Prefabricated Houses in Saudi Arabia Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.67 Billion |
| Market Size (2029) | USD 5.54 Billion |
| CAGR (2024 - 2029) | > 8.59 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Prefabricated Houses in Saudi Arabia Market Analysis
The Saudi Arabia Prefabricated Buildings Market size is estimated at USD 3.67 billion in 2024, and is expected to reach USD 5.54 billion by 2029, growing at a CAGR of greater than 8.59% during the forecast period (2024-2029).
The increase in demand for prefabricated housing in the country, including manufactured housing, modular housing, precut housing, and panelized housing, is driven by continued gains in housing demand across the country. The growth in the prefabricated buildings market is majorly due to the increasing construction activities across the country and the lack of affordable houses for expatriates working on ongoing development projects in Saudi Arabia.
The growth of modular construction is high in remote and rural areas, which is expected to impact the overall market growth during the forecast period significantly. The residential construction industry in Saudi Arabia is facing a shortage of affordable housing because of a growing population and an influx of expatriates. This has encouraged the demand for prefabricated homes, as they are cost-effective and time-efficient.
Furthermore, prefabricated buildings are more eco-friendly than conventionally constructed buildings, as they do not generate any on-site waste. This is projected to positively influence the market demand in the upcoming years. Moreover, energy efficiency, design flexibility, and faster completion are some of the other advantages of prefabricated buildings, which are anticipated to drive market growth.
Backed by the Ministry of Housing, the modular construction undertaking is used to help Saudi Arabia’s homeownership strategy, which predicts that 70% of residents will likely own homes by 2030. Moreover, Saudi Arabia’s recent budget shows that the government is focusing on infrastructural reforms as per the 2030 vision.
In Saudi Arabia, the housing shortfall is growing rapidly. To address this deficit, the government has established a Real Estate Development Fund, which has developed various financing schemes to increase homeownership rates. It has also consolidated government land under the Ministry of Housing to accelerate the delivery of the 500,000 units announced through a royal decree. The Ministry of Housing has recently started a PPP program to complement other housing delivery initiatives.
Prefabricated Houses in Saudi Arabia Market Trends
Metal Holds the Major Share in Prefab Buildings Industry in Saudi Arabia
Metal is one of the most widely used construction materials across the country in both traditional and modern construction processes. Prefabricated metal structures are widely used in the construction of commercial buildings, skyscrapers, warehouses, and infrastructure developments in Saudi Arabia.
Companies, such as Zamil Steel, have been playing a major role in the prefabricated metal-building industry in Saudi Arabia over the past few years. Metal has been used as an alternative to concrete and other construction materials in the modern construction process owing to its high durability and reliability. Additionally, prefabricated metal buildings are estimated to save construction costs up to ~60% in the Middle East compared to traditional construction.
Structural steel as a metal is a highly important material utilized for framing structures in the building and construction industry. The prefabrication of steel bridges forms an important part of transportation infrastructure projects.
Prefabricated or pre-engineered steel buildings provide many advantages over other building materials, such as customization, speed of construction, decreased maintenance, and insurance costs. The components are created from steel at a manufacturing plant and delivered to the job site. Warehouses, retail spaces, event centers, and homes are ideal steel projects for prefabrication.
In the country, Neom (the Kingdom’s flagship project), the Red Sea Project, and Qiddiya (the capital of entertainment) are some of the key mega projects shaping the infrastructure and construction roadmap.
A rebound in project activity in Saudi Arabia, following the spread of COVID-19, boosted steel prices by over 6% in January 2022. From around SAR 3,558 (USD 948.8) in December 2021, the price of one ton of steel grew to nearly SAR 3,790 (USD 1,010.6) in January 2022. The increase in steel prices was due to an upturn in project activity, higher domestic demand, and an increase in steel exports. Moreover, there also has been a steady increase in the construction of private houses following the introduction of new mortgage facilities.
Governments' Investments and Plans in Residential Housing to Boost the Prefab Industry
Factors such as growing construction activities, demand for affordable housing, social change, and a need to support the population with access to more plentiful and better-quality accommodation are expected to drive the growth of the market in Saudi Arabia during the forecast period.
Additionally, the rising trend of providing housing facilities to migrant blue-collar laborers working on ongoing construction and industrial projects is also expected to boost the demand for prefabricated buildings during the forecast period. The unavailability of affordable housing, owing to population growth and an influx of expatriates, has encouraged the demand for prefabricated homes in Saudi Arabia. Rapid urbanization and upcoming infrastructural projects are projected to further provide a thrust to the market for prefabricated structures in Saudi Arabia during the forecast period.
According to the Saudi Arabian Housing Ministry, an estimated 1.5 million houses must be built by 2030 to address the housing shortage in the country. The government is taking significant steps in addressing the shortage of affordable housing revenues from the While Land Tax, which is expected to contribute toward the funding of affordable housing projects.
Similarly, the Ministry of Housing’s ‘ESKAN’ project aims to add 500,000 units to the total stock of the country’s affordable housing. King Salman has urged the Housing Ministry to build suitable and affordable housing for citizens, as it is a government priority. The government has issued legislation and has set aside a huge allocation in the budget for housing. The Ministry of Housing has planned several important housing schemes during the forecast period to build and support affordable housing, namely ETNAM and WAFI.
Population growth, urbanization, and tourism are expected to drive growth in the building sector, especially in the residential and leisure markets, further increasing the demand for prefabricated buildings in Saudi Arabia.
Prefabricated Houses in Saudi Arabia Industry Overview
The Saudi Arabian prefabricated building industry is moderately consolidated, with the major players having a significant share influencing the market. There is intense competition in the market due to various American and Chinese building systems, which offer fast construction of prefabricated buildings at a lower cost than traditional building systems. Some major players in the Saudi Arabian market for prefabricated buildings are Red Sea Housing, Zamil Industries, United Company for Caravans and Prefab Houses, Al-Shahin Metal Industries, and Kirby Building Systems, which are involved in both the manufacturing and contracting activities of the prefabricated building market industry. Apart from the top players, some major domestic companies provide prefabricated building systems in major cities across the country, such as Zamil Industrial Investment Co., Unifab United Company for caravans and prefab houses, and Al-Shahin Metal Industries.
Prefabricated Houses in Saudi Arabia Market Leaders
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Saudi Building Systems Mfg. Co. (SBSMC)
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Red Sea Housing Services (RSHS)
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KIRBY BUILDING SYSTEMS
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Zamil Industrial Investment Co.
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United Company for Caravans & Prefab Houses
*Disclaimer: Major Players sorted in no particular order
Prefabricated Houses in Saudi Arabia Market News
September 2023: A prefabricated, purportedly environmentally friendly home firm called Mighty Buildings has revealed today that it has raised USD 52 million in a fundraising round co-led by Waed Ventures and Bold Capital with participation from Khosla Ventures. The additional funding increases Mighty Buildings' total funding to USD 150 million. According to sources familiar with the situation, the firm is valued at between USD 300 million and USD 350 million. According to CEO Scott Gebicke, the money will be used to assist the launch of Mighty Buildings' next-generation modular homebuilding kit as well as the company's expansion in Saudi Arabia, North America, and the Middle East.
January 2023: The Public Investment Fund (PIF) of Saudi Arabia and the Engineering & Construction Group have joined forces. The latter is a crucial division of Samsung C&T Corporation, an engineering firm. As a result of the agreement, the businesses will adopt and create cutting-edge technology to aid Saudi Arabia's construction and real estate endeavors. In accordance with the agreement, Samsung C&T Corp would invest with PIF to construct modular homes throughout the Kingdom.
Saudi Arabia Prefabricated Buildings Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario and Impact of COVID-19
4.2 Technological Trends
4.3 Insights on Supply Chain/Value Chain Analysis of the Prefabricated Buildings Industry
4.4 Brief on Different Structures Used in the Prefabricated Buildings Industry in Saudi Arabia
4.5 Cost of Prefabricated Construction Technologies
4.6 Cost Analysis of Setting Up a Prefabricated Equipment Manufacturing Unit in Saudi Arabia
4.7 Brief Information About Construction Building Permits in Saudi Arabia, by Region
4.8 Ongoing and Upcoming Construction Projects in Saudi Arabia
4.9 Impact of Covid-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Governments' Investments and Plans in Residential Housing to Boost the Prefab Industry
5.1.2 Rise in the overall construction industry and increasing prices
5.2 Market Restraints
5.2.1 Uneven Topography
5.2.2 Lack of Awareness
5.3 Market Opportunities
5.3.1 Government Initiatives for Affordable Housing
5.4 Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Buyers/Consumers
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 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 Application
6.2.1 Residential
6.2.2 Commercial
6.2.3 Other Applications ( Industrial, Institutional, and Infrastructure)
7. COMPETITIVE LANDSCAPE
7.1 Market Concentration 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. FUTURE OF THE MARKET
9. APPENDIX
Prefabricated Houses in Saudi Arabia Industry Segmentation
The word "prefabricated buildings" or prefabs refers to buildings with components (walls, roof, and floor) that are manufactured in a factory or manufacturing plant. These components can be fully or partially assembled in a factory and then transferred to the construction site.
The market is segmented by material type (concrete, glass, metal, timber, and other material types) and application (residential, commercial, and other applications (infrastructure and industrial)).
The report offers market size and forecasts for the Saudi Arabian prefabricated building market in value (USD) for all the above segments.
The report provides a comprehensive background analysis of the Saudi Arabian prefabricated building industry, covering current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. Additionally, the COVID-19 impact has been incorporated and considered during the study.
| Material Type | |
| Concrete | |
| Glass | |
| Metal | |
| Timber | |
| Other Material Types |
| Application | |
| Residential | |
| Commercial | |
| Other Applications ( Industrial, Institutional, and Infrastructure) |
Saudi Arabia Prefabricated Buildings Market Research Faqs
How big is the Saudi Arabia Prefabricated Buildings Market?
The Saudi Arabia Prefabricated Buildings Market size is expected to reach USD 3.67 billion in 2024 and grow at a CAGR of greater than 8.59% to reach USD 5.54 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 3.67 billion.
Who are the key players in Saudi Arabia Prefabricated Buildings Market?
Saudi Building Systems Mfg. Co. (SBSMC) , Red Sea Housing Services (RSHS) , KIRBY BUILDING SYSTEMS, Zamil Industrial Investment Co. and United Company for Caravans & 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 3.38 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
The Saudi Arabia prefabricated house market is segmented by material type, including concrete, glass, metal, timber, and other material types, as well as by application, covering residential, commercial, and other applications such as infrastructure and industrial. The report offers a comprehensive industry analysis that includes market size and market share. This industry report provides an in-depth market overview and market forecast, highlighting market growth and market trends.
Industry reports indicate significant market growth in the prefabricated buildings sector, driven by increased demand in both residential and commercial applications. The market analysis reveals that market leaders are contributing to the expansion of the market size. The industry outlook remains positive, with market predictions suggesting sustained growth over the forecast period.
Industry research and industry statistics support these findings, presenting detailed market data and market segmentation. The report example, available as a report PDF, offers valuable insights for research companies looking to understand market value and market review. The industry information provided in this report is crucial for understanding the industry trends and market outlook, making it an essential resource for stakeholders in the Saudi Arabia prefabricated buildings market.
