The Pre-Engineered Buildings Market: Rising demand for green buildings globally has resulted in shifting focus from traditional steel buildings to PEB, which consumes lesser energy during and post construction.

The pre-engineered buildings market is projected to grow from USD 14.5 billion in 2020 to reach USD 28.0 billion by 2027, at a CAGR of 11.5% from 2020. The rapidly growing industrialization & urbanization in developing countries such as India, China, and Brazil drives the growth of the pre-engineered buildings market. Furthermore, the demand for the construction of commercial complexes & buildings and workshops is high, owing to increase in investment industries. Moreover, growth in population and rapid urbanization creates the need for pre-engineered buildings. For instance, in April 2019, Metsä Group invested around US$2 billion in pre-engineering buildings to expand its bioproduct mill in Finland and Rauma.

Pre-engineered building is a building enclosure system. It includes particular building structure along with wall cladding and roof. It is designed by pre-engineered building manufacturers according to the clients requirements by utilizing best-suited inventory of raw materials. Its structural systems consist of rigid frames, plate steel, roof beams, and columns. Its advantages include reduced construction time, single source responsibility, energy-efficient roofing & wall systems, architectural versatility, lower cost, quality control, low maintenance, large clear spans, and flexibility of expansion.

Fluctuating steel prices coupled with low market penetration in various emerging economies are poised to hamper market growth. In addition, unavailability of skilled labor and advanced technologies in a few regions are projected to restrict the growth of the market over the forecast period.

Primary market players are actively involved in innovation, R&D activities, gaining new expertise in steel structures, upgrading products according to revised regulations, and overall project management. Companies are also involved in customization of offered products in order to consolidate their position in the global arena.

Major factors impacting competitive environment include execution management issues and financing terms, pre-qualification criteria, customer service, safety, reliability, pricing, ability to control costs, product quality and features, innovation and product development time, and cost of raw materials.
The key players operating in the pre-engineered buildings market include BlueScope Steel (Australia), NCI Building Systems (US), Nucor Corporation (US), Kirby Building Systems (Kuwait), Zamil Steel Holding Company (Saudi Arabia), ATCO (Canada), Lindab Group (Sweden), PEBS Pennar (India), PEB Steel Buildings (Vietnam), and Everest Industries (India).

Asia Pacific accounted for the largest share in 2018 and is also projected to record the highest growth rate during the forecast period. The growth in the Asia Pacific region can be attributed to the increasing demand for pre-engineered buildings from the growing non-residential construction and infrastructural development in the region. The major demand for pre-engineered buildings in the region is contributed by India and China, owing to the growing population, economic growth, government investments, and demand for low-cost green buildings. Furthermore, foreign investors are setting up their factories and distribution centers in the developing countries of Asia Pacific owing to cheap labor, trade liberalization, and favorable government policies, further boosting the pre-engineered buildings market growth. This acts as an opportunity for the pre-engineered buildings manufacturers and suppliers.