The global modular and prefabricated nonresidential building construction market is expected to decline from $54.68 billion in 2019 to $49.96 billion in 2020 at a compound annual growth rate (CAGR) of -8.63%. The decline is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities. The entire supply chain has been disrupted, impacting the market negatively. The market is then expected to recover and reach $73.1 billion in 2023 at a CAGR of 13.53%.
The modular and prefabricated non-residential building construction market consists of sales of modular houses and prefabricated houses and related services for non-residential use.
In April 2019, Oldcastle Architectural Products (APG), North America's leading manufacturer and supplier of concrete masonry, dry mix and hardscape products acquired Allied Concrete Products. This acquisition enhanced hardscape and masonry offerings and service for customers from DC to the Carolinas. Allied Concrete Products is a family-owned manufacturer of high-quality masonry units and a supplier of masonry supplies throughout Central Virginia and Tidewater.
The modular and prefabricated non-residential building construction market covered in this report is segmented by type into standard metal, agricultural metal, modular nonmetal, panelized precast nonmetal and by application into institutional, industrial, commercial, agricultural.
The construction industry is considered to be slow and conservative in adopting innovative and new technologies. The construction sector comprises numerous small suppliers and the R&D budget is also limited in comparison to other sectors. In developing or underdeveloped countries of the Asia Pacific region as well as in Africa and South America, people are less aware of this construction method, the advantages it offers and the recyclability of modular buildings. Therefore, it is important to educate consumers regarding the positive effects of modular construction on the environment and the way it can contribute to a healthy lifestyle.
The global modular and prefabricated nonresidential building construction market is expected to grow in the forecast period due to an increase in urbanization and industrialization. According to the United Nations, in 2018, 55% of the world's population lived in the urban area, a proportion that is expected to be 68% by 2050. As per World Urbanization Prospects by the United Nations, the largest urban growth will take place in India, China, and Nigeria. The rapid growth and development of urban housing demand more precise planning timelines and reduced prices. Due to this, construction firms are adopting cost-effective, proven technologies of precast to ensure the highest standards and uniform quality, which can be met by prefabricated technology.