Modular Construction Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Modular Construction Market is segmented by Construction (Permanent Modular and Relocatable Modular), Material (Steel, Concrete, Wood, and Plastic), End-user Industry (Commercial, Industrial/Institutional, and Residential), and Geography (Asia Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers the market size and forecasts in revenue (USD million) for all the above segments.

Market Snapshot

modular construction market size
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >8 %
modular construction companies

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The modular construction market was valued at more than USD 40 billion in 2021, and the market is projected to register a CAGR of over 8% during the forecast period (2022-2027).

Modular construction is the use of pre-engineered building units that are delivered to the construction sites and assembled as large volumetric components of a building. Modular construction takes most of the construction phase away from the building site. The surging demand for hospitals and patient bed facilities based on modular construction significantly increased during the peak of the pandemic as this type of construction needs a significantly less amount of completion time. Such modular constructions during the pandemic, globally, stimulated the demand in the market studied.

  • Rising demand from construction industries in countries of Asia-Pacific and the time and cost-effectiveness of modular construction work with lower defects and reworks needed are expected to drive the market's growth. On the flip side, the high cost of logistics involved in modular construction is expected to hinder the growth of the market studied.
  • In the construction industry, the permanent modular segment accounted for the largest share, and by material, the steel segment accounted for the largest share.
  • The construction industry has been exploring innovative materials and technologies that can provide more high-quality housing using less construction time. On this basis, modular construction is one of the prominent sectors seeking lean techniques to improve overall operational workflows in providing housing with enhanced quality, productivity, safety, and efficiency.

Scope of the Report

Modular construction involves the delivery and assembling of pre-fabricated engineered building units at the construction site. The volumetric building modular units are usually in the form of highly serviced units, such as kitchens, toilets, complete rooms, or parts of a room. The construction process of modular buildings is faster than the conventional process, as it requires less time. Furthermore, other advantages associated with modular construction include greater flexibility, improved air quality, and reduced construction schedule. The modular construction market is segmented by construction, material, end-user industry, and geography. By construction, the market is segmented into permanent modular and relocatable modular. By material, the market is segmented into steel, concrete, wood, and plastic. By end-user industry, the market is segmented into commercial, industrial/institutional, and residential. The report also covers the market size and forecasts for the modular construction market in 15 countries across the major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD million).

Construction
Permanent Modular
Relocatable Modular
Material
Steel
Concrete
Wood
Plastic
End-user Industry
Commercial
Industrial/Institutional
Residential
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Benelux Countries
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

Report scope can be customized per your requirements. Click here.

Key Market Trends

Increasing Demand from the Commercial Sector

  • The commercial sector is the largest segment in the modular construction market. Commercial buildings are constructed using the modular construction process in accordance with the International Building Code (IBC) or a version of a code modeled after the IBC and state regulations.
  • The increasing demand for modular construction in Asia-Pacific is moving much of the construction process from the building site into factories. "While countries like China, Japan, Singapore, and Australia are increasingly adopting modular buildings to meet labor and housing shortages, increase in industrialization, rising urbanized population, rising demand for eco-friendly and sustainable construction and government support.​"
  • Government initiatives to reduce waste and promote green construction and building techniques is driving the demand for modular construction. For example: Singapore has mandated elements of prefabricated, pre-finished, and volumetric construction (PPVC) for all the projects on the government’s land. This is backed with subsidies for companies that participate with the aim of increasing and standardizing modern methods of construction (MMC) in the country, thereby increasing the demand for off-site construction.​​
  • In August 2021, Shenzhen announced its project to expand the campus of three local schools, with an estimated investment of CNY 1100 million. Approximately 194,000 square meters of new school buildings will be built in steel structures by August 2022.
  • Therefore, the above factors are expected to have a significant impact on the market in the coming years.
modular construction market trends

China to Grow at a Faster Pace

  • China accounts for the largest economy in Asia-Pacific. Increased construction activities in the country due to improved standards of living, increased spending power, and other factors are anticipated to boost the growth of the construction sector in the country.
  • The rising household income levels, combined with the population migrating from rural to urban areas, are expected to continue to drive the demand in the residential construction sector in the region. The increased focus on affordable housing by both the public and private sectors is driving the growth in the residential construction sector.​
  • Non-residential infrastructure is expected to grow considerably. The aging population in the country is creating a demand for the construction of healthcare facilities and new hospitals. The structural changes in the Chinese economy over the past few years, with the service sector taking a larger share in the total GDP, are giving rise to the construction of huge commercial and office spaces.
  • ​The country has the largest construction market in the world, encompassing 20% of all construction investments globally. China is expected to spend nearly USD 13 trillion on buildings by 2030, creating a positive market outlook.
  • The country has the largest construction market in the world, encompassing 20% of all construction investments globally. China is expected to spend nearly USD 13 trillion on buildings by 2030, creating a positive market outlook for the modular construction market.
  • According to the National Development and Reform Commission, the Chinese government approved 26 infrastructure projects at an estimated investment of about USD 142 billion in 2019, which are estimated to be completed by 2023 and are ongoing. The growing demand for housing is likely to drive residential construction in the country, both in the public and private sectors. The increase in the construction of tall buildings and hotels is driving the market studied.
  • Thus, the factors mentioned above are expected to boost the demand in the modular construction market in the region in the coming years.
modular construction market analysis

Competitive Landscape

The modular construction market is highly fragmented, with no player holding a significant share to influence the market. Some of the key players in the modular construction market include Katerra, Skanska, Bouygues Construction, Balfour Beatty, and TAISEI CORPORATION (not as per ranking).

Recent Developments

  • In May 2021, the US portable accommodation and storage company McGrath RentCorp acquired California-based Design Space Modular Buildings for USD 260 million. The deal may expand McGrath’s Mobile Modular division, adding around 6,400 units to its fleet. Almost 30% of Design Space’s fleet comprises storage units.
  • In April 2021, McGrath RentCorp announced it had acquired Kitchens To Go, a leader in interim and permanent modular solutions for foodservice providers requiring flexible facilities to continue or expand operations. The purchase may allow the Mobile Modular division of McGrath RentCorp to provide temporary and customized permanent foodservice facilities on a national level.
  • In January 2021, Etex Group announced the acquisition of a majority stake in France-based offsite construction company e-Loft, which provides solutions in three different modular domains, including single-family modular homes, modular multifamily residential complexes, and 3D wood technology-based custom-designed buildings, which is likely to enhance the company's modular construction business.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Drivers

      1. 4.3.1 Increasing Demand from the Construction Industries in Asia-Pacific Countries

      2. 4.3.2 Time and Cost-effective Method of Construction

      3. 4.3.3 Lower Defects and Rework

    4. 4.4 Market Restraints

      1. 4.4.1 High Cost of Logistics

    5. 4.5 Industry Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Bargaining Power of Suppliers

      2. 4.6.2 Bargaining Power of Consumers

      3. 4.6.3 Threat of New Entrants

      4. 4.6.4 Threat of Substitute Products and Services

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Production Process

    8. 4.8 Regulatory Policy Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Construction

      1. 5.1.1 Permanent Modular

      2. 5.1.2 Relocatable Modular

    2. 5.2 Material

      1. 5.2.1 Steel

      2. 5.2.2 Concrete

      3. 5.2.3 Wood

      4. 5.2.4 Plastic

    3. 5.3 End-user Industry

      1. 5.3.1 Commercial

      2. 5.3.2 Industrial/Institutional

      3. 5.3.3 Residential

    4. 5.4 Geography

      1. 5.4.1 Asia-Pacific

        1. 5.4.1.1 China

        2. 5.4.1.2 India

        3. 5.4.1.3 Japan

        4. 5.4.1.4 South Korea

        5. 5.4.1.5 Rest of Asia-Pacific

      2. 5.4.2 North America

        1. 5.4.2.1 United States

        2. 5.4.2.2 Canada

        3. 5.4.2.3 Mexico

      3. 5.4.3 Europe

        1. 5.4.3.1 Germany

        2. 5.4.3.2 United Kingdom

        3. 5.4.3.3 France

        4. 5.4.3.4 Italy

        5. 5.4.3.5 Benelux Countries

        6. 5.4.3.6 Rest of Europe

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle-East and Africa

        1. 5.4.5.1 Saudi Arabia

        2. 5.4.5.2 South Africa

        3. 5.4.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Colaborations, and Agreements

    2. 6.2 Market Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 ACS Actividades de Construccion y Servicios SA

      2. 6.4.2 Balfour Beatty

      3. 6.4.3 Bouygues Construction

      4. 6.4.4 Etex Group

      5. 6.4.5 Guerdon LLC

      6. 6.4.6 JL Construction

      7. 6.4.7 Julius Berger Nigeria PLC

      8. 6.4.8 Katerra

      9. 6.4.9 Kiewit Corporation

      10. 6.4.10 LAING O'ROURKE

      11. 6.4.11 LARSEN & TOUBRO LIMITED

      12. 6.4.12 Palomar Modular Buildings

      13. 6.4.13 RED SEA INTERNATIONAL

      14. 6.4.14 Skanska

      15. 6.4.15 System House R & C Co. Ltd

      16. 6.4.16 TAISEI CORPORATION

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Implementation of Building Information Modeling (BIM)

**Subject to Availability

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Modular Construction Market market is studied from 2017 - 2027.

The Modular Construction Market is growing at a CAGR of >8% over the next 5 years.

The Modular Construction Market is valued at 4043636 Million USD in 2017.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

Katerra, Skanska, Bouygues Construction, Balfour Beatty, TAISEI CORPORATION are the major companies operating in Modular Construction Market.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!