Dry Construction Market Size, Share and Trends 2024 to 2034

Dry Construction Market Size and Forecast 2024 to 2034

The global dry construction market size is estimated at USD 92.14 billion in 2024 and is anticipated to reach around USD 148.95 billion by 2034, expanding at a CAGR of 4.92% from 2024 to 2034. The dry construction market growth is attributed to increasing urbanization and the rising demand for sustainable construction practices and environmentally friendly dry construction methods.

Dry Construction Market Key Takeaways

• Asia Pacific dominated the dry construction market with the largest market share of 35% in 2023.
• By type, the supporting framework segment has held the major market share of 57% in 2023.
• By type, the boarding segment is expected to grow at the fastest rate in the market during the forecast period of 2024 to 2034. 
• By material, the plasterboard segment accounted for a largest market share of 29% in 2023.
• By material, the metal segment is anticipated to grow with the highest CAGR in the market during the studied years.  
• By system, the wall segment led the global market in 2023. 
• By system, the ceiling segment is projected to expand rapidly in the market in the coming years.
• By application, the residential segment contributed the biggest market share of 56% in 2023.
• By application, the non-residential segment is projected to grow at the fastest rate in the market in the future years.

Asia Pacific Dry Construction Market Size and Growth  2024 to 2034

The Asia Pacific dry construction market size accounted for USD 32.25 billion in 2024 and is expected to be worth around USD 52.88 billion by 2034, growing at a CAGR of 5.05% from 2024 to 2034.

Asia Pacific is anticipated to grow at the fastest rate in the dry construction market during the forecast period, owing to the planned infrastructural development and growth in the area's construction industry. The overwhelming majority of people reside in developing countries, with millions aspiring to shift to urban areas. Developing nations, including China and India, are expanding as urban populations. Furthermore, there is a growing trend within the government bodies within the region to support sustainable buildings to control environmental effects, which, in turn, adds a positive aspect to dry construction products.

• According to the Asian Development Bank, it will reach nearly 1.1 billion by 2040.

North America is projected to host the fastest-growing dry construction market in the coming years due to the rising housing needs and higher investment in structures and systems.  Furthermore, the growth of cities and the focus on the environment while constructing buildings are anticipated to facilitate the dry construction market in this region.

• The data generated by the U.S. Census Bureau states that new residential construction had risen by about 13% in 2023, a factor that highlights the high demand for housing solutions.

Market Overview

Strong demands for environment-friendly construction solutions facilitate the dry construction market's growth, as most of the used techniques are environmentally friendly and incorporate efficient resource use. Dry construction mainly involves the use of prefabricated constructions and modular constructions since they make the construction faster and less destructive than wet constructions. Additionally, the U.S. EPA underlines that disclosure and use of sustainable materials and processes reduce greenhouse gases and energy use. Increasing urban development is increasing across the globe, and especially in the developing world, the desire to have structures constructed quickly for efficient occupancy puts dry construction technologies into practice. Furthermore, the high architects employ dry construction techniques in new and renovation projects.

Impact of Artificial Intelligence on the Dry Construction Market

In the dry construction market, artificial intelligence (AI) is making it possible to automate almost every process. Automated analysis of resources and time takes place to ensure construction companies make appropriate decisions that eliminate resource wastage and unnecessary expenditure. AI, as applied in machine learning, gathers sets of data about previous projects, and contractors learn what problems might ensue and prepare for them in advance. Moreover, AI also helps improve safety in the construction workplace, as it does risk analysis and anticipates dangerous situations, thus improving the safety profile of the construction setting.

Dry Construction Market Growth Factors

• Technological advancements: Innovations in construction technology, such as building information modeling (BIM) and automated machinery, are expected to enhance efficiency and reduce project timelines.
• Regulatory support: Governments worldwide are introducing regulations that encourage sustainable construction practices, providing incentives for using dry construction methods.
• Labor shortages: The ongoing shortage of skilled labor in the construction sector is anticipated to drive demand for quicker, less labor-intensive building methods like dry construction.
• Cost-effectiveness: Rising material costs and project budgets will likely push builders towards dry construction due to its cost-saving benefits and reduced waste.
• Urbanization trends: Accelerating urbanization, particularly in developing nations, is expected to lead to increased construction activity, boosting the demand for efficient dry construction solutions.
• Environmental concerns: Growing awareness of environmental issues is likely to fuel the demand for sustainable construction materials and methods aligning with the principles of dry construction.
• Market diversification: Expanding applications of dry construction in various sectors, such as healthcare, education, and retail, are expected to open new avenues for growth and innovation.

Market Scope

Market Dynamics

Driver

Increasing demand for sustainable construction solutions

Increasing demand for sustainable building practices is anticipated to drive the dry construction market in the coming years. Higher demands for green construction in the next decade are expected to foster highly effective dry construction solutions as they allow for decreased usage of water. There is also a strong correlation between sustainable goals and adopting dry construction techniques, which rely on prefabricated environmentally friendly materials and significantly eliminate the water intensity of conventional methods. Moreover, by raising energy efficiency standards for buildings, countries such as Germany and the Netherlands regulate sustainable construction activities.

• The United Nations Environment Programme (UNEP) approximates construction, contributing to about 39% of the entire global carbon footprint, and this is attributed to water-intensive wet construction processes. 
• USGBC released its annual ranking of the top LEED-certified buildings in 2023. It showed a 25% rise in certification worldwide, stating the growing urge for green building. Dry construction is a sustainable method of resource usage, emission, and waste

Restraint

High initial costs

High initial investment costs are expected to impede the widespread adoption of dry construction techniques, thus further hindering the dry construction market. The long-term benefits of occasional dry construction include lower labor costs and shorter construction times. Yet, the initial costs remain high, mainly due to the specific materials and equipment needed. This financial constraint is why small contractors’ developers or companies in regions with high costs do not adopt these techniques.

Opportunity

Rising investment in modular and prefabricated construction

Rising investments in modular and prefabricated construction are anticipated to create immense opportunities for the players competing in the dry construction market. Consumers are adopting dry construction elements, including gypsum boards, steel frames, and fiber cement panels, for their lower cost, minimal waste, and easier assembly. This trend conforms to Universal's efforts towards sustainable construction and efficient construction time. Additionally, there is an increasing demand for modular building systems used in North America and Europe.

• E.U.’s 2020 report reveals that prefabrication shortens construction time by a half and labor cost by a quarter, explaining its allure to developers and governments who seek to respond to housing and infrastructure needs.

Type Insights

The supporting framework segment held a dominant presence in the dry construction market in 2023 due to its important function of providing support to structures and improving the efficiency of the load-carrying system. Products, such as steel frames and trusses, are used in different applications for their strength. The rising trend for lightweight and lasting materials in the building and construction industries facilitates the segment. Furthermore, the accompanying frameworks have higher load support and lighter construction duration and cost, consequently making them popular among the construction, which further boosts the segment.

• According to the European Commission report, the need for light steel construction is estimated to increase by about 30% in the next seven years to 2030 because of the growth in urban areas and infrastructure. 

The boarding segment is expected to grow at the fastest rate in the dry construction market during the forecast period of 2024 to 2034, owing to the increasing demand for boarding materials to utilize in interior walls, ceilings, and exterior facades. Specifically, gypsum boards are expected to witness remarkable market demand given the material’s fireproofing capability and installation. Global construction activity itself is anticipated to surge and further contribute to the high use of boarding materials. The general change in the trend towards building green complements the manufacture of eco-friendly boarding materials, creating demand from builders. Additionally, the increase in the effectiveness and sturdiness of boarding material makes them more appealing among developers and contractors.

• The U.S. Department of Energy found in its report that the use of energy-efficient building materials and advanced boarding solutions will result in energy savings of about 30% of new constructions by 2024. 

Material Insights

The plasterboard segment accounted for a considerable share of the dry construction market in 2023 due to its effectiveness in the housing sector and also in the business world. Plasterboard, which is commonly referred to as drywall or gypsum board, has smooth finishes for interior walls and ceilings; hence, it is widely used by builders. Furthermore, the increased government support for green buildings drives demand for sustainable plasterboard products, which consequently use recycled materials and have low emissions of volatile organic compounds.

• The U.S. Gypsum Association states that 85% of the newly formulated construction contains plasterboard, as it is cheaper than other types of boards and easy to fix. 

The metal segment is anticipated to grow with the highest CAGR in the dry construction market during the studied years, owing to their strength, durability, and recyclability. Metal framing systems, especially steel ones, provide numerous benefits in terms of load-bearing capacity and protection against moisture and other pests. The growth of new high-rise and commercial building structures is also likely to create further demand for metal components because of the ability to span and carry more than conventional building forms. Further, with increased consciousness of sustainability in the construction business, manufacturers are likely to adopt metal framing, which is made out of recycled content.

• A report by the Metal Building Manufacturers Association shows evidence of annual growth of around 15% over the past few years.

System Insights

The wall segment led the global dry construction market in 2023 due to its importance as a tool for understanding and categorizing interior environments. Nonload-bearing and load-bearing walls are useful structures that enhance space management while providing insulation, soundproofing, and aesthetic value. People continue to move into urban areas, and more projects are being developed; hence, residential and commercial buildings are necessitating the need for effective wall solutions. Furthermore, with the growing focus on sustainability, the market expects a high demand for recycled composites, along with low-VOC coatings for walls.

The ceiling segment is projected to expand rapidly in the dry construction market in the coming years, owing to the architects and builders shifting towards the creation of flexible and aesthetically stimulating spaces. Such ceiling systems improve the levels of acoustic insulation and allow access to other building utilities, and thus are ideal for business establishments, including offices and educational facilities. Moreover, the increasing demand for efficient ceiling systems in terms of noise control measures further fuels the segment.

• Surveys conducted by the International Facility Management Association reveal that more than 50% of commercial buildings today use modern-day ceilings for improved acoustics and style. 

Application Insights

The residential segment dominated the global dry construction market in 2023 due to the great need for cheap apartments and fast urbanization. Higher population density has favored the need for quick housing and construction solutions, which has led to developers applying dry construction methods. Furthermore, owners of houses also want energy conservation and green materials, which further boosts the demand for dry construction materials.

• The National Association of Home Builders released information on single-family housing starts, which indicates the rise in residential construction activity; namely, the increase made up 14% in 2023.

The non-residential segment is projected to grow at the fastest rate in the dry construction market in the future years, owing to the higher spending on the construction of commercial structures and public premises. This segment includes offices, schools, health care premises, and retail, which are moving towards efficient and speedier construction processes. Additionally, the general movement towards the transformation of new promotes the usage of dry construction solutions due to their fluid adaptability to fast renovation processes. 

• The IMF expected global public infrastructure investment to climb by 10% in 2024, which will improve non-residential dry construction opportunities. 

Dry Construction Market Companies

• Polygon
• Griplock Systems, LLC
• Stueve Construction, LLC.
• Fullerton Building Systems.
• Ravago Hellas Building Solutions
• Hangzhou Zhongchuang Electron Co., Ltd.
• Ramco Industries Limited
• Sika AG
• YOSHINO GYPSUM CO., LTD
• EPACK Prefab

Recent Development

• In April 2024, PABCO Gypsum introduced a new line of sustainable wallboard products designed specifically for the growing demand for eco-friendly building materials. This new product line utilizes recycled materials and advanced manufacturing processes to reduce waste and energy consumption. The wallboard is lighter, easier to handle, and maintains excellent performance characteristics, including fire resistance and soundproofing capabilities. 
• In April 2024, Wienerberger announced the launch of a range of modular solutions designed for sustainable dry construction. These products are aimed at enhancing energy efficiency and reducing construction waste, aligning with the growing demand for eco-friendly building materials. The innovative designs are expected to meet the evolving needs of the construction market, particularly in urban areas.

Latest Announcements by Industry Leaders

September 28, 2022 – Saint-Goblin

CEO - Patrick Maier

Announcement: Saint-Gobain has announced a strategic partnership with Megasol, a leading European manufacturer in Building Integrated Photovoltaics (BIPV). As part of this collaboration, Saint-Gobain has taken a minority stake in Megasol's business unit, which focuses on developing and producing building-integrated photovoltaics at its facility in Deitingen, Switzerland. The CEO of Saint-Gobain Switzerland stated, “Thanks to the aesthetic design of Megasol’s products, its fully customized and, at the same time, industrialized production, we are extending the scope of our applications, allowing significant growth for Saint-Gobain’s total facade solutions.”

Segments Covered in the Report

By Type

• Boarding
• Supporting Framework
• Others

By Material

• Wood
• Plasterboard
• Metal
• Plastic
• Others

By System

• Ceiling
• Wall
• Flooring
• Others

By Application

• Non-residential
• Residential

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa