The prefabricated construction market size is poised to grow in Saudi Arabia in 2023

 


In Saudi Arabia, the modular construction industry is poised to record strong growth over the next five years. The prefabricated construction market size is expected to reach SAR 14.5 billion in 2023, according to ConsTrack360 estimates. This growth will be driven by the increasing investment led by domestic and global construction firms in the Saudi Arabian market in 2023.

·         AMANA, one of the leading construction firms in the Kingdom, announced the opening of a new factory in Rabigh for modular construction in March 2023. With the new facility, AMANA aims to further consolidate its position in the modular construction segment in the Kingdom.

The establishment of the new factory is a response to the increasing demand for offsite manufacturing technologies, facilitated by DuBox, a subsidiary of AMANA. Furthermore, ConsTack360 expects the new manufacturing facility to play a pivotal role in the successful delivery of several ambitious projects in the hospitality and entertainment sectors.

DuBox has made a significant change in its construction operations. Specifically, the company has redirected 85% of its construction activities from major project locations like Qiddiya and Red Sea Global's tourism destination to the Rabigh facility. The 70,000 square meters production facility in Rabigh is capable of manufacturing 16 modules every day. This new modular construction factory in Saudi Arabia will help the Kingdom not only achieve timely completion but will also help in reducing carbon emissions and construction waste. Furthermore, the factory will offer a safer working environment for construction workers in the Kingdom.

Read More - Despite global headwinds, the construction industry outlook remains robust in the UAE in 2023

Read More - Construction chemical firms are seeking to build a powerhouse through mergers and acquisition strategy in 2023

Global players are also investing in modular construction factories in the Kingdom of Saudi Arabia. Samsung C&T, for instance, announced a collaboration with the Saudi Public Investment Fund (PIF) in January 2023.

·         This collaboration entails the establishment of cutting-edge factories dedicated to the production of modular building components within Saudi Arabia. Samsung and PIF will join forces in investing in the development of state-of-the-art manufacturing facilities.

The new factories will largely cater to the construction needs of megaprojects projects such as the Qiddiya resort in Riyadh and The Line, an integral part of the remarkable Neom project valued at an impressive US$500 billion. The collaboration with PIF will not only enable the South Korean construction giant to establish a foothold in Saudi Arabia’s megaproject sector but will also enable the firm to grow its market share in the fast-growing prefabricated construction industry.

Read More - Samsung's Bold Bet: Accelerating investment in next-gen modular construction factories in 2023

The ConsTrack360’s prefabricated construction market report estimates the sector will grow at a CAGR of 7.7% from 2023 to 2027, with the output reaching SAR 20.67 billion by 2027. Consequently, ConsTrack360 expects more global and regional players to increase their investment in the Kingdom’s prefabricated construction market going forward, to tap into the high-growth industry.

Similar trends are seen in the global market, where modular construction firms are investing heavily in the development of new facilities. From the United States to the United Kingdom, firms are focusing on increasing production to capture the growing demand. United States-based Plant Prefab, according to a global prefabricated construction market research report by ConsTrack360, raised US$42 million to boost manufacturing capabilities.

According to Europe prefabricated construction market research report from ConsTrack360, TopHat is building the largest modular homes factory in the United Kingdom. This factory will deliver 4,000 units annually, thereby supporting the growing demand for prefabricated units in the European market. Other players such as ilke Homes are also expanding their production capacities in the United Kingdom.

The growing investment from all of these firms, including those in the Kingdom of Saudi Arabia, indicates that the prefabricated construction market size is poised to grow at an accelerated pace over the next five years. Going forward, ConsTrack360 expects the trend to continue, as players seek to position themselves strong to capitalize on the high-growth potential.

 


Comments

Post a Comment

Popular posts from this blog

Indian construction chemical market size expected to expand significantly over the next five years

Image
  After the effects of the pandemic outbreak started to subside, the Indian construction market has posted a strong growth recovery. The trend has further continued in H1 2023 on the back of higher government spending and housing construction activities. This growth in the broader construction market has also aided the growth of other construction-related industries, including construction chemical market. Firms in the segment, including those operating in the decorative paints category have showcased positive performance in terms of sales and volume growth in Q1 2023. The positive performance during the quarter has been largely driven by factors such as premium product offerings, distribution expansion, and new launches. Furthermore, the ease in prices of raw materials have also aided margin expansion for players in the decorative paints market in India. ·          Asian Paints, the leading firm in the Indian decorative paints market, r...
Read more

Rising inflation and interest rates impact sales and revenue of construction chemicals firm in Q1 2023

Image
  The macroeconomic environment, including rising inflation, interest rates, and the ongoing war between Russia and Ukraine, is having an impact across different industry verticals, including the global construction market. Construction chemical firms are also experiencing the impact of these factors amid the cooldown in the building sector. ·          Swiss chemical maker Sika AG (Sika)   reported a 3% decline in Q1 2023. Notably, the sales declined to 2.35 billion Swiss francs during the period, compared to 2.39 billion Swiss francs. In local currencies, the sales increased by 1.2% during the first quarter, which is down from a 21.9% increase in local currency sales in Q1 2022, during which the firm benefited from a construction boom fueled by low interest rates and pent-up demand following the global pandemic outbreak. While the first quarter has been a challenging period for the Swiss chemical maker, the firm has announced that ...
Read more