Pre-Engineered Buildings Market

SKU: DMMA2688 | Last Updated On: Aug 18 2022 | Available Formats

> Global Pre-Engineered Buildings Market Expected to reach a high CAGR of 11.00% during the forecast period 2022-2029: DataM Intelligence

Global Pre-Engineered Buildings Market is segmented By Structure (Single-Story, Multi-Story), By Application (Commercial, Industrial), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Market Overview:

The Global "Pre-Engineered Buildings Market" is expected to grow at a high CAGR of 11.00% during the forecasting period (2022-2029).

A pre-engineered building (PEB) is a building enclosure system. It includes a particular building structure along with wall cladding and roof. It is designed by pre-engineered building manufacturers according to the client’s requirements by utilizing the 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 is driving the pre-engineered buildings market. Furthermore, the demand for the construction of commercial complexes & buildings, and workshops is high, owing to the increase in investment industries. 

Market Dynamics:

Increasing infrastructure investments in fast-growing economies

Increasing infrastructure investments owing to the rise in industrialization and urbanization in developing economies such as India, Vietnam, and China are expected to drive the pre-engineered buildings market. India plans to spend US$ 1.4 trillion on infrastructure during 2019-23 to have a sustainable development of the country. Investments are happening in sectors like retail, urban development, industrial, aviation, and hospitality.

Besides, rising investments in commercial spaces are expected to positively contribute to the pre-engineered building market revenue. For instance, in India, commercial property leasing has witnessed a growth of 30% in the first quarter of 2019, and the leased area is estimated to be around 60 million sq. ft according to secondary sources

Additionally, the pre-engineered buildings market is driven by the increasing demand for warehouses in emerging economies such as India, South Africa, Brazil, and Saudi Arabia. With a rise in the number of e-retailers, the demand for warehouses is also increasing. To meet the supply-demand, these e-retailers are constructing warehouses to enhance their distribution. Hence, PEBs involve the fastest method to build warehouses

Market Segmentation:

Single-story structures are dominating the PEB market globally

The single-story segment accounted for the largest market share of 67% in the year 2019. The demand for single-story 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-story pre-engineered buildings. Furthermore, the lower price of single-story buildings and the benefits of creating large open spaces which are efficient easy maintenance, and has architectural flexibility, support the demand for single-story pre-engineered buildings. The single-story pre-engineered buildings market was valued at USD XX million in 2019 and is estimated to reach USD XX million by 2027, growing at a CAGR of 13% 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 the site. In terms of space, warehouse properties range from 50,000 to hundreds of thousands of feet, usually in a single-story structure. Warehouses in most cases are designed in a standard box type construction, as the design and space requirements for storing goods vary. 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 Penetration:

The Asia Pacific is the largest market for pre-engineered buildings

The Asia Pacific accounted for the largest market share of 43% in the year 2019 and is also projected to record the highest growth rate during the forecast period. 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 building manufacturers and suppliers in this region.

The Asia Pacific pre-engineered buildings market is valued at USD XX million in 2019, expected to grow at a CAGR of 16.83% to reach USD XX million by 2027. 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.

Competitive Landscape:

The global pre-engineered buildings market is highly competitive and fragmented with many players. 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 the customization of offered products 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.

Recent Developments:

  • In January 2019, India-based Pennar Engineered Building Systems Limited constructed an 18-story commercial building and a 6-story school building in India.
  • In January 2019, Nova Buildings acquired the ASEAN pre-engineered buildings business of BlueScope in Vietnam. The acquisition is aimed at strengthening the pre-engineered buildings business of Nova.
  • In May 2016, India-based Everest Industries Ltd invested around US$7.2 million to enhance pre-engineered building technology and to cater to pre-engineered building projects in other regions of India.

COVID-19 Impact: Vegetable sales declined by volume in 2020. Likely to rebound in 2021

The global pre-engineered buildings market has witnessed a negative impact on the product demand in recent months owing to the lockdowns imposed in most countries due to the outbreak of COVID-19. Global economies have contracted by 5% to as much as 20% during the first half of 2020. Increasing COVID-19 cases and uncertainties in the development of vaccines are poising the GDP to decline till the end of 2020. The global trade volumes are projected to decline between 13% and 32% in 2020 as a result of the economic impact of COVID-19. Nationwide lockdowns have halted construction and impacted this hit labor-intensive sector as migrant workers leaving the labor colonies at construction sites is critically hampering construction activities across the world. As per the study by the International Labor Organization, in the COVID-19 pandemic, nearly 52% of labor absenteeism is observed in the Indian construction market.

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