Modular Construction Industry Overview

The global modular construction market size was estimated at USD 90.79 billion in 2022 and is expected to register a growth of 7.5% over the forecast period. This growth is attributed to the growing demand for affordable housing coupled with the increasing investment in the development of healthcare and commercial infrastructure around the globe. Off-site building activities in the urban regions are also growing, which is further driving the growth of modular construction market. Off-site building is not affected by weather conditions as they are manufactured within closed factories using advanced machinery, thereby, optimizing the construction time and providing high-quality products. The aforementioned benefits of off-site building make modular construction cost-effective and contribute to less site-generated waste.

Rapid urbanization and industrialization are expected to increase the number of new projects, primarily in the commercial and industrial sectors. This is likely to fuel the growth of the construction industry across the globe. Increasing technological advancements in building industry coupled with the advantages provided by modular construction such as reduced building schedule, reduced cost, greater flexibility, reuse, and less material waste are contributing to the product demand.

Gather more insights about the market drivers, restrains and growth of the Global Modular Construction Market

Detailed Segmentation:

Product Insights

Based on product, the permanent modular construction segment dominated the market with the revenue of USD 58.21 billion in 2022. The segment is further expected to expand at a CAGR of 7.8% over the forecast period on account of offering high quality control in comparison to on-site construction.

Permanent modular construction (PMC) method is the innovative and sustainable construction method that facilitates off-site manufacturing of prefabricated modules that are deployed in single or multi-story buildings. Additionally, these modules can be integrated into an existing structure or can be built to stand independently.

Material Insights

The steel segment has emerged as the largest market segment in 2022 with the revenue of USD 37.69 billion. It is used in various shapes like H-type beams, columns, angles, I- beam shapes, and T-shapes. The material exhibits excellent mechanical and chemical properties such as high strength, durability, ductility, ease of fabrication, seismic resistance, and fast erection speed. It is used as a reinforcing material in concrete to compensate for its low tensile strength.

Application Insights

The residential segment accounted for the largest segment consist 52.7% of the total market in 2022 and is also expected to be the fastest growing segment by 2030. Modular construction can be used to construct attractive buildings that focus on sustainability, and aesthetics. It allows rapid building, feasibility in terms of challenging designs, and the building of unique and customizable homes that fulfill the requirements of communities.

Regional Insights

Europe was the largest market for modular construction in 2022 with the revenue of USD 41.29 billion, on account of the high level of penetration in Germany, Finland, the U.K., and Sweden. The primary driving factor is expected to be the rising influx of migrants necessitating the development of temporary and permanent housing structures. Moreover, factors such as multiple investments and the implementation of advanced technologies are driving the modular construction market in Europe.

In U.K., modular construction is gaining popularity as a viable method of constructing affordable homes owing to various factors such as population growth and shortages in housing. The number of modular homes in the country is increasing, and the country's top construction companies, investors, and developers are exploring modular housing solutions. As the UK government plans to construct approximately 300,000 new homes per year to address the challenges in the housing market, modular construction is expected to play a significant role.

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Key Companies & Market Share Insights

Key players have adopted various growth strategies, such as acquisitions, mergers, contracts, and agreements, to increase their shares in the market and enhance their product and service portfolios. Additionally, they are focusing on energy efficiency and customization to fulfill specific customer requirements. Some prominent players in the global modular construction market include:

• Sekisui House Ltd.
• LAING O'ROURKE
• Red Sea International
• Skanska
• Bouygues Construction
• Premier Modular Limited
• KLEUSBERG GmbH & Co KG
• DuBox
• Wernick Group
• CIMC Modular Building Systems Holdings Co., Ltd. (CIMC-MBS)
• Riko Hiše d.o.o
• Lendlease Corporation
• Modulaire Group
• Guerdon, LLC
• Hickory Group

Segments Covered in the Report

Grand View Research has segmented the global modular constructionmarket report based on product, material, application, and region:

Modular Construction Product Outlook (Revenue, USD Million; 2018 - 2030)

• Relocatable
• Permanent

Modular Construction Material Outlook (Revenue, USD Million; 2018 - 2030)

• Wood
• Steel
• Concrete
• Others

Modular Construction Application Outlook (Revenue, USD Million; 2018 - 2030)

• Residential
• Commercial
• Industrial
• Healthcare
• Educational

Modular Construction Regional Outlook (Revenue, USD Million; 2018 - 2030)

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • K.
  • Germany
  • Sweden
• Asia Pacific
  • China
  • India
  • Japan
  • Singapore
  • Australia
• Central & South America
  • Brazil
• Middle East & Africa
  • Saudi Arabia
  • UAE

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