Dry Construction Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The dry construction market is expected to be worth approximately US$102 billion in 2023, and it is expected to rise to approximately US$120 billion in 2032. This growth represents a CAGR of 1.81% from 2024 to 2032. The market is growing steadily, and there are many reasons for this, such as the increasing demand for sustainable construction, the development of building technology, and the increasing demand for energy-saving building materials. As the world's urbanization continues to increase, the need for construction solutions that reduce waste and increase efficiency will increase. The leading dry construction companies, such as Saint-Gobain, Knauf, and USG, are constantly investing in R & D to develop new products and technology that meet these needs. Strategic initiatives, such as strategic alliances and acquisitions, are also being actively carried out. The development of lightweight materials and the development of prefabricated building techniques are examples of this. Not only can they reduce the construction period, but they can also reduce the overall cost of the project. These trends are expected to have a major influence on the market and will continue to contribute to the dry construction market's steady growth.

Regional Market Size

Regional Deep Dive

The dry construction market is growing rapidly across the globe, driven by increasing urbanization, rising demand for sustainable building practices, and technological advancements. North America has a strong focus on energy efficiency and innovative building materials, while Europe is more concerned with regulations that promote green building standards. Asia-Pacific is experiencing rapid urbanization, leading to a surge in construction activity, while the Middle East and Africa are focusing on developing their economies. Latin America is also emerging as a major player, with a growing emphasis on modern building techniques and materials.

Europe

• The European Union's Green Deal is significantly influencing the Dry Construction Market by mandating reductions in carbon emissions, prompting companies to innovate with eco-friendly materials and construction methods.
• Notable projects, such as the construction of the 'Green Building' in Amsterdam, showcase the integration of dry construction techniques with sustainable practices, setting a benchmark for future developments.

Asia Pacific

• Rapid urbanization in countries like India and China is leading to an increased demand for dry construction methods, with companies like Tata Steel and Boral actively investing in new technologies to meet this demand.
• Government initiatives, such as the Smart Cities Mission in India, are promoting the use of modern construction techniques, including dry construction, to enhance urban infrastructure.

Latin America

• In Brazil, the government is promoting the use of dry construction methods through initiatives aimed at improving housing quality and reducing construction time, with companies like Gafisa leading the way.
• The rise of urbanization in Latin America is prompting a shift towards modern construction techniques, with dry construction being recognized for its efficiency and sustainability.

North America

• The adoption of advanced building materials, such as prefabricated panels and modular construction techniques, is reshaping the Dry Construction Market in North America, with companies like Katerra and Factory OS leading the charge.
• Regulatory changes, particularly in California, are pushing for stricter energy efficiency standards, which are driving demand for dry construction solutions that meet these new requirements.

Middle East And Africa

• The UAE's Vision 2021 is driving significant investments in infrastructure, with a focus on sustainable construction practices, leading to a rise in the adoption of dry construction methods.
• Key projects like the Expo 2020 in Dubai have showcased innovative dry construction techniques, influencing regional standards and practices.

Did You Know?

“Did you know that dry construction methods can reduce construction time by up to 50% compared to traditional methods, making them increasingly popular in fast-paced urban environments?” — Construction Industry Research and Information Association (CIRIA)

Segmental Market Size

Dry construction is presently experiencing a stable growth, owing to the growing demand for rapid building methods, as well as the growing commoditization of the land. Also a rise in the use of prefabricated building materials is contributing to this growth. Furthermore, building regulations, aimed at reducing the energy consumption in buildings, are also encouraging the development of dry construction, especially in regions like Europe and North America, where building regulations are strict. At present, dry construction is in the process of being rolled out in larger numbers, and the companies like Knauf and Saint-Gobain are leading the way in introducing new solutions. Dry construction is primarily used in residential and commercial buildings, where it is mainly used in gypsum-based systems and in modular building. The growing trend towards green building certifications, as well as the effect of the COVID 19 pandemic, which has led to a rise in remote working and a growing need for flexible working spaces, are important growth drivers. In the long run, the segment will be shaped by new building information modeling and advanced prefabrication methods, which will facilitate project management and construction.

Future Outlook

The Dry Construction Market is expected to grow steadily from 2023 to 2032, with a projected CAGR of 1.81%. This growth is based on the increasing demand for sustainable building practices and the increasing adoption of prefabricated construction methods. In the coming years, the growing need for quick and inexpensive building solutions will further drive the penetration of dry construction. Dry construction is expected to account for about 30% of the construction market by 2032, up from about 25% in 2023. The integration of BIM and automation in the construction process will increase productivity and reduce waste, thereby contributing to market growth. Also, the government's support for the construction of green buildings and energy-efficient construction will act as a major growth driver. In the near future, the use of new materials and the use of prefabricated construction methods will also help to shape the dry construction market and make it more resilient and more adapted to future challenges. The market for dry construction will evolve with the increasing focus on efficiency and sustainability. This will create new opportunities for industry players and investors.