Market Size of Modular Construction Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 63.76 Billion |
| Market Size (2029) | USD 97.13 Billion |
| CAGR (2024 - 2029) | 8.78 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Modular Construction Market Analysis
The Modular Construction Market size is estimated at USD 63.76 billion in 2024, and is expected to reach USD 97.13 billion by 2029, growing at a CAGR of 8.78% during the forecast period (2024-2029).
The sporadic outbreak of the COVID-19 pandemic in 2020 and the first half of 2021 drastically curtailed the construction sector due to imposed government bans and restrictions, thereby limiting the growth of the modular construction market. However, the sector has been recovering well since restrictions were lifted. An increase in house sales, new project launches, and increasing demand for new offices and commercial spaces have been leading the market recovery over the last two years.
- 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.
- The construction industry has been exploring innovative materials and technologies that can provide more high-quality housing using less construction time. The implementation of building information modeling (BIM) and potential savings in cost due to the adoption of modular construction will likely provide new growth opportunities for the market.
- Asia-Pacific dominated the market across the world, with the largest consumption from countries, such as Japan, China, and South Korea.
