June 13, 2024

Modular Construction Market Size to Worth USD 201.31 Bn by 2033

The global modular construction market size accounted for USD 97.31 billion in 2023 and is anticipated to grow 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 experienced significant growth in recent years, driven by factors such as increasing urbanization, rapid industrialization, and the need for cost-effective and sustainable construction solutions. Modular construction involves assembling pre-fabricated building modules off-site and then transporting them to the construction site for assembly. This method offers several advantages over traditional construction, including reduced construction time, lower labor costs, and enhanced quality control. As a result, it has gained popularity across various sectors, including residential, commercial, and industrial construction.

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Growth Factors:

Several factors contribute to the growth of the modular construction market. One of the key drivers is the rising demand for affordable housing, particularly in urban areas with high population densities. Modular construction techniques enable developers to construct housing units more quickly and cost-effectively compared to traditional methods, making them an attractive solution for addressing housing shortages. Additionally, the emphasis on sustainability and environmental conservation has led to increased adoption of modular construction, as it produces less waste and consumes fewer resources than conventional building techniques.

Region Insights:

The modular construction market exhibits significant regional variations in terms of adoption and growth. In developed regions such as North America and Europe, modular construction has gained substantial traction due to factors such as advanced manufacturing capabilities, supportive government policies, and a skilled labor force. These regions also have well-established infrastructure and supply chains, further facilitating the adoption of modular construction practices. In contrast, emerging economies in Asia Pacific and Latin America are witnessing increasing interest in modular construction, driven by rapid urbanization, infrastructure development initiatives, and the need for cost-effective building solutions.

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 propelling the growth of the modular construction market globally. One of the primary drivers is the growing demand for efficient construction methods that can address the challenges of urbanization, such as limited space availability and environmental concerns. Modular construction offers a solution by enabling vertical integration and optimization of resources, leading to faster project delivery and reduced environmental impact. Additionally, the modular approach allows for greater flexibility and customization, meeting the diverse needs of clients across various sectors.

Opportunities:

The modular construction market presents numerous opportunities for stakeholders across the construction value chain. With advancements in technology and manufacturing processes, modular construction techniques continue to evolve, enabling the construction of increasingly complex and innovative structures. Moreover, the expansion of modular construction into new sectors such as healthcare, education, and hospitality offers significant growth prospects for industry players. Additionally, partnerships and collaborations between modular construction companies, architects, and developers can foster innovation and drive market growth further.

Challenges:

Despite its numerous benefits, the modular construction market faces several challenges that could impede its growth trajectory. One of the primary challenges is overcoming the stigma associated with prefabricated buildings, which are often perceived as lacking in quality or aesthetics compared to traditional construction. Educating stakeholders about the advantages of modular construction and addressing misconceptions is essential to overcoming this barrier. Additionally, logistical challenges such as transportation and site access can pose constraints, particularly in remote or densely populated areas. Ensuring seamless coordination between different stakeholders and optimizing supply chain management are critical for overcoming these challenges.

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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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