Modular Construction Market Size, Share & Trends Analysis Report By Material (Wood, Steel), By Product (Relocatable, Permanent), By Application (Residential, Commercial), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global modular construction market size was estimated at USD 85.99 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 7.3% over the forecast period. This growth is attributed to the growing off-site building activities in the urban regions. In addition, the growing infrastructural development in developing countries around the world is further contributing to the growth of modular construction. Off-site building is not affected by weather conditions as they are manufactured within closed factories using advanced machinery, thereby, optimizing the erection time and providing high-quality products.

The aforementioned benefits of the off-site building make modular construction cost-effective and contribute to less site-generated waste. Rapid urbanization and industrialization are expected to increase the number of new projects, primarily in the commercial and industrial sectors. This is likely to fuel the growth of the global industry. Increasing technological advancements in the building industry coupled with the advantages provided by modular construction, such as reduced building schedule, reduced cost, greater flexibility, reuse, and less material waste, are contributing to the product demand.

The U.S. market is expected to grow both in terms of the number of building units and revenue. Several multinational companies are investing in advanced modular construction technologies, such as Building Information Modeling (BIM), Artificial Intelligence (AI), the Internet of Things (IoT), 3D printing, and real-time data analytics for cost savings. IoT is used in the modular construction process to get information on things like material location, quality control, asset utilization, environmental variables, such as temperature, humidity, & dust, and delivery scheduling & optimization. Modular construction enables the completion of a project in less than half of the time taken by traditional construction methods.

In a time of crisis like the COVID-19 pandemic, time is invaluable in building new healthcare set-ups. Several countries are adopting and approving modular construction techniques for hospitals and treatment centers. Modular construction enables industries to customize their designs and utilize the latest innovations in style and functionality. Before the development of modular construction, industries were compelled to spend countless man-hours on planning and designing, while actual construction took months or years to complete. Modular construction takes the guesswork out of the planning stages and simplifies building to a large extent, reducing the time from conception to completion by months or more.

Product Insights

On the basis of products, the industry has been categorized into relocatable and permanent. The permanent modular construction product segment dominated the industry in 2021 and accounted for the largest share of more than 63.90% of the overall revenue. It is also expected to be the fastest-growing segment from 2022 to 2030. It offers high-quality control in comparison to on-site construction. These modules can be integrated into an existing structure or can be built to stand independently.

The permanent modular construction method is comparable to the onsite building method as it meets international and local building codes and is capable of achieving the same standards of quality.Relocatable or portable buildings are partially or completely constructed structures that are assembled in a controlled manufacturing facility through the modular construction process. These are made to be repurposed and transported to various construction sites. These can be used for medical clinics, schools, sales centers, and industrial & offices.

Material Insights

The steel segment emerged as the largest segment in 2021 and accounted for the maximum share of more than 41.60% of the total revenue. It is used in various shapes like H-type beams, columns, angles, I-beam shapes, and T-shapes. The material exhibits excellent mechanical and chemical properties, such as high strength, durability, ductility, ease of fabrication, seismic resistance, and fast erection speed. It is used as a reinforcing material in concrete to compensate for its low tensile strength.The other material segment is estimated to register the fastest CAGR from 2022 to 2030.

The segment consists of a wide range of different materials, such as plastic, glass, textile, brick, and stone. Several companies working in modular construction are using plastic materials. The components used include everything from plastic screws and hinges to bigger plastic parts that are used in decoration, electric wiring, flooring, wall covering, waterproofing, insulation, pipes, windows, and doors.The demand forglass building products is significantly increasing owing to their properties like high strength, excellent insulation, and chemical & fire resistance, which make building glass the most viable option for the modular construction industry.

Furthermore, Glass Reinforced Concrete (GRC) is an ideal material for a variety of modular construction applications as it is lightweight but tough, easy to fix, and unaffected by environmental conditions.In the wood material segment, timber has emerged as a viable mass-scale alternative to traditional materials over the past decade. It is widely used in modular construction due to its excellent properties, such as high durability, lightness, and low toxicity. It is biodegradable and easy to reuse & recycle.

Application Insights

The residential application segment accounted for the largest share of 52.60% of the total revenue in 2021 and is also expected to be the fastest-growing segment from 2022 to 2030. Modular construction can be used to construct attractive buildings that focus on sustainabilityand aesthetics. It allows rapid building; feasibility, in terms of challenging designs; and the building of unique & customizable homes that fulfill the requirements of communities. The residential application segment includes single-family houses, multi-story residential buildings, and rental housing properties. Modular construction is witnessing rapid adoption in residential applications owing to its ability to significantly reduce building costs and time.

The rising number of migrants necessitating the building of temporary and permanent housing structures in the world is expected to augment the demand for residential modular construction over the forecast period.Commercial modular constructions are non-residential structures and 60% to 90% of the building takes place in a factory with only the final finishing taking place at the building site. In the past few years, the commercial market for modular construction has gone mainstream. The recovering economic situations in key markets, such as the U.K., the U.S., and Asia, are expected to generate robust demand for commercial spaces, such as offices, showrooms, and hotels, thus, leading to an increase in commercial building activities.

Modular construction for hospitals and other healthcare applications is a design concept that has been discussed at great length but has never seen large-scale implementation in the healthcare market. For bathrooms, headwalls, and even entire hospitals, many healthcare organizations are switching to modular construction. Such type of fabrication offers quiet, safe, and hygienic applications for medical, surgical, clinical, and dental uses. Shortening building schedules and low costs are favored in the healthcare sector while seeking high-quality building materials and designs.

Regional Insights

Europe was the largest region in 2021 and accounted for a maximum revenue share of more than 45.60%. The growth can be attributedto the high market penetration in Germany, Finland, the U.K., and Sweden. Moreover, the rising influx of migrants necessitating the development of temporary and permanent housing structures will support the region’s growth. Factors, such as multiple investments and the implementation of advanced technologies, are also driving the Europe regional market. The Asia Pacific region is expected to register the fastest CAGR from 2022 to 2030.

This is due to the rising international investments in the region’s infrastructural sector supporting the market growth. The increasing demand for sustainable structures, owing to the growing environmental concerns and rising pollution rate, is propelling the deployment of modular construction, thereby contributing significantly to the market growth. The building industry in North America is witnessing moderate growth owing to reduced investments, which has further translated into declining investments in the non-residential sector.

The decision to shut down the stores by various organizations, such as Target Corp. in Canada, is anticipated to hamper the overall infrastructure industry, thereby negatively impacting the market.The construction industry in South America mostly remained resilient even after the economic slump caused due to the pandemic. Factors, such as uncertainty with respect to the economic policy and reforms in Brazil renewed financial stress in Argentina, and recent social unrest in various countries, such as Colombia, Chile, Bolivia, and Ecuador, are expected to have a negative impact on the region’s economic growth.

Key Companies & Market Share Insights

The competitive rivalry among companies is high as the industry is characterized by the presence of a large number of global and regional players. Companies, such as Sekisui House Ltd., Laing O’Rourke, and CIMC Modular Building Systems Holdings Co., Ltd., have adopted various growth strategies, such as acquisitions, mergers, contracts, and agreements, to increase their revenue shares and enhance their product & service portfolios. In addition, key players are focusing on energy efficiency and customization to fulfill specific customer requirements. For instance, Connecticut Valley Homes designs and builds efficient homes in terms of climate, ventilation, and energy consumption. Likewise, Blue Homes provides 40% energy-efficient homes with advanced features, including thermal insulation and eco-friendly water fixtures. Some prominent players in the global modular construction market include:

• Sekisui House Ltd.

• LAING O'ROURKE

• Red Sea International

• Skanska

• Bouygues Construction

• Premier Modular Ltd.

• KLEUSBERG GmbH & Co KG

• DuBox

• Wernick Group

• CIMC Modular Building Systems Holdings Co., Ltd. (CIMC-MBS)

• Riko Hiše d.o.o

• Lendlease Corp.

• Modulaire Group

• Guerdon, LLC

• Hickory Group

Modular Construction Market Report Scope

Global Modular Construction Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global modular construction market report on the basis of product, material, application, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Relocatable

  • Permanent

• Material Outlook (Revenue, USD Million, 2017 - 2030)

  • Wood

  • Steel

  • Concrete

  • Others

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Residential

  • Commercial

  • Industrial

  • Healthcare

  • Educational

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • Sweden

  • Asia Pacific

    • China

    • India

    • Japan

    • Singapore

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • UAE