Modular Construction Market
PUBLISHED: 2024 ID: SMRC26011
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Modular Construction Market

Modular Construction Market Forecasts to 2030 - Global Analysis By Type (Permanent Modular Construction (PMC) and Relocatable Modular Construction), Material, End User and By Geography

4.3 (84 reviews)
4.3 (84 reviews)
Published: 2024 ID: SMRC26011

This report covers the impact of COVID-19 on this global market
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Years Covered

2021-2030

Estimated Year Value (2023)

US $99.3 BN

Projected Year Value (2030)

US $187.4 BN

CAGR (2023 - 2030)

9.5%

Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

Asia Pacific

Highest Growing Market

North America


According to Stratistics MRC, the Global Modular Construction Market is accounted for $99.3 billion in 2023 and is expected to reach $187.4 billion by 2030 growing at a CAGR of 9.5% during the forecast period. Modular construction revolutionizes traditional building methods by prefabricating components off-site in a controlled factory environment, then assembling them on-site. This approach offers numerous advantages, including faster construction timelines, reduced material waste, and improved cost efficiency. Modular construction's versatility allows for customization and scalability across various sectors, from residential and commercial buildings to healthcare facilities and educational institutions. With technological advancements and increasing demand for rapid, cost-effective construction solutions, modular construction continues to gain prominence as a viable alternative to conventional building methods.

According to the European Union and Eurostat, residential construction of Germany increased from 5.9% to 6% from 2019 to 2020. In addition, over the last few years, residential construction witnessed substantial increase, owing to increase in investments in North American, Asia-Pacific, and African countries.

Market Dynamics: 

Driver: 

Increased demand from various sectors

Higher demand from sectors such as residential, commercial, healthcare, education, hospitality, and industrial drives the overall expansion of the modular construction market. Moroever as demand increases from different sectors, modular construction companies diversify their offerings to cater to specific needs. For example, they may develop specialized modules for healthcare facilities, educational institutions, or hospitality projects, tailored to the unique requirements of each sector. This increased demand leads to the establishment of more modular construction firms and factories, contributing to market growth.

Restraint:

Lack of awareness and regulations

Inadequate regulations or outdated building codes may create barriers to the widespread adoption of modular construction. Without clear guidelines for modular construction practices and standards, developers may face uncertainty or resistance from regulatory authorities, slowing down project approvals and increasing compliance costs. Additionally developers may overlook modular solutions when planning construction projects, limiting the market's growth potential and preventing clients from realizing the benefits of modular construction.

Opportunity:

Rapid urbanization and population growth

In densely populated urban areas, traditional construction methods may face logistical challenges and space constraints. Modular construction offers a more efficient alternative, as much of the construction process can be completed off-site in controlled factory environments. This efficiency is particularly beneficial in urban settings where space is limited and construction timelines are critical. These offer a flexible and efficient way to build these infrastructure components, allowing cities to adapt to population growth and changing urban needs more effectively.

Threat:

Limited design flexibility 

Some architectural designs may be difficult to achieve using modular construction methods, particularly complex or unconventional designs. This limitation can deter architects and designers from considering modular construction as a viable option for their projects, reducing the market's appeal to professionals in the architecture and design fields. Furthermore clients may opt for traditional construction methods to have greater freedom in design choices, potentially overlooking the benefits of modular construction such as speed and cost-efficiency hamper the growth of the market.

Covid-19 Impact

Modular construction's inherent off-site fabrication and controlled environment helped mitigate on-site transmission risks, making it appealing for projects needing quick deployment, such as healthcare facilities and housing for essential workers. The market adapted with increased demand for modular healthcare facilities, temporary housing, and remote workspaces. Post-pandemic, modular construction is poised for growth due to its efficiency, flexibility, and ability to meet evolving demands for rapid, cost-effective construction solutions amidst ongoing health concerns.

The permanent modular construction (PMC) segment is expected to be the largest during the forecast period

The permanent modular construction (PMC) segment is estimated to have a lucrative growth, due to the adoption of permanent modular construction increases demand for modular construction services and products. Developers and builders seeking permanent structures with the benefits of modular construction, such as faster construction timelines, cost efficiency, and quality control, contribute to the growing demand for permanent modular construction solutions. Moreover permanent modular construction projects often involve larger and higher-value buildings compared to temporary or relocatable structures. As a result, modular construction companies may see an increase in revenue and profitability by targeting permanent modular construction projects that command higher margins.

The concrete segment is expected to have the highest CAGR during the forecast period

The concrete segment is anticipated to witness the highest CAGR growth during the forecast period, as concrete can be used in modular construction for structural components such as columns, beams, and floor slabs. Incorporating concrete elements into modular buildings enhances their load-bearing capacity and overall stability, allowing for taller and larger structures to be constructed using modular methods. For example, precast concrete panels or modules can be manufactured off-site and assembled with other modular components on-site to expedite construction timelines.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the growing population in countries like China, India, and Indonesia has created a need for more housing and infrastructure. Modular construction can help address this demand by accelerating the construction process and reducing project timelines. Advances in technology, such as Building Information Modeling (BIM) and automation, are enhancing the efficiency and quality of modular construction processes. These technological advancements are driving innovation in the industry and making modular construction more appealing to developers and contractors.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to the construction industry in North America, like many other regions, faces challenges related to skilled labour shortages. Modular construction can help alleviate these shortages by relying more on factory-based assembly processes, which require less on-site labor. Increasing awareness of environmental sustainability and energy efficiency is driving demand for green building practices in North America. Modular construction offers opportunities to incorporate sustainable materials and practices into building projects, aligning with green building standards and regulations.

Key players in the market

Some of the key players in the Modular Construction Market include Bechtel Corporation, Bouygues Construction, CIMC Modular Building Systems Holdings Co., Ltd., DuBox, Gaint Containers Inc, Guerdon, LLC, Hickory Group, KLEUSBERG GmbH & Co KG, LAING O'ROURKE, Lendlease Corporation, Modulaire Group, Premier Modular Limited, Red Sea International, Riko Hiše d.o.o, Sekisui House Ltd., SG Blocks Inc, Skanska and Wernick Group 

Key Developments:

In March 2024, Bechtel and Warsaw University of Technology Launch Nuclear Energy Career Development Program. Through the new program, Bechtel will help the University create a nuclear-related curriculum leveraging the company’s nuclear expertise and experience.

In February 2024, Extrakt and Bechtel Partner to Commercialize Groundbreaking Solid-Liquid Separation Technology. Meanwhile, Extrakt will continue to advance the TNS technology, manage intellectual property, and offer technical services to ensure the success of the partnership.

In January 2024, Bouygues Construction announced its commitment to decarbonizing real estate in Switzerland. The projects include Aarerain, Switzerland's first positive energy neighborhood, and Seetalplatz Cantonale Administrative Centre, a mixed-use project.

Types Covered:
• Permanent Modular Construction (PMC)
• Relocatable Modular Construction
 
Materials Covered:
• Wood 
• Steel 
• Concrete 
• Other Materials 

End Users Covered:
• Commercial 
• Healthcare 
• Education & Institutional 
• Hospitality 
• Other End Users 

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary         
           
2 Preface          
 2.1 Abstract         
 2.2 Stake Holders        
 2.3 Research Scope        
 2.4 Research Methodology       
  2.4.1 Data Mining       
  2.4.2 Data Analysis       
  2.4.3 Data Validation       
  2.4.4 Research Approach       
 2.5 Research Sources        
  2.5.1 Primary Research Sources      
  2.5.2 Secondary Research Sources      
  2.5.3 Assumptions       
           
3 Market Trend Analysis        
 3.1 Introduction        
 3.2 Drivers         
 3.3 Restraints        
 3.4 Opportunities        
 3.5 Threats         
 3.6 End User Analysis        
 3.7 Emerging Markets        
 3.8 Impact of Covid-19        
           
4 Porters Five Force Analysis        
 4.1 Bargaining power of suppliers       
 4.2 Bargaining power of buyers       
 4.3 Threat of substitutes       
 4.4 Threat of new entrants       
 4.5 Competitive rivalry        
           
5 Global Modular Construction Market, By Type      
 5.1 Introduction        
 5.2 Permanent Modular Construction (PMC)      
 5.3 Relocatable Modular Construction      
           
6 Global Modular Construction Market, By Material      
 6.1 Introduction        
 6.2 Wood         
 6.3 Steel         
 6.4 Concrete         
 6.5 Other Materials        
           
7 Global Modular Construction Market, By End User      
 7.1 Introduction        
 7.2 Commercial        
 7.3 Healthcare        
 7.4 Education & Institutional       
 7.5 Hospitality        
 7.6 Other End Users        
           
8 Global Modular Construction Market, By Geography     
 8.1 Introduction        
 8.2 North America        
  8.2.1 US        
  8.2.2 Canada        
  8.2.3 Mexico        
 8.3 Europe         
  8.3.1 Germany        
  8.3.2 UK        
  8.3.3 Italy        
  8.3.4 France        
  8.3.5 Spain        
  8.3.6 Rest of Europe       
 8.4 Asia Pacific        
  8.4.1 Japan        
  8.4.2 China        
  8.4.3 India        
  8.4.4 Australia        
  8.4.5 New Zealand       
  8.4.6 South Korea       
  8.4.7 Rest of Asia Pacific       
 8.5 South America        
  8.5.1 Argentina       
  8.5.2 Brazil        
  8.5.3 Chile        
  8.5.4 Rest of South America      
 8.6 Middle East & Africa       
  8.6.1 Saudi Arabia       
  8.6.2 UAE        
  8.6.3 Qatar        
  8.6.4 South Africa       
  8.6.5 Rest of Middle East & Africa      
           
9 Key Developments         
 9.1 Agreements, Partnerships, Collaborations and Joint Ventures    
 9.2 Acquisitions & Mergers       
 9.3 New Product Launch       
 9.4 Expansions        
 9.5 Other Key Strategies       
           
10 Company Profiling         
 10.1 Bechtel Corporation       
 10.2 Bouygues Construction       
 10.3 CIMC Modular Building Systems Holdings Co., Ltd.     
 10.4 DuBox         
 10.5 Gaint Containers Inc       
 10.6 Guerdon, LLC        
 10.7 Hickory Group        
 10.8 KLEUSBERG GmbH & Co KG       
 10.9 LAING O'ROURKE        
 10.10 Lendlease Corporation       
 10.11 Modulaire Group        
 10.12 Premier Modular Limited       
 10.13 Red Sea International       
 10.14 Riko Hiše d.o.o        
 10.15 Sekisui House Ltd.        
 10.16 SG Blocks Inc        
 10.17 Skanska         
 10.18 Wernick Group        
           
List of Tables          
1 Global Modular Construction Market Outlook, By Region (2021-2030) ($MN)   
2 Global Modular Construction Market Outlook, By Type (2021-2030) ($MN)   
3 Global Modular Construction Market Outlook, By Permanent Modular Construction (PMC) (2021-2030) ($MN)
4 Global Modular Construction Market Outlook, By Relocatable Modular Construction (2021-2030) ($MN) 
5 Global Modular Construction Market Outlook, By Material (2021-2030) ($MN)   
6 Global Modular Construction Market Outlook, By Wood (2021-2030) ($MN)   
7 Global Modular Construction Market Outlook, By Steel (2021-2030) ($MN)   
8 Global Modular Construction Market Outlook, By Concrete (2021-2030) ($MN)   
9 Global Modular Construction Market Outlook, By Other Materials (2021-2030) ($MN)  
10 Global Modular Construction Market Outlook, By End User (2021-2030) ($MN)   
11 Global Modular Construction Market Outlook, By Commercial (2021-2030) ($MN)   
12 Global Modular Construction Market Outlook, By Healthcare (2021-2030) ($MN)   
13 Global Modular Construction Market Outlook, By Education & Institutional (2021-2030) ($MN)  
14 Global Modular Construction Market Outlook, By Hospitality (2021-2030) ($MN)   
15 Global Modular Construction Market Outlook, By Other End Users (2021-2030) ($MN)  
16 North America Modular Construction Market Outlook, By Country (2021-2030) ($MN)  
17 North America Modular Construction Market Outlook, By Type (2021-2030) ($MN)   
18 North America Modular Construction Market Outlook, By Permanent Modular Construction (PMC) (2021-2030) ($MN)
19 North America Modular Construction Market Outlook, By Relocatable Modular Construction (2021-2030) ($MN)
20 North America Modular Construction Market Outlook, By Material (2021-2030) ($MN)  
21 North America Modular Construction Market Outlook, By Wood (2021-2030) ($MN)   
22 North America Modular Construction Market Outlook, By Steel (2021-2030) ($MN)   
23 North America Modular Construction Market Outlook, By Concrete (2021-2030) ($MN)  
24 North America Modular Construction Market Outlook, By Other Materials (2021-2030) ($MN)  
25 North America Modular Construction Market Outlook, By End User (2021-2030) ($MN)  
26 North America Modular Construction Market Outlook, By Commercial (2021-2030) ($MN)  
27 North America Modular Construction Market Outlook, By Healthcare (2021-2030) ($MN)  
28 North America Modular Construction Market Outlook, By Education & Institutional (2021-2030) ($MN) 
29 North America Modular Construction Market Outlook, By Hospitality (2021-2030) ($MN)  
30 North America Modular Construction Market Outlook, By Other End Users (2021-2030) ($MN)  
31 Europe Modular Construction Market Outlook, By Country (2021-2030) ($MN)   
32 Europe Modular Construction Market Outlook, By Type (2021-2030) ($MN)   
33 Europe Modular Construction Market Outlook, By Permanent Modular Construction (PMC) (2021-2030) ($MN)
34 Europe Modular Construction Market Outlook, By Relocatable Modular Construction (2021-2030) ($MN) 
35 Europe Modular Construction Market Outlook, By Material (2021-2030) ($MN)   
36 Europe Modular Construction Market Outlook, By Wood (2021-2030) ($MN)   
37 Europe Modular Construction Market Outlook, By Steel (2021-2030) ($MN)   
38 Europe Modular Construction Market Outlook, By Concrete (2021-2030) ($MN)   
39 Europe Modular Construction Market Outlook, By Other Materials (2021-2030) ($MN)  
40 Europe Modular Construction Market Outlook, By End User (2021-2030) ($MN)   
41 Europe Modular Construction Market Outlook, By Commercial (2021-2030) ($MN)   
42 Europe Modular Construction Market Outlook, By Healthcare (2021-2030) ($MN)   
43 Europe Modular Construction Market Outlook, By Education & Institutional (2021-2030) ($MN) 
44 Europe Modular Construction Market Outlook, By Hospitality (2021-2030) ($MN)   
45 Europe Modular Construction Market Outlook, By Other End Users (2021-2030) ($MN)  
46 Asia Pacific Modular Construction Market Outlook, By Country (2021-2030) ($MN)   
47 Asia Pacific Modular Construction Market Outlook, By Type (2021-2030) ($MN)   
48 Asia Pacific Modular Construction Market Outlook, By Permanent Modular Construction (PMC) (2021-2030) ($MN)
49 Asia Pacific Modular Construction Market Outlook, By Relocatable Modular Construction (2021-2030) ($MN)
50 Asia Pacific Modular Construction Market Outlook, By Material (2021-2030) ($MN)   
51 Asia Pacific Modular Construction Market Outlook, By Wood (2021-2030) ($MN)   
52 Asia Pacific Modular Construction Market Outlook, By Steel (2021-2030) ($MN)   
53 Asia Pacific Modular Construction Market Outlook, By Concrete (2021-2030) ($MN)   
54 Asia Pacific Modular Construction Market Outlook, By Other Materials (2021-2030) ($MN)  
55 Asia Pacific Modular Construction Market Outlook, By End User (2021-2030) ($MN)   
56 Asia Pacific Modular Construction Market Outlook, By Commercial (2021-2030) ($MN)  
57 Asia Pacific Modular Construction Market Outlook, By Healthcare (2021-2030) ($MN)  
58 Asia Pacific Modular Construction Market Outlook, By Education & Institutional (2021-2030) ($MN) 
59 Asia Pacific Modular Construction Market Outlook, By Hospitality (2021-2030) ($MN)  
60 Asia Pacific Modular Construction Market Outlook, By Other End Users (2021-2030) ($MN)  
61 South America Modular Construction Market Outlook, By Country (2021-2030) ($MN)  
62 South America Modular Construction Market Outlook, By Type (2021-2030) ($MN)   
63 South America Modular Construction Market Outlook, By Permanent Modular Construction (PMC) (2021-2030) ($MN)
64 South America Modular Construction Market Outlook, By Relocatable Modular Construction (2021-2030) ($MN)
65 South America Modular Construction Market Outlook, By Material (2021-2030) ($MN)  
66 South America Modular Construction Market Outlook, By Wood (2021-2030) ($MN)   
67 South America Modular Construction Market Outlook, By Steel (2021-2030) ($MN)   
68 South America Modular Construction Market Outlook, By Concrete (2021-2030) ($MN)  
69 South America Modular Construction Market Outlook, By Other Materials (2021-2030) ($MN)  
70 South America Modular Construction Market Outlook, By End User (2021-2030) ($MN)  
71 South America Modular Construction Market Outlook, By Commercial (2021-2030) ($MN)  
72 South America Modular Construction Market Outlook, By Healthcare (2021-2030) ($MN)  
73 South America Modular Construction Market Outlook, By Education & Institutional (2021-2030) ($MN) 
74 South America Modular Construction Market Outlook, By Hospitality (2021-2030) ($MN)  
75 South America Modular Construction Market Outlook, By Other End Users (2021-2030) ($MN)  
76 Middle East & Africa Modular Construction Market Outlook, By Country (2021-2030) ($MN)  
77 Middle East & Africa Modular Construction Market Outlook, By Type (2021-2030) ($MN)  
78 Middle East & Africa Modular Construction Market Outlook, By Permanent Modular Construction (PMC) (2021-2030) ($MN)
79 Middle East & Africa Modular Construction Market Outlook, By Relocatable Modular Construction (2021-2030) ($MN)
80 Middle East & Africa Modular Construction Market Outlook, By Material (2021-2030) ($MN)  
81 Middle East & Africa Modular Construction Market Outlook, By Wood (2021-2030) ($MN)  
82 Middle East & Africa Modular Construction Market Outlook, By Steel (2021-2030) ($MN)  
83 Middle East & Africa Modular Construction Market Outlook, By Concrete (2021-2030) ($MN)  
84 Middle East & Africa Modular Construction Market Outlook, By Other Materials (2021-2030) ($MN) 
85 Middle East & Africa Modular Construction Market Outlook, By End User (2021-2030) ($MN)  
86 Middle East & Africa Modular Construction Market Outlook, By Commercial (2021-2030) ($MN) 
87 Middle East & Africa Modular Construction Market Outlook, By Healthcare (2021-2030) ($MN)  
88 Middle East & Africa Modular Construction Market Outlook, By Education & Institutional (2021-2030) ($MN)
89 Middle East & Africa Modular Construction Market Outlook, By Hospitality (2021-2030) ($MN)  
90 Middle East & Africa Modular Construction Market Outlook, By Other End Users (2021-2030) ($MN) 

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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