Volumetric Construction Market To Reach $53.34 Billion By 2030

February 2025 | Report Format: Electronic (PDF)

Volumetric Construction Market Growth and Trends

The global volumetric construction market size is anticipated to reach USD 53.34 billion by 2030 and is anticipated to grow at a CAGR of 8.2% from 2025 to 2030, according to a new report by Grand View Research, Inc. The global volumetric construction market is primarily driven by the increasing demand for cost-effective and time-efficient building solutions across residential, commercial, and industrial sectors. Unlike traditional construction methods, volumetric construction allows for the off-site manufacturing of complete building modules, which are then transported and assembled on-site. This approach significantly reduces labor costs, construction time, and material waste, making it an attractive solution in regions facing labor shortages and rising raw material costs.

Additionally, the growing emphasis on urbanization and smart city development has fueled the adoption of volumetric construction, particularly in high-density areas where rapid housing solutions are needed.

The rising focus on sustainability and green building practices is another key factor propelling the volumetric construction market. Off-site construction enables better control over material usage, energy efficiency, and waste management, leading to a lower carbon footprint compared to conventional construction methods.

Governments and regulatory bodies worldwide are increasingly promoting eco-friendly construction practices through incentives and stringent environmental regulations. Volumetric construction aligns with these sustainability goals by incorporating energy-efficient designs, recyclable materials, and reduced site disruption, making it a preferred choice for environmentally conscious developers and policymakers.

Technological advancements in modular construction techniques are further driving market growth, enabling the development of more customized, high-quality, and durable structures. Innovations such as Building Information Modeling (BIM), automation, and 3D printing have enhanced the precision and efficiency of volumetric construction, reducing design errors and improving project execution. Additionally, the integration of smart building technologies, including IoT-enabled systems and prefabricated MEP (mechanical, electrical, and plumbing) solutions, has expanded the applicability of volumetric construction across various industries, including healthcare, education, and hospitality.

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Volumetric Construction Market Report Highlights

Based on product, the permanent segment held the largest revenue share of 63.3% in 2024, driven by the growing demand for long-term, high-quality modular structures across various sectors, including residential, commercial, healthcare, and education.
Based on end use, the residential segment led the market and accounted for the largest revenue share of 54.0% in 2024, driven by the growing demand for affordable, high-quality, and rapidly constructed housing solutions.
Based on region, the Europe volumetric construction market was the largest segment in 2024, valued at USD 15.27 billion in the global market, driven by the region's strong emphasis on sustainability, rapid urbanization, and advancements in off-site construction technology.
In July 2024, InstaBuilt announced the launch of its panelized and volumetric housing solutions in the U.S. market, marking a significant advancement in the volumetric construction industry. With a focus on affordable, energy-efficient, and rapid construction, InstaBuilt's innovative approach integrates prefabricated panelized and fully volumetric modules to streamline the building process, reducing labor costs and construction timelines. The company’s expansion aligns with the growing demand for sustainable and scalable housing solutions, particularly in urban and disaster-relief housing projects.