Modular & Prefabricated Construction Market Size By Type (Permanent, Relocatable), By Material (Steel, Wood, Concrete), By Application (Single Family Residential, Multi-family Residential, Office, Hospitality, Retail, Healthcare), COVID-19 Impact Analysis

Modular & Prefabricated Construction Market Size By Type (Permanent, Relocatable), By Material (Steel, Wood, Concrete), By Application (Single Family Residential, Multi-family Residential, Office, Hospitality, Retail, Healthcare), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trend, Competitive Market Share & Forecast, 2021 - 2027

The modular & prefabricated construction market is estimated to register considerable gains by 2027 due to a global shift towards cost-saving construction activities across key regions.

Modular & prefabricated construction has played a key role in reducing the burden on the construction industry imposed by the labor shortage, which was further aggravated by the COVID-19 pandemic in recent years. Furthermore, modular and prefabricated solutions have grown in popularity as a result of disrupted supply chains that have resulted in construction material shortages. These factors have augmented industry uptake during the pandemic.

The modular & prefabricated construction market has been segmented based on application, type, material, and region.

From the type perspective, the market has further been divided into relocatable and permanent. The permanent sub-segment is slated to witness robust growth over the forecast period owing to rising demand for residential and non-residential structure construction for long-term use.

In terms of material, the modular & prefabricated construction market has been classified into concrete, steel, wood, and others. The others sub-segment was valued at around USD 4 billion in 2020 and is projected to garner more than USD 7 billion valuation by the end of 2027.

The others sub-segment includes polyurethane, and aluminum, among others. The extensive utilization of aluminum in constructing new houses and building interiors is likely to boost segmental uptake over the forthcoming years.

With respect to application, the modular & prefabricated construction market has been segregated into healthcare, single family residential, multi-family residential, retail, office, hospitality, and others.

In 2020, the single family residential sub-segment held a notable valuation of almost USD 14 billion and is anticipated to reach over USD 22 billion valuation by the end of the review timeline. Increasing number of nuclear families seeking more comfortable housing is set to fuel market growth. Moreover, the significant expansion of the housing sector in many emerging economies is seen to support product adoption over 2021-2027.

The office sub-segment attained revenue worth nearly USD 2 billion in 2020 and is speculated to grow to over USD 3 billion by 2027. Prevalent adoption of remote location working has given rise to offices that can be easily relocated to various locations as per the requirement. As a result, escalating demand for relocatable offices is estimated to drive segmental expansion in the coming time period.

The retail sub-segment is expected to progress at a substantial CAGR through the analysis timeline. Increasing emphasis of the booming retail industry towards more convenient modular & prefabricated construction compared to the traditional method of construction is set to propel market development through the study period.

The others sub-segment recorded a valuation of about USD 3 billion in 2020 and is poised to be valued at approximately USD 5 billion by the end of the stipulated period. This segment includes industrial units, schools, etc. Mounting adoption of modular construction by schools & colleges is slated to accelerate product demand over the assessment period.

From the regional spectrum, the Latin America modular & prefabricated construction market accounted for about USD 4 billion revenue valuation in 2020 and is anticipated to be worth over USD 5 billion by 2027. The construction industry, particularly the residential segment is likely to observe sturdy growth owing to surging housing demand among the growing population and expanding middle class population in the region.

The Middle East & Africa modular & prefabricated construction market was valued at over USD 6 billion in 2020 and is expected to reach around USD 8 billion valuation by 2027. The commercial sector in the region is expanding rapidly, especially in the Middle East. Likewise, various businesses are considering a more flexible approach to building their commercial offices, which is speculated to augment the regional market growth over 2021-2027.