GCC Prefabricated Building Industry

GCC Prefabricated Building Market Analysis

The GCC Prefabricated Buildings Industry is expected to register a CAGR of 5.3% during the forecast period.

The prefabricated construction industry in GCC was severely impacted by the COVID-19 outbreak. The pandemic impacted the growth across key sectors over the short to medium term, and recovery is expected to be slow. The spread of coronavirus dealt a severe blow to the prefabricated construction sector in Kuwait, with the number of building permits plunging by 40% in 2020. Official data showed permits for private residential buildings dipped by around 46% in the first 10 months of 2020 compared to the same period of 2019. The residential construction industry in Saudi Arabia is facing a shortage of affordable housing due to the growing population and an influx of migrants. This augments the demand for prefabricated homes, as they are cost-effective and time-efficient. Moreover, energy efficiency, design flexibility, and faster completion are the other advantages of prefabricated buildings, which are anticipated to drive market growth.

GCC Prefabricated Building Market Trends

Government Initiatives Driving the Construction Market

The GCC countries are focusing on economic diversification to reduce the dependence on the oil and gas sector. Thus, they are planning a long-term strategy for sustainable growth. They choose prefabricated buildings and structural steel in the construction sector. Public and private stakeholders increased their investment in the infrastructure sector, creating growth prospects for the market. The surge in tourism and upcoming events in the Gulf Cooperation Council led to a demand for fast and inexpensive construction solutions. Thus, the GCC prefabricated construction market is expected to show moderate growth in the next five years. Prefabricated construction is being widely used in the GCC region, as it helps in waste management and saves energy.

Increasing Demand for Prefabricated Buildings in GCC

There is a rise in the urban population of GCC countries. The population density in the urban areas of GCC countries is increasing due to the inflow of workers from the rural regions toward the urban regions. The prefabricated buildings market is driven by the increasing construction activities across the region and the lack of affordable houses for migrants working for the ongoing development projects in the GCC region. The government is also promoting prefabricated buildings solutions to provide essential residential and other building types in a smaller period. There is an increase in demand for prefabricated buildings because of less construction time and a lack of labor force in the country. There were many operational difficulties associated with COVID-19. The United Arab Emirates construction workers stayed on-site during the pandemic, but social distancing measures resulted in a 10-30% drop in productivity.

GCC Prefabricated Building Industry Overview

The GCC prefabricated buildings industry is relatively fragmented. There are several international and domestic companies present in the GCC prefabricated buildings market. High capital requirements and rapid technological advancement are important barriers to entry for new participants. The market is expected to grow during the forecast period due to the increase in prefab construction building investments and upcoming major projects in the country. The market presents opportunities for growth during the forecast period, which is expected to drive the market competition. Major players are Cemex, Extra Co Group of Companies, Albaddad International, Speed House Group of Companies, and Exeed Precast.

GCC Prefabricated Building Market Leaders

GCC Prefabricated Building Market News

In May 2020, Speed House is now the exclusive producer and distributor for LTG's spectacular, retro-futuristic "condos" housing units in the United Arab Emirates, Saudi Arabia, and Lebanon. There are several projects already in progress, and the first big one will be announced this summer. In the future, users of mobile homes will now be able to live in modern units and control numerous sustainable functions via. their smartphones.

In November 2020, Albaddad made a new record again after it made an unprecedented achievement by establishing field hospitals and Drive-Thru checkpoints in a record time in the United Arab Emirates. Albaddad broke all the records by establishing Prince Hashem bin Al Hussein Field Hospital in a record time not exceeding 12 days.