Is prefabrication the key to solving 21st-century construction challenges?
Prefabricated buildings are making waves as a sustainable breakthrough today, but what does this construction method really involve? Let’s take a closer look!
Prefabrication, as the name suggests, involves assembling building components off-site before transporting them to their final location for installation.
In traditional construction, raw materials are brought to the site, where everything is built from the ground up. Prefabrication flips this approach—only the foundation is constructed on-site, while key sections are pre-built elsewhere and then delivered for assembly.
Fun fact: In civil engineering projects like bridges and dams, steel frameworks as long as 37 meters are often prefabricated and transported to the site, streamlining construction and reducing on-site work.
The main difference between modular, prefabricated, and industrialized construction lies in how and where building components are manufactured and assembled:
In short, while prefabricated and modular construction focus on where and how building components are manufactured and assembled, industrialized construction takes a broader approach: It prioritizes efficiency, automation, and standardization by integrating advanced technologies and streamlined industrial processes to optimize the entire construction workflow.
Prefabricated construction might seem like a modern trend, but its roots go back thousands of years. As early as 2600 BCE, the Egyptians used pre-cut stone blocks to construct the pyramids, allowing for more efficient building processes. The Romans later advanced this concept by incorporating prefabricated architectural elements such as columns, arches, and domes, which helped them construct massive structures more quickly and consistently.
In the 20th century, prefabrication became a game-changer, especially after World War II. With millions of people needing housing, factory-made building components—like entire wall panels, floors, and roofs—were mass-produced and transported to construction sites for rapid assembly. This approach significantly reduced construction time and costs, making prefabrication a key solution for post-war rebuilding efforts.
For a bit more context, it’s interesting to note that prefab building and modular construction have taken a step back in recent years. However, the prefabricated construction market was valued at US$146.4Bn in 2024 and is expected to reach US$208.1Bn by 2030.
This market is growing rapidly, driven by urbanization, cost efficiency, and the demand for scalable infrastructure, especially in emerging economies like India and China. The Asia-Pacific (APAC) region holds a major share, fueled by construction activity, labor shortages, and government support for affordable housing. Europe and North America are also expanding, with prefabricated construction gaining traction in commercial and residential sectors.
➡ You may be interested: The main trends in the construction world for 2025
Prefabrication is often faster than traditional construction because the components arrive pre-built and only need to be assembled on-site. It can also be more cost-effective. Since prefabricated components are manufactured in a controlled factory environment, transporting them is often cheaper than moving raw materials and assembling everything on-site.
➡ Prefabrication can reduce construction time by up to 50%!
Building more sustainably starts with rethinking how we construct. Traditional methods rely on frequent material transport and generate significant waste. In contrast, prefabrication centralizes production in a factory, reducing its environmental impact.
Prefabricated construction has become a versatile choice for a wide range of building projects. Here’s how:
At Cemex Ventures, we bet on technologies and trends that can help solve the challenges in the construction industry. As prefabricated construction continues to gain traction in the built environment and set up itself as a necessary solution for industry professionals, we keep searching for innovations that enable faster, more efficient building while optimizing resources and integrating cutting-edge technologies.
Prefab construction tackles some of the most complex challenges in modern buildings, such as rising housing costs in many cities. This manufacturing method offers an affordable alternative by streamlining production, this method uses less construction materials than traditional approaches, and shortening construction timelines, making it especially valuable for rapid-response housing. More than just a construction technique, prefabrication is a forward-thinking strategy that’s reshaping the future of building across different climates and urban landscapes.
Are you an entrepreneur with a disruptive prefab construction solution that’s redefining the industry’s future? Get in touch with our investment team now.
Thanks to new technologies and innovative materials, sustainable concrete is transforming the construction industry, reducing its environmental impact without compromising strength or durability. Discover how this alternative can help build a greener future. 🌱✨
Did you know that by 2030, the demand for green or sustainable materials will grow 4.5x? You heard that right, especially driven by the automotive & construction industries. To meet the 2050 decarbonization targets, innovative technologies that turn construction materials such as concrete into a more sustainable, eco-friendly, or greener material could make all the difference.
Let’s take a closer look at the transformative role of sustainable concrete in construction!
Concrete, steel, chemicals, and aluminum—along with the ships, planes, and trucks that transport them—are the backbone of the global economy. However, they also account for 30% of global greenhouse gas emissions. Construction is one of the industries racing to reduce harmful emissions from its operations, and its future competitive landscape will be shaped by those who can most effectively lower carbon capture and storage costs.
Concrete is a strong and durable building material made from a mix of Portland cement, water, and aggregates such as sand, gravel, and rocks. Its longevity makes it essential for sustainable construction, but its biggest environmental challenge lies in cement production—a highly polluting process that generates 3 gigatons of greenhouse gases globally each year.
*Fun fact: A gigaton of CO2 is equivalent to about 2.7K times the weight of the Empire State Building.
It’s important to note that cement is a hard-to-abate sector requiring scaling breakthrough technologies, such as CCUS (Carbon Capture, Utilization, and Storage), to an industrial level to reach net-zero. However, significant reductions in cement and concrete emissions can be achieved in the near term by leveraging existing technologies, using lower-carbon cement blends, and adopting design techniques that minimize the carbon footprint of structures.
So, the short answer to whether concrete is a sustainable material requires us to dig deeper into this complex concept…
The main differences between sustainable concrete—also known as “green concrete”—and traditional concrete are as follows:
The result is more sustainable concrete alternatives, capable of replacing OPC while maintaining impressive strength and durability.
As we mentioned earlier, understanding how to make concrete more sustainable starts with making cement more eco-friendly. Here’s how:
Clinker, the main ingredient in cement, is behind 90% of its emissions.
While we don’t yet have a way to completely replace clinker on a large scale, there are ways to cut its use significantly. One promising solution is LC3 (Limestone Calcined Clay Cement), which can lower CO2 emissions by about 40%. LC3 swaps out half the clinker for calcined clay and ground limestone—materials that don’t release carbon when heated. Plus, clay needs less heat, which means using less fuel and even switching to electricity instead of fossil fuels.
Switching fuels and using electricity are key to cutting emissions from energy use in cement production. By partially heating the kilns with clean electricity and replacing fossil fuels with low-carbon alternatives, it’s possible to reduce reliance on coal and make the process more sustainable. Low-carbon fuel alternatives, common in various industries, include near-term drop-in options like biomass and plastic waste, as well as longer-term solutions such as green hydrogen.
For example, HiiROC, a cutting-edge clean hydrogen technology startup from our investment portfolio, has developed an innovative process for low-cost, zero-CO2-emission hydrogen production. Cemex partnered with the UK-based startup to scale its injection into cement production and increase the substitution rate of fossil fuels in a first-of-its-kind project at its Rugby cement plant.
Point-source carbon capture is a major way to cut emissions in cement and concrete production. This process traps and stores CO2 from large sources, like power plants or factories, keeping it out of the atmosphere. Carbon capture and storage (CCS) typically involves three key stages, while carbon capture and utilization (CCU) is streamlined into just two.
According to the Global Cement and Concrete Association (GCCA), the CCUS process could lower the industry’s carbon emissions by 36%, making it the most impactful solution for reducing emissions.
Sustainable concrete innovations are revolutionizing the way we build. These are some cutting-edge examples:
It is a prime example of sustainable concrete. This variant stands out for using industrial by-products, such as fly ash and blast furnace slag, instead of cement. By doing so, it significantly reduces carbon emissions compared to conventional methods and decreases reliance on limited natural resources.
This environmentally friendly material offers a range of advantages over traditional concrete. For instance, it can reduce carbon emissions by up to 90% and help prevent these industrial by-products from ending up in landfills by putting them to clever use.
➡️ Curious to know more? Can concrete be recycled?
Self-healing concrete is a trailblazer for green construction. It fixes its own cracks, extending the life of structures while saving money and reducing waste. The secret? Tiny capsules inside the concrete release healing agents when cracks appear, triggering a reaction that seals the damage. With this breakthrough solution, maintenance costs drop, and also the need for constant repairs or replacements.
Green concrete innovations go beyond cutting CO2 emissions or boosting durability—they’re also about creating visually striking structures that harmonize with their surroundings.
Take translucent concrete, for example. Embedding optical fibers into the mix lets natural light flow through while staying strong, making it ideal for energy-efficient buildings designed to maximize daylight.
Cemex Ventures is seeking solutions to make construction more sustainable. In fact, one of the startups we’re highlighting is MIXTERESTING, part of the 2nd edition cohort from our exclusive startup accelerator, Cemex Ventures Leaplab:
The Austrian startup—one of the winners in the Green Construction category of Construction Startup Competition 2024—has developed software that enables its customers to create CO2-efficient concrete by digitally simulating the mixing process, accelerating the development cycle by up to 10 times. This allows them to achieve 5-7% higher margins through more efficient and innovative concrete mixes while reducing CO2 emissions by up to 20% through performance-based optimization.
Stay tuned for the upcoming launch of the Cleantech Construction Map 2025, and keep up with the latest Contech news by subscribing to our biweekly Contech Tacos newsletter!
