Chicago, Dec. 17, 2025 (GLOBE NEWSWIRE) -- The global dry construction market was valued at US$ 95.8 billion in 2025 and is expected to reach US$ 154.6 billion by 2035, growing at a CAGR of 4.9% throughout the forecast period 2026–2035.
The demand for the dry construction market is currently experiencing a structural surge driven by the convergence of acute labor shortages and strict environmental mandates. With the US construction sector facing a deficit of 501,000 workers in 2024 and wages hitting USD 38.30 per hour, developers are pivoting to wallboard systems to maintain project viability. This shift is quantitatively visible in the rise of prefabricated housing, which now commands a 26.1% market share in Germany. Speed is the new currency; factory-built solutions have compressed delivery timelines to just 35 days, rendering traditional wet masonry economically obsolete for rapid urban development.
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Simultaneously, major players like Saint-Gobain and Knauf are validating this growth trajectory through massive capital deployments, including USD 235 million and USD 86 million facility expansions respectively in 2024. These investments are directly linked to the market’s superior resource efficiency—consuming 95% less water than traditional methods—which aligns perfectly with zero-discharge targets in water-stressed regions. Furthermore, the burgeoning renovation sector, bolstered by the EU’s EUR 1.2 trillion Renovation Wave, relies heavily on dry lining for its ability to facilitate "live" retrofits. Consequently, the market is transitioning from an alternative building method to the primary standard for cost-effective, sustainable infrastructure delivery.
Key Findings in Dry Construction Market
| Market Forecast (2035) | US$ 154.6 billion |
| CAGR | 4.9% |
| Largest Region (2025) | Asia Pacific (34.92%) |
| By Type | Supporting Framework (56.59%) |
| By Material | Plasterboard (28.69%) |
| By System | Wall (Largest) |
| By Application | Residential (56.23%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Strategic Capital Investments Driving Global Production Capacity
Major industry players are aggressively expanding manufacturing footprints to meet surging demand in the dry construction market. Saint-Gobain is currently investing USD 235 million in its Palatka, Florida facility to double production capacity. This massive expansion project has already created 110 permanent full-time jobs active through 2025. Competitors are moving with equal speed. Knauf Egypt committed USD 86 million in late 2024 to construct a third gypsum plant. That specific facility adds a staggering production capacity of 60 million square meters per year to the region.
European operations are also seeing heavy capitalization. Etex commissioned its Bristol, UK plasterboard plant in 2024 with a capital expenditure of EUR 200 million. The company further invested EUR 264 million total CAPEX across global operations to upgrade factories in 2024. Meanwhile, Knauf opened a new facility in McGregor, Texas, adding 600,000 square feet of manufacturing space. These figures confirm that the dry construction market is gearing up for sustained long-term volume growth.
Sustainability Metrics Accelerating Circular Economy Adoption
Environmental mandates are forcing a rapid shift toward lightweight building methods. The dry construction market is capitalizing on its superior resource efficiency. Operational data from 2024 reveals that dry construction sites consumed approximately 15 liters of water per square meter compared to 500 liters for wet masonry. Saint-Gobain has consequently set a target for zero water discharge by 2030 in high water-stress areas. Their current water recycling technology at insulation plants already saved 1 million cubic meters of freshwater demand annually.
Circular economy metrics are equally impressive. Etex recycled over 590,000 tonnes of waste material including gypsum and glass in 2024. They achieved a 17% absolute reduction in waste sent to landfills. Knauf Insulation reported that its mineral wool insulation now offsets its own embodied carbon in just 95 days of installation. Furthermore, the company reduced its operational Scope 1 and 2 emissions by 15% in 2024. These sustainability credentials are becoming non-negotiable for developers.
Critical Workforce Gaps Necessitating Drywall Solutions
Labor shortages are the primary catalyst for the adoption of wallboard systems. The US construction industry required 501,000 additional workers in 2024 above normal hiring rates. Consequently, the average hourly wage for US construction workers reached USD 38.30. High labor costs are driving the dry construction market as developers seek faster installation methods. Retention remains a massive challenge. An estimated 1.9 million US construction workers were projected to leave the industry in 2024.
European markets face similar constraints. The UK construction workforce stood at 2.69 million workers in 2024 yet struggled to meet targets. Germany’s sector reported only 12,143 active carpentry and timber construction companies available to meet demand. However, the lighter nature of dry lining is attracting new demographics. Women comprised 10.9% of the US construction workforce in 2024, a record high. In the UK, 44% of total output came from repair and maintenance, a sector dominated by dry lining.
Germany Leads Prefabricated Housing Market Penetration
Offsite manufacturing is reshaping the European dry construction market landscape. Germany serves as a prime example of this shift. Authorities approved 11,543 prefabricated residential homes in 2024. The share of prefabricated homes among new approvals in Germany reached 26.1%. Speed is the main driver. Factory-built housing solutions in 2024 cut on-site delivery times to 35 days, compared to 16 months for conventional builds.
Import data reflects this booming segment. Germany imported 12,370 tons of prefabricated wooden buildings in 2024. The value of these imports reached USD 95.3 million. Urban centers are adopting these methods rapidly. Berlin alone accounted for 17.1% of the German prefabricated housing market volume. Furthermore, approvals for prefabricated multi-family housing units rose to 8.2% of the segment. These statistics indicate a structural shift toward modular assembly that relies heavily on dry systems.
Rising Material Costs Favoring Efficient Installation Methods
Price volatility in traditional materials is pushing builders toward the dry construction market. Cold-rolled steel coil prices hovered around USD 1,040 per ton in late 2024. Hot-rolled coil steel prices averaged between USD 687 and USD 732 per ton. In contrast, the average price of 5/8-inch fire-rated drywall in the US remained stable between USD 18.00 and USD 23.00 per sheet. Cost predictability is vital as US commercial renovation spending was valued at USD 118.2 billion in November 2024.
Labor efficiency further justifies the switch. Drywall installation labor costs in the US averaged USD 1.50 to USD 3.50 per square foot in 2025 estimates. The broader economic landscape supports this growth. The US Commercial Construction market was valued at USD 544.42 billion in 2024. In Europe, the Renovation Wave requires an estimated EUR 1.2 trillion in cumulative investment between 2024 and 2030. These massive capital flows are prioritizing cost-effective dry solutions.
Digital Workflows Enhancing Project Delivery Speed
Technology adoption is streamlining the dry construction market supply chain. Surveys from 2024 indicate that 73% of UK construction professionals now use Building Information Modelling (BIM). The UK government currently mandates BIM Level 2 for all public sector projects valued over GBP 5 million. Efficiencies are significant. Companies adopting BIM in 2024 reported operational cost reductions of 15% to 30%. Large entities are leading the charge. 99% of large UK practices had adopted BIM workflows by 2024.
Adoption is now client-driven. 66% of BIM users reported that clients actively insisted on BIM for project delivery in 2024. Approximately 200,000 UK construction professionals are now estimated to be active BIM users. Germany’s prefab sector is also integrating digital design standards like DIN SPEC 91400. Such digital precision favors dry construction over wet trades. The data confirms that digitization is inextricably linked to the sector's expansion.
Stricter Safety Codes Demanding Advanced Fire Resistance
Regulatory pressure is increasing the value of high-performance boards in the dry construction market. New UK regulations in 2024 mandated a second staircase for all residential buildings over 18 meters in height. Additionally, fire sprinklers are now mandatory for new residential buildings over 11 meters. Manufacturers are responding with superior ratings. Knauf Guardex sheathing boards achieved an A1 non-combustible classification in 2024.
Standards are tightening globally. The release of BS 9991:2024 updated fire safety guidance for residential buildings significantly. In the US, new fire-rated drywall assemblies achieved 4-hour resistance ratings for shaft wall systems in 2024. Remediation is also driving sales. England’s policy update dictates that unsafe cladding must be removed from buildings 18 meters and taller by 2029. Saint-Gobain Habito boards now satisfy BS 5234 Part 2 requirements for severe duty robustness. Safety compliance is fueling market volume.
Technical Innovations Improving Weight and Acoustic Performance
Product engineering is expanding the application scope of the dry construction market. Lightweight drywall boards in 2024 were engineered to be 25% lighter than standard boards. A standard 4x8 ft sheet of 1/2-inch lightweight drywall weighed approximately 39.2 pounds in 2024. Despite the weight reduction, performance has improved. Saint-Gobain Habito boards now support a safe working load of 30 kg per single No. 10 wood screw.
Acoustic capabilities are also advancing. High-performance acoustic drywall assemblies achieved STC 49 ratings with specific configurations in 2024. USG Sheetrock acoustical sealant is now rated for wall assemblies with 1-3 hour fire ratings. Durability is also a key focus. Tiling on high-strength drywall can support up to 32 kg per square meter. Knauf Guardex boards feature a thickness of 12.5mm or 15mm for exterior use. These specs make dry systems viable for premium applications.
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Raw Material Independence and Public Sector Investment
Supply chain resilience is a defining feature of the dry construction market. US producers mined 22 million metric tons of natural gypsum in 2024. Synthetic gypsum accounted for 34% of the total US supply, ensuring diverse sourcing. Imports reached 7.4 million metric tons, with Spain supplying 36% of that volume. Domestic recycling is also growing. Manufacturers recycled 700,000 tons of gypsum scrap on-site in 2024. The industry is robust, with 47 companies operating mines and total wallboard sales volume reaching 2.6 billion square meters.
Government projects are securing future demand. The Indian government allocated INR 11.1 trillion (USD 133.7 billion) for capital expenditure in the 2024-25 budget. They also approved 50 solar park projects with 37.5 GW capacity. Institutional work is accelerating. Indiana University initiated a USD 60 million renovation project in 2024. In the UK, the Affordable Warmth Scheme offered grants up to GBP 7,500. Additionally, the Disabled Facilities Grant cap was set at GBP 30,000. Berlin mandated serial construction for social housing, securing a 17.1% market share. US public construction spending represented 15% of the commercial market.
Dry Construction Market Major Players:
- EPACK Prefab
- Fullerton Building Systems
- Griplock Systems, LLC
- Hangzhou Zhongchuang Electron Co., Ltd.
- Polygon
- Ramco Industries Limited
- Ravago Hellas Building Solutions
- Sika AG
- Stueve Construction, LLC.
- YOSHINO GYPSUM CO.,LTD
- Other Prominent Players
Key Market Segmentation:
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 Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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