Global Modular Construction Market is segmented By Material (Wood, Plastic, Steel, Precast Concrete), By Type (Relocatable Modular Concrete, Commercial Permanent Modular), By End User (Healthcare, Housing, Industrial, Education, Others), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview
Global Modular Construction Market reached USD 91.1 billion in 2022 and is expected to reach USD 121.4 billion by 2031 growing with a CAGR of 5.7% during the forecast period 2024-2031. The market's expansion has been driven by a rise in home sales, new project launches and increased demand for new offices and commercial spaces.
The adoption of modular construction and the application of building information modeling (BIM) will most likely drive market growth.
During the forecast period 2023-2030, Europe is expected to account for roughly 1/4th of the global modular construction market. An increasing trend in the region's modular construction business is increased demand for energy-efficient buildings. On September 20, 2022, the Russian Federation's Ministry of Construction and Housing announced an Action Plan with the objective of creating the regulatory and institutional structure required for the broad adoption of modular construction technologies in Russia.
Market Scope
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Metrics |
Details |
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CAGR |
5.7% |
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Size Available for Years |
2022-2031 |
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Forecast Period |
2024-2031 |
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Data Availability |
Value (US$) |
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Segments Covered |
Material, Type, End-User and Region |
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Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle East & Africa |
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Fastest Growing Region |
Asia-Pacific |
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Largest Region |
Asia-Pacific |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
The Rise in Investments in Healthcare and Education Sector
The increased construction of healthcare and educational facilities has also been an important factor of the global modular construction market. According to the American Institute of Architects, education spending in U.S. climbed up by 2.7% in 2022, after falling by an estimated -6.6% in 2021. Spending on health care facilities is predicted to rise by 1.2% in 2021 and 2.4% in 2022.
Manufacturing facilities, distribution centers, warehouses, data centers and other projects come under the scope of industrial construction. According to the European Investment Bank Group, the bank loaned Hemsö Fastighets AB USD 105.48 million to build more energy-efficient social structures in Sweden and Finland. Nine social service buildings will be constructed, including nursing homes, a medical center, preschools and school facilities.
The Rising Investment in Infrastructure
The increased demand for architectural protection from environmental hazards, increased government attention to green building ideas and modular construction for limited space in large cities are expected to boost market expansion. Furthermore, increased infrastructure spending in nations such as Germany, France, India and others increases demand for modular construction, driving market growth.
In the Hesse region (Germany), a total of 6,796 constructions were built in 2020, with 11,640 of these being prefabricated residences. A shift in focus toward cheap housing structures, as well as an increase in demand for modular construction due to benefits such as faster building, ease of relocation and portability, are expected to drive market expansion. Furthermore, the urban population has turned on modular construction for cheaper living because containers are less expensive than traditional houses.
Limitations on Design and High Initial Costs
In comparison to traditional construction methods, modular construction often requires some degree of standardization, which might limit design freedom and customization options. Within the limits of modular components, architectural creativity and unique design aspects may be more difficult to produce. People think modular construction is inferior to traditional building techniques in terms of durability and quality, limits the growth.
Overcoming negative impressions and achieving widespread market acceptance can be obstacles to its growth. Building up a modular construction facility and implementing the necessary production processes might be expensive at first. Companies must carefully weigh the possible long-term benefits of these expenditures. The size of modular components is limited due to transportation costs and production limits. It have an effect on the viability of adopting modular construction for large-scale projects.
Segment Analysis
The global modular construction market is segmented based on material, type, end-user and region.
The Growing Government Initiatives for Modular Construction in Industrial Sector
During the forecast period industrial end-user is expected to hold about 1/4th of the global modular construction market. The growing demand for modular construction is relocating most of the construction process carried on the construction site to factories. The modular construction technique is used to construct industrial buildings in line with the International Building Code (IBC) or a code modeled after the IBC and state legislation.
Demand for modular construction in industrial sector is being driven by government attempts to reduce waste and encourage green construction and building approaches. Singapore has enforced prefabricated, pre-finished and volumetric construction (PPVC) elements for all government-owned land developments. Subsidies are provided to participating enterprises in order to increase and standardize modern methods of construction (MMC) in the country, consequently raising demand for off-site construction.
Geographical Penetration
The Rising Infrastructural Investments in Asia-Pacific
Asia-Pacific is expected to account for roughly 1/3rd of the global modular construction market in 2022, due to rising investments in infrastructure construction projects in both the public and private industries in developing countries such as India and China. The increased emphasis on affordable housing by both the public and private sectors is propelling residential development expansion.
The growth of non-residential infrastructure is predicted to be significant. The country's aging population is driving up the demand for new healthcare facilities and hospitals. The structural shifts that have occurred in the Chinese economy in recent years, with the service sector accounting for a bigger percentage of overall GDP, have resulted in the creation of massive commercial and office facilities.
In the next five years, India expects to invest USD 1.4 trillion on infrastructure through the 'National Infrastructure Pipeline,' as reported in 2022. Infrastructure operations accounted for 13% of overall FDI inflows of USD 81.72 billion in FY21.
Major key Players
The major global players include Bouygues Construction, Algeco Scotsman, Laing O’rourke, Cimc Modular Building Systems Holding, Red Sea Housing, Kleusberg GmbH & Co. Kg, Kwikspace Modular Buildings, Westchester Modular Homes, Koma Modular and Skanska AB.
COVID-19 Impact Analysis
COVID Impact
The COVID pandemic's influence on the construction industry appears to be driving the demand for modular construction technologies, particularly in the western U.S. and Canada. Since 2019, several new modular unit providers have come online and existing companies have increased factory capacity. Modular construction provides advantages that help offset problems caused by the epidemic.
Bringing the responsibility of procuring finishes, fittings and building supplies under one roof, streamlines the supply chain, which became tighter and less predictable after the epidemic hit. Modular vendors who provide finished bathrooms and kitchens relieve contractors and subcontractors of the burden of obtaining several individual products.
Russia-Ukraine War Impact
The conflict and related sanctions have caused significant disruption to supply networks that were just beginning to recover from the outbreak. Metals, raw materials, chemical goods and machinery are significant suppliers from Russia and Ukraine. Russia holds around 10% of world copper deposits and is a major nickel and platinum producer.
Prices are already rising in anticipation of access and production of these resources being hampered and the market is looking to other nations and other supply chains. In 2022, According to the United Nations Development Programme, the Ukrainian government estimates that the war has destroyed at least USD 100 billion in infrastructure, structures, roadways, bridges, hospitals, schools and other physical assets.
Key Developments
- In October 2022, Balfour Beatty, a UK-based international infrastructure group, announced that Top Oasis Limited has awarded a USD 0.17 million contract to its 50:50 joint venture, Gammon, for the building of a residential development in Yau Tong, Hong Kong.
- In April 2021, Kitchens To Go, a market leader in short-term and long-term modular solutions for food service providers looking to continue or grow their operations, was acquired by McGrath RentCorp. With the acquisition, McGrath RentCorp's Mobile Modular subsidiary will be able to offer temporary and permanently tailored food service facilities all across the nation.
- In Janaury 2021, Etex Group, a global industrial company, declared that it had purchased the majority of e-Loft. e-Loft, a French construction company, offers solutions in single-family modular homes, modular multifamily residential complexes and custom-designed buildings by using 3D wood technology.
Why Purchase the Report?
- To visualize the global modular construction market segmentation based on material, type, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of modular construction market level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as excel consisting of key products of all the major players.
The global modular construction market report would provide approximately 61 tables, 60 figures and 205 pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
