Prefab Wood Building Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The size of Prefab Wood Building Market is USD 33.6 billion in the current year and is anticipated to register a CAGR of over 5.5% during the forecast period.

Key Highlights

• Prefabricated wooden buildings are among the quickest and easiest to construct, and architects in India are increasingly exploring post and beam, glued-laminated timbers. As a carbon-neutral building material, wood offers several advantages to its users as well as the environment.
• With increasing technology and cutting-edge engineering, it is feasible to express every unique aesthetic experiment, allowing big structures to be built in wood, such as 16-story buildings, curved forms, Olympic-size roof spans, and earthquake-sensitive structures. Canadian Wood is sourced from sustainably managed forests in British Columbia (B.C.) and is one of the most dependable providers of wooden items in the Indian market. Spruce-Pine-Fir (SPF), Douglas-fir, Western Hemlock, Western Red Cedar, and Yellow Cedar are all excellent choices for making any idea a reality.
• Aside from increased demand for prefabricated conventional homes, log homes were a big and rising component of the business. In the late 1990s, log homes accounted for about 7% of all bespoke homes built in the United States; exports of prefabricated log homes also surged. Log dwellings, like modular homes, grew increasingly affluent. Because they consume more wood than typical constructed housing 10 to 20% more the wood preferred for their construction is becoming increasingly scarce.
• Engineered joists, columns, and wall and floor components made of wood provide improved strength while remaining lightweight. These wood-based goods are lighter, which simplifies transportation and increases recyclability, which is projected to increase demand for prefab wooden houses. To accommodate demand, some manufacturers have turned to alternative woods, notably abundant pine. Furthermore, government programs such as "Housing for All" and "One Belt, One Road" are thriving in the residential and commercial building sectors, which is expected to play a significant role in boosting the prefabricated building systems market throughout the projected period.

Prefab Wood Building Market Trends

The Adoption of Environmentally Friendly Materials have a Favorable Impact on the Market

To lower the carbon footprint of buildings, architects are increasingly adopting wood as an alternative to concrete, steel, and glass. New wood technologies enable developers to construct structures taller than the usual single-family home using shorter, less costly pieces of lumber. Aside from the physical advantages of structural strength and flexibility, cost savings, and speed of building, wood offers emotional advantages that steel and glass do not: wood evokes warm sentiments of home, whereas steel and glass evoke a contemporary, colder mood. The potential for new wood technologies is practically limitless, and many companies are exploring novel wood uses on a regular basis.

Wood is often less expensive than steel or concrete, and it may be acquired locally, boosting local economic activity and job creation. The wood building is speedier, especially when prefabricated components are employed, and it saves money on construction costs. Construction speed and cost reductions are especially advantageous following natural catastrophes. Furthermore, the cost of wood has risen dramatically as more people around the country repair or build new houses in the aftermath of a pandemic-year building crisis, resulting in a timber scarcity that adds more than USD 35,000 to the cost of a new single-family home.

The APAC Prefabricated Wood Building Sector is predicted to expand rapidly

Rapid urbanization in developing countries such as China and India, various policy changes announced by the Indian government, strong industrialization, rising urbanization, a higher standard of living, increased FDI in construction, decreased construction waste, the establishment of SEZs, supportive government initiatives, rapidly rising demand from the residential sector in Japan, China, and India, and rising international investment in infrastructure development.

The Asia Pacific region's economic progress is being fueled by factors such as easy access to raw resources and labor, as well as innovative technology and inventions. As of 2021, China and Japan, the two economic powerhouses of the Asia Pacific region, are the world's second and third biggest economies.

Mitsubishi Estate Group has established a goal in the Mitsubishi Estate Group 2030 Goals for SDGs to promote sustainable timber usage under the core issue of the Environment and is encouraging the use of Japan-grown timber and certified timber. For many years, the Mitsubishi Estate Group has actively pushed the use of Japanese-grown lumber in construction projects, including the active use of small-diameter trees and forest thinning timber in 24 wooden-frame houses. In recent years, the Group has also focused on increasing the usage of cross laminated timber (CLT).

Prefab Wood Building Market Competitor Analysis

The market for prefabricated wood buildings is fragmented, with several local and foreign firms. The competition among these players is intense. Customers want constant improvements and updates in construction, therefore the fast-changing technical environment is predicted to harm providers. To maintain a strong industry presence, companies are changing and refining their distinctive value offering.

Market concentration is prevalent in developed countries such as the United States and Western Europe. At the same time, the sector is still in its infancy in developing countries such as China and India. Large corporations benefit from economies of scale in purchasing and marketing. Small businesses might compete by focusing on local markets or specializing in specialty items.

Some of the major players are Skyline Champion, American Homestar, Southland Log Homes, Fertighaus Weiss, American Modular Systems, Honkarakenne, and Matsushima Rinko.

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