April 24, 2024

Modular Construction Market Size to Attain USD 201.31 Bn by 2033

The global modular construction market size was estimated at USD 97.31 billion in 2023 and is anticipated to attain around USD 201.31 billion by 2033, growing at a CAGR of 7.54% from 2024 to 2033.

Key Points

  • Europe led the market with the biggest market share of 42% in 2023.
  • Asia Pacific is predicted to grow at the fastest CAGR of 8.33% over the forecast period.
  • By product, the permanent modular construction segment has contributed more than 59% in 2023.
  • By product, the relocatable product segment is expected to grow at a CAGR of 7% between 2024 and 2033.
  • By material, in 2023, the steel segment has held the biggest market share of 42% in 2023.
  • By material, the wood material segment is anticipated to grow at a notable CAGR 7.42% over the projected period.
  • By application, the residential segment has accounted more than 53% of market share in 2023.

Modular Construction Market Size 2024 to 2033

The modular construction market has witnessed significant growth in recent years, driven by factors such as the increasing demand for affordable and sustainable housing solutions, rising urbanization, and the need for faster construction methods. Modular construction involves the fabrication and assembly of building components off-site, followed by their transportation to the construction site for final assembly. This approach offers numerous advantages, including reduced construction time, cost savings, improved quality control, and minimal environmental impact. As a result, the modular construction market has gained traction across various sectors, including residential, commercial, industrial, and institutional.

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Growth Factors:

Several factors contribute to the growth of the modular construction market. One key driver is the growing emphasis on sustainability and environmental conservation. Modular construction minimizes waste generation, as materials are precisely measured and cut off-site, leading to reduced on-site construction waste. Additionally, modular buildings can incorporate eco-friendly materials and energy-efficient systems, aligning with the global push towards green construction practices. Furthermore, the speed of construction offered by modular methods addresses the urgent need for rapid infrastructure development in urban areas, where traditional construction methods may be time-consuming and disruptive.

Region Insights:

The modular construction market exhibits regional variations driven by factors such as economic conditions, infrastructure development, and government regulations. In North America, the market is propelled by the need for cost-effective housing solutions, especially in densely populated urban areas. Europe leads in adopting modular construction techniques, driven by stringent building codes, a focus on sustainability, and a well-established off-site construction industry. In Asia-Pacific, rapid urbanization, population growth, and government initiatives to address housing shortages are fueling demand for modular construction. Emerging markets in Latin America, Africa, and the Middle East present untapped opportunities for modular construction companies, driven by infrastructure development and urban expansion.

Modular Construction Market Scope

Report Coverage Details
Growth Rate from 2024 to 2033 CAGR of 7.54%
Global Market Size in 2023 USD 97.31 Billion
Global Market Size by 2033 USD 201.31 Billion
Largest Market Europe
Base Year 2023
Forecast Period 2024 to 2033
Segments Covered By Product, By Material, and By Application
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Modular Construction Market Dynamics

Drivers:

Several drivers are driving the growth of the modular construction market. One of the primary drivers is the cost-effectiveness of modular construction compared to traditional methods. Off-site fabrication reduces labor costs, material wastage, and construction time, resulting in overall cost savings for developers and contractors. Moreover, modular construction offers greater flexibility in design and customization, allowing for tailored solutions to meet specific project requirements. Additionally, advancements in technology, such as Building Information Modeling (BIM) and automation, enhance the efficiency and precision of modular construction processes, further driving market growth.

Opportunities

The modular construction market presents numerous opportunities for industry players across various sectors. One significant opportunity lies in the adoption of modular construction for affordable housing projects, particularly in developing economies facing housing shortages. Governments and housing agencies are increasingly turning to modular construction to address the growing demand for housing in a cost-effective and timely manner. Moreover, the expansion of modular construction into new applications, such as healthcare facilities, educational institutions, and hospitality projects, opens up additional revenue streams for manufacturers and contractors. Furthermore, partnerships and collaborations between modular construction companies and technology providers can drive innovation and enhance the capabilities of modular construction systems.

Challenges

Despite its growth potential, the modular construction market faces certain challenges that may impede its widespread adoption. One challenge is the perception of quality and durability associated with modular buildings. While modern modular construction techniques ensure high-quality standards, there remains skepticism among some stakeholders regarding the long-term performance of modular structures. Addressing this challenge requires greater education and awareness about the advancements in modular construction technology and the successful implementation of modular projects worldwide. Additionally, regulatory hurdles and zoning restrictions in some regions may hinder the expansion of modular construction, requiring advocacy and lobbying efforts to promote favorable policies and regulations. Moreover, the scalability of modular construction to large-scale projects and mega-structures presents logistical and engineering challenges that need to be overcome through innovation and collaboration within the industry.

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Recent Developments

  • In May 2023, Guerdon, a modular construction company, revealed its acquisition of Champion Homes, another player in the modular construction industry, to expand its footprint in the residential housing market.
  • In March 2023, XtreeE, a construction technology firm, disclosed its collaboration with New Living, a modular construction company, to co-create 3D-printed modular housing solutions.
  • In January 2023, Boxabl, a modular construction company, declared securing $50 million in fresh funding to aid the advancement of its expandable modular homes.
  • In December 2022, Balfour Beatty signed a memorandum of understanding with Holtec Britain and Hyundai Engineering and Construction (HDEC) to develop small modular nuclear reactors in the United Kingdom.
  • In October 2022, Balfour Beatty announced that its 50:50 joint venture, Gammon, has been awarded an HKD 1.3 billion (USD 0.17 million) contract on behalf of Top Oasis Limited, a consortium formed by Sino Land Company Limited and CSI Properties Ltd to construct a residential development in Yau Tong, Hong Kong.

Modular Construction Market Companies

  • 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

Segments Covered in the Report

By Product

  • Relocatable
  • Permanent

By Material

  • Wood
  • Steel
  • Concrete
  • Others

By Application

  • Residential
  • Commercial
  • Industrial
  • Healthcare
  • Educational

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

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Prathamesh

I have completed my education in Bachelors in Computer Application. A focused learner having a keen interest in the field of digital marketing, SEO, SMM, and Google Analytics enthusiastic to learn new things along with building leadership skills.

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