INTELLIGENT TECHNOLOGIES
UAE prefab construction market to hit AED24.49 billion in 2025 as digital and modular infrastructure accelerates
The UAE’ s prefabricated construction sector is transitioning from opportunistic use to strategic deployment.
Driven by megaproject timelines, labour constraints, sustainability targets and the growth of digital infrastructure, prefab is becoming increasingly integral to delivery methods.
The report says steel-framed modules, modular data centres, portable cabins and factory-built villas are gaining traction in various sectors including tourism, logistics, housing and urban development.
Public-private collaboration is expanding as developers, contractors and manufacturers align factory ecosystems, quality standards and government guidelines. BIM, robotics and digital twins are ensuring precision and efficiency, the report says.
The prefabricated construction market in the UAE is expected to grow by 8 % annually to reach AED24.49 billion in 2025, a new report says.
This finding is contained in United Arab Emirates Prefabricated Construction Market Intelligence and Future Growth Dynamics Databook – 100 + KPIs, Market Size & Forecast by End Markets, Precast Products and Precast Materials – Q2 2025 Update released by ResearchAndMarkets.
The report shows the UAE prefabricated construction market experienced steady growth between 2020 and 2024, achieving a CAGR of 9.4 %. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 6.8 % during 2025 – 2029.
By the end of 2029, the report says the prefabricated construction sector is
Driven by megaproject timelines, labour constraints, sustainability targets and the growth of digital infrastructure, prefab is becoming increasingly integral to delivery methods.
projected to expand from its 2024 value of AED22.68 billion to approximately AED34.28 billion.
Export-enabled fabrication and portable cabin systems are also identified by the report as expanding the UAE’ s capabilities beyond its borders and into flexible infrastructure roles.
Looking ahead, the report identifies the emphasis will be on scaling automated, BIM-integrated manufacturing, diversifying applications into social infrastructure, embedding prefab in national plans and creating pan-regional supply networks.
Executives should prioritise integrated factory investments, policy alignment, modular export pathways and building digital capabilities. By doing so, they can move prefab from a prefabricated construction tactic into a strategic asset enabling resilient, fast and sustainable development aligned with the UAE’ s aspirational national agenda, the report says. �
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