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Prefab Tech

Revolutionizing construction with sustainable practices to build faster

Overview

Prefab gains ground as a sustainable construction technique

Prefabricated construction (prefab) is the manufacture and assembly of building components in an off-site factory which is then transported to construction sites as complete structures or sub-assemblies. This technique is traditionally known for low-cost, low-quality buildings; however, thanks to digital designing tools, advancements in 3D printing, and robotics, it is now becoming a mainstream sustainable construction solution, delivering fast, high-quality results. 

A growing number of startups are coming up with prefab techniques to build all types of structures, including single-family and multi-family residential units as well as commercial buildings. By utilizing fewer resources, generating less waste, and incorporating energy-efficient features into buildings, the aim is to achieve sustainable long-term savings and reduce the environmental impact of construction. 

What's driving this industry?
Market Sizing

The US prefab tech market could reach USD 35.9–54.5 billion by 2026

Conservative case

USD 35.9 Bn

Base case

USD 39.5 Bn

Expansion case

USD 54.5 Bn

USD billion015304560202120222023202420252026
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COVID-19 IMPACT

As traditional construction faced project delays during the pandemic, prefab gained momentum and rose to cater to the rising demands of people who wanted to migrate to quieter areas, governments looking to build shelters for housing insecure people, and medical buildings that needed rapid development.  

  • Plant Prefab ’s revenue grew 17% year-on-year (YoY) in 2020.

  • Connect Homes recorded the most number of bookings in history in 4Q 2020.

  • Dexterra was chosen by the Toronto Council in May 2020 to build 250 units of housing shelters, to be able to provide shelter for the housing insecure to practice physical distancing.

  • PCL construction developed a Covid-19 testing center using modular construction at the time of reopening University of Denver in November 2020.

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Market Mapping


Residential buildings dominate 

While a few startups operate in multiple segments, a majority specialize in just one. The single-family residential units segment has the highest number of startups, as demand has increased due to remote work becoming the norm. This also stems from the growing need for privacy and the preference for living in suburban or rural areas. 

Incumbent traditional modular housing developers only operate in residential and commercial buildings segments and are yet to move into emerging areas such as 3D printing and sustainable mobile houses. 

While most startups are at the early and growth stages,  sustainable mobile houses and fully 3D printed buildings are at the seed stage, as they are still emerging technologies. 

Incumbents
Growth
Early
Seed
Pre-Seed
Single-family residential units
?
Multifamily residential units
?
Prefabricated commercial buildings and structures
?
Accessory dwelling units (ADUs)
?
3D printed buildings
?
Sustainable mobile houses
?
SpaceFactory
SpaceFactory
SpaceFactory
SpaceFactory
SpaceFactory
SpaceFactory
Berkshire Hathaway
Daiwa House Group
Dexterra Group
Skyline Champion
Jacobsen Homes
Cavco Industries
Sekisui House
TriWest Capital Partners
Veev
S2A Modular
Plant Prefab
Blokable
Dvele
Connect Homes
Baya Build
Turkel Design
Ilke Homes
Kodasema
Honomobo Corp.
Triumph Modular
Apex Airspace
Simple Homes
Go_Modular
nHouse
TechPrefab
FabCab
The Wee House Company
BrightBuilt Home
Ecocor
Phoenix Haus
Wheelhaus
EcoCraft Homes
Koto
GO Logic
NODE
Module
Shelter Dynamics
Berkshire Hathaway
Daiwa House Group
Dexterra Group
Skyline Champion
Cavco Industries
Sekisui House
TriWest Capital Partners
Veev
Prescient Co.
Factory_OS
S2A Modular
Plant Prefab
Blokable
CRATE Modular
Assembly OSM
Juno
Modulous
Intelligent City
Apex Airspace
Fullstack Modular
Go_Modular
TechPrefab
Fluxus
Module
Daiwa House Group
Dexterra Group
Skyline Champion
Cavco Industries
Project Frog
TriWest Capital Partners
Prescient Co.
Nexii
S2A Modular
Emagispace
Baya Build
CRATE Modular
Triumph Modular
Assembly OSM
Fullstack Modular
Simple Homes
TechPrefab
EcoCraft Homes
S2A Modular
CRATE Modular
Kodasema
Studio Shed
Cover
Abodu
Simple Homes
TechPrefab
FabCab
Phoenix Haus
Wheelhaus
Koto
NODE
Mighty Buildings
Apis Cor
AI SpaceFactory
Brette Haus
haus.me
Geoship
iOhouse

The Disruptors


Speed to market is crucial for leading disruptors

Multifamily residential unit firms Prescient Co., Factory_OS, and Veev, as well as 3D printing company Mighty Buildings dominate the industry in terms of funding, raising more than USD 75 million. Factory_OS and Mighty Building, however, stand out from the rest when it comes to speed to market. Factory_OS says it can construct a 100-unit building in less than 10 days, while Mighty Buildings claims it is capable of developing a 350-square-foot (sq ft) home within 24 hours, whereas others would take at least 30 days.

Meanwhile, Prescient Co. has the highest number of patents (more than 175 approved and pending in 30 countries). Most disruptors use proprietary or patent-pending technology in several areas such as design tools, building systems, material, etc., to set themselves apart.

A majority of the companies operate their own manufacturing plants, but developers such as Abodu and TechPrefab use a network of on-demand partner manufacturers. While most offer standard floor plans with varying degrees of customization, some startups, such as Dvele, S2A Modular, and EcoCraft Homes, offer fully customized prefab houses. In terms of sustainability, most disruptors offer in-built energy generation facilities, while companies like Connect Homes and Bay Build incorporate third-party solutions at the customer’s discretion.

Single-family residential units

?

Disruptors

?
Funding in USD Millions
Veev
597
S2A Modular
57
Plant Prefab
39
Blokable
30
Dvele
29
Connect Homes
20
Apex Airspace
13
Simple Homes
5
Baya Build
Unknown
TechPrefab
Unknown
Turkel Design
Unknown
FabCab
Unknown
Ilke Homes
Unknown
Kodasema
Unknown
Honomobo Corp.
Unknown
Phoenix Haus
Unknown
EcoCraft Homes
Unknown
Koto
Unknown
GO Logic
Unknown
Watchlist
?
NODE
Module
Go_Modular
nHouse
Shelter Dynamics
The Wee House Company
BrightBuilt Home
Ecocor
Wheelhaus
Triumph Modular

Multifamily residential units

?

Disruptors

?
Funding in USD Millions
Veev
597
Prescient Co.
295
Factory_OS
78
S2A Modular
57
Plant Prefab
39
Assembly OSM
38
Juno
31
Blokable
30
Modulous
22
Intelligent City
21
Apex Airspace
13
Fullstack Modular
6
TechPrefab
Unknown
Fluxus
Unknown
CRATE Modular
Unknown
Watchlist
?
Module
Go_Modular

Prefabricated commercial buildings and structures

?

Disruptors

?
Funding in USD Millions
Prescient Co.
295
Nexii
120
S2A Modular
57
Assembly OSM
38
Emagispace
9
Fullstack Modular
6
Simple Homes
5
Baya Build
Unknown
TechPrefab
Unknown
EcoCraft Homes
Unknown
CRATE Modular
Unknown
Watchlist
?
Triumph Modular

Accessory dwelling units (ADUs)

?

Disruptors

?
Funding in USD Millions
Cover
73
S2A Modular
57
Abodu
24
Simple Homes
5
TechPrefab
Unknown
FabCab
Unknown
Kodasema
Unknown
Phoenix Haus
Unknown
Koto
Unknown
CRATE Modular
Unknown
Studio Shed
Unknown
Watchlist
?
NODE
Wheelhaus

3D printed buildings

?

Disruptors

?
Funding in USD Millions
Mighty Buildings
102
AI SpaceFactory
Unknown
Watchlist
?
Apis Cor

Sustainable mobile houses

?

Disruptors

?
Funding in USD Millions
haus.me
7
Brette Haus
Unknown
iOhouse
Unknown
Watchlist
?
Geoship

Veev

Veev (formerly Dragonfly Group) develops prefabricated single-family and multifamily residential units as well as accessory dwelling units (ADUs) from its factory located in Union City, California. It also offers house units on lease. The company started as an asset management company in 2008 and by 2013, started developing housing units. The company adopted prefabricated construction techniques by 2017 with the aim of making affordable housing. In 2019, Veev consolidated its subsidiaries to focus more on the residential housing market.

The company uses new technologies such as panelized wall systems, which use advanced material and digital fabrication to improve longevity and resilience against moisture, earthquakes, wind, fire, etc. Instead of using wood in its houses, Veev uses steel and a high-performance surface (HPS) material that is more durable and environmentally friendly. The company also uses proprietary design software that automates up to 70% of construction across mechanical, engineering, and plumbing functions. The houses also include room-level temperature control and a sensor-based smart building ecosystem to improve resource usage efficiency. By June 2021, Veev completed four single-family residential units and five multifamily residential projects, with more than 800 housing units in total, while several more are under construction. 

Veev was the first company to be listed on TASE UP, a platform launched by the Tel-Aviv Stock Exchange (TASE), which allows technology companies to raise funds without going public. In March 2022, the company raised USD 400 million in Series D funding, bringing its total funding to USD 597 million. The funds were expected to be used to scale operations, expand into new markets, and accelerate R&D initiatives to further improve cost efficiency and sustainability.

Segment:
Single-family residential units
Total funding:
USD 597.0 million
Competitors:
Blokable, Plant Prefab
Disruptor Funding History

Single-family residential units:

Veev
S2A Modular
Plant Prefab
Blokable
Dvele
Connect Homes
Apex Airspace
Simple Homes
NODE
Module
Go_Modular
nHouse

Multifamily residential units:

Veev
Prescient Co.
Factory_OS
S2A Modular
Plant Prefab
Assembly OSM
Juno
Blokable
Modulous
Intelligent City
Apex Airspace
Fullstack Modular
Module
Go_Modular

Prefabricated commercial buildings and structures:

Prescient Co.
Nexii
S2A Modular
Assembly OSM
Emagispace
Fullstack Modular
Simple Homes

Incumbents


Traditional house developers move into prefab through acquisitions and in-house innovation

Most incumbents started out as providers of manufactured houses (movable houses, trailer homes, etc.) built on chassis and have been in business for more than 50 years on average. These companies moved into the prefab industry through a mix of acquisition and in-house development to pursue increasing demand for sustainable construction. A majority of these incumbents conform to most of the green/sustainability certifications. 

Out of the incumbents, only TriWest Capital Partners has developed proprietary technology, whereas most disruptors have developed their own technology, covering various aspects such as designing, building systems, material, etc.

Single-family residential units
Multifamily residential units
Prefabricated commercial buildings and structures
Accessory dwelling units (ADUs)
3D printed buildings
Sustainable mobile houses
In House Development
M&A
Partnership
Investment
Berkshire Hathaway
Daiwa House Group
Dexterra Group
Skyline Champion
Jacobsen Homes
Cavco Industries
Project Frog
Sekisui House

Notable Investors


No investor data is available

Funding data are powered by Crunchbase
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