Global Market Pre-engineered Metal Buildings Outlook
- The global PEMB industry is expected to grow at CAGR of 5 percent from 2017 to 2020, mainly driven by proportional increase in the construction segment across all regions
- APAC holds the maximum market share of prefabricated buildings (~50 percent) in terms of revenue mainly due to high economic growth rate and urbanization in emerging countries such as India, China, and Indonesia
- One of the major segments boosting the demand for PEMB structures is warehousing. In 2015, 7.5 percent of the total retail sales globally was done through online mode and this is expected to grow upto 13 percent by 2020.
- As PEB comes with wide space and huge floors, with fewer columns and bars for interruptions, its great concept and helpful for many enterprises who want such requirements. PEB also allows for greater reusability of building materials with almost 95 percent of the material recycled and reused
Global PEMB Market Overview
Key Growth Drivers for PEMB
- Increased focus towards green building:Various construction companies across the globe are taking initiatives to reduce the energy consumption levels in their buildings and achieve green building certifications such as LEED (the US Green Building Council's certification) and BREEAM (the UK-based Building Research Establishment Environmental Assessment Method). There are various technologies that make PEMB a less waste producing and energy consuming process ad compared to traditional construction
- Eco-friendly:PEBs are eco-friendly as its components are manufactured from cold formed sheet steel. Since steel is one of the world’s most recycled material, therefore, depending on the manufacturing process, close to 95 percent of the components of a newly manufactured steel product can be recycled.
- Better adoption of BIM: Increased adoption of BIM across various nations has also triggered the usage of prefabricated construction, as BIM would make the design flow easier and provides data-centric information based on the design, specification, and construction issues. In addition to all the other benefits, the usage of BIM to track time, errors, and the cost is a major benefit driving the market in all regions
- Warehousing needs: The high growth in retail e-commerce sector has triggered a huge demand for warehouses across the globe. There is an increased inclination towards the use of prefabricated steel buildings to meet the warehousing needs, as it saves a lot of time and cost given for the fixed design of a warehouse. Due to this increasing demand, the market has seen a lot of local, small players enter into the prefabrication market
PEMB Cost Structure and Price Drivers
- The other factors resulting in price increases would be the extent of infrastructure facility in the construction location, which would impact the logistics cost
- There are several anti-dumping duties imposed by western countries on Chinese imports which is a key cost parameter
- The choice of contracting method has a huge impact on the final cost. Choosing a broker who bids from manufacturer would increase cost. It would be best to contract directly with the manufacturer thereby enabling better control over the final product