Mordor Intelligence has published a new report on the Modular Construction Market, offering a comprehensive analysis of trends, growth drivers, and future projections.
The global modular construction market is poised for substantial growth, with projections indicating an increase from USD 91.27 billion in 2025 to USD 122.26 billion by 2030, reflecting a compound annual growth rate (CAGR) of 6.02% during the forecast period. This surge is attributed to the rising demand for efficient, cost-effective, and sustainable building solutions that address the global housing shortage and environmental concerns.
Modular construction, characterized by off-site fabrication and on-site assembly, offers significant advantages over traditional construction methods. By conducting 60-90% of construction activities in controlled factory settings, the industry has achieved notable improvements in productivity, including a 30% reduction in labor costs and over 70% decrease in on-site personnel requirements. Additionally, this approach minimizes weather-related delays and material waste, contributing to overall project efficiency.
Key Trends
Several key trends are shaping the modular construction market:
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Sustainability and Environmental Impact: Modular construction significantly reduces environmental disruption. For instance, developments require 80% fewer vehicle movements compared to traditional construction sites, leading to decreased emissions and community disturbances.
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Technological Advancements: The integration of advanced manufacturing processes has enhanced precision, quality control, and customization in modular structures, catering to diverse client needs.
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Global Housing Demand: The pressing need for affordable housing is driving the adoption of modular construction. With the requirement to build approximately 96,000 new affordable homes daily by 2030, modular methods offer a viable solution to meet this demand efficiently.
Market Segmentation
The modular construction market is segmented based on construction type, material, end-user industry, and geography:
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By Construction Type:
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Permanent Modular: Structures intended for long-term use, offering durability and integration with existing infrastructure.
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Relocatable Modular: Temporary structures designed for flexibility and ease of relocation.
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By Material:
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Steel: Preferred for its strength and durability.
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Concrete: Offers robustness and fire resistance.
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Wood: Chosen for its sustainability and aesthetic appeal.
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Plastic: Utilized for specific applications requiring lightweight materials.
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By End-User Industry:
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Commercial: Includes offices, retail spaces, and hospitality establishments.
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Industrial/Institutional: Encompasses factories, schools, and healthcare facilities.
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Residential: Covers single-family homes, apartments, and housing complexes.
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By Geography:
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Asia-Pacific: Identified as both the largest and fastest-growing market, driven by rapid urbanization and infrastructure development.
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North America: Growth fueled by technological adoption and demand for sustainable building practices.
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Europe: Market expansion supported by environmental regulations and housing needs.
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South America and Middle East & Africa: Emerging markets with increasing adoption of modular construction techniques.
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Key Players
The modular construction market features several prominent players contributing to its growth:
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ATCO Ltd: Offers a diverse range of modular solutions across various sectors globally.
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Daiwa House Industry Co. Ltd: Specializes in prefabricated buildings with a strong presence in Asian markets.
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Fluor Corporation: Provides engineering and construction services, including modular construction solutions.
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Larsen & Toubro Limited: An Indian multinational engaged in technology, engineering, and construction, offering modular construction services.
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WillScot: Delivers modular space and portable storage solutions across North America.
These companies are investing in research and development to enhance their modular construction offerings and expand their market presence.
Conclusion
The modular construction market is experiencing robust growth, driven by the need for efficient, sustainable, and cost-effective building solutions. With advancements in technology and increasing global housing demands, modular construction is poised to play a pivotal role in the future of the construction industry. Stakeholders are encouraged to leverage these trends to capitalize on emerging opportunities within this dynamic market.
Industry Related Reports
North America Modular Construction Market: The report analyzes the modular construction market in North America, examining market size and key companies. It is segmented by type (permanent and relocatable), sector (residential and commercial), and country (United States, Canada, and Mexico).”
European Modular Construction Market: The report examines the modular construction market for high-rise buildings, segmented by type (permanent and relocatable), material (steel, concrete, wood, and plastic), end-user (commercial, industrial/institutional, and residential), and geography (Germany, the United Kingdom, France, Italy, and the rest of Europe).
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