Thailand Prefabricated Buildings Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Thailand Prefabricated Buildings Market Analysis
The Thailand prefabricated buildings industry is estimated to register a CAGR of greater than 5% during the forecast period (2023-2028).
- The construction industry in Thailand took a hit due to the pandemic. Residential Construction investment (accounting for 50% of the total private construction value) value contracted by 1.8%, in line with the number of newly registered completed residential projects in Bangkok and its vicinity and the four major regional provinces (Chiang Mai, Chonburi, Khon Kaen and Phuket) in 2021, with a 14.2% decrease in overall due to property developers delaying the opening of new projects in both low-rise and condominium projects, consumer purchasing power stagnating severely following the economic recession and the emergency law temporarily halting the construction in some construction camps, especially Bangkok and its vicinity, with some migrant and provincial workers leaving the construction site and not returning to the area altogether. As a result, many construction projects were postponed, impacting the prefab buildings sector as well. However, commercial buildings Construction investment increased by 3.8% in 2021, partly driven by the expansion of investments in factory construction and office buildings in industrial estates, especially the EEC.
- Prefabrication plays an important role in the modern world of every building today. In Thailand, Prefabs are gaining popularity in the commercial buildings and residential buildings sectors. In Thailand, prefabricated building systems have been recognized as one of the alternatives that increase the speed of construction. Prefabrication for residential construction has been used in Thailand for less than two decades, but it has grown very fast in the past five years.
- Thai developers see prefabrication as the future and are ready to invest more in this type of construction. Recently, many new developers and contractors have switched from traditional buildings to prefabricated buildings to adapt to this new trend in the Thai residential market. Due to the shortage of skilled workers and the quality control of construction work, real estate operators in Thailand have turned to "precast concrete parts systems" in various types of construction work, especially housing projects and high-rise building construction, in order to quickly deliver quality work to customers.
- In December 2022, Sansiri - a construction company in Thailand - expanded its precast factory to full capacity. The production capacity for precast concrete used in residential construction increased to 5,000 units/year from the previous 3,500 units/year under the total investment budget of THB 2,500 million (USD 76.22 million).
- The outlook of the Thailand prefabricated buildings market looks positive considering the increasing popularity of prefab construction and increasing construction investments. Some of the factors that constrain the growth of the prefabrication buildings industry in Thailand include high initial cost, high-cost pressure without appropriate economic scale effects, lack of regulations addressing prefabricated construction practices, and others.
Thailand Prefabricated Buildings Market Trends
This section covers the major market trends shaping the Thailand Prefabricated Buildings Market according to our research experts:
Construction Investment to Drive the Market Growth
During Q1 2022, the construction business contracted due to the impact of significantly higher costs because of the Russo-Ukrainian war that began in late February 2022. Consequently, the total value of construction investment in Q1 2022 stood at THB 340 billion (USD 10.37 billion) (decreased by 3.7% YoY), with public construction investment worth THB 210 billion (USD 6.40 billion) and private sector THB 130 billion (USD 3.96 billion) (decreased by 2.1% YoY and 6.1% YoY respectively). Contractors continued to face high oil and building materials prices from the impact of the Russo-Ukrainian War in 2022. However, it is expected that the construction business in Thailand will continue to grow during 2022-2024 in line with the expected overall construction investment value, driven primarily by large-scale investment in government projects. Particularly, the projects related to EEC and transportation route expansion, especially rail, and roads, as well as investment in private construction projects. Both the residential and commercial real estate segments are likely to gradually recover in line with economic conditions. Overall, the total construction investment value is expected to expand by an average rate of 4.5-5.5% in 2023-2024.
New project openings in residential construction are expected to increase by an average of 10.0% per year, or about 70 thousand units per year, during 2022-2024. This is supported by the expansion of the government's transportation network. Both the extension and motorway projects will connect suburban areas to downtown making travel faster. This will boost the residential construction around these networks. Condominium construction will improve in some areas, particularly the city center and some Skytrain routes. However, in 2023, overall construction investment may be delayed due to rising costs from oil and building materials prices. The construction of retail space is likely to expand in accordance with the developer's investment plan to support the recovery of private consumption and tourism sectors, and the construction of office buildings is expected to increase in line with the recovery of investment in the business sector. The commercial building construction projects will be characterized as mixed-use projects to support the modern lifestyle of urban society. The projects that are planned to be invested in the period 2022-2024, both under construction and about to begin construction have a combined area of about 1 million square meters. This growth in residential and commercial construction will drive the prefab buildings market growth in Thailand.
Rising Building Material Prices Can Negatively Impact the Market
The prices of self-built homes are projected to rise by 5-8%, spurred by rising metal and fuel costs in the wake of the war in Ukraine. Thailand's building materials price index reached 5.7% in 2022 compared to 2021, in line with higher global energy prices due to the Russia-Ukraine conflict, the reduction in production capacity of the world's major producers; Coupled with the rise in wages. Electricity and interest rate hikes, weak baht, and flooding at the end of Q3 and beginning of Q4 2022 resulted in high costs of raw materials, production costs, and transportation costs. But global demand for steel and steel products slowed as the key economies, including China, struggled in the real estate sector. As a result, Thailand's overall building materials index slowed in the second half of the year. Only in December 2022, the building materials price index was 119.4, down 0.2% compared to November 2022. The reason for the decline in the price index compared to November 2022 was due to the decrease in the price of steel and products, as well as the decrease in global market prices. But it was still up 3.6% compared to December 2021.
Since Russia began its invasion of Ukraine in 2022, metal prices have increased by 50%. Key construction materials and various metals account for some 20% of home building costs. As a result, the prices of self-built homes are expected to jump significantly. Housing prices will be no longer controlled as soaring home construction costs were also attributed to fuel prices which affect both transportation and manufacturing costs. The price will be more expensive by 10% or higher if labor wages also increase. Nickel, which makes up 20-30% of system works with components like electric wiring, has seen the highest surge, with prices rising 60%. Even though steel prices had already doubled in 2021, pricing for self-built homes remained stable, even during the outbreak. Demand would have dropped since then if the cost had risen. The ongoing war could reduce demand for self-built properties, as it has a significant impact on home construction prices and customer confidence. The self-built housing market, which had been dropping steadily since 2020 because of the pandemic, had only recently recovered in November 2021.
Thailand Prefabricated Buildings Industry Overview
The Thailand prefabricated buildings industry is fragmented in nature. There are several local and international players present in the Thailand prefabricated buildings industry. The rapidly changing technological environment is expected to adversely affect vendors as customers expect continual innovations and upgrades in construction processes. Players in the market compete based on offerings and pricing. The competition is expected to intensify further with an increase in product portfolios, technological innovations, and newer players entering the market. The market is expected to grow during the forecast period due to an increase in construction investments and upcoming major projects in the country.
Thailand Prefabricated Buildings Market Leaders
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Siam Steel
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LifesBox Modular
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Thai Isowall Company Limited
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Unibuild
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Modern Modular Co. Ltd
*Disclaimer: Major Players sorted in no particular order
Thailand Prefabricated Buildings Market News
- June 2022: Naval Facilities Engineering Systems Command (NAVFAC) Pacific Resident Officer in Charge of Construction (ROICC) Thailand completed construction of an Unmanned Aerial System (UAS) Operations Support Facility on June 9 at U-Tapao Royal Thai Navy Airfield in Thailand. ROICC Thailand awarded a 100-day construction contract to a local Thai company to provide a 1,600 square feet two-story facility with a control room, maintenance room, and storage for the launch and retrieval equipment. The prefabricated facility was assembled on-site in record time.
- March 2021: Panasonic chose Thailand as the first country in the region to offer modular construction housing by partnering with Siam Steel International, Thailand's leading manufacturer of steel products and building materials. The company is providing two types of houses, producing and selling six models measuring 200 square meters, 250 sq m, and 370 sq m, while the price is set at THB 35,000 (USD 1068) per sq m. Panasonic wants to develop mid-priced housing projects at THB 5-10 (USD 0.15-0.31) million per unit.
Thailand Prefabricated Buildings Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Technological Trends in the Market
4.3 Supply Chain/Value Chain Analysis of the Prefabricated Buildings Industry
4.4 Brief on Different Structures Used in the Prefabricated Buildings Industry
4.5 Cost Structure Analysis of the Prefabricated Buildings Industry
4.6 Insights on Different Types of Materials used in Prefabricated Buildings Construction
4.7 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.2 Market Restraints
5.3 Market Opportunities
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 Application
6.1.1 Residential
6.1.2 Commercial
6.1.3 Other Applications (Infrastructure and Industrial)
7. COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 Siam Steel
7.2.2 LifesBox Modular
7.2.3 Thai Isowall Company Limited
7.2.4 Unibuild
7.2.5 Modern Modular Co. Ltd
7.2.6 Advance Civil Group Co. Ltd
7.2.7 Container Kings
7.2.8 Maxxi Factory
7.2.9 Kirby Building Systems
7.2.10 Karmod Prefabricated Technologies*
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9. APPENDIX
9.1 Marcroeconomic Indicators (GDP Breakdown by Sector, Contribution of Construction to Economy, etc.)
9.2 Key Production, Consumption, Exports and Import Statistics of Construction Materials
Thailand Prefabricated Buildings Industry Segmentation
Prefabricated buildings (also known as prefabs) are manufactured offsite and transported to the location for on-site assembly. This report covers market insights, such as market dynamics, drivers, restraints, opportunities, technological innovation, and its impact, porter's five forces analysis, and the impact of COVID-19 on the market. Additionally, the report provides company profiles to understand the competitive landscape of the market.
The Thailand Prefabricated Buildings Industry is Segmented by Application (Residential, Commercial, and Other Applications (Infrastructure and Industrial)). The report offers market sizes and forecast for Thailand Prefabricated Buildings Industry in value (USD Billion) for all the above segments.
| By Application | |
| Residential | |
| Commercial | |
| Other Applications (Infrastructure and Industrial) |
Thailand Prefabricated Buildings Market Research FAQs
What is the current Thailand Prefabricated Buildings Market size?
The Thailand Prefabricated Buildings Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Thailand Prefabricated Buildings Market?
Siam Steel, LifesBox Modular, Thai Isowall Company Limited, Unibuild and Modern Modular Co. Ltd are the major companies operating in the Thailand Prefabricated Buildings Market.
What years does this Thailand Prefabricated Buildings Market cover?
The report covers the Thailand Prefabricated Buildings Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Thailand Prefabricated Buildings Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Thailand Prefabricated Buildings Industry Report
Statistics for the 2024 Thailand Prefabricated Buildings market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Thailand Prefabricated Buildings analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
