Modular Construction Market Share, Size, Trends, Industry Analysis Report, By Type (Relocatable, Permanent); By Material; By Region; Segment Forecast, 2023 - 2032

Modular Construction Market Share, Size, Trends, Industry Analysis Report, By Type (Relocatable, Permanent); By Material; By Region; Segment Forecast, 2023 - 2032

The global modular construction market size is expected to reach USD 160.15 billion by 2032, according to a new study by Polaris Market Research. The report “Modular Construction Market Share, Size, Trends, Industry Analysis Report, By Type (Relocatable, Permanent); By Material; By Region; Segment Forecast, 2024 - 2032” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Modular construction involves the assembly of a structure, frequently fabricated away from the actual construction site in controlled conditions. The finished components are then transported to the desired location and interconnected. This method allows for a broader array of building types and floor plans due to advancements in contemporary technology. Modular units are the building blocks that are joined to create a prefabricated building or residence.

Several key factors contribute to the remarkable expansion of the global modular construction market. Notably, the increasing emphasis on work-zone safety measures and a reduction in environmental impacts are among the primary drivers. Furthermore, a growing number of government initiatives and a rising global population are anticipated to expand the reach of the global modular construction market in the forecast period. Additionally, the rapid pace of urbanization and the surge in construction projects are set to create fresh revenue prospects for the global modular construction market.

The growth of the global modular construction market is expected to be propelled by the increasing adoption of lean manufacturing techniques and the integration of advanced technological factors like permanent modular construction. Moreover, the infrastructure development in rapidly advancing economies and the surging demand for affordable housing are poised to act as catalysts for the expansion of the global modular construction market.

Recently, the global residential construction sector has faced significant setbacks due to the COVID-19 pandemic. Many residential construction firms are projecting reduced revenues in the upcoming months as a result of dwindling consumer confidence and spending. It is anticipated that the ongoing pandemic will continue to adversely impact the residential construction industry for at least another quarter, with a gradual recovery expected after that.

Nevertheless, a full return to pre-pandemic levels in the residential construction sector is expected to be a protracted process. Comparatively, the residential sector has experienced a more pronounced impact from the COVID-19 pandemic when contrasted with the non-residential construction industry.

Additionally, a study published in the National Library of Medicine in June 2021 highlighted the significant impact of coronary artery disease (CAD) on global health. CAD alone is responsible for approximately 610,000 deaths annually, accounting for an estimated one in four deaths and making it the foremost cause of mortality in the United States. With the incidence of CAD rising, there is a growing demand for effective coronary stent devices to address this pressing medical need. Consequently, this factor is projected to drive the demand for coronary stents throughout the forecast period.

Modular Construction Market Report Highlights

In 2022, the Relocatable segment held the largest revenue share in the modular construction market due to the growing trend of relocatable modular buildings can be credited to their adaptability and cost-efficient nature. This construction approach has gained widespread acceptance, especially in sectors such as education, healthcare, and retail, where there's a demand for temporary facilities such as classrooms, clinics, and pop-up stores. Furthermore, the rapid deployment of temporary housing makes relocatable modular buildings a popular choice in disaster relief efforts.

The permanent modular construction segment anticipated the for the significant growth during the forecast period. Modular construction offers several benefits like reduced environmental impact, improved quality control, and savings in time and costs. It enables shorter construction timelines and reduced labor expenses by building modules off-site, allowing for simultaneous construction at the factory and on-site. Additionally, it is more sustainable as it consumes less energy and generates less waste.

In 2022, Asia-Pacific region dominated in the modular construction market due to the Due to the increasing demand for affordable housing, particularly in India and China. Rapid urbanization, a growing population, and limited urban space have generated a heightened need for rapid and efficient modular construction solutions. Furthermore, the embrace of modular building techniques by both governmental and private entities for various applications, including healthcare, education, and hospitality, is expected to fuel market expansion in the region. Additionally, the Asia Pacific market has attracted industry participants because of its ample supply of cost-effective labor and raw materials.

The North America region accounted for the fastest growth in the modular construction market owing to the demand for eco-friendly and energy-efficient construction practices rising, alongside the requirement for affordable housing solutions, modular construction is emerging as a preferred choice within the commercial sector, encompassing offices, retail spaces, and hotels. This trend is actively propelling market expansion. Government backing for modular construction, particularly in the education and healthcare domains, is anticipated to stimulate regional market growth.

The global key market players include ACS Group, Algeco, Bouygues Construction, CIMC Modular Building Systems Holdings Co., Ltd, Guerdon Enterprise LLC, KEF Infra, Katerra Inc., Laing O’Rourke, Red Sea Housing Services, and Skanska AB.

Polaris Market Research has segmented the modular construction market report based on type, material and region:

Modular Construction Market, Type Outlook (Revenue - USD Billion, 2019 - 2032)

Relocatable

Permanent

Modular Construction Market, Material Outlook (Revenue - USD Billion, 2019 - 2032)

Steel

Wood

Concrete

Plastic

Others

Modular Construction Market, Regional Outlook (Revenue - USD Billion, 2019 - 2032)

North America

U.S.

Canada

Europe

Germany

UK

France

Italy

Spain

Russia

Netherlands

Asia Pacific

China

India

Japan

South Korea

Indonesia

Malaysia

Latin America

Argentina

Brazil

Mexico

Middle East & Africa

UAE

Saudi Arabia

Israel

South Africa