The global container homes market size was valued at USD 56.85 billion in 2021 and is projected to grow from USD 59.27 billion in 2022 to USD 87.11 billion by 2029, exhibiting a CAGR of 5.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with container homes experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 3.5% in 2020 as compared to 2019.
A shipping container home is a dwelling made of steel shipping containers (large reusable intermodal containers) that transport goods. These types of homes are used to move goods across the world. They are designed to fit on trucks, trains, and ships and are mostly uniform in size and shape. Due to this uniformity, they are deployed for building interesting custom homes.
Easy to lift, secure, and assemble, container houses are gaining popularity all over the world. These houses are built using environment-friendly materials. Recently, there has been a significant increase in the demand for affordable housing structures. Using second-hand shipping containers to build prefabricated homes is an ongoing trend in the global construction industry. Besides, modular buildings are slowly making inroads with many builders and contractors in developing countries.
COVID-19 IMPACT
Market Growth Bolstered Due to Conversion of Container Homes into Emergency Units During the Pandemic Period
The pandemic has adversely affected the entire construction industry, including this market. The manufacturers in the industry do not require concrete but other raw materials such as steel, iron, glass, and other hardware accessories such as nuts and bolts. The pandemic has severely disrupted this supply chain, delaying many projects. Contractors and other equipment manufacturers are finding it difficult to maintain social distancing. The factory-made segment of the market falls into this category and was impacted due to COVID-19 restrictions. Workforce shortages and complete lockdowns in various countries slowed or halted activity on the ground, directly affecting the profitability of ongoing operations.
However, container homes were also proven to be effective in treating COVID-19 patients. Container house stations not only provided additional screen space but also reduced the consumption of personal protective equipment. These houses were more stable than tents and could be set up quickly. These also could be used to install appropriate protective equipment to meet COVID-19 screening requirements. These new places divided the patients suspected of COVID-19 from regular emergency patients to prevent cross-infection.
According to brokerages and companies developing prefabricated homes, the demand for well-equipped homes is soaring due to increased demand for post-COVID-19 farmhouses. With most states restricting concrete construction on farmland, homeowners opt for prefabricated homes with all amenities, further driving the market growth.
LATEST TRENDS
Growing Demand for Innovative Architectural Design to Bolster the Market Growth
Container homes are gaining traction as a new form of sustainable living. About 14 million unused containers in the world are currently being explored in creative ways to make homes for many. The pandemic has pushed people to take more interest in DIY (do-it-yourself) developments in designing, decorating, and home building.
Several architectural design possibilities are being explored for the interior of these homes. These include walls made from glass, wooden accents, splashes of greenery, getaway cabins, spiral staircase, shipping container guesthouse, and others. These sustainable designs add a greater sense of open space and style. Further, they also aid in reducing electricity bills and other house-related expenses, accelerating the market growth.
DRIVING FACTORS
Energy-efficient Container Home Constructions to Reinforce the Market Growth
Construction companies worldwide are increasingly focusing on the sustainable development of their projects to obtain energy efficiency certifications. This certification requires the construction industry players to reduce emissions throughout the project lifecycle. This encourages them to develop user-friendly, energy-efficient, and low-emission sustainable materials. Therefore, manufacturers are increasingly striving to develop energy-efficient modular containers ideal for multiple industries.
In addition, governments worldwide are pushing to encourage energy-efficient infrastructure and manufacturing projects, providing new opportunities for modular container manufacturers. Additionally, green buildings are one of the largest global investment opportunities over the next decade.
According to the International Finance Corporation (IFC), container homes are estimated to reach USD 24.7 trillion by 2030. The governments of some countries have played a key role in capitalizing on this opportunity, providing support in the form of loans, increased foreign direct investment, and subsidies to boost demand for green buildings. The factors mentioned earlier are further driving the container homes market growth.
RESTRAINING FACTORS
Limited Life Span & High Corrosive State to Hinder the Market Growth
A high potential for corrosion is limiting the growth of the market. The lifespan of a container house is extremely reliant on the climate where the sea container is positioned. In coastal areas, these houses erode faster due to a large amount of salt in the air.
The life expectancy of a heavily used container house is around 10-15 years with good maintenance. Infrequently used container homes can be used for up to 25 years, after which they can no longer be used. The reliance of container type of houses on climatic issues and high susceptibility to corrosion are restraining the market growth.
SEGMENTATION
By Type Analysis
Fixed Segment to Depict Considerable Growth Due to Cost Effectiveness
Based on type, the market is classified into fixed and movable.
Fixed homes come with pre-installed foundations, utilities, and appliances. The fixed segment is expected to record appreciable growth over the forecast period. These houses are cost-effective compared to other types of prefabricated houses as they do not require additional assembly.
Movable container houses are made from standard shipping containers. These can be assembled on-site by crane or dismantled and reassembled as required. These prefabricated homes offer a flexible option for people who need to move frequently for work or other reasons but want a comfortable, affordable, and permanent living space.
By Architecture Type Analysis
Tiny Houses to Witness Significant Rise Owing to Surging Demand for Cheaper Alternatives
Based on architecture type, the market is divided into tiny house, duplex/bungalow, and multistory building/apartments.
The rising demand for tiny house in housing construction reflects the growing need for sustainability and cheaper alternatives. The segment is set to register considerable expansion over the forecast period. These houses are convenient to carry. The demand for small container houses, which are easy to construct and move, is growing rapidly. A pool of individuals and families opt for a less common lifestyle by choosing tiny homes on wheels. These provide people with the opportunity to own a home.
Bungalows are likely to record considerable growth in the coming years. These container houses are easy to modify and can be combined with 20ft and 40ft containers to build a house. Multiple containers can be combined to create a larger house with a living room, dining room, additional bedrooms, upstairs, and even a container guest house.
Multistory buildings are expected to register slow growth over the forecast period. Space issues and rising house prices in most major cities worldwide are driving the growth of the multistory container house market. These houses save space as they use old shipping containers to build houses and occupy much less space than traditional houses.
By End-user Analysis
Residential Houses to Register Major Expansion Due to Higher Demand
Based on end-user, the market is divided into residential, commercial, and industrial.
Residential container home rentals are becoming increasingly popular for various leisure activities. Some prefer guests to stay together under one roof. People rent them out to host get-togethers, camps, and outdoor parties. These houses are also suitable as vacation homes and cabins at sea, with basic amenities such as beds, bathroom facilities, and kitchens.
The commercial and industrial segments are set to record substantial demand during the forecast period. In these sectors, container homes are moderately gaining significance. These homes are being used for recreational & emergency or nursing, proving to be cost-effective and space effective.
REGIONAL INSIGHTS
Based on geography, the market is segmented into five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
North America is expected to be the fastest-growing region in the global market. Companies in the region are increasingly using Artificial Intelligence (AI) in container house manufacturing to develop better designs. They use AI to identify and solve design problems before the manufacturing process begins. AI is an essential sketching platform that helps create many innovative layouts and designs. This allows companies to reduce manufacturing costs and time and improve design security. Using artificial intelligence, customers can also associate the size of the space with the exact number of products and devices that fit in the space, increasing the container homes market share in North America.
In the U.S., the penetration rate of container type of housing is very high. The utilization of constructed housing using containers can be tracked in eight regional clusters, including Maine, Vermont, New Hampshire, Massachusetts, Connecticut, Rhode Island, and New York, with modular housing and dormitories in the country accounting for more than 22%. Various regulatory bodies regulate this market in the U.S., and obtaining a permit to build container housing is a complex process. This is on account of specific zoning codes and building codes. Major end-users for the residential container industry in this country include education, office, hospitality, and multifamily housing.
Asia Pacific is expected to be a promising container housing market in terms of revenue from 2022 to 2029 as living conditions improve and investments in new housing developments increase. This is attributed to the fact that it is a highly industrialized region with favorable socio-economic conditions. The growth in this market in this region is driven by factors such as availability of used containers and reduced construction costs. With many decommissioned containers on the market, they are readily available for container house construction. They are tougher, more durable, and available in shapes and sizes best suited for building applications. Therefore, their construction takes less time than traditional construction.
The Europe market is projected to have modest growth with a significant upsurge in the coming years. The growth in Europe can be attributed to factors such as rising construction quality standards requiring higher quality materials during construction and increase in residential projects in various regions.
