Market Size of Saudi Arabia Manufactured Homes Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2020 - 2022 |
CAGR | 3.00 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Manufactured Homes Market Analysis
The size of Saudi Arabia's Manufactured Homes Market is USD 2,873 million in the current year and is anticipated to register a CAGR of over 3% during the forecast period
- Supply chain issues related to the Covid-19 pandemic have made it difficult to buy a home at affordable prices. Thus, more people may start turning to manufactured homes to achieve the dream of homeownership. As housing costs increase due to lumber price spikes and concrete shortages, many homeowners may favor manufactured homes, leading to market growth.
- Saudi Arabia is amid a construction boom that aims to transform the wider economy. The country has been investing substantially in large-scale infrastructure projects, led by Vision 2030. However, the residential construction segment also underwent significant growth expansion following several years of muted growth. One of the key growth drivers for the residential construction industry in Saudi Arabia has been the recent uptick in activity by the government. The Saudi Arabia government launched a number of financing initiatives and regulatory reforms to provide affordable housing to its citizens. In May 2021, the government announced the plan to develop one million residential units in five years. This along with evolving housing preferences, as the younger population moves away from extended families to a more nuclear family, is expected to create an increase in the demand for smaller housing units in Saudi Arabia.
- This demand for housing in the Kingdom will serve as a tailwind to Saudi Arabia's manufactured homes market. Saudi Arabia already leads the modular construction market in the Middle East region. The increased housing demand, growth in construction, affordability, and environmental efficiency of manufactured homes will be major growth drivers for the market. Unlike single-family homes and apartment complexes, manufactured homes can be built in a fraction of the time of fixed construction, allowing them to keep better pace with demand. While low home inventory is driven in part by overwhelming demand, it is also affected by a shortage of skilled workers and supply chain interruptions that keep building projects from being completed. Across the globe, the construction industry faces these issues. These can be circumvented through the faster, more efficient processes associated with manufactured homes, thus making the market's growth more certain. Still, the industry players will have to take some steps to reduce the stigma about manufactured housing in society.
Saudi Arabia Manufactured Homes Industry Segmentation
The manufactured homes, sometimes also called mobile homes, are constructed offsite, and once the entire structure is completed, the final product is transported to the desired location. The offsite works also include plumbing works, electrical works, installing the air conditioners, wiring, etc. Saudi Arabia manufactured homes market is segmented by Type (Single Family, and Multi-Family). The report offers market sizes and forecasts in value (USD Billion) for all the above segments.
By Type | |
Single Family | |
Multi Family |
Saudi Arabia Manufactured Homes Market Size Summary
The manufactured homes market in Saudi Arabia is poised for growth, driven by a combination of economic and social factors. As the country experiences a construction boom under Vision 2030, the demand for affordable housing is increasing, particularly as traditional housing costs rise due to global material shortages and price spikes. The government's initiatives to provide affordable housing and the shift in family structures towards nuclear families are further propelling the demand for smaller, cost-effective housing solutions. Manufactured homes, known for their affordability and quicker construction times, are becoming an attractive alternative for many Saudis seeking homeownership. This trend is supported by the challenges in the traditional construction sector, such as skilled labor shortages and supply chain disruptions, which manufactured homes can effectively mitigate.
Environmental sustainability is also a significant factor influencing the manufactured homes market in Saudi Arabia. With the country's commitment to reducing carbon emissions and achieving net-zero by 2060, manufactured homes offer a more eco-friendly construction option. They generate less waste and utilize energy-efficient materials, aligning with Saudi Arabia's environmental goals. The market is characterized by a fragmented landscape with several key players, including Maani Ventures and Red Sea International, who are actively involved in large-scale projects. These companies are capitalizing on the growing demand for modular and manufactured housing solutions, as evidenced by recent contracts for constructing accommodation units in strategic locations. As the market evolves, the adoption of manufactured homes is expected to increase, driven by their cost-effectiveness and environmental benefits.
Saudi Arabia Manufactured Homes Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Current Market Scenario
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1.2 Market Dynamics
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1.2.1 Market Drivers
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1.2.2 Market Restraints
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1.2.3 Market Opportunities
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1.3 Value Chain / Supply Chain Analysis
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1.4 Porters Five Force Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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1.5 Government Regulations
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1.6 Technological Developments
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1.7 Cost Structure Analysis
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1.8 Impact of COVID-19
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Single Family
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2.1.2 Multi Family
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Saudi Arabia Manufactured Homes Market Size FAQs
What is the current Saudi Arabia Manufactured Homes Market size?
The Saudi Arabia Manufactured Homes Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)
Who are the key players in Saudi Arabia Manufactured Homes Market?
Spacemaker KSA, Aldamegh Portable House Factory, Red Sea International, Speed House Group of Companies and Maani Ventures are the major companies operating in the Saudi Arabia Manufactured Homes Market.