Revealed in 2018 International prefabricated construction development summit, China prefabricated construction market has gradually increased from 4.32 billion yuan in 2011 to 46.23 billion yuan in 2017.  The output of China prefabricated construction market will exceed 2 trillion yuan in the future.  The future prefabricated construction needs to integrate all industry chain sources, promote engineering procurement construction (EPC) and building information modeling (BIM), so as to modernize the whole building industry.

Compared with conventional construction methods, prefabricated construction features high efficient and low emission.  In 2016, China central government has released some documents to target 30% of prefabricated construction accounting for the new buildings within 10 years.  In 2017, launched by Ministry of Housing and Urban-Rural Development of China (MOHURD), Prefabricated Construction Action proposed by 2020, national prefabricated construction will account for over 15% of new buildings and over 20% in some major regions.

“2018 China prefabricated construction market trend and prospect” showed that China current proportion of prefabricated construction is about 3%-5% of the new buildings, China building industry output was about 11.6 trillion yuan in 2015.  If the proportion increases to 20% in 2020, the prefabricated construction market output will triple to be over 2.3 trillion yuan.

High initial investment cost hampers the market and policies supporting is necessary.  As learned, the cost of prefabricated construction is 300-500 yuan per SQM higher than conventional building, which is one of the reasons for some building developers not accepting prefabricated construction.  Some regions have launched initiatives to negative the cost increase, such as Shanghai and Wuhan.  The experts considered that with the development of prefabricated construction market, industrialization will decrease the cost, such as Japan – a mature market, the higher the prefabrication rate, the lower the cost.