Latin America Prefab Wood Buildings Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 4.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latin America Prefab Wood Buildings Market Analysis
The Latin America Prefab Wood Buildings Market is expected to grow at a CAGR of more than 4.5% during the forecast period.
- Contractors and suppliers in South America's construction sector are experiencing extreme uncertainty as a result of the COVID-19 outbreak. Lockdowns and limitations forced some construction businesses to halt their projects.
- Before the industrial revolution, wood was the most important building material. During the last two centuries, however, wood has often been replaced by concrete, bricks, steel, and also plastics. However, these materials have a significant negative impact on the environment. To prevent this, more construction companies are considering using bio-based materials such as wood. Sustainable timber provides a more ecologically acceptable cladding material than manufactured panels, and the variations in hue provided by natural wood can provide a dynamic aesthetic to any green building. Governments are striving to use more bio-based building materials, including wood.
- The market for prefab wooden structures has an opportunity due to recent increases in the cost of traditional construction methods and the growth of green buildings in the region. In the first half of 2022, the costs of the construction industry in Brazil increased by 7.53%. In June 2022, there was an increase of 2.14% in the INCC, which corresponds to the third largest increase for that month in the last 28 years. According to the Mexican Chamber of the Construction Industry (CMIC), the cost of building materials, such as rebar, steel, and cement, increased 15% to 25% from December 2021 to April 2022. In addition to the building materials prices, the labor costs increased by 20% in Mexico.
- In February 2022, the U.S. Green Building Council (USGBC) announced Mexico ranks ninth in the world on its annual list of Top 10 Countries and Regions for LEED in 2021. Brazil is the other Latin American country to make the 2021 list and ranked number seven. Both countries represent the ever-growing international demand for certified LEED green buildings that help reduce environmental impact and support health and well-being.
Latin America Prefab Wood Buildings Market Trends
This section covers the major market trends shaping the Latin America Prefab Wood Buildings Market according to our research experts:
Increase of Urbanization in Chile Driving the Market
Chile has been one of Latin America's fastest-growing economies in recent decades. Chile is experiencing growing urbanization. Some 90 percent of Chileans live in cities. Urbanization and the evolution of modern cities have led to the development of high-rise building constructions. Traditionally designed with concrete as the main structural material, their construction implies an increase in CO2 emissions released into the atmosphere, air pollution, and a rise in energy and water consumption. These consequences call for the development of new sustainable strategies outside of the industry's comfort zone, such as the incorporation of wood as a structural element.
During the last few years, the merging of timber building tradition with the application of new technologies has produced new prefabricated building systems. The current challenges in the present era in terms of sustainability have been addressed by architecture and construction. Aware of this need, Chile country has already been a tendency for some years to carry out projects that consider wood as the main material, as it is a renewable resource, low in emissions, and gradually allows the replacement of alternatives derived from natural resources.
Chile has shown sustained growth of buildings construction during the past decades but little further development in the use of wood. The Tamango Project by Tallwood architects is an example of the challenges and opportunities of wood construction in the country and the region, as it might potentially be the first 12-storey building with an engineered timber structure.
Demand of Prefabricated Buildings
Since 2020, the needs of new buyers have been evolving hand in hand with the real estate sector, before the decision to choose a home. To meet these new needs, modular homes have hit the market. Due to its benefits such as simplicity, ease of installation on any terrain, lower environmental impact, customization and costs up to 30% less compared to traditional houses, now they can be found on internet sites, more and more. Prefabricated houses in Mexico have gained popularity as they offer great advantages. Prefabricated wooden houses in Mexico are in fashion, due to their cheaper prices and speed of construction. Industrially prefabricated wood has come to stand out in recent years as one of the most used materials for housing construction.
Prefabricated houses have gained prominence worldwide over the years. A triggering factor was the pandemic, as well as the increase in traditional housing costs of raw materials and the rise of minimalist trends. Currently, they are one of the main alternatives in conventional constructions and more and more people are choosing this type of modular housing.
It has been noted that there is room for more prefabricated homes to be built in order to meet the demand and supply for houses in the region. As Latin America's biggest city, Sao Paulo has failed for decades to solve its severe housing crisis. More than 1.2 million people are in need of adequate housing. Currently, 1.2 million families have no place to call home. And with only 240,000 new housing units available each year, the housing shortage will be an ongoing issue in Colombia for years to come. Constructora Bolivar plans to introduce modular construction to the Colombian property owners and developers of multi-family buildings. The belief is that, as they become aware of the lower construction and maintenance costs, and the higher return on investment (ROI), modular construction will establish a foothold.
Latin America Prefab Wood Buildings Industry Overview
The major companies in the Latin America Prefab Wood Buildings industry are covered in this research. The market is fragmented, but it is likely to grow during the forecast period as prefab construction building investments and upcoming significant projects in various developing and developed countries increase. The major players include Green Magic Homes, VMD, Modulbox, E2E Chile, Techno Fast, Easywood, and All In Wall.
Latin America Prefab Wood Buildings Market Leaders
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Green Magic Homes
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VMD
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Modulbox
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E2E Chile
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Techno Fast
*Disclaimer: Major Players sorted in no particular order
Latin America Prefab Wood Buildings Market News
September 2022: Featuring a distinctive design flare, the future of modular houses in North Texas just got better. HiFAB, the newest project by Oaxaca Interests, a Dallas-based company, announced on September 2022 that it will be constructing a new studio and manufacturing facility in the Grand Prairie area of Dallas-Fort Worth. A spokeswoman informed Dallas Innovates that the facility is now under construction and that it should be operational by the end of January. The manufacturing floor will be 42,500 square feet, and the property will also include an additional office building and supply chain storage structures. By March 31st, the first residences should be available.
September 2022: Brazil's naturally ventilated schools are built by GOAA using prefabricated panels. A facility for the Pequeno Principe School has been constructed by the Brazilian architectural firm Gusmo Otero Arquitetos Associados utilizing concrete and prefabricated panels on the outskirts of Ribeiro Preto. The institution's campus, which serves students in elementary school through high school, was finished earlier this year. There are four primary buildings on the site, with a combined area of 9,300 square meters.
Latin America Prefab Wood Buildings Market Report - Table of Contents
1. Introduction
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Insights and Dynamics
- 4.1 Market Overview
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4.2 Market Dynamics
- 4.2.1 Drivers
- 4.2.2 Restraints
- 4.2.3 Opportunities
- 4.3 Industry Attractiveness Porters Five Forces
- 4.4 Value Chain/Supply Chain Analysis
- 4.5 Technological Advancements
- 4.6 Government Regulations and Initiatives
- 4.7 Impact of COVID-19 on the market (Short-term and Long-term Impact on the Market and on the Economy)
5. Market Segmentation
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5.1 By Application
- 5.1.1 Residential
- 5.1.2 Commercial
- 5.1.3 Industrial
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5.2 By Geography
- 5.2.1 Brazil
- 5.2.2 Mexico
- 5.2.3 Argentina
- 5.2.4 Colombia
- 5.2.5 Chile
- 5.2.6 Rest of Latin America
6. Competitive Landscape
- 6.1 Overview (Market Concenttration and Major Players)
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6.2 Company Profiles
- 6.2.1 Green Magic Homes
- 6.2.2 VMD
- 6.2.3 Modulbox
- 6.2.4 E2E Chile
- 6.2.5 Techno Fast
- 6.2.6 Easywood
- 6.2.7 All In Wall
- 6.2.8 Pampa Corporation
- 6.2.9 Casas Brazil
- 6.2.10 Brasmerc
- 6.2.11 BrasilCasas
- 6.2.12 Dextra
- 6.2.13 Impresa Modular*
- *List Not Exhaustive
7. Future Of the Market
8. Appendix
Latin America Prefab Wood Buildings Industry Segmentation
Prefabricated wood building kits are built from prefabricated parts that are delivered and fitted on-site, making them resemble life-size Legos. Prefabricated panels are most frequently used to manufacture whole parts of a building, including glazing packages, roofing components or structure (ceiling, decking, and beams), and building structure (wall panels, beams, columns, and shear paneling).
A complete assessment of the Latin America Prefab Wood Buildings Market includes an assessment of the economy market overview, market size estimation for key segments, and emerging trends in the market segments in the report. The report sheds a light on the market trends like growth factors, restraints, and opportunities in this sector. The competitive landscape of the Latin America Prefab Wood Buildings Market is depicted through the profiles of active key players. The report also covers the impact of COVID-19 on the market and future projections.
The Latin America Prefab Wood Buildings Market is segmented By Application (Residential, Commercial, Industrial), and by Geography (Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America). For each segment, the market sizing and forecasts have been done on the basis of value (USD billion).
| By Application | Residential |
| Commercial | |
| Industrial | |
| By Geography | Brazil |
| Mexico | |
| Argentina | |
| Colombia | |
| Chile | |
| Rest of Latin America |
Latin America Prefab Wood Buildings Market Research FAQs
What is the current Latin America Prefab Wood Buildings Market size?
The Latin America Prefab Wood Buildings Market is projected to register a CAGR of greater than 4.5% during the forecast period (2024-2029)
Who are the key players in Latin America Prefab Wood Buildings Market?
Green Magic Homes, VMD, Modulbox, E2E Chile and Techno Fast are the major companies operating in the Latin America Prefab Wood Buildings Market.
What years does this Latin America Prefab Wood Buildings Market cover?
The report covers the Latin America Prefab Wood Buildings Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Latin America Prefab Wood Buildings Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Latin America Prefab Wood Buildings Industry Report
Statistics for the 2024 Latin America Prefab Wood Buildings market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Prefab Wood Buildings analysis includes a market forecast outlook to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
