The future of construction: Prefabricated construction
Prefabricated construction (modular construction) is attracting a fresh wave of interest and investment due to the driving demand of technological and economic development of the construction industry, according to McKinsey’s Industry Insights report (McKinsey & Company, 2019).
One of the biggest benefits of prefabricated construction is time and cost saving. According to the report, prefabricated construction can save up to 50% of construction time, and cut down as much as 20% cost compared to traditional construction. A moderate estimation of the market value for prefabricated construction in new real-estate construction could reach $130 billion in Europe and the United States alone by 2030.
Historically, prefabricated construction has fluctuated in the United Kingdom and the United States; it also has become mainstream in other markets such as Sweden and Japan. In Sweden, about 84% of detached houses use prefabricated timber elements. In Australia, however, no more than 5% of permanent housing has any significant prefabrication. As one of the high demand nations for prefabricated construction, due to labour and housing shortage, Australia is set to see a growing future for prefabrication construction.