Pre-engineered buildings are built by pre-engineered building manufacturers that utilize accessible raw materials from different sources and manufacturing processes that effectively execute a multitude of aesthetic & structural designs. A unique style of architecture is suitable for factories and commercial buildings; it can be demolished and relocated to another place owing to its excellent being cost-effective, simple to mount. While choosing a pre-engineered structure for a project, the contractor recognizes requirements regarding factors such as fabrics, textures, structural form, spatial modularity, etc. found in the manufacturer’s design offers. In addition, such constructions are often referred to as pre-designed metal buildings and are becoming widespread due to a reduced proportion of pre-engineering activities like modified computational assisted designs or simply engineered metal buildings.
The global pre-engineered building market size was valued at USD 16.01 billion in 2019 and projected to reach USD 42.78 billion by 2027 at a CAGR of 13.07%. This is due to the rapidly increasing industrialization & urbanization drives pre-engineered buildings industry development in developing countries such as India, China, and Brazil. Moreover, increasing global demand for green buildings has resulted in changing emphasis from conventional steel buildings to PEB, which absorbs less energy during and after construction. Additionally, the rise in the number of e-shops has contributed to increased demand for warehouses, thus boosting the global pre-engineered buildings market. Furthermore, the increase in the use of steel in building and in construction projects is predicted to fuel the market across the globe.
However, the fluctuation of raw materials prices is estimated to hinder the market’s growth at a substantial growth rate. In addition, customer service, safety, and reliability are projected to challenge the market’s growth.
The rising industrialization and urbanization are likely to fuel the global pre-engineered building market. Global specialization has grown from the old trend under which developed countries sell factories in return for primary materials to the developing nations. Industrialization is the time of social and economic change that transitions a human being into an industrial civilization from an agricultural economy. In addition, the transition from a predominantly farming and trade system to a manufacturing environment necessitated an improvement in labor force expertise, at least in the initial stages. From a market standpoint, the value of manufacturing isn’t restricted to its share of GDP. With cities producing more than 80% of global GDP, urbanization will lead to economic development if well controlled through rising efficiency. It also plays a vital role as a manufacturer of commodities, an argument that clearly sticks out in the final statistics on consumption. Manufacturing firms are the leading providers of innovative products and growing diversity within each economy. Through successive waves of technical developments, both launched in the manufacturing field, citizens’ everyday lives become fundamentally changed. Thus, the rapid urbanization and industrialization projected to boost the market at a considerable growth rate.
With the ongoing growth of knowledge for our climate today, concern in designing ecologically sustainable buildings grows to grow. Enhanced tenant safety & well-being and improved staff efficiency were among the key social factors for green buildings. Certain declining societal influences include building a sense of society and promoting the domestic economy. The numerous business respondents plan to undertake much of their green initiatives (more than 60%) from 27% in 2018 to about half (47%) by the end of the year 2021. In addition, it is estimated that new commercial development tends to lead in green building initiatives across the design industries (with 51% of global respondents considering these ventures), just ahead of new urban construction (38%), retrofits (37%) and new high- and low-rise residential buildings (35% and 30%, respectively). Therefore, the propelling demand for green buildings is anticipated to drive the pre-engineered building market.
The COVID-19 outbreak recently severely impacted the healthcare system of developed and developing economies. There is hardly any place in today’s globalized world that has been left untouched by the severity of the Novel Coronavirus or the Covid-19 pandemic. The building and engineering market, still facing several obstacles, ranging from a shortage of funding and financing sources to insolvencies, widespread fraud, and regulatory pressure under the Environmental Laws and Real Estate, is now marred by the Covid-19 pandemic, with no possible relief in mind. Low-end figures indicate that the U.S. procures about 30% of its construction materials from China, but certain companies rely on China for up to 80% of their products, which has been impacted by the coronavirus and affect the pre-engineered building market. With the expectation of the impacts of the COVID-19 epidemic on global markets, fear among creditors has increased. COVID-19 was also believed to have the ability to cause a global recession in 2020. However, the government is taking specific actions to stabilize the market by adopting corrective measures in time.
Based on the structure, the global pre-engineered building market is bifurcated into single story and multi-story. The single-story structure segment is estimated to hold the largest share and expected to continue its dominance during the forecasted period of 2020-2027 across the globe. This is due to the Infrastructure, transportation, and commercial design projects, which projected to propel the market for single-story pre-engineered houses across the region at a significant growth rate.
However, the multi-story structure segment is anticipated to have the lucrative growth rate by 2027 due to the rising adoption of the pre-engineered building for shops and offices.
Based on the application, the global pre-engineered building market classified into commercial, Industrial, and Other. The commercial application segment is predicted to dominate the global pre-engineered building market globally over the forecasted period by 2027 at a considerable growth rate due to the growing customer buying ability, which results in market development in a brief period. The construction sector in developing economies, including China and India, has seen a significant investment inflow due to various policy measures to build better infrastructure to boost the economy, which projected to fuel the market. In addition, the booming service industry, like IT / ITeS, BFSI, and telecommunications firms, combined with multinationals’ growth, is projected to boost demand for commercial building construction.
By geography, the global pre-engineered building market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America is estimated to dominate the global market during the forecast period of 2020-2027, owing to advancements in technology and the dynamic construction sector across the region.
However, Asia Pacific is estimated to have the fastest growth rate over the forecasted period by 2027 due to emerging economies, including China and India. In addition, real estate is one of Asia-Pacific’s fastest-growing and widely known markets. It comprises of housing, commercial, leisure, and industrial real estate. Moreover, the transfer in manufacturing bases in different companies such as BMW and Volkswagen would undoubtedly increase demand for industrial buildings, which estimated to fuel the pre-engineered building market across the globe at a considerable growth rate.
Companies such as BlueScope Steel, Memaar Building Systems, Interarch Building Products Pvt. Ltd., Tiger Steel Engineering, Era Infra, Nucor Corporation, Pennar Industries, Kirby Building Systems, Zamil Steel Holding Company, Emirates Building System, Jindal Buildsys, Lloyd Insulations, ATCO, Mabani Steel, Lindab Group, Norsteelbuildings, PEBS Pennar, PEB Steel Buildings, NCI Building Systems, and Everest Industries are the key players in the global Pre-engineered Building market.