The global modular construction market was valued at USD 90.79 billion in 2022 and is projected to grow at a rate of 7.5% during the forecast period. This growth is primarily driven by the rising demand for affordable housing and increased investments in the development of healthcare facilities and commercial infrastructure worldwide. The adoption of off-site building activities, particularly in urban areas, is also a significant factor contributing to the market's expansion. Off-site construction, which involves manufacturing components in controlled factory environments rather than on-site, offers several advantages. Since it is not affected by weather conditions, this method uses advanced machinery to produce high-quality building materials, thereby optimizing construction timelines and ensuring consistent quality. These benefits make modular construction more cost-effective while also generating less waste compared to traditional construction methods.

The U.S. modular construction market is expected to experience growth both in terms of the number of building units and overall revenue. Several multinational companies are making substantial investments in advanced modular construction technologies, including Building Information Modeling (BIM), artificial intelligence (AI), the Internet of Things (IoT), 3D printing, and real-time data analytics. These technologies enable cost savings and improve the efficiency of modular construction processes. Additionally, the U.S. government and private companies are heavily investing in modular construction to address the demand for multifamily residential units, which is further stimulating market growth.

One of the key advantages of modular construction is its ability to complete projects in a fraction of the time required by traditional construction methods. This accelerated timeline is particularly valuable in situations where time is of the essence, such as during emergencies like the COVID-19 pandemic. In such crises, rapid construction of healthcare facilities such as hospitals and treatment centers is essential. As a result, many countries have increasingly adopted and approved modular construction techniques for the swift establishment of healthcare infrastructure, further driving the growth of the modular construction market.

Gather more insights about the market drivers, restrains and growth of the Modular Construction Market

Regional Insights

In 2022, Europe emerged as the largest market for modular construction, with a revenue of USD 41.29 billion. This growth can be attributed to the high level of adoption of modular construction methods in countries such as Germany, Finland, the U.K., and Sweden. The primary driving force behind this demand is the increasing influx of migrants, which has created a need for both temporary and permanent housing solutions. In addition to this demographic trend, the modular construction market in Europe is being driven by a combination of factors, including significant investments in the sector and the implementation of advanced construction technologies that enhance the efficiency and sustainability of modular buildings.

In the U.K., modular construction has gained traction as a viable solution to the country's housing challenges, particularly due to population growth and ongoing housing shortages. The number of modular homes in the country is steadily increasing as major construction companies, developers, and investors explore modular housing as a feasible alternative. Given the U.K. government's ambitious plan to build around 300,000 new homes annually to address the housing crisis, modular construction is expected to play a central role in meeting these targets. The speed and cost-effectiveness of modular building methods make them a promising option to help alleviate the housing shortage.

In contrast, the Asia Pacific region is projected to experience the fastest growth in the modular construction market, with a compound annual growth rate (CAGR) of 8.3% during the forecast period. This growth is primarily driven by increasing international investments in the region's infrastructure sector, which support the expansion of modular construction. Additionally, the rising demand for sustainable and environmentally friendly building solutions, driven by growing environmental concerns and increasing pollution levels, is further fueling the adoption of modular construction techniques. The need for energy-efficient, quick-to-deploy structures is helping to drive significant market growth in the region.

In China, modular construction has gained significant momentum in the past two decades due to a combination of factors. According to the Global Construction Survey, China’s construction sector is expected to grow by 12.4%, reaching USD 1355.31 billion by 2021. The rapid economic development in China, coupled with rising labor costs, has made modular construction an increasingly attractive option. Furthermore, innovations in building technologies, along with government policies promoting affordable housing and sustainable construction practices, have further propelled the adoption of modular building methods. This trend is expected to continue as the country looks to meet its growing housing and infrastructure needs with cost-effective, high-quality solutions.

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Key Companies & Market Share Insights

Key players have adopted various growth strategies, such as acquisitions, mergers, contracts, and agreements, to increase their shares in the market and enhance their product and service portfolios. Additionally, they are focusing on energy efficiency and customization to fulfill specific customer requirements. Some prominent players in the global modular construction market include:

• Sekisui House Ltd.
• LAING O'ROURKE
• Red Sea International
• Skanska
• Bouygues Construction
• Premier Modular Limited
• KLEUSBERG GmbH & Co KG
• DuBox
• Wernick Group
• CIMC Modular Building Systems Holdings Co., Ltd. (CIMC-MBS)
• Riko Hiše d.o.o
• Lendlease Corporation
• Modulaire Group
• Guerdon, LLC
• Hickory Group

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