Market Size of Saudi Arabia Prefabricated Buildings Industry
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 |
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 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 Buildings Market Size Summary
The prefabricated building market in Saudi Arabia is poised for significant growth, driven by the increasing demand for affordable housing and the need for efficient construction solutions. As the country experiences rapid urbanization and a growing population, the residential construction sector is facing challenges in providing sufficient affordable housing. Prefabricated buildings offer a cost-effective and time-efficient solution, aligning with the Kingdom's Vision 2030. The market is further bolstered by the demand for energy-efficient and turnkey homes, which are becoming increasingly popular due to their design flexibility and faster completion times. Despite the challenges posed by the COVID-19 pandemic, such as supply chain disruptions and reduced construction demand, the need for modular buildings surged, particularly for healthcare and quarantine facilities, highlighting the advantages of prefabricated construction methods.
Saudi Arabia's economic stability and positive trade balance have fostered a conducive environment for the growth of the prefabricated building industry. The market is moderately consolidated, with major players like Saudi Building Systems Mfg. Co., Red Sea Housing Services, and Kirby Building Systems holding significant market shares. These companies are investing in innovative construction methods to meet the rising demand for modular buildings. Projects like the Red Sea Development and NEOM are pushing the boundaries of prefabricated construction, aiming to reduce delivery times and environmental impact. The competitive landscape is influenced by American and Chinese building systems, which offer faster and more cost-effective solutions. As the market continues to evolve, investments in modular construction are expected to increase, supporting the country's ambitious development projects and addressing the housing shortage.
Saudi Arabia Prefabricated Buildings Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Current Market Scenario
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1.2 Technological Trends
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1.3 Insights into Supply Chain/Value Chain Analysis
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1.4 Brief on Different Structures Used in the Prefabricated Buildings Industry
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1.5 Cost Structure Analysis of the Prefabricated Buildings Industry
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1.6 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Material Type
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2.1.1 Concrete
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2.1.2 Glass
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2.1.3 Metal
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2.1.4 Timber
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2.1.5 Other Material Types
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2.2 By Application
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2.2.1 Residential
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2.2.2 Commercial
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2.2.3 Other Applications (Industrial, Institutional, and Infrastructure)
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Saudi Arabia Prefabricated Buildings Market Size 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.