According to the latest market research study published by P&S Intelligence, the China prefabricated buildings market was valued at USD 40.8 billion in 2024 and is forecasted to surge to USD 76.1 billion by 2032, expanding at a strong CAGR of 8.3% during 2025–2032. This growth is primarily driven by robust government support for infrastructure development, the rapidly increasing urban population, and a growing demand for sustainable, cost-effective, and labor-efficient construction solutions.
China’s ambitious green infrastructure regulations, along
with supportive initiatives such as tax incentives, low-interest loans, and
green building certifications, are catalyzing the adoption of prefabrication.
The government’s 14th Five-Year Plan mandates that at least 30% of new urban
construction by 2025 be prefabricated, underscoring the sector’s strategic
importance. Provinces like Zhejiang, Jiangsu, and Guangdong have launched pilot
projects involving hospitals and schools to reinforce this approach.
Furthermore, China’s urbanization rate—rising from 19% in 1980 to 64.6% in 2023,
and projected to surpass 70% by 2030—is fueling the need for scalable,
efficient housing and infrastructure solutions.
Key Insights
- The panel
system dominated the product segment in 2024 with a 35% market share,
owing to its user-friendly assembly, flexible designs, and fast
deployment, ideal for large-scale residential and commercial construction.
- Cellular
systems, featuring factory-built kitchen units and bathroom pods, are set
to grow at the fastest CAGR of 8.3%, favored in sectors like healthcare
and hospitality for their superior quality and efficiency.
- Among
applications, the residential sector held the largest share at 40%,
supported by urban migration and government programs for affordable rental
housing in top-tier cities.
- The commercial
segment is poised for the highest CAGR of 9.5%, driven by increasing
demand for offices, hotels, and educational facilities, especially in
cities such as Shanghai, Beijing, Shenzhen, and Chengdu.
- Bathroom
pods led the module category with a 55% share in 2024 and are projected to
maintain the highest CAGR of 10%, due to their time-saving, labor-reducing
features and suitability for major projects.
- Concrete
materials were the most preferred, accounting for 55% of the market,
thanks to their durability, strength, and thermal efficiency, particularly
in large residential and commercial structures.
- Metal-based
prefab structures will witness the fastest growth at a CAGR of 9.2%,
driven by their lightweight, ease of assembly, and rising demand in
warehouse and factory construction.
- East
China emerged as the dominant region, with a 35% market share in 2024 and
the fastest CAGR of 8.5%, backed by favorable policies, robust
infrastructure, skilled labor, and access to seaports.
- Major
cities like Shanghai, Guangzhou, and Shenzhen are key hubs, benefiting
from advanced technologies, public investment, and regional subsidies for
sustainable construction.
- The
market remains highly fragmented, with local players offering modular
components like steel frames and panels. This fragmentation leads to
diverse quality levels but fosters healthy competition.
- Key
manufacturers include CIMC Modular Building Systems, Hangxiao Steel
Structure, Ningbo Deepblue Smart House, and Guangdong Linghe Composite
Material, among others.
- Recent
industry developments include CIMC's modular student residence project in
Hong Kong (Dec 2024), a partnership with China State Construction for modular
steel structures (April 2023), and a sustainability-focused collaboration
with Eternal Tsingshan Group (July 2023).
- Notable
private-sector projects such as Mini Sky City (Changsha), Unicorn Island
(Chengdu), and modular housing in Shenzhen exemplify the scalability and
innovation in prefabricated construction.
- The adoption of digital tools such as Building Information Modeling (BIM) and Life Cycle Assessment (LCA) software is enhancing project efficiency, reducing full-cycle emissions, and aligning with China’s Dual Carbon Goals.
- The construction sector emitted over 430 million tonnes of carbon in 2022, prompting aggressive government action plans to promote energy-efficient building practices across residential and commercial developments.
