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The Modular Construction Market size is estimated to grow by USD 33 billion between 2022 and 2027 accelerating at a CAGR of 6.77% during the forecast period. The growth of the modular construction industry depends on several factors, including the rising demand to eliminate on-site constraints, the rising global construction, and infrastructure development activities, and the improving quality and energy efficiency of modular constructions.
This modular construction market research report extensively covers market segmentation by application (residential and commercial), type (permanent and relocatable), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand to remove site constraints is a key factor driving the growth of the modular construction industry. On-site construction can be hampered by various restrictions, such as unpredictable weather conditions and the need to stage multiple processes. Not only does this lead to higher construction costs on site, but more time is spent managing day-to-day construction activities.
Also, on-site construction is risky, and various safety measures must be followed to prevent accidents. Such difficulties lower the demand for on-site construction and drive the demand for modular construction, which will fuel the growth of the global modular construction market during the forecast period.
Increasing awareness of custom-built facilities with minimum budgets is the primary trend in the modular construction industry growth. Modular construction takes into account the growing demand for multi-family housing. Large construction projects use modular construction methods to reduce costs and create affordable housing. For instance, the Homeless Housing in Hilda L.Soil, Los Angeles, US, offered 553,000 housing units in April 2021 through modular construction.
Modular construction offers flexibility to contractors and is environment-friendly in nature as major construction components are reusable and can be relocated without wasting new resources for building a home. The rising awareness of the benefits of modular construction for constructing custom facilities is expected to grow, which will fuel the growth of the global modular construction market during the forecast period.
Lack of awareness and volatility of transportation costs are major challenges for the growth of the global modular construction market. Modular parts have to be transported to construction sites and this requires special vehicles. Also, shipping costs change from time to time, which can increase the cost of modular construction. Transportation costs may vary depending on fuel price, mode of transportation, and required distance. Delays in transporting modular parts delay construction projects.
Moreover, people are unaware of modular construction methods as they are accustomed to traditional construction methods and the contractors also are unaware of the new construction methods, which could lead to their lower adoption. Such factors will impede the growth of the modular construction industry during the forecast period
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Modular Construction Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bechtel- The company offers modular constructions for residential buildings under their subsidiary called Dubox company.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the residential segment will be significant during the forecast period. The global residential building construction industry is a major end-user of modular construction techniques and is expected to maintain its leading position during the forecast period. Time savings and a quicker return on investment are the main advantages of modular construction. The total time needed to build a structure can be significantly decreased since modular construction enables industrialized assembly that takes place concurrently with site preparation. Modular construction can be utilized to easily manufacture turnkey homes that adhere to local, state, and federal building codes in rural and suburban regions.
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The residential segment was valued at USD 42.60 billion in 2017 and continue to grow by 2021. Another factor that will drive the residential modular construction market is the growing adoption of modular construction techniques during home construction in APAC. The increase in disposable income among the middle-class and growing urban population in developing countries, such as India and China, is providing traction to the dry construction industry. A growing number of people in these countries are opting for modular construction due to the ease of construction with economical cost. Thus, all the above-mentioned factors will boost the growth of the residential segment in the global modular construction market during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is the largest geographical segment of the global modular construction market and will continue to remain the largest segment during the forecast period. The US and Canada have high-quality standards for construction, and therefore, there is a high demand for modular construction in this region.
In 2020, various countries in North America were severely affected by the COVID-19 pandemic. However, the US government started vaccinating its population in December 2020, which resulted in the lifting of restrictions and the revival of industries such as construction. Also, in the same quarter, the Walmart Headquarters Development project started with an investment of USD 1,000 million and is expected to be completed by Q4 2025. Therefore, the initiation of such construction projects is expected to increase the demand for modular construction, which, in turn, will boost the growth of the regional modular construction market during the forecast period.
The modular construction market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Modular Construction Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.77% |
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Market growth 2023-2027 |
USD 33 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.69 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 33% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ATCO Ltd., Bechtel Corp., McGRATH RENTCORP, Fluor Corp., KLEUSBERG GmbH and Co KG, Laing O Rourke, Lendlease Corp. Ltd., Modulaire Group, Red Sea International Co., Skanska AB, THE BOUYGUES GROUP, Amana Contracting and Steel Buildings LLC, ELEMENTS Europe, GUERDON LLC, KOMA MODULAR S.r.o, Kwikspace Pty Ltd., PREMIER MODULAR, STARRCO, Wernick Group Holdings Ltd., and WESTCHESTER MODULAR HOMES |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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