Saudi Arabia's Prefabricated Building Sector Set for Major Expansion by 2034
Riyadh, Tuesday, 11 November 2025.
Saudi Arabia’s prefabricated building market is poised for significant growth due to urban housing demands and projects like NEOM City, potentially reaching USD 3.27 billion by 2034.
Market Dynamics and Key Drivers
The Saudi Arabian prefabricated building and structural steel market is projected to expand rapidly, driven by increased urban housing demand and substantial government investments in futuristic projects such as NEOM City and the Jeddah Waterfront. These initiatives are part of the broader Vision 2030 plan, which aims to diversify the economy and modernize infrastructure. As of 2024, the market size was approximately USD 1.97 billion, and it is expected to grow at a compound annual growth rate (CAGR) of 5.20% to reach nearly USD 3.27 billion by 2034 [1].
Economic Implications
The ongoing investments in the prefabricated building sector are poised to transform the construction landscape in Saudi Arabia. By leveraging prefabricated construction methods, the country aims to address its urbanization challenges more efficiently. These methods are not only cost-effective but also offer time efficiency and ease of installation, which are crucial for meeting the rapid urbanization demands [1]. However, the sector faces potential challenges, such as limited financing options and concerns about the durability of prefabricated structures [1].
Strategic Projects and Future Outlook
NEOM City and the Jeddah Waterfront are central to driving growth in the prefabricated sector. These projects are designed to showcase cutting-edge construction technologies and sustainable urban planning. By 2034, the successful implementation of these projects is expected to not only boost the sector but also set a benchmark for future urban developments in the region [1]. The government’s commitment to developing smart and sustainable cities is expected to attract significant domestic and international investments, further solidifying Saudi Arabia’s position as a leader in innovative construction practices [1].
Conclusion
In conclusion, Saudi Arabia’s prefabricated building sector is on a promising trajectory, with government initiatives playing a pivotal role in its expansion. The focus on urban housing and infrastructural projects like NEOM City epitomizes the nation’s strategic vision for a sustainable and modernized future. As the market continues to grow, it will likely contribute to the broader economic diversification goals outlined in Vision 2030, highlighting the importance of integrating innovative construction methods into the national development agenda [1].