Saudi Arabia and GCC Modular Construction Market – Industry Trends and Forecast to 2031

Saudi Arabia and GCC Modular Construction Market Analysis and Size

The Saudi Arabia and GCC modular construction market report provides details of market share, new developments, and the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, product approvals, strategic decisions, product launches, geographic expansions, and technological innovations in the market. Contact us for an analyst brief to understand the analysis and the market scenario. Our team will help you create a revenue-impact solution to achieve your desired goal.  

Data Bridge Market Research analyses that the market is growing with a CAGR of 4.3% in the forecast period of 2024 to 2031 and is expected to reach USD 4,674,603.87 thousand by 2031 from USD  3,381,154.62 in 2023.

Market Definition

Modular construction is a process in which a building is constructed off-site. The building is constructed under controlled plant conditions using the same design and materials to the same codes and standards as usually built facilities but in around half the time. Buildings are manufactured in “modules” that when put together on site, and specifications of the most sophisticated site-built facility and reflect the identical design intent without compromise.

Modular Construction Market Dynamics

This section deals with understanding the market drivers, opportunities, challenges, and restrains. All of this is discussed in detail below:

Drivers

• Ability to Complete Projects Faster Compared to Traditional On-Site Buildings

Modular construction has been utilized for a long time in the construction of residential and many other commercial product types due to the quick delivery times for the assigned project. Modular buildings are constructed off-site in modules and brought to the site in flat-packed panels. Construction off-site is transforming the construction process for schools, commercial buildings, hospitals, and other segments, ensuring better construction quality management and quicker delivery times.

Modularization methods for construction can help perform several tasks simultaneously. Weather conditions have no major impact on the schedule, so the time required to complete a modular construction project is usually less than that of traditional on-site building methods. In addition, the production of prefabricated components for modular construction is highly automated and of higher quality.

Modular construction is a ready-made structure where limited intervention is required on-site and it could synchronized along with site work and foundation activity. This time-saving benefit keeps the project on schedule. It speeds up construction time while still being efficient, which is driving the market growth.

• Growing Emphasis on Sustainability, Quality, and Workers' Safety

Continuously growing government initiatives to promote green construction, building technique, and reducing waste are driving the market growth. Traditional building method generates around 56 million tons of debris every year. However, modular construction uses precise measurement and management, creating multiple modules so discarded materials can be reused for other projects. This effectively helps in minimizing the generation of waste. The amount of waste generated by traditional construction challenges the environment compared to modular construction. Modular construction generates less waste and is also easy to dispose of.

Opportunity

• Increased Support from Government’s Rules and Policies

Over the past few years, the governments of Saudi Arabia and GCC have been increasing their spending towards shifting reliance from crude oil sector to enhancing the manufacturing output from sectors such as construction, automotive, and consumer goods.

The governments of Saudi Arabia and GCC have confirmed plans for a revolution in housebuilding, office space, and other commercial spaces in their respective countries. The surge of investment by government is noticed in the recent years, therefore increased support from government and its regulations and policies are expected to act as lucrative opportunity for the market growth.

Restraints/Challenges

• Lack of Reliability on Modular Construction in Earthquake-Prone Regions

Modular construction is a revolutionary new method used to build homes and businesses. Modular homes can be found in earthquake and seismic zones, but the ability to sustain the seismic movement is quite limited. Assembling failure can lead to joint issues, leakages, or void spaces. Earthquake-resistant construction is the fabrication of a building or structure that can withstand sudden shock or shake by minimizing structural damage, human deaths, and injuries. Therefore, suitable construction methods are required to ensure earthquake-resistance design objectives.

Modular construction involves building prefabricated modules off-site, delivering them to the worksite, and assembling them to create a permanent structure at the place of installation. Therefore, the building is prone to earthquakes due to assembling the modules.

• Lack of Awareness regarding Modular Construction

Modular construction has long been a high-quality, versatile, environment-friendly building solution. One major challenge faced by modular construction is the lack of awareness among people for these prefabricated spaces. Many people have misconceptions about it, suggesting that modular buildings are temporary structures that are cheap and of limited use. However, modular construction offers a high degree of flexibility and design freedom.

There are several issues in the adoption of modular constructions, including initial high building costs, lack of understanding of the prefabricated method of construction, technical and installation hurdles, and the inability to find prefabrication businesses locally. These factors make the consumer more unaware of the benefits associated with the use of modular construction. Moreover, prefabricated modular construction solutions require a process-based approach for any building or project.

Recent Developments

• In September 2023, Bechtel Corporation announced the opening of a new regional headquarters in Riyadh, Saudi Arabia. This new regional headquarters reflects its strong and long-standing commitment to our regional customers and partners
• In Jan 2023, Karmod Prefabricated Technologies., container construction sites will be used in the establishment phase of THE LINE city, which will stretch along the Gulf of Aqaba in the northwest of the country
• In November 2022, Laing O’Rourke was selected by Khazna Data Centres (Khazna) to undertake the design and construction of a cutting-edge 21.45MW data centre facility and associated office space situated in Dubai Design District

Saudi Arabia and GCC Modular Construction Market Scope

The Saudi Arabia and GCC modular construction market is categorized into three notable segments based on type, material, and end-user. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.

Type

• Permanent
• Relocatable

On the basis of type, the market is segmented into permanent and relocatable.

Material

• Wood
• Steel
• Concrete
• Plastic
• Glass
• Others

On the basis of material, the market is segmented into wood, steel, concrete, plastic, glass, and others.

End-User

• Residential
• Commercial
• Industrial

On the basis of end-user, the market is segmented into residential, commercial, and industrial.

Competitive Landscape and Saudi Arabia GCC Modular Construction Market Share Analysis

The Saudi Arabia and GCC modular construction market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product trials pipelines, product approvals, patents, product width and breadth, application dominance, technology lifeline curve. The above data points provided are only related to the companies’ focus on the modular construction market.

Some of the major market players operating in the market are Bechtel Corporation, Fluor Corporation, LAING O’ROURKE, RED SEA INTERNATIONAL, BK Gulf LLC (a Subsidiary of Dutco Group of Companies), SPACEMAKER KSA, DUBOX, Arabian Containers LLC, Karmod Prefabricated Technologies., KOMA MODULAR, and Gulf Modular International among others.

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