The current prefabricated building market in Australia, is a modest $4.5 billion (3%) of the total $150 billion construction industry. Projections for the ten year outlook indicate a potential market share growth to 10% or $15billion if current challenges can be overcome. The global market in 2014 was estimated at $96 billion.

In Australia, demand for low- to mid-rise residential buildings, project homes and public housing are key drivers of demand in prefabricated construction. For example, over the coming decade, Melbourne will require 60,000 public housing units, and Sydney will require a further 80,000. High-quality, lightweight, prefabricated modular systems will contribute to housing stock with excellent amenities for occupants, at substantially lower cost when compared with traditional housing.

The past 50 years of urban development in Australia has been based around building unsustainable car-dependent suburbs on the urban fringe. With Australia’s population growth expected to see a 60 % increase to 37.6 million people by 2050, the industry needs to look to more cost effective and well- designed inner city developments at higher densities.

Prefabricated housing is a next generation housing construction industry, a game changer in cost of housing, competitiveness, efficiency and productivity. In Japan and across Europe, prefabricated housing is widely accepted as a quality alternative to traditional construction due to its speed of delivery, design options and energy efficient choices.

This represents exciting opportunities for Australia to innovate as our prefabricated housing industry continues to grow and span not only individual houses but also medium and high density solutions while ensuring we remain globally competitive.