Industry Observation – Development Status and Prospects of China’s Prefabricated Construction Industry in 2024
With the increasing call for global green and low-carbon transformation and sustainable development, prefabricated buildings, as an emerging force in the construction industry, have shown enormous development potential and broad market prospects. In recent years, the Chinese government has attached great importance to the development of prefabricated buildings and has promoted their rapid development by continuously issuing multiple policies..
In January 2022, the Ministry of Housing and Urban Rural Development issued the “14th Five Year Plan for the Development of the Construction Industry”, which clearly stated that during the “14th Five Year Plan” period, the proportion of prefabricated buildings in new construction should reach more than 30%. The plan also emphasizes the important tasks of building an Internet platform for the construction industry, developing landmark products of construction robots, and cultivating intelligent construction and prefabricated construction industrial bases..
In April of the same year, the State Council further emphasized the importance of developing green consumption, promoting the large-scale development of green buildings, and vigorously promoting the development of prefabricated buildings in the Opinion on Further Unleashing Consumption Potential and Promoting Sustainable Recovery of Consumption. The opinion also proposes to actively promote green building materials and accelerate energy-saving renovation of buildings to meet the people’s aspirations for a better life..
In May 2022, the Central Committee of the Communist Party of China and the State Council jointly issued the “Opinions on Promoting Urbanization Construction with County Towns as Important Carriers”, which clearly pointed out the need to promote low-carbon production and life, and vigorously develop green buildings. This opinion advocates the widespread application of prefabricated buildings, energy-saving doors and windows, green building materials, and green lighting in urbanization construction, and the comprehensive promotion of green construction to promote the green development of county towns and the innovation of urban-rural construction models..
According to the Analysis Report on the Current Situation and Future Development Trends of the Prefabricated Construction Industry from 2024 to 2029 by China Academy of Industry Research, as we enter the 21st century, with the deepening of sustainable development concepts and the increasing shortage of labor resources, the prefabricated construction industry has ushered in new development opportunities. Since 2014, national and local governments have successively introduced various policies to vigorously promote prefabricated buildings. With the gradual maturity of related technological processes, China’s prefabricated construction industry has entered a new stage of rapid development..
According to data from the Ministry of Housing and Urban Rural Development, the newly constructed prefabricated building area in China reached 740 million square meters in 2021, an increase of 18% compared to 2020, accounting for 24.5% of the newly constructed building area. According to CCPA statistics, in the first half of 2022, the proportion of newly constructed prefabricated buildings in China has exceeded 25%, with a total area of 2.4 billion square meters. It is expected that by 2022, the area of newly constructed prefabricated buildings in China will reach 838 million square meters. In the “14th Five Year Plan” for the development of the construction industry released by the Ministry of Housing and Urban Rural Development, it is explicitly stated that by 2025, the proportion of prefabricated buildings in new construction should reach over 30%..
According to the 2020 National Report on the Development of Prefabricated Buildings released by the Ministry of Housing and Urban Rural Development, China has clearly designated the three major urban clusters of Beijing Tianjin Hebei, Yangtze River Delta, and Pearl River Delta as key areas for promoting prefabricated buildings. At the same time, other cities with a permanent population of over 3 million are listed as actively promoting areas, while other cities are encouraged to promote the development of prefabricated buildings. this.