Pre-engineered building is a building enclosure system. It includes particular building structure along with wall cladding and roof. It is designed by pre-engineered building manufacturers according to the clients requirements by utilizing best-suited inventory of raw materials. Its structural systems consist of rigid frames, plate steel, roof beams, and columns.
Its advantages include reduced construction time, single source responsibility, energy-efficient roofing & wall systems, architectural versatility, lower cost, quality control, low maintenance, large clear spans, and flexibility of expansion. The rapidly growing industrialization & urbanization in developing countries such as India, China, and Brazil drives the growth of the pre-engineered buildings market. Furthermore, the demand for the construction of commercial complexes & buildings and workshops is high, owing to increase in investment industries. Moreover, growth in population and rapid urbanization creates the need for pre-engineered buildings. For instance, in April 2019, Metsä Group invested around US$2 billion in pre-engineering buildings to expand its bioproduct mill in Finland and Rauma.
The global pre-engineered buildings market size was worth US$ 12,638.95 million in 2019 and is estimated to reach US$ 29,591.55 million by 2027, at a CAGR of 13.60% during the forecast period.
The market for single-storey structure held highest market share of 67% in the year 2019. However, increase in adoption of pre-engineered buildings for offices, big retail outlets, and other building projects are expected to provide lucrative opportunities for multi-storey market expansion.
Asia-Pacific accounted for the largest market share of around 43%, which is also expected to witness fastest growth rate during the forecast period. This can be attributed to the booming construction industry in the residential, commercial, industrial, and infrastructure sector, which is expected to contribute to the demand for pre engineered buildings market in the region. However, disadvantages of these structure such as reduced fire resistance, thermal resistivity, susceptibility to corrosion, and others are expected to hamper the pre-engineered buildings market growth.
Market Dynamics
Drivers
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Increasing infrastructure investments in fast growing economies
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Escalating demand for green construction
Restraints
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In small individual homes, people are not willing to shift towards PEB
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Rising offsite manufacturing investments & financial crisis
Market Segmentation
The single-storey segment accounted for the largest market share of 67% in the year 2019. The demand for single-storey pre-engineered buildings is driven by infrastructural, logistics, and industrial construction investments.
Growth in new types of non-residential construction, such as healthcare, education, recreational and social infrastructure, and retail is also fueling the demand for single-storey pre-engineered buildings. Furthermore, the lower price of single-storey buildings and the benefits of creating large open spaces which are efficient, has easy maintenance, and has architectural flexibility, support the demand for single-storey pre-engineered buildings.
Single-storey pre-engineered buildings market valued USD 8,471.43 billion in 2019 and is estimated to reach USD 18,873.28 billion by 2027, growing at a CAGR of 12.83% during 2020-2027.
Pre-engineered buildings are ideally suited to warehouses as this system consists of factory-fabricated painted columns and beams that are assembled at site. In terms of space, warehouse properties range from 50,000 to hundreds of thousands of feet, usually in a single-storey structure. Warehouses in most cases are designed in a standard box type construction, as the design and space requirements for storing goods varies. As per statistics, PEB accounts for up to 80 percent of the warehouses constructed these days.
This is due to the numerous advantages offered by PEB from faster return on investment, quick construction, low maintenance, ease of expansion and durability.
Geographical Analysis
The growth in the Asia Pacific region can be attributed to the increasing demand for pre-engineered buildings from the growing non-residential construction and infrastructural development in the region. The major demand for pre-engineered buildings in the region is contributed by India and China, owing to the growing population, economic growth, government investments, and demand for low-cost green buildings. Furthermore, foreign investors are setting up their factories and distribution centers in the developing countries of Asia Pacific owing to cheap labor, trade liberalization, and favorable government policies, further boosting the pre-engineered buildings market growth. This acts as an opportunity for the pre-engineered buildings manufacturers and suppliers in this region.
India pre-engineered buildings market is likely to reach USD 3,868.70 million in 2027, from its recorded value of USD 1,012.42 million in 2019. India is the fastest growing market at 22.45%, ahead of China at 19.39%. Till recently in India, steel construction was associated with industrial buildings. Now, with the rising economy and multinational companies entering the country, new buildings whether residential, commercial, retail, hospitality or IT parks are all changing in terms of construction which is driving the demand for steel buildings.
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