Summary

North America's prefabricated housing market is expected to grow at a CAGR of about 2% during the forecast period. Due to COVID-19 restrictions, many construction projects were delayed or canceled. Several construction companies shut down their projects due to lockdown and restrictions. Since a high workforce is required for traditional construction, opting for prefabricated buildings came out as an optimum solution during the pandemic.

COVID-19 has also affected the market owing to slowing raw material production, supply chain disruption, inhibited trade movements, declining construction demand, and reduced demand for new projects. However, the demand for modular buildings has increased due to the increase in COVID-19 cases and the requirement for healthcare and quarantine buildings/units.

The prefabricated housing market is a potential market, especially in North America, where there is increasing demand for affordable housing and high-quality housing. Some of the main factors driving the growth of the market are that it provides homeownership at a lower cost than houses built on-site. Various interior and exterior architectural styles that cannot be easily realized in a house built on-site can be easily deployed in a prefabricated house. Technological progress and manufacturer's focus on providing customers with high-quality services can further promote the growth of the North American prefabricated housing market during the forecast period.

There is a shortage of affordable housing in the United States. Due to the high cost and long time of building on-site houses, and more and more young consumers want to own their own houses, this problem is expected to continue to exist. The shortage of on-site built houses will provide market opportunities for prefabricated house manufacturers who can quickly build affordable single-family houses at a lower cost than on-site built houses, while also providing convenience facilities such as large kitchens and multiple bathrooms.

Key Market Trends

Increase in Prefabricated Housing Market in North America

In North America, the productivity of several construction projects has slowed down due to a labor shortage. Hence, companies are expected to utilize prefabricated construction to complete the project faster. The use of additive manufacturing made using energy-absorbing materials such as micro homes is likely to bolster the industry growth in the region. Further, fast-paced urbanization in emerging areas of the region and growing investment in the construction sector are other factors driving growth. The market is expected to grow at a moderate rate as people increasingly focus on readymade solutions for prefabricated houses that match their criteria. Acceptance of the manufacturing form, consent processes, durability, and low cost are primary factors expected to boost the demand for prefabricated houses. The use of eco-friendly materials in developing high-quality prefabricated houses is likely to influence the market positively. The statistic represents the commodities imported by the United States air freight transportation system from Canada in 2020, by weight. In 2020, United States imported over 1,383.96 tons of furniture, lamps, and prefabricated buildings from Canada.


Mexico is Experiencing the Fastest Growth in the Region

The prefabricated housing industry is at introductory phase in Mexico and poses lots of potential to be captured by the industry players during the forecast period. The construction sector in the Mexico is expanding at a significant rate since the past few years, and this trend is estimated to continue during the forecast period. This is primarily due to the increasing number of initiatives taken by the government to develop infrastructure and construction in the country. The key areas of expected growth are social infrastructure, schools, hospitals, government accommodation, water, defense infrastructure, and water resources. The ongoing construction activities across the North American region act as one of the major opportunities for the Mexican prefabricated housing market.

Competitive Landscape

North America's prefabricated housing market is highly fragmented, with no player having a significant share to influence the market. The market is marked by the presence of a large number of prefabricated housing manufactures and service providers. The market presents opportunities for growth of the companies in the market during the forecast period, which is expected to further drive market competition. The market is expected to grow during the forecast period due to the increase in the prefabricated housing construction investments and upcoming major projects in the country and other few factors are driving the market. Major players are Skyline Corporation, Champion Home Builders Inc., Clayton Homes Inc., Perrin Construction Co. Inc., and Ritz-Craft Corporation.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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