Redding, California - April 29, 2024

Modular Construction Market to be Worth $189.1 Billion by 2031

Modular Construction Market Size, Share, Forecast, & Trends Analysis by Product (Permanent, Relocatable), Method (Closed, Open), Material (Wood, Steel, Concrete), Application (Residential, Commercial, Industries, Healthcare) - Global Forecast to 2031

Meticulous Research^®—a leading global market research company, published a research report titled, ‘Modular Construction Market Size, Share, Forecast, & Trends Analysis by Product (Permanent, Relocatable), Method (Closed, Open), Material (Wood, Steel, Concrete), Application (Residential, Commercial, Industries, Healthcare) - Global Forecast to 2031’

According to this latest publication from Meticulous Research^®, the global modular construction market is projected to reach $189.1 billion by 2031, at a CAGR of 6.9% from 2024 to 2031. The growth of this market can be attributed to several factors, including cost-efficient installation, lack of availability of skilled labor, and the need for faster execution of projects. Additionally, the increasing urbanization, the need to address the global affordable housing crisis, and the increasing focus on sustainable building practices are expected to create market growth opportunities. However, the perception that modular construction is limited to commercial projects may restrain the growth of this market. However, manufacturing and transportation restrictions are a major challenge for the players operating in this market.

Additionally, the integration of digital technologies, automation, robotics, and artificial intelligence (AI) is a key trend in the modular construction market.

The global modular construction market is segmented by product, method, material, and application. The study also evaluates end-user industry competitors and analyzes the market at the region/country level.

Based on product, the global modular construction market is broadly segmented into permanent modular construction (PMC) and relocatable modular construction (RMC). In 2024, the permanent modular construction segment is expected to account for the larger share of ~65.0% of the modular construction market. The large market share of this segment can be attributed to the growing need for controlled manufacturing conditions in factory settings, the growing use of PMC in industrial buildings such as warehouses, manufacturing facilities, and distribution centers, the increasing use of PMC for constructing various types of residential buildings, including single-family homes, multi-family housing complexes, and apartment buildings.

However, the relocatable modular construction segment is projected to witness a higher growth rate during the forecast period of 2024–2031. This growth is driven by the growing demand for temporary facilities on construction sites, including offices, break rooms, storage units, and restroom facilities, the increasing use of RMC for emergencies to provide temporary shelters and medical clinics, and the growing utilization of RMC for temporary retail spaces, pop-up stores, and promotional booths in shopping centers.

Based on method, the global modular construction market is broadly segmented into closed modular construction and open modular construction. In 2024, the closed modular construction segment is expected to account for the larger share of the modular construction market. The large market share of this segment can be attributed to the growing demand for high-quality buildings with minimal variability, the increasing need to lower overall project costs due to reduced material waste and minimized on-site labor requirements, growing use of closed modular construction in the construction of commercial buildings and residential buildings, and increasing need to avoid project schedules and minimizes project downtime due to weather-related delays.

However, the open modular construction segment is projected to witness a higher growth rate during the forecast period of 2024–2031. This growth is driven by the increasing demand for flexibility in design and customization options that allow developers to create dynamic and integrated urban environments, as well as the increasing use of open modular construction in the construction of public spaces and cultural buildings such as parks, plazas, museums, theaters, and recreational facilities.

Based on material, the global modular construction market is broadly segmented into wood, steel, concrete, and other materials. In 2024, the steel segment is expected to account for the largest share of ~43.0% of the modular construction market. The large market share of this segment can be attributed to its benefits including strength-to-weight ratio, flexibility in design and construction, and recyclability that make it ideal for constructing robust and long-lasting modular structures. The segment is also projected to witness the highest growth rate during the forecast period of 2024–2031. This growth is driven by the increasing use of steel in the construction of commercial buildings, manufacturing facilities, and distribution centers due to its strength, durability, consistent quality, and precision in fabrication that results in high-quality modular components.

Based on application, the global modular construction market is broadly segmented into residential properties, commercial spaces, hospital/clinics/medical facilities, education & institutional, government & public sector, aerospace & defense, and other applications. The commercial spaces segment is further segmented into office buildings, hotels, retail, and logistics/warehouse. In 2024, the residential properties segment is expected to account for the largest share of ~56.0% of the modular construction market. The large market share of this segment can be attributed to the growing demand for modular construction, the cost-effective and efficient housing solutions for homeowners, the increasing demand for temporary modular shelters to offer safe and secure accommodations in response to natural disasters and other crises, the growing demand for urban housing, and the increasing need to address housing shortages and affordability challenges. The segment is also projected to witness the highest growth rate during the forecast period of 2024–2031.

Based on geography, the global modular construction market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of ~40.0% of the modular construction market, followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa. North America's significant market share can be attributed to several key factors, including the increasing technological advancements to streamline production processes, improve efficiency, and enhance quality control in modular construction projects; shortage of skilled labor; increasing demand for scalable and efficient modular spaces to meet the housing and infrastructure needs of growing urban populations; and growing emphasis on sustainability solutions to reduce construction waste, minimize site disturbance, and optimize energy efficiency in the region.

However, the market in Asia-Pacific is slated to register the highest growth rate of ~8.5% during the forecast period. The growth of this regional market is attributed to the region’s rapid urbanization, increasing need for cost-effective and scalable solutions to build affordable housing units and meet the needs of growing populations, and increasing government initiatives for the development of smart cities, affordable housing projects, and infrastructure upgrades.

Key Players:

The key players operating in the modular construction market are ATCO Ltd. (Canada), Guerdon, LLC (U.S.), Skanska AB (Sweden), Bouygues Construction (France), KLEUSBERG GmbH & Co KG (Germany), Lendlease Corporation (Australia), Red Sea International (Saudi Arabia), Bechtel Corporation (U.S.), Honomobo (Canada), WillScot Mobile Mini Holdings Corp. (U.S.), SG Blocks, Inc. (U.S.), Speed House Group of Companies (UAE), CIMC Modular Building Systems Holdings Co., Ltd. (China), Wernick Group (Holdings) Ltd. (U.K.), Giant Containers Inc. (Canada), Premier Modular Limited (U.K.), and LAING O'ROURKE (U.K.).

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Key questions answered in the report-

• Which are the high-growth market segments based on product, method, material, application, and geography?
• What was the historical market for the modular construction market?
• What are the market forecasts and estimates for the period 2024–2031?
• What are the major drivers, restraints, opportunities, and challenges in the modular construction market?
• Who are the major players, and what shares do they hold in the modular construction market?
• What is the competitive landscape like in the modular construction market?
• What are the recent developments in the modular construction market?
• What are the different strategies adopted by the major players in the modular construction market?
• What are the key geographic trends, and which are the high-growth countries?
• Who are the local emerging players in the global modular construction market, and how do they compete with the other players?

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