Nonresidential Prefabricated Building System Demand to Exceed $15 Billion in 2015

Nonresidential prefabricated building system demand in the US is expected to increase 7.8 percent annually to $15.2 billion in 2015, a strong showing compared to the weakness over much of the previous decade.  The recovery in office and commercial construction, coupled with continued gains in institutional, industrial and agricultural construction, will provide opportunities.  The development of new products and technologies, including more tailored designs, greater cladding options for metal buildings and improved concrete mixes, will also support demand.  However, competition from traditional site building will remain intense, and moderating prices for many of the raw materials used in prefabricated building systems will restrain value growth. These and other trends, market share and product segmentation, are presented in Nonresidential Prefabricated Building Systems, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Metal building systems (including components) have long been the largest segment of the US nonresidential prefabricated building system industry and will remain so for the foreseeable future.  While gains are not expected to match the overall prefabricated building system average, demand for metal building systems is expected to post strong 7.2 percent annual gains through 2015. 

Among nonmetal building systems, the modular building system segment is expected to see the strongest gains, just ahead of the panelized precast concrete segment.  The modular building system market will benefit from robust growth in both commercial and institutional construction activity, as well as from the growing popularity of prefabricated bathroom and kitchen modules.  Gains for panelized precast concrete systems will be driven by increases in office and commercial construction, which are among the more popular applications for these systems.  In addition, technological improvements, including better reinforcement materials, improved concrete mixtures and greater design options, will support demand.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.