With the rising global call for green and low-carbon transformation and sustainable development, prefabricated construction, as an emerging force in the construction industry, has shown great potential for development and broad market prospects. In recent years, China's government has attached great importance to the development of prefabricated construction to prompt its rapid development through the successive release of a number of 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 explicitly stated that during the "14th Five-Year Plan" period, the proportion of prefabricated construction should reach more than 30%. in new construction. The plan also emphasizes important tasks such as creating an Internet platform for the construction industry, researching and developing iconic construction robotics products and fostering intelligent construction and prefabricated construction industry bases.

In April of the same year, the State Council, in its “Opinions on Further Releasing Consumption Potential and Promoting Sustained Recovery of Consumption” (hereinafter refer to as The Opinions), further emphasized the importance of developing green consumption, promoting the large-scale development of green buildings and strongly advocating the development of prefabricated construction. The Opinions also proposed actively promoting green building materials and accelerating the energy-saving transformation of buildings in order to meet the people's aspirations for a better life.

In May 2022, the State Council jointly issued “The Opinions on Promoting the Construction of Urbanization with County as Important Carriers”, which explicitly pointed out that it is necessary to promote the decarbonization of production and life, and to vigorously develop green buildings. The opinion advocates the wide application of prefabricated buildings, energy-saving doors and windows, green building materials and green lighting in urbanization construction, and the green construction will be comprehensive implemented, in order to promote the green development of counties and innovation in urban and rural construction models.

Development Status of

China's Prefabricated Construction Industry

According to the analysis of "2024-2029 Analysis Report on the Current Situation and Future Development Trends of the Prefabricated Construction Industry" by China Industrial Development Institute,entering the 21st century, with the deepening of the concept of sustainable development and the increasing shortage of labor resources, the prefabricated construction industry has ushered in a new opportunity for development. Since 2014, national and local governments have introduced various policies to vigorously promote prefabricated construction, with the gradual maturation of related technologies and processes, China's prefabricated construction industry has entered a new stage of rapid development.

According to the Ministry of Housing and Urban-Rural Development, the nationwide newly-constructed prefabricated building area reached 740 million square meters in 2021, an increase of 18% compared to 2020, which also accounted for 24.5% of the newly-constructed building area. According to CCPA, in the first half of 2022, the proportion of newly-constructed prefabricated buildings has exceeded 25% in new buildings nationwide, with the total accumulated area reaching 2.4 billion square meters. It is expected that by 2022, China's new prefabricated building area will reach 838 million square meters. In the "14th Five-Year Plan for the Development of the Construction Industry" issued by the Ministry of Housing and Urban-Rural Development, the target of having the proportion of prefabricated buildings in new buildings reach more than 30% by 2025 was clearly set.

According to the "Report on the Development of Prefabricated Buildings in China in 2020" issued by the Ministry of Housing and Urban-Rural Development, China has clearly delineated the three major city clusters as the key areas for the promotion of prefabricated buildings, which are Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Pearl River Delta, while other cities with a resident population of more than 3 million are listed as actively promoted areas and the remaining cities are encouraged to promote the development of prefabricated buildings. This layout aims to promote the development of prefabricated buildings in a targeted manner according to the actual situation and development needs of different regions.

Statistics show that in 2021, the newly constructed prefabricated building area in key promotion areas reached 390 million square meters, accounting for 52.1% of the newly constructed prefabricated building area in the country. This means that in these key areas, the development of prefabricated buildings has gained momentum and has become one of the mainstream forms of new buildings.

At the same time, new construction of prefabricated buildings in actively promoting regions and encouraging regions has also reached 350 million square meters, accounting for 47.9% of the national total. Although the development of prefabricated buildings in these regions is relatively slow, they are also making active efforts to continuously increase the proportion of prefabricated buildings in new construction to realize the goals of green building and sustainable development.

Through the categorization and promotion of different regions, China is gradually forming a pattern of prefabricated building development with key promotion regions as the leader, active promotion regions as the support and encouragement of promotion regions as the basis. This layout not only helps to enhance the overall development level of China's prefabricated buildings, but also lays a solid foundation for realizing green low-carbon transformation and sustainable development.

Future Development Trend Forecast of

China's Prefabricated Construction Industry

01

Prefabicated construction ushers in golden period of development under policy support

With the increasing global focus on green, low-carbon and sustainable development, prefabricated construction is receiving more and more attention as an innovative construction model. It is characterized by a substantial reduction in on-site work, lower wet work and higher construction efficiency. The integration of advanced digital technology makes the construction process more environmentally friendly, efficient and intelligent. In order to accelerate the progress of the industry, a series of supportive policies have been continuously introduced at the national level.

Taking the year 2022 as an example, the Ministry of Housing and Urban-Rural Development, in the "14th Five-Year Plan for the Development of the Construction Industry”, not only clearly put forward the goal of increasing the proportion of prefabricated buildings, but also emphasized the importance of improving the standard system of steel structure buildings. This means that the state not only focuses on the development of the scale of prefabricated buildings, but also focuses on the improvement of its technical standards and system construction. In addition, the “Notice on Strengthening the Prevention and Control of Common Problems in the Quality of Affordable Housing” issued in the same year further emphasized the importance of green building, advocating the wide application of prefabricated and other green building construction methods in the construction of guaranteed housing to ensure housing quality and residential safety.

0 2

The potential of steel structures is increasing in the prefabricated building market day by day

As an important structural form of prefabricated buildings, steel structure is gradually emerging in the market with its unique advantages, such as high strength, light weight and excellent shock resistence. Compared with traditional concrete structures, steel structure has faster speed, higher construction quality and greater adaptability in construction, which is particularly suitable for complex structures such as high-rise, large-span buildings and bridges.

With the continuous inclination of national policies, such as "giving priority to the use of steel structure in public buildings", the demand for steel structure in the prefabricated building market will show explosive growth. This not only brings unprecedented development opportunities for the steel structure industry, but also brings new growth points for the related industry chain, such as steel manufacturing, design consulting, construction and installation. It is expected that the share of steel structure in the prefabricated building market will continue to expand in the next few years, becoming an important force driving the development of the industry.