Brazil Prefabricated Buildings Industry Study - Growth, Trends, And Forecasts (2020 - 2025)

The Prefabricated Building Market in Brazil is expected to grow at a CAGR of approximately 5.1% during the forecast period driven by smart and self-sufficient housing construction.

The revenue generated by the prefabricated buildings industry has seen a constant spur during the review period. In 2016, the revenue generated has amounted to USD 3.48 billion whereas, in 2019, the revenue generated was USD 4 billion. The number of prefabricated buildings in brazil is expected to increase as the number of developers is increasing.

The small projects are on the rise for commercial tourism in Brazil that are taking advantage of the cost-effective and fast prefabrication construction techniques. Due to the economy, rationalization, and speed of work, Brazil's largest portion of school projects are designed from prefabricated concrete elements with rigid modulations and, in rare cases, steel.

The Brazilian company Urban3D is prefabricating the parts of buildings and then assembling them on-site in an attempt to combat BrazilÕs housing crisis. This method requires human workers to assemble the buildings but also shows how the techniques of 3D printing can be used to quickly and efficiently support the needs of society. Driven by the housing crisis, affordable and smart housing, the prefabricated buildings industry is expected to grow during the forecast period.

Key Market Trends

Opportunities in Residential & Infrastructure Sectors to Boost the Construction Sector / Prefabricated Sector

In 2018, the residential sector accounted for almost 33% of the total construction sector followed by infrastructure, which occupies around 29.6% share. The housing crisis and the need to upgrade the infrastructure can be attributed to the growth in the sector.

Brazil has a housing deficit of around 28.5 million people, with San Paulo state having the greatest housing deficit with approximately 1.5 million homes. To recuperate this, Bamboo Finance invested USD 3.6 million in Bille, a Special Purpose Enterprise created by Crinale, a Brazilian housing developer for building and selling of 1200 homes in the area.

The city's extreme housing deficiency especially influences helpless occupants. As indicated by recent information, at least, 13,706 of its poorest family units (those earning less than times monthly wage of USD 250) live in ghettos or vagrant settlements. Another 53,214-share lodging with different families and 22,297 family units live in overcrowded conditions.

Another important urban infrastructure area is the construction of schools. Schools require diverse and complex programs and flows. Therefore, developing an educational project is one of the greatest challenges for architects. Due to the economy, rationalization, and speed of work, Brazil's largest portion of school projects are designed from prefabricated concrete elements with rigid modulations and, in rare cases, steel.

Most of the recent school building constructions in Brazil are prefabricated, FDE - Golden Park School V / Apiac‡s Arquitetos, FDE Public School / FGMF, Campinas School / bvy arquitetos to name a few. The total construction project pipeline in Brazil including all mega projects with a value above USD 25 million - stands at USD 597.8 billion. The pipeline, which includes all projects from pre-planning to execution, is skewed towards early-stage projects, with 57.4% of the pipeline value being in projects in the pre-planning and planning stages as of November 2019. With crisis, comes the opportunity. The severe housing crisis and the rampant need for the infrastructure csn be a boosting factor to the prefab industry.

Precast Concrete Market Hold Major Share in the Prefab Buildings Market

According to the countryÕs National Cement Industry Union (SNIC), the domestic cement sales in Brazil registered a 1.6% growth year on year to reach 4 metric tonnes in December 2019. In terms of sales per business day, there was a 2.7% year on year rise when compared with 2018. Apparent consumption in December was up 1.5% year on year to reach 4 metric tonnes. Precast concrete is one of the main attributing factors for the increase in the production and sales of cement. As the prefab market and modular construction activity increases, the need for cement also rises as there will be an immediate requirement. For the full-year 2019, sales increased 3.5% year on year to reach 54.5 metric tonnes, when viewed as sales per business day, the advance was 3.3%. The main driver of the recovery of cement consumption was the real estate sector, especially the residential one, according to SNIC. The number of units financed for construction grew by 38% accumulated until November. In the same vein, there was a 17% increase in residential launches, accumulated up to September, with emphasis on properties aimed at the middle and upper classes.

Competitive Landscape

The report covers the major players operating in the Brazil Prefabricated Buildings Industry. The market is fragmented, moderately competitive without dominant players. The Brazilian startup, SysHaus, in partnership with architect Arthur Casas, developed a project of sustainable smart homes that are ready in half the time of other prefab works.

The market is expected to grow during the forecast period due to the increase in the prefab construction building start-ups, up-coming major projects in the country, and other few factors that are driving the market. Prefabricated building systems and construction hold high potential to improve the efficiency and performance of the Brazil construction industry in a more sustainable sense. Construtech Ambar wants to take the hassle out of the millions of consumers across the country who are either building or renovating their homes with an all-in-one automation platform.

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- The market estimate (ME) sheet in Excel format
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