The global pre-engineered building market size was anticipated at USD 9.73 billion in 2017. It is estimated to register a CAGR of 15.5% over the forecast period. An increase in construction spending by most governments coupled with an upswing in the demand for fast track constructions in Asia Pacific, particularly in China and India, has driven the PEB market over the past few years.
The market is expected to witness significant growth on account of increasing awareness regarding modern off-site construction techniques. In addition, rising demand for green buildings globally has resulted in shifting focus from traditional steel buildings to PEB, which consumes lesser energy during and post construction.
Off-site construction consistently provides high standards in terms of strength and cost efficiency as compared to traditional on-site construction. Moreover, it offers benefits such as shorter build time, controlled build environment, and low labor cost, thereby propelling the off-site construction industry. Growth in the off-site construction industry is likely to fuel the demand for pre-engineered structures.
Fluctuating steel prices coupled with low market penetration in various emerging economies are poised to hamper market growth. In addition, unavailability of skilled labor and advanced technologies in a few regions are projected to restrict the growth of the market over the forecast period.
Primary market players are actively involved in innovation, R&D activities, gaining new expertise in steel structures, upgrading products according to revised regulations, and overall project management. Companies are also involved in customization of offered products in order to consolidate their position in the global arena.
Major factors impacting competitive environment include execution management issues and financing terms, pre-qualification criteria, customer service, safety, reliability, pricing, ability to control costs, product quality and features, innovation and product development time, and cost of raw materials.
The demand for commercial buildings is anticipated to exhibit a CAGR of 15.2% in terms of revenue during the forecast period owing to rising purchasing power of consumers, which has resulted in increase of businesses in a short period. Ability of PEB to be constructed in a short time coupled with low erection cost is estimated to bolster its adoption in construction of commercial buildings.
Flourishing service sector, including IT/ITeS, BFSI, and telecom companies, coupled with the expansion of multinational companies is expected to escalate the demand for construction of commercial buildings. The complex structure, single source responsibility, and low maintenance cost of PEB are some of the factors responsible for its increased penetration in the commercial buildings construction, thereby stimulating the growth of the pre-engineered building market over the forecast period.
Surging adoption of smartphones coupled with high internet accessibility in emerging economies such as India, Pakistan, Brazil, and China is likely to augment the e-commerce industry. Booming e-commerce industry is resulting in an increased demand for storage and subsequently, heightened demand for warehouses. This trend is also poised to have a positive influence on the market.
The attributes of PEB that complement its use in construction of warehouses include low erection time and cost, architectural versatility, expansion flexibility, large clear spans, and low maintenance. The aforementioned factors are projected to fuel product demand in the industrial buildings segment over the forecast period.
The market in North America is anticipated to expand at a CAGR of 13.9% during the forecast period, owing to high acceptance of advanced technologies and novel concepts along with dynamic construction industry. Improved employment conditions and strong economic growth in the region are estimated to support rise in commercial constructions over the forecast period.
China will also be a promising destination for global market players during the forecast period. The country is expected to experience growth in the number of industrial buildings over the forecast period owing to favorable government policies promoting investments in the manufacturing sector. In addition, shifting of production bases of various companies such as BMW and Volkswagen is likely to benefit the demand for industrial buildings construction, thereby fostering the growth of the market.
Booming tourism sector in Asia Pacific has propelled the demand for restaurants, resorts, and food chains. In addition, rapid urbanization and rising standards of living due to increasing per capita income are poised to boost the expansion of commercial constructions, including shopping malls and retail chains, thereby providing a boost to the growth of the regional market.
Countries in the Middle East are engaged in economic diversification to decrease their dependence on the oil & gas industry. They are making long-term strategies for sustainable economic growth, thereby adopting concept of pre-engineered buildings in the construction industry. Furthermore, robust growth of the tourism industry is anticipated to bode well for the market in MEA.
The major players operating in the industry are companies providing construction services including Jindal Buildsys, Lloyd Insulations, Interarch Building Products Pvt. Ltd., and Tiger Steel Engineering (I) Pvt. Ltd. (TSEIL). The companies are involved in customization of offered products in order to stay ahead in the market.
Significant factors impacting the competitive environment are execution management issues and financing terms, pre-qualification criteria, customer service, safety, reliability, pricing, ability to control costs, product quality and features, innovation and product development time, and cost of raw materials.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global pre-engineered building market report on the basis of application and region:
- Application Outlook (Revenue, USD Million, 2014 – 2025)
- Commercial buildings
- Industrial buildings
- Regional Outlook (Revenue, USD Million, 2014 – 2025)
- North America
- The U.S.
- Rest of Europe
- The U.K.
- Rest of Asia Pacific
- South Korea
- New Zealand
- Central & South America
- Middle East
- Saudi Arabia
- North America