Modular Construction Market Size, Share & Trends Analysis Report By Material (Wood, Steel), By Product (Relocatable, Permanent), By Application (Residential, Commercial), By Region, And Segment Forecasts, 2022 - 2030

Modular Construction Market Size, Share & Trends Analysis Report By Material (Wood, Steel), By Product (Relocatable, Permanent), By Application (Residential, Commercial), By Region, And Segment Forecasts, 2022 - 2030

Modular Construction Market Growth & Trends

The global modular construction market size is expected to reach USD 162.40 billion by 2030, registering a CAGR of 7.3% over the forecast period, according to a new report by Grand View Research, Inc. This growth can be attributed to the growing infrastructural development and building activities in developing countries. Rapid urbanization and industrialization are expected to increase the number of new projects, primarily in the commercial and industrial building sectors. This is likely to fuel the growth of the modular construction industry across the globe. Increasing technological advancements in the 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 in the market.

Off-site building is not affected by weather conditions as they are manufactured within closed factories using advanced machinery, thereby, optimizing the erection time and providing high-quality products. The aforementioned benefits of the off-site building make modular construction buildings cost-effective and contribute to less site-generated waste. Building & infrastructure is one of the rapidly growing industries in Asia Pacific. India, Vietnam, China, and Australia are among the major countries that have been profusely bolstering their building industry, which is expected to increase the demand for advanced building methods, such as modular construction.

Due to expanding population and rapid urbanization & industrialization in the Asia Pacific region, the governments of various countries in this region are expected to increase their infrastructural spending to cater to the rising infrastructure needs. This, coupled with the rising awareness of modular construction techniques, is projected to drive the demand for modular construction in various building activities. Increasing infrastructural spending by most governments in the Asia Pacific, particularly China and India, is expected to drive industry growth over the forecast period. The Relocatable Modular Construction (RMC) industry is expected to witness rapid growth as temporary housing for emergency and relief operations has gained popularity over the past decade.

These buildings are made to be repurposed and transported to various building sites. Government initiatives and regulations toward sustainability and a green environment are expected to fuel the market growth over the forecast period. The rapidly growing modular construction activities and increasing demand from the residential and non-residential sectors are putting a strain on traditional material supplies, prompting companies to consider faster alternatives, such as timber. Moreover, global concerns regarding sustainability and increasing awareness about wood as a building material among consumers are the key factors likely to augment the industry's growth over the forecast period.

Modular Construction Market Report Highlights

• The permanent segment accounted for the largest revenue share in 2021 due to the advantages of off-site construction, such as high-quality control compared to traditional building methods
• The steel material segment accounted for thelargest share in 2021 owing to wide usage in building materials as it can be welded into different shapes and grades
• The residential application segment held the largest share in 2021. The segment includes single-family houses, multi-story residential buildings, and rental housing properties
• Modular construction is witnessing rapid adoption in residential applications on account of its ability to significantly reduce building costs and time
• Europe accounted for the largest revenue share in 2021 due to the rising influx of migrants necessitating the building of temporary and permanent housing structures in the region
• The industry is characterized by the presence of various established players with a strong financial base resulting in high barriers for new entrants in this market
• The high initial capital required for developing buildings with modular construction is expected to lower the threat of new entrants in the industry