Dublin, May 08, 2024 (GLOBE NEWSWIRE) -- The "United States Prefabricated Construction Industry Business and Investment Opportunities Databook - 100+ KPIs, Market Size & Forecast by End Markets, Precast Products, and Precast Materials - Q2 2023 Update" report has been added to ResearchAndMarkets.com's offering.
Prefabricated construction industry in United States is expected to grow by 9.0% to reach USD 123.15 billion in 2023.
The medium to long-term growth story in United States remains intact. The prefabricated construction industry in United States is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 8.6% during 2023-2027. The prefabricated construction output in the country is expected to reach USD 171.26 billion by 2027.
Amid the influx of innovative startups and construction firms, the United States prefabricated construction industry is projected to record strong growth over the next 12 months. The market growth is also supported by the rampant increase in traditional construction and material costs. This coupled with supply chain delays has created the perfect growth environment for prefabricated construction firms in the United States.
To cater to the growing demand for prefabricated construction, firms are also raising funding rounds to expand operations and invest in new facilities. Furthermore, global players are also expanding their footprint in the North American market to capitalize on the high-growth potential of the prefabricated construction industry. With interest rates expected to further increase in 2023, construction costs are projected to further accelerate, thereby supporting the growth of the prefabricated construction industry from the short to medium-term perspective.
Prefabricated construction startups are raising funding rounds to support the growing demand for affordable housing
The United States is facing a severe housing shortage and prefabricated units have emerged as a more viable and sustainable solution to tackle the problem. To support the growing demand for affordable housing units in the domestic market, firms are raising funding rounds. For instance,
In December 2022, Plant Prefab announced that the firm had raised US$42 million to boost its manufacturing capabilities, thereby delivering more prefabricated housing units every year. The US$42 million capital round includes a mix of debt and equity. The US$30 million capital in equity was led by Gerdau, the debt round of US$12 million came from Western Technology Investments and ATEL Capital. With this funding round, the firm is targeting to deliver 900,000 square feet of prefabricated housing units. This will represent approximately 800 units annually and will be a mix of homes, apartments, and condos.
In the prefabricated housing segment, Plant Prefab is competing with Veev, Mighty Buildings, Cover, and Factory OS. As the demand for affordable housing continues to grow, the publisher expects these firms to raise more funding rounds from the short to medium-term perspective, to fund their manufacturing capabilities and expansion plans.
Global prefabricated construction firms are expanding their footprint in the United States market
Over the next three to four years, the United States prefabricated construction market is projected to record strong growth. To capitalize on the high-growth potential, firms are expanding their footprint in the North American market.
CMIC Modular Building System, the firm that builds prefabricated units, will supply the modular units for constructing a five-story hotel in Menlo Park. The hotel, CitizenM, will consist of 161 modules and 240 rooms. Globally, the Chinese firm has constructed more than 100 prefabricated building projects, including in the United States, the United Kingdom, Australia, and New Zealand, among others.
Nexii, the Canadian prefabricated construction firm, is also expanding its footprint in the United States market. The firm had already invested in new manufacturing facilities in the Eastern United States and is projected to further launch more facilities over the next three to four years, to cater to the growing demand for prefabricated construction in the region.
The presence of these global players, along with domestic firms, will keep driving the competitive landscape in the domestic market, while also supporting the growth of the industry from the short to medium-term perspective.
Government incentive programs to drive the growth of prefabricated construction activities in the United States
To overcome the housing shortage issue, local authorities are launching incentive programs to promote prefabricated construction activities.
In January 2023, Colorado announced the launch of an Innovative Housing Incentive Program, under which businesses will be reimbursed 20% of their monthly operating expenses. These expenses will cover the manufacturing of modular and kit homes. A total of US$40 million have been allocated for the housing incentive program. This program is expected to create a supply of 5,000 high-quality, affordable housing units in the state over the next five-plus years.
From the short to medium-term perspective, the publisher expects more local authorities and government institutions to launch such incentive programs, thereby promoting prefabricated construction activities in the country.
Scope
United States by Building Construction Sector
- Residential
- Single-Family
- Multi Family
- Commercial
- Office
- Retail
- Hospitality
- Other
- Institutional
- Industrial
United States by Prefabrication Methods
- Panelised construction
- Modular (Volumetric) construction
- Hybrid (Semi-volumetric) construction
United States by Prefabricated Material
- Aluminium
- Wood
- Iron & Steel
- Concrete
- Glass
- Other
United States by Prefabricated Product
- Building Superstructure
- Roof Construction
- Floor Construction
- Interior Room Modules
- Exterior Walls
- Columns & Beams
- Other
United States by Prefabricated Material X Product
- Aluminium (Building Superstructure, Roof Construction, Floor Construction, Interior Room Modules, Exterior Walls, Columns & Beams, Other)
- Wood (Building Superstructure, Roof Construction, Floor Construction, Interior Room Modules, Exterior Walls, Columns & Beams, Other)
- Iron & Steel (Building Superstructure, Roof Construction, Floor Construction, Interior Room Modules, Exterior Walls, Columns & Beams, Other)
- Concrete (Building Superstructure, Roof Construction, Floor Construction, Interior Room Modules, Exterior Walls, Columns & Beams, Other)
- Glass (Building Superstructure, Roof Construction, Floor Construction, Interior Room Modules, Exterior Walls, Columns & Beams, Other)
- Other (Building Superstructure, Roof Construction, Floor Construction, Interior Room Modules, Exterior Walls, Columns & Beams, Other)
United States by Prefabrication Product X Construction Sector
- Residential (Building Superstructure, Roof Construction, Floor Construction, Interior Room Modules, Exterior Walls, Columns & Beams, Other)
- Commercial (Building Superstructure, Roof Construction, Floor Construction, Interior Room Modules, Exterior Walls, Columns & Beams, Other)
- Industrial (Building Superstructure, Roof Construction, Floor Construction, Interior Room Modules, Exterior Walls, Columns & Beams, Other)
- Institutional (Building Superstructure, Roof Construction, Floor Construction, Interior Room Modules, Exterior Walls, Columns & Beams, Other)
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