Saudi Arabia Prefabricated Buildings Market Size (2024 - 2029)

The market size for prefabricated houses in Saudi Arabia is experiencing significant growth, driven by an increasing demand for cost-effective and time-efficient housing solutions. This demand is fueled by a housing shortage, particularly for expatriates, and the need for affordable housing due to a growing population. The expansion of modular construction in remote and rural areas further contributes to the market's growth. Additionally, the eco-friendly nature of prefabricated buildings, along with their energy efficiency and design flexibility, enhances their appeal. Government initiatives, such as the support from the Ministry of Housing and the establishment of a Real Estate Development Fund, are also pivotal in addressing the housing deficit and promoting homeownership, thereby influencing the market size positively.

Market Size of Saudi Arabia Prefabricated Buildings Industry

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Saudi Arabia Prefabricated Buildings Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 3.67 Billion
Market Size (2029) USD 5.54 Billion
CAGR (2024 - 2029) 8.59 %
Market Concentration Low

Major Players

Saudi Arabia Prefabricated Buildings Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Prefabricated Houses in Saudi Arabia Market Analysis

The Saudi Arabia Prefabricated Buildings Market size is estimated at USD 3.67 billion in 2024, and is expected to reach USD 5.54 billion by 2029, growing at a CAGR of greater than 8.59% during the forecast period (2024-2029).

The increase in demand for prefabricated housing in the country, including manufactured housing, modular housing, precut housing, and panelized housing, is driven by continued gains in housing demand across the country. The growth in the prefabricated buildings market is majorly due to the increasing construction activities across the country and the lack of affordable houses for expatriates working on ongoing development projects in Saudi Arabia.

The growth of modular construction is high in remote and rural areas, which is expected to impact the overall market growth during the forecast period significantly. The residential construction industry in Saudi Arabia is facing a shortage of affordable housing because of a growing population and an influx of expatriates. This has encouraged the demand for prefabricated homes, as they are cost-effective and time-efficient.

Furthermore, prefabricated buildings are more eco-friendly than conventionally constructed buildings, as they do not generate any on-site waste. This is projected to positively influence the market demand in the upcoming years. Moreover, energy efficiency, design flexibility, and faster completion are some of the other advantages of prefabricated buildings, which are anticipated to drive market growth.

Backed by the Ministry of Housing, the modular construction undertaking is used to help Saudi Arabia’s homeownership strategy, which predicts that 70% of residents will likely own homes by 2030. Moreover, Saudi Arabia’s recent budget shows that the government is focusing on infrastructural reforms as per the 2030 vision.

In Saudi Arabia, the housing shortfall is growing rapidly. To address this deficit, the government has established a Real Estate Development Fund, which has developed various financing schemes to increase homeownership rates. It has also consolidated government land under the Ministry of Housing to accelerate the delivery of the 500,000 units announced through a royal decree. The Ministry of Housing has recently started a PPP program to complement other housing delivery initiatives.

Prefabricated Houses in Saudi Arabia Industry Segmentation

The word "prefabricated buildings" or prefabs refers to buildings with components (walls, roof, and floor) that are manufactured in a factory or manufacturing plant. These components can be fully or partially assembled in a factory and then transferred to the construction site. 

The market is segmented by material type (concrete, glass, metal, timber, and other material types) and application (residential, commercial, and other applications (infrastructure and industrial)). 

The report offers market size and forecasts for the Saudi Arabian prefabricated building market in value (USD) for all the above segments. 

The report provides a comprehensive background analysis of the Saudi Arabian prefabricated building industry, covering current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. Additionally, the COVID-19 impact has been incorporated and considered during the study.

Material Type
Concrete
Glass
Metal
Timber
Other Material Types
Application
Residential
Commercial
Other Applications ( Industrial, Institutional, and Infrastructure)
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Saudi Arabia Prefabricated Buildings Market Size Summary

The prefabricated houses market in Saudi Arabia is poised for significant growth, driven by increasing demand for cost-effective and time-efficient housing solutions. This demand is largely fueled by a growing population, an influx of expatriates, and a shortage of affordable housing options. The market is characterized by the use of various prefabricated housing types, including manufactured, modular, precut, and panelized homes, which are gaining traction due to their eco-friendly nature and efficiency in construction. The government's focus on infrastructural reforms and the 2030 vision, alongside initiatives like the Real Estate Development Fund and the PPP program, are pivotal in addressing the housing shortfall and promoting homeownership. These efforts are supported by the Ministry of Housing, which aims to significantly increase the number of residential units through various housing schemes and projects.

The market landscape is moderately consolidated, with major players such as Zamil Industries, Red Sea Housing, and Kirby Building Systems playing a crucial role in shaping the industry. The use of prefabricated metal structures is prevalent, particularly in commercial and infrastructure developments, due to their durability and cost-saving benefits compared to traditional construction methods. The rise of mega projects like Neom, the Red Sea Project, and Qiddiya further underscores the demand for prefabricated buildings. Additionally, the market is experiencing a rebound in project activity, which has led to increased steel prices and a steady rise in private housing construction. The competitive environment is intensified by the presence of American and Chinese building systems, which offer rapid and cost-effective construction solutions. As the country continues to urbanize and expand its tourism sector, the demand for prefabricated buildings is expected to grow, supported by government initiatives and private sector investments.

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Saudi Arabia Prefabricated Buildings Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Market Scenario and Impact of COVID-19

    2. 1.2 Technological Trends

    3. 1.3 Insights on Supply Chain/Value Chain Analysis of the Prefabricated Buildings Industry

    4. 1.4 Brief on Different Structures Used in the Prefabricated Buildings Industry in Saudi Arabia

    5. 1.5 Cost of Prefabricated Construction Technologies

    6. 1.6 Cost Analysis of Setting Up a Prefabricated Equipment Manufacturing Unit in Saudi Arabia

    7. 1.7 Brief Information About Construction Building Permits in Saudi Arabia, by Region

    8. 1.8 Ongoing and Upcoming Construction Projects in Saudi Arabia

    9. 1.9 Impact of Covid-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Material Type

      1. 2.1.1 Concrete

      2. 2.1.2 Glass

      3. 2.1.3 Metal

      4. 2.1.4 Timber

      5. 2.1.5 Other Material Types

    2. 2.2 Application

      1. 2.2.1 Residential

      2. 2.2.2 Commercial

      3. 2.2.3 Other Applications ( Industrial, Institutional, and Infrastructure)

Saudi Arabia Prefabricated Buildings Market Size FAQs

The Saudi Arabia Prefabricated Buildings Market size is expected to reach USD 3.67 billion in 2024 and grow at a CAGR of greater than 8.59% to reach USD 5.54 billion by 2029.

In 2024, the Saudi Arabia Prefabricated Buildings Market size is expected to reach USD 3.67 billion.

Prefabricated Houses Market in Saudi Arabia Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)