Global Modular Construction Market Size, Share & Industry Trends Analysis Report By Product (Permanent, and Relocatable), By Material (Steel, Wood, Concrete, and Others), By Application, By Regional Outlook and Forecast, 2023 - 2030

Global Modular Construction Market Size, Share & Industry Trends Analysis Report By Product (Permanent, and Relocatable), By Material (Steel, Wood, Concrete, and Others), By Application, By Regional Outlook and Forecast, 2023 - 2030

The Global Modular Construction Market size is expected to reach $159.3 billion by 2030, rising at a market growth of 7.4% CAGR during the forecast period.

The rapid construction timelines associated with modular construction make it an attractive option for residential projects. Consequently, the residential segment captured $44,277.2 million revenue in the market in 2022. The demand for affordable housing has been a significant driver for the growth of modular construction in the residential sector. Modular construction offers cost-effective solutions, enabling the efficient production of housing units at scale. Homebuyers and developers benefit from quicker project delivery, allowing for faster occupancy and reduced construction-related disruptions. As a result, there will be an increased demand in the segment. Some of the factors impacting the market are faster speed of modular construction, higher flexibility in design and application and high transportation costs associated with modular construction.

Tasks like site preparation, foundation work, and on-site construction occur sequentially in traditional construction. In contrast, modular construction enables these tasks to happen simultaneously. While modules are being fabricated off-site in a factory-controlled environment, on-site work such as foundation preparation, utility installation, and other site-related activities can progress concurrently. Because of the parallel processing of tasks, modular construction projects often have significantly reduced overall construction timelines compared to traditional methods. Additionally, Modular construction allows for diverse design possibilities. Modular units can be customized to meet specific architectural and design requirements. This flexibility enables various building types and styles, from residential homes to commercial structures. Modular units are designed to be easily reconfigured or expanded. As needs change, additional modules can be added, or existing ones can be rearranged to accommodate new requirements. This scalability is beneficial in scenarios where the size of a facility needs to be adjusted in response to changes in business operations or occupancy requirements. These factors will help in the expansion of the market.

However, the geographical separation between the manufacturing facility and the construction site is pivotal in determining transportation costs. Long-distance transportation incurs higher freight expenses, encompassing the logistics of moving large and often heavy modular units to their destination. The need for specialized transportation methods and equipment further contributes to the overall cost burden. Transporting modular units over extended distances introduces logistical complexities. Coordinating the movement of multiple modules, ensuring timely arrivals, and navigating potential challenges such as traffic, road conditions, and regulatory requirements demand meticulous planning. The cumulative effect of transportation costs raises questions about modular construction's economic viability for projects far from manufacturing facilities. Stakeholders, including developers and investors, must carefully assess the overall project budget, factoring in transportation expenses, to determine the feasibility and cost-effectiveness of modular construction in specific geographical contexts. These factors can limit the growth of the market in the future.

Product Outlook

Based on product, the market is bifurcated into relocatable and permanent. The permanent segment held the largest revenue share in the market in 2022. Ongoing technological advancements, including the use of Building Information Modeling (BIM) and sophisticated design software, have contributed to the growth of permanent modular construction. These technologies facilitate precise planning, design, and execution, ensuring the quality and longevity of permanent structures. Owing to these factors, there will be increased growth in the segment.

Material Outlook

On the basis of material, the market is divided into wood, steel, concrete, and others. In 2022, the wood segment witnessed a substantial revenue share in the market. Wood is considered a sustainable and renewable building material. Engineered wood products, such as cross-laminated timber (CLT) and glue-laminated timber (glulam), are increasingly used in modular construction. This is an effort to reduce the carbon footprint of buildings in the construction industry, which is motivated by rising environmental concerns. These materials offer the structural integrity required for building stability while being relatively lightweight, which aligns well with the modular construction approach of prefabrication and ease of transportation. Therefore, the segment will expand rapidly in the upcoming years.

Application Outlook

Based on application, the market is divided into residential, commercial, industrial, healthcare, and educational. The healthcare segment procured a substantial revenue share in the market in 2022. Healthcare facilities often have specific and evolving requirements. The considerable adaptability of modular construction in terms of design and configuration permits the adaptation of spaces to suit the specific requirements of various healthcare environments. This adaptability is particularly valuable in the healthcare sector, where spaces may need to be reconfigured or expanded to accommodate changing medical practices or technology. Therefore, the segment will witness rapid growth in the coming years.

Regional Outlook

In 2022, the Asia Pacific segment acquired a considerable revenue share in the market. The Asia Pacific region has been undergoing rapid urbanization, with a growing need for efficient and rapid construction solutions. Modular construction provides a viable option to meet the demand for housing, commercial spaces, and infrastructure in urban areas, where traditional construction methods may face logistical challenges. The high population density in many Asia Pacific countries, particularly urban centres, has increased demand for affordable and scalable housing solutions. Modular construction offers a faster, more cost-effective way to address housing shortages and accommodate the growing population. These aspects will help expand the Asia Pacific segment in the future.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Sekisui House, Ltd., LAING O'ROURKE, Red Sea International Company, Skanska Group AB, Premier Modular Limited, KLEUSBERG GmbH & Co. KG, Wernick Group, Lendlease Corporation Limited, Hickory Group and Guerdon, LLC.

Strategies Deployed in Modular Construction Market

Oct-2023: Red Sea International Company successfully acquired a 51% stake in Fundamental Installation for Electric Work Company (First Fix). This acquisition bolstered Red Sea International's expertise in the modular construction sector, benefiting from First Fix's proven success in residential, industrial, and commercial projects throughout the GCC region.

Mar-2023: Skanska Group AB signed a contract with Statsbygg, the Norwegian state's key advisor regrading construction and real estate matters, property owners, managers, and developers, for the construction of an extension to Ullersmo prison in Kløfta, Norway. The collaborative project, involving Skanska Norway Building and Skanska Husfabrikken, incorporated approximately 7,000 square meters of indoor and outdoor prison elements using modular building elements.

Jun-2022: Sekisui House, Ltd. announced the acquisition of Chesmar Homes, CLM Mortgage, Entitled Insurance, and N Title through its U.S. subsidiary, Sekisui House US Holdings. The addition of Chesmar to the Sekisui House family provided immediate scale in key Texas markets. The company believed it could offer capital and efficiencies to support Chesmar's growth and strengthen its competitive position while continuing to build dream homes for Texas families.

Feb-2022: Laing O'Rourke developed an industry-leading carbon calculator, analyzing embodied carbon levels through the digital model. The tool, aligned with the latest industry guidance, specifically targets the embodied carbon content of sub- and super-structure elements, crucial in reducing upfront embodied carbon in building projects.

Feb-2022: Wernick Group acquired AVDanzer, a prominent provider of modular and temporary buildings, expanding its depots and manufacturing capabilities. Following the acquisition, AVDanzer continues operations in Manchester and Langley Mill, with the steel manufacturing in Langley Mill retaining the AVDanzer name. The Brentwood depot has been integrated into Wernick's Essex and Kent depots, with Helen Webster continuing with the business.

Mar-2021: Sekisui House, Ltd. collaborated with Homes England and Urban Splash to construct 406 modular homes on homes England land, forming the new town of Inholm in Northstowe, Cambridgeshire. This partnership aimed to promote modern methods of construction (MMC), welcome new players to the market, and foster the development of sustainable neighborhoods where they are most needed.

Dec-2020: Wernick Group acquired Robert Purvis Plant Hire's portable accommodation fleet, expanding Wernick Hire's stock by 1,600 units, and reinforcing its leading position in cabin and modular building rentals in Scotland. The acquisition also included the purchase of 2.5 acres of concreted yard around the Lochgelly depot, increasing its size to 3.9 acres for improved supply capabilities in the central belt of Scotland.

Sep-2020: Lendlease Corporation Limited, a global property and investment group, introduced the H³ Wellness Hub, a modular bathroom system, which is now available for purchase. H³ is designed for easy mobility, installation, and maintenance, fitting into various built environments, and promoting the well-being and productivity of workers.

Scope of the Study

Market Segments covered in the Report:

By Product

• Permanent
• Relocatable

By Material

• Steel
• Wood
• Concrete
• Others

By Application

• Residential
• Commercial
• Industrial
• Healthcare
• Educational

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Australia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Sekisui House, Ltd.
• LAING O'ROURKE
• Red Sea International Company
• Skanska Group AB
• Premier Modular Limited
• KLEUSBERG GmbH & Co. KG
• Wernick Group
• Lendlease Corporation Limited
• Hickory Group
• Guerdon, LLC

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