Global Modular Construction Market

Modular Construction Market Size, Share, Growth Analysis, By Product(Relocatable and Permanent), By Application(Commercial, Residential, Industrial, Healthcare and Educational), By Material(Wood, Steel, Concrete, and Others), By Region(North America, Asia Pacific, Europe, Latin America and Middle East Africa), By Region - Industry Forecast 2024-2031


Report ID: SQMIG20C2036 | Region: Global | Published Date: March, 2024
Pages: 202 |Tables: 87 |Figures: 76

Modular Construction Market Insights

Modular Construction Market size was valued at USD 104.67 billion in 2023 and is poised to grow from USD 112.62 billion in 2024 to USD 188.08 billion by 2031, growing at a CAGR of 7.6% in the forecast period (2024-2031).  

The modular construction industry is set to experience significant growth due to rapid urbanization and industrialization, particularly in the commercial and industrial building sectors. This growth is supported by the increasing technological advancements in the building industry and the benefits offered by modular construction, such as reduced building schedules, lower costs, greater flexibility, reuse, and less material waste. As a result, the demand for modular construction is expected to increase globally. The market is also set to grow rapidly due to the popularity of temporary housing for emergency and relief operations. These buildings are designed to be repurposed and transported to various building sites. Moreover, government initiatives and regulations towards sustainability and green environments are expected to further fuel the growth of the RMC market in the future. The use of wood in modular construction offers advantages due to its favorable properties as a material. Wood is used to create exterior wall panels with additional layers for insulation, vapor barrier, siding, waterproofing, and drywall. The increasing awareness of wood as a building material and global concerns regarding sustainability are likely to contribute to the growth of the market for modular construction using wood. The commercial sector in Asia Pacific is expected to contribute significantly to the growth of the modular construction market due to the rising penetration of multinational brands supported by favorable trade policies. The construction of office spaces, shopping malls, lodging spaces, and other utility spaces across the region is also expected to boost the adoption of modular construction. To maintain a steady supply of raw materials and avoid volatility in sourcing, modular construction manufacturers prefer to maintain strategic relationships with raw material suppliers and avoid dependence on a single source. Leading companies in the industry are also implementing the latest modular construction techniques and solutions to drive innovation.

Market Snapshot - 2024-2031

Global Market Size

USD 97.28 billion

Largest Segment

Volumetric Module

Fastest Growth

Volumetric Module

Growth Rate

7.6% CAGR

Global Modular Construction Market 2024-2031 ($ Bn)
Country Share for North America Region- 2024 (%)

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Modular Construction Market Segmental Analysis

The Global Modular Construction market is segmented by type, end-user, and region. Based on product, the market can be segmented into permanent and relocate. Based on end-user, the market is segmented into commercial, residential, industrial, healthcare and educational. Based on material, the market can be segmented into wood, steel, concrete, and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. 

Analysis by Product 

With a revenue of USD 58.21 billion in 2022, the permanent modular construction sector dominated the market based on product. Since the market offers higher quality control than on-site construction, it is anticipated to grow at a compound annual growth rate (CAGR) of 7.8% over the projected period. 

The market for movable products is expected to expand at a compound annual growth rate (CAGR) of 7.0% between 2023 and 2030, driven by the growing need for temporary housing for relief and disaster operations during the last ten years. These structures are designed to be disassembled and moved to different construction locations. 

Analysis by Application 

By 2022, the residential segment held the greatest share of the market, accounting for 52.7% of the total, and by 2030, it is predicted to increase at the quickest rate. Beautiful, sustainable, and aesthetically pleasing structures can be built with modular construction. It enables quick construction, the viability of difficult designs, and the creation of distinctive, adaptable dwellings that satisfy community standards. 

The market for modular construction's commercial application segment was estimated to generate USD 11.95 billion in sales in 2022 and is projected to grow to USD 21.01 billion by 2030. The market for commercial modular building has become more mainstream in the last few years. 

Analysis by Material 

With USD 37.69 billion in revenue in 2022, the steel segment emerged as the largest market segment. It can be utilised in a variety of shapes, including angles, T-shapes, I-beam shapes, H-type beams, and columns. Excellent mechanical and chemical qualities, including high strength, durability, ductility, ease of fabrication, seismic resistance, and quick erection speed, are displayed by the material. In order to make up for its poor tensile strength, it is utilised as a reinforcing ingredient in concrete. 

Over the course of 2023–2030, the wood material segment is anticipated to develop at a CAGR of 7.4%. In order to reduce greenhouse gas emissions in construction without sacrificing quality, mass timber can be utilised in place of steel and concrete.

Global Modular Construction Market Size By Product, 2024 (%), 2023 (%)

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Modular Construction Market Regional Insights

Due to the high degree of penetration in Germany, Finland, the United Kingdom, and Sweden, Europe emerged as the largest market for modular construction in 2022, generating revenue of USD 41.29 billion. The main driving force is anticipated to be the increasing number of migrants who require the construction of both temporary and permanent dwelling buildings. Furthermore, the market for modular building in Europe is being driven by elements like the adoption of cutting-edge technology and various investments. 

Over the course of the projection period, Asia Pacific is anticipated to grow at the quickest rate, with a CAGR of 8.3%. This is because the region's infrastructure is seeing an increase in foreign investments, which is fueling the market's expansion.  

Global Modular Construction Market By Geography, 2024-2031, 2024-2031
  • Largest
  • Fastest

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Modular Construction Market Dynamics

Global Modular Construction Market Drivers

Increasing demand for sustainable construction practices

  • One key driver of the global modular construction market is the increasing demand for sustainable construction practices. Modular construction offers significant benefits in terms of reduced waste, lower energy consumption, and improved environmental performance compared to traditional construction methods. As environmental concerns continue to grow, governments and organizations are increasingly promoting sustainable construction practices. This trend is expected to continue driving the growth of the modular construction market as more developers and builders adopt modular construction to meet sustainability goals and reduce environmental impact.

Global Modular Construction Market Restraints

Lack of awareness and understanding of modular construction

  • One significant restraint in the global modular construction market is the lack of awareness and understanding of modular construction methods among developers, architects, and contractors. Traditional construction methods have been prevalent for decades, and many professionals in the construction industry may not be familiar with modular construction techniques or may have misconceptions about its quality or limitations. This lack of awareness can lead to reluctance to adopt modular construction, which may slow down the market growth. Therefore, increasing awareness and education about the benefits of modular construction is crucial to overcoming this restraint.

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Modular Construction Market Competitive Landscape

The global modular construction market is highly fragmented, with the presence of several regional and local players. The market is characterized by intense competition, with companies vying for market share through strategies such as product innovation, partnerships, and mergers and acquisitions. The competition is expected to intensify further as more players enter the market and existing players expand their offerings. To stay competitive, companies in the modular construction market need to focus on providing high-quality products and services, keeping up with technological advancements, and meeting the evolving needs of customers.

Top Player’s Company Profiles in Global Modular Construction Market

  • Laing O'Rourke (UK)
  • CIMC Modular Building Systems Holdings Co. Ltd. (China)
  • Katerra (US)
  • Lendlease Corporation (Australia)
  • Bouygues Construction (France)
  • Guerdon Enterprises LLC (US)
  • Wernick Group (UK)
  • Ausco Modular (Australia)
  • Redman Modular Buildings (Canada)
  • Portakabin Group (UK)
  • Ritz-Craft Corporation (US)
  • Champion Home Builders (US)
  • Alta-Fab Structures Ltd. (Canada)
  • Horizon North Logistics Inc. (Canada)
  • Daiwa House Industry Co. Ltd. (Japan)
  • Fleetwood Australia (Australia)
  • Modscape (Australia)

Global Modular Construction Market Recent Developments

  • In June 2024, Modular construction firm Volumetric Building Companies' Global Centre of Excellence in Monaghan opens. 
  • In March 2024, The Chandigarh Railway station is a pioneering project which is being constructed as a prototype to be followed for all stations to come up on Indian Railways with the aim to expedite construction through modular design and prefabricated components, employing a standard 12m x 12m grid system.  
  • In January 2024, Architecture studio Populous has unveiled designs for a temporary cricket stadium to be constructed with repurposed elements in New York. 

Modular Construction Key Market Trends

  • One key market trend in the global modular construction market is the growing use of Building Information Modeling (BIM) and other digital technologies. BIM enables the creation of a virtual model of a building, allowing for improved collaboration, cost estimation, and scheduling. The integration of BIM and other digital technologies into modular construction workflows is expected to increase productivity, reduce costs, and improve project outcomes. As a result, companies in the modular construction market are increasingly investing in digital technologies and building partnerships with technology providers to enhance their offerings and stay competitive in the market.

Modular Construction Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

According to our global modular construction market analysis, the market is expected to grow significantly in the coming years, driven by increasing urbanization, rising demand for sustainable construction practices, and the advantages offered by modular construction such as reduced building time, cost-effectiveness, and greater flexibility. However, the lack of awareness and understanding of modular construction among professionals in the construction industry may hinder market growth. In addition, the market is highly competitive, with many regional and local players vying for market share. To stay competitive, companies in the modular construction market are focusing on providing high-quality products and services, investing in digital technologies such as BIM, and meeting the evolving needs of customers. The Asia-Pacific region is expected to be the fastest-growing market, driven by factors such as rapid urbanization, increasing construction of commercial spaces, and government initiatives promoting sustainability.

Report Metric Details
Market size value in 2023 USD 97.28 billion
Market size value in 2031 USD 188.08 billion
Growth Rate 7.6%
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Type
    • Volumetric Module and Panelized Module
  • Application
    • Commercial and Residential
  • Material
    • Wood, Steel, Concrete, and Others
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Laing O'Rourke (UK)
  • Skanska (Sweden)
  • Red Sea Housing Services (Saudi Arabia)
  • CIMC Modular Building Systems Holdings Co. Ltd. (China)
  • Algeco (Luxembourg)
  • Katerra (US)
  • Lendlease Corporation (Australia)
  • Bouygues Construction (France)
  • Guerdon Enterprises LLC (US)
  • Wernick Group (UK)
  • Ausco Modular (Australia)
  • Redman Modular Buildings (Canada)
  • Portakabin Group (UK)
  • Ritz-Craft Corporation (US)
  • Champion Home Builders (US)
  • Alta-Fab Structures Ltd. (Canada)
  • Horizon North Logistics Inc. (Canada)
  • Daiwa House Industry Co. Ltd. (Japan)
  • Fleetwood Australia (Australia)
  • Modscape (Australia)
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Modular Construction Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Modular Construction Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Modular Construction Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Modular Construction Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Modular Construction Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Modular Construction Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Modular Construction Market size was valued at USD 97.28 billion in 2022 and is poised to grow from USD 104.67 billion in 2023 to USD 188.08 billion by 2031, growing at a CAGR of 7.6% in the forecast period (2024-2031).

The modular construction market is highly fragmented, with the presence of several regional and local players. The market is characterized by intense competition, with companies vying for market share through strategies such as product innovation, partnerships, and mergers and acquisitions. The competition is expected to intensify further as more players enter the market and existing players expand their offerings. To stay competitive, companies in the modular construction market need to focus on providing high-quality products and services, keeping up with technological advancements, and meeting the evolving needs of customers. 'Laing O'Rourke (UK)', 'Skanska (Sweden)', 'Red Sea Housing Services (Saudi Arabia)', 'CIMC Modular Building Systems Holdings Co. Ltd. (China)', 'Algeco (Luxembourg)', 'Katerra (US)', 'Lendlease Corporation (Australia)', 'Bouygues Construction (France)', 'Guerdon Enterprises LLC (US)', 'Wernick Group (UK)', 'Ausco Modular (Australia)', 'Redman Modular Buildings (Canada)', 'Portakabin Group (UK)', 'Ritz-Craft Corporation (US)', 'Champion Home Builders (US)', 'Alta-Fab Structures Ltd. (Canada)', 'Horizon North Logistics Inc. (Canada)', 'Daiwa House Industry Co. Ltd. (Japan)', 'Fleetwood Australia (Australia)', 'Modscape (Australia)'

One key driver of the modular construction market is the increasing demand for sustainable construction practices. Modular construction offers significant benefits in terms of reduced waste, lower energy consumption, and improved environmental performance compared to traditional construction methods. As environmental concerns continue to grow, governments and organizations are increasingly promoting sustainable construction practices. This trend is expected to continue driving the growth of the modular construction market as more developers and builders adopt modular construction to meet sustainability goals and reduce environmental impact.

One key market trend in the modular construction market is the growing use of Building Information Modeling (BIM) and other digital technologies. BIM enables the creation of a virtual model of a building, allowing for improved collaboration, cost estimation, and scheduling. The integration of BIM and other digital technologies into modular construction workflows is expected to increase productivity, reduce costs, and improve project outcomes. As a result, companies in the modular construction market are increasingly investing in digital technologies and building partnerships with technology providers to enhance their offerings and stay competitive in the market.

North America dominated the modular construction market due to its established infrastructure and the growing demand for sustainable construction practices. The United States is the largest market in the region, with significant growth potential in the commercial and residential sectors. The increased adoption of modular construction in the country is driven by factors such as reduced building time, lower costs, and the ability to meet environmental standards.

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