecast period (2024-2029).
The rise in the overall construction industry and increasing prices contribute to the turnover of the prefabricated buildings market in Saudi Arabia.
The market is driven by the demand for low to mid-rise residential buildings, project homes, and public housing. Additionally, the high demand for turnkey or prefabricated houses and energy-efficient buildings contributes to market growth.
The residential construction industry in Saudi Arabia is facing a shortage of affordable housing due to a growing population and an influx of migrants. It has increased the demand for prefabricated homes, as they are cost-effective and time-efficient. Moreover, energy efficiency, design flexibility, and faster completion are other advantages of prefabricated buildings, anticipated to drive market growth.
The pandemic caused considerable economic damage. The nationwide lockdown halted construction and impacted the labor-intensive sector. As a result, construction projects in various segments, such as educational, residential, and airports, decreased, significantly impacting the demand for prefabricated buildings in Saudi Arabia. It also affected the market due to slow raw material production, supply chain disruption, inhibited trade movements, declining construction demand, and reduced demand for new projects.
However, the demand for modular buildings increased due to the increased cases during the pandemic and the requirement for healthcare and quarantine buildings/units. Since a high workforce was required for traditional construction, opting for prefabricated buildings became an optimum solution during the pandemic.
The Saudi Arabian government's focus on infrastructure development and initiatives such as Vision 2030, which aims to diversify the economy and promote sustainability, are fueling the adoption of prefabricated construction methods. These methods align with the goals of minimizing waste, conserving resources, and reducing carbon emissions.
Saudi Arabia Prefabricated Buildings Market Trends
Increase in Population is Driving the Market
- Saudi Arabia, the second-largest Arab state, is a nation in development. As a result of economic stability, gross domestic product (GDP) grew by about USD 520 billion. This can be attributed to Saudi Arabia's positive trade balance and the fact that Saudi Arabia exported about 2.5 times more goods than it imported. In a developing country, there is a tendency for the population to move to urban cities where the employment rates are higher. The degree of urbanization in Saudi Arabia increased in 2022. Some of the biggest cities in Saudi Arabia witnessed urbanization changes first-hand.
- The prefabricated building market in Saudi Arabia is witnessing innovations in design, materials, and technology, leading to higher-quality and customizable building solutions. This trend is particularly evident in the construction of residential buildings, where developers offer prefabricated housing units with modern amenities and architectural designs.
- The capital of Saudi Arabia and the biggest city, Ar-Riyad, is home to about 7.1 million inhabitants. The high number of illegal immigrants in Saudi Arabia is also included in the total population. With a rapidly growing total population, the demand for affordable residential homes is increasing in the country, driving the prefabricated building market. In 2022, Saudi Arabia's total population amounted to 34.79 million inhabitants.
The Demand for Affordable Prefabricated Homes is Increasing in Saudi Arabia
In Saudi Arabia, modular building is gaining pace. As a result of the country's rising population, the residential construction industry in Saudi Arabia is experiencing a lack of affordable housing.
This boosts demand for prefabricated homes, which are both cost- and time-effective and, hence, align with the country’s Vision 2030. The Saudi government is adopting futuristic methods and concepts to expand existing cities, such as Riyadh, or to create new cities, such as the Red Sea or NEOM.
The Red Sea Project's development improves prefabricated and modular construction methods, reducing delivery time, improving quality, and reducing construction's negative environmental impact. In addition, the adoption of innovative techniques like 3D printing for construction under the Red Sea Project is creating space for more rapid on-site construction as well as considerably reducing overall time-frames and schedules.
Modular construction has emerged as a feasible solution as projects hurry to completion amid unprecedented challenges. It provides a safer building environment while reducing staffing requirements by 30%, making it a suitable solution for post-pandemic situations. When compared to traditional construction, manufacturing construction can cut material waste by 30% and improve worker safety by up to 70%.
Many modular construction companies are investing in the country. For instance, in January 2022, Saudi Arabia-based modular construction company Red Sea International (RSI) signed a SAR 61 million (USD 16 million) contract with the Red Sea Development Company (TRSDC) to design, manufacture, supply, and install modular buildings to support its construction activities. In addition, in 2023, the Red Sea International Company entered into a SAR 29 million (USD 7.76 million) contract with The Fundamental Installation for Electric Work Company, also known as 'First Fix.' The agreement involves designing, manufacturing, supplying, and installing prefabricated buildings for a residential project in NEOM.
RSI aims to install three modular building complexes in the Western region to support the construction activities of luxury hotels on the three islands in the Red Sea. These units are likely to be fully furnished to meet all the requirements of the crew working on the construction of these ambitious projects.
Saudi Arabia Prefabricated Buildings Industry Overview
The Saudi Arabian prefabricated building market is moderately consolidated, with the major players holding a significant share. There is competition in the market due to various American and Chinese building systems. The systems offer fast construction of prefabricated buildings at a lower cost than traditional building systems. Major players have expanded facilities via strategic expansions, such as factory buildings for modular construction. They aim to facilitate a faster, more efficient, and cost-effective way of building. Some of the major players in the market for prefabricated buildings include Saudi Building Systems Mfg. Co., Red Sea Housing Services, Kirby Building Systems, Zamil Industrial Investment Co., and United Company for Caravans and Prefab Houses.
Saudi Arabia Prefabricated Buildings Market Leaders
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Saudi Building Systems Mfg. Co.
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Red Sea Housing Services
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Kirby Building Systems
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Zamil Industrial investment Co.
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United Company for Caravans and Prefab Houses
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Prefabricated Buildings Market News
- September 2023: Mighty Buildings, a start-up building tech for prefabricated, ostensibly environmentally-friendly homes, raised USD 52 million in a funding round co-led by Waed Ventures and Bold Capital with participation by Khosla Ventures. The company plans to use it for the Mighty Buildings’ expansion in North America and the Middle East, particularly Saudi Arabia, and support the launch of its next-gen modular home building kit.
- April 2023: The Kirby Building Systems’ project involving prefabricated buildings in Saudi Arabia included the 10,000 sq. m Al Naqel Express Warehouse. The ARAMCO Project involved the construction of a number of prefabricated buildings for the Saudi Arabian Oil Company, including warehouses. These are expected to be completed by 2024.
Saudi Arabia Prefabricated Building Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Market Definition
1.3 Scope of the Study
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Technological Trends
4.3 Insights into Supply Chain/Value Chain Analysis
4.4 Brief on Different Structures Used in the Prefabricated Buildings Industry
4.5 Cost Structure Analysis of the Prefabricated Buildings Industry
4.6 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Drivers
5.1.1 Government Initiatives and Afforadable Housing
5.1.2 Modular Construction Growth
5.2 Restraints
5.2.1 Uneven Topography
5.2.2 Transportation Challenges
5.3 Opportunities
5.3.1 Investments in the Manufacturing of Prefabricated Buildings
5.3.2 Saudi Arabia's Vision 2030
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers/Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Material Type
6.1.1 Concrete
6.1.2 Glass
6.1.3 Metal
6.1.4 Timber
6.1.5 Other Material Types
6.2 By Application
6.2.1 Residential
6.2.2 Commercial
6.2.3 Other Applications (Industrial, Institutional, and Infrastructure)
7. COMPETITIVE LANDSCAPE
7.1 Overview
7.2 Company Profiles
7.2.1 Saudi Building Systems Mfg Co.
7.2.2 Red Sea Housing Services
7.2.3 Kirby Building Systems
7.2.4 Zamil Industrial investment Co.
7.2.5 United Company for Caravans and Prefab Houses
7.2.6 Al-Shahin Metal Industries
7.2.7 Al Jazera Factory For Engineering Construction Co. Ltd
7.2.8 Saudi Company for Prefabricated Buildings LLC
7.2.9 Alabniah
7.2.10 Eastern Precast Concrete*
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE TRENDS
10. APPENDIX
10.1 Macroeconomic Indicators (GDP Breakdown by Sector, Contribution of Construction to the economy, etc.)
10.2 Key Production, Consumption, Exports, and Import Statistics of Construction Materials
Saudi Arabia Prefabricated Buildings Industry Segmentation
Prefabricated buildings, often referred to as prefab homes, are primarily manufactured in advance off-site, then delivered and assembled on-site. This report covers market insights, such as market dynamics, drivers, restraints, opportunities, technological innovations and their impact, Porter's five forces analysis, and the impact of COVID-19. Additionally, the report provides company profiles of leading market players to help understand the competitive landscape.
The Saudi Arabian prefabricated buildings market is segmented by application (residential, commercial, and other applications (industrial, institutional, and infrastructure)) and material type (concrete, glass, metal, timber, and other material types). The report offers market sizes and forecasts in value terms (USD) for all the above segments.
| By Material Type | |
| Concrete | |
| Glass | |
| Metal | |
| Timber | |
| Other Material Types |
| By Application | |
| Residential | |
| Commercial | |
| Other Applications (Industrial, Institutional, and Infrastructure) |
Saudi Arabia Prefabricated Building Market Research FAQs
How big is the Saudi Arabia Prefabricated Buildings Market?
The Saudi Arabia Prefabricated Buildings Market size is expected to reach USD 3.36 billion in 2024 and grow at a CAGR of 8% to reach USD 5.16 billion by 2029.
What is the current Saudi Arabia Prefabricated Buildings Market size?
In 2024, the Saudi Arabia Prefabricated Buildings Market size is expected to reach USD 3.36 billion.
Who are the key players in Saudi Arabia Prefabricated Buildings Market?
Saudi Building Systems Mfg. Co., Red Sea Housing Services, Kirby Building Systems, Zamil Industrial investment Co. and United Company for Caravans and Prefab Houses are the major companies operating in the Saudi Arabia Prefabricated Buildings Market.
What years does this Saudi Arabia Prefabricated Buildings Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Prefabricated Buildings Market size was estimated at USD 3.09 billion. The report covers the Saudi Arabia Prefabricated Buildings Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Prefabricated Buildings Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Prefabricated Buildings Industry Report
Statistics for the 2023 Saudi Arabia Prefabricated Buildings� market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Prefabricated Buildings� analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
