Saudi Arabia’s construction sector is rapidly embracing prefabrication, with the market poised to grow steadily over the next five years. Industry data projects the market to reach approximately $12.3 billion by 2029, up from $8.2 billion in 2025, reflecting a compound annual growth rate (CAGR) of 6.6%.
The sector has already seen significant expansion between 2020 and 2024, registering a robust 9.1% CAGR, and is expected to maintain positive momentum. In 2025 alone, the market is forecast to grow by 7.9%, reaching $8.9 billion in value.
Prefabricated construction is gaining traction across residential, commercial, industrial, and institutional sectors, fueled by growing demand for cost efficiency, speed, and quality. The market spans various methods, including panelized, modular (volumetric), and hybrid systems, with applications ranging from superstructures, roofs, and floors to interior modules, exterior walls, and structural components.
Materials used in prefabrication vary widely — from aluminum, wood, steel, and concrete to glass — addressing diverse construction needs and design preferences.
As Saudi Arabia continues its economic diversification and urban development under Vision 2030, prefabrication is emerging as a key solution for faster project delivery and sustainable construction. The sector’s expected growth signals increasing confidence in industrialized building methods across the Kingdom.
Source: Research and Markets
