Modular Construction Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Modular Construction Market Report Segments the Industry by Construction Type (Permanent Modular and Relocatable Modular), Material (Steel, Concrete, and More), End-User Sector (Residential, Commercial, and Industrial/Institutional), Service Stage (New Construction and After-Sales Maintenance and Refurbishment (Renovation)), and Geography (Asia-Pacific, North America, Europe, South America, and Middle East and Africa).

Modular Construction Market Size and Share

Modular Construction Market Summary
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Modular Construction Market Analysis by Mordor Intelligence

The modular construction market stands at USD 91.25 billion in 2025 and is projected to reach USD 122.24 billion by 2030, expanding at a 6.02% CAGR. Rising labor shortages, supportive regulations, and the visible success of factory-built housing projects are repositioning modular methods from niche solutions to primary construction options across many regions. Asia-Pacific commands a 47% revenue share, powered by rapid urbanization, long-running affordable-housing mandates, and a deep manufacturing base that supplies modules to domestic and export projects. Permanent solutions account for 67% of the modular construction market, reflecting broad acceptance that factory-assembled buildings can meet durability and aesthetic expectations equal to site-built structures. Steel frameworks remain the backbone of production with an 84% share, favored for structural strength, dimensional stability, and well-established supply chains. Institutional owners—particularly education and healthcare operators—lead demand because off-site fabrication minimizes disruption, accelerates occupancy, and compresses overall project schedules.

Key Report Takeaways

  • By construction type, permanent modular captured 67% of the modular construction market share in 2024, while relocatable units are the fastest-growing application at a 7.39% CAGR through 2030.
  • By material, steel frameworks held 84% of the modular construction market share in 2024; and are projected to expand at a 6.12% CAGR to 2030.
  • By end-user sector, industrial and institutional facilities accounted for 43% of the modular construction market size in 2024; residential is poised to grow at 7.82% CAGR through 2030.
  • By service stage, new construction represented 72% of 2024 revenue, with after-sales maintenance & refurbishment (renovation) expected to register the fastest growth at 6.54% CAGR through 2030.
  • By geography, Asia-Pacific led with 47% revenue share in 2024, and is projected to post the highest regional CAGR of 7.18% to 2030.

Segment Analysis

Construction Type: Permanent Solutions Dominate Market Share

Permanent modular formats delivered 67% of 2024 revenue. Within that share, residential high-rise projects such as 147 St. Felix in Brooklyn illustrate architectural flexibility that dismisses lingering perceptions of “boxy” units. The modular construction market size for permanent solutions is forecast to expand alongside digital design tools that knit mechanical, electrical, and plumbing systems into repeatable chassis, reducing re-work during assembly. 

Institutional clients prize the diminished disruption that off-site fabrication delivers. Fifteen-story dormitory schemes erected in half the usual time frame help universities like California Polytechnic State University secure student revenue faster. Developers also value factory-controlled quality, which meets or exceeds code for structural integrity and fire resistance, supporting premium valuations in the modular construction market.

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Material: Steel Frameworks Underpin Industry Growth

Steel claimed 84% of 2024 material volume due to its high strength-to-weight ratio and global availability. The modular construction market size for steel-based modules benefits from predictable torsional rigidity, allowing taller configurations without material changes. Insurance carriers often reduce premiums for non-combustible frames, tipping whole-life costs further in steel’s favor. 

A 20-year lifecycle study comparing a typical 10,000 ft² project pegged total outlay at USD 350,000 for steel modules versus up to USD 1.1 million for traditional builds, underscoring economic resilience. Emerging engineered-wood technologies, such as cross-laminated timber, are penetrating niche mid-rise projects, but steel’s mature supply chain and recycling value maintain its dominance in the modular construction market.

End-user Sector: Industrial/Institutional Applications Lead Adoption

Industrial and institutional clients delivered 43% of 2024 sales. Hospitals turn to off-site fabrication to minimize operating-room downtime, while school districts rely on factory-built classrooms to add capacity with minimal campus disturbance. Collectively, these factors position the institutional segment as the anchor of the modular construction market. 

The expansion of commercial offices, driven by flexible work policies, is encouraging landlords to implement adaptable floorplates that can be reconfigured off-site. Retailers deploy relocatable units for pop-up concepts that test new markets without lengthy capex commitments. Together, these shifts broaden the modular construction industry’s demand profile beyond its early health-care and education heartland.

Modular Construction Market: Market Share by End-user Sector
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Note: Segment shares of all individual segments available upon report purchase

Service Stage: New Construction Dominates Current Applications

New-build projects generated 72% of revenue in 2024. Developers prefer sourcing entire modules from one factory to maximize coordination and minimize sequencing risk, cementing new construction as the core of the modular construction market. 

As delivery volumes rise, a secondary market for module refurbishment is forming. Maintenance providers can swap façade panels or mechanical pods in controlled factory settings, shortening downtime compared with on-site refits. Circular-economy models that reclaim steel frames at end-of-life further extend the profit pool and enhance sustainability credentials, promising fresh revenue lines within the modular construction market.

Modular Construction Market: Market Share by Service Stage
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Geography Analysis

Asia-Pacific dominated with 47% modular construction market share in 2024. China’s vast manufacturing footprint enables low-cost module production, while Japan’s pioneers such as Sekisui House sustain a reputation for high-precision factory homes. Australia’s import of USD 330 million of prefab components over five years highlights robust cross-border trade, and state budgets earmark modular stock to ease social-housing backlogs. Urbanization pressures, supported by government grants, assure continued regional leadership.

North America holds significant expansion potential between 2025 and 2030. The United States faces a deficit of skilled construction labor amid a 7 million-home supply gap, so factory processes that decouple labor intensity from site location appeal strongly. HUD’s 2024 code overhaul and pending Federal legislation encourage wider adoption. Canada’s national housing strategy explicitly references prefabricated solutions, with senior ministers advocating modular supply to improve affordability[3]Government of Canada, “National Housing Strategy Progress Report 2024,” canada.ca .

Europe shows varied maturity by sub-region. Nordic countries display seasoned off-site ecosystems; Sweden builds 45% of homes in factories, offering proven technical and commercial templates for neighboring markets. The United Kingdom targets 25% modular penetration by 2030 and funds risk assessments to accelerate take-up. Southern Europe lags due to fragmented supply chains and complex permitting, yet rising carbon-reduction goals and labor scarcity are likely to converge in favor of the modular construction market.

Modular Construction Market CAGR (%), Growth Rate by Region
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Competitive Landscape

Global competition is regionally clustered because haul-distance economics and local building codes restrict plant catchments. Skanska, Bouygues Construction, and Lendlease deploy vertically integrated models that include development, design, factory production, and on-site assembly, allowing tight control over quality and schedule. In Japan, Sekisui House operates dedicated lines capable of outputting customized homes in days, while Clayton Homes dominates the U.S. modular housing niche via a network of regional factories.

Strategic M&A is redefining scale economics. ATCO Structures’ 2024 acquisition of NRB Modular Solutions expanded its relocatable and permanent offerings, while Builders FirstSource’s purchase of Alpine Lumber brought engineered structural products into its national network. Technology investment is equally pivotal: AECOM integrates BIM, data analytics, and program-management platforms to win megaproject mandates, citing a record design backlog in 2025. Artificial-intelligence pilots focus on automated design-for-manufacture scripts that raise throughput and reduce change-order risk, reinforcing digital capabilities as a competitive moat within the modular construction market.

Bankruptcies of capital-intensive start-ups highlight execution challenges. Firms such as Katerra raised significant venture funds yet failed to attain the throughput required to offset fixed-plant costs. Consequently, established contractors with balance-sheet strength or joint-venture consortiums currently command buyer confidence, while smaller entrants often specialize in niche medical or educational pods to avoid head-to-head competition.

Modular Construction Industry Leaders

  1. Bechtel Corporation

  2. Laing O'Rourke

  3. Red Sea International

  4. Sekisui House Ltd

  5. Skanska

  6. *Disclaimer: Major Players sorted in no particular order
Modular Construction Market
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Recent Industry Developments

  • February 2025: Skanska has finalized an agreement to sell its modular factory, BoKlok Byggsystem AB, located in Gullringen, Sweden, for approximately SEK 110 million (~USD 10.11 million), to Surewood Housing AB, which is part of Gelba and Active Invest.
  • September 2024: ATCO Structures has successfully acquired NRB Modular Solutions, enhancing its portfolio of modular products. This acquisition is expected to strengthen ATCO's position in the modular construction market by offering a more diverse range of solutions to meet evolving customer demands.

Table of Contents for Modular Construction Industry Report

1. Introduction

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Increasing Demand for Modular Construction from Developed Economies
    • 4.2.2 Supportive Government Initiatives for Modular Construction
    • 4.2.3 Rising Demand for Temporary/Portable Structures
    • 4.2.4 Significantly Reduced Project Timelines
    • 4.2.5 Solution to Skilled Labor Shortage
  • 4.3 Market Restraints
    • 4.3.1 High Initial Investment
    • 4.3.2 Design Limitations
    • 4.3.3 Regulatory and Code Variations Across region
  • 4.4 Value Chain Analysis
  • 4.5 Porter’s Five Forces
    • 4.5.1 Bargaining Power of Suppliers
    • 4.5.2 Bargaining Power of Buyers
    • 4.5.3 Threat of New Entrants
    • 4.5.4 Threat of Substitutes
    • 4.5.5 Degree of Competition

5. Market Size and Growth Forecasts (Value)

  • 5.1 Segmentation by Construction Type
    • 5.1.1 Permanent Modular
    • 5.1.2 Relocatable Modular
  • 5.2 Segmentation by Material
    • 5.2.1 Steel
    • 5.2.2 Concrete
    • 5.2.3 Wood
    • 5.2.4 Plastic
  • 5.3 Segmentation by End-user Sector
    • 5.3.1 Residential
    • 5.3.2 Commercial
    • 5.3.3 Industrial/Institutional
  • 5.4 Segmentation by Service Stage
    • 5.4.1 New Construction
    • 5.4.2 After-sales Maintenance and Refurbishment (Renovation)
  • 5.5 Segmentation by Geography
    • 5.5.1 Asia-Pacific
    • 5.5.1.1 China
    • 5.5.1.2 India
    • 5.5.1.3 Japan
    • 5.5.1.4 South Korea
    • 5.5.1.5 Australia
    • 5.5.1.6 Rest of Asia-Pacific
    • 5.5.2 North America
    • 5.5.2.1 United States
    • 5.5.2.2 Canada
    • 5.5.2.3 Mexico
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 United Kingdom
    • 5.5.3.3 France
    • 5.5.3.4 Italy
    • 5.5.3.5 Nordics
    • 5.5.3.6 Rest of Europe
    • 5.5.4 South America
    • 5.5.4.1 Brazil
    • 5.5.4.2 Argentina
    • 5.5.4.3 Chile
    • 5.5.4.4 Rest of South America
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Saudi Arabia
    • 5.5.5.2 United Arab Emirates
    • 5.5.5.3 Turkey
    • 5.5.5.4 South Africa
    • 5.5.5.5 Nigeria
    • 5.5.5.6 Rest of Middle East and Africa

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share(%)/ Ranking Analysis
  • 6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)}
    • 6.4.1 ACS Group
    • 6.4.2 Algeco UK Limited (Modulaire Group)
    • 6.4.3 Alta-Fab Structures Ltd.
    • 6.4.4 ATCO Ltd
    • 6.4.5 Balfour Beatty
    • 6.4.6 Bechtel Corporation
    • 6.4.7 Bouygues Construction
    • 6.4.8 CIMC Modular Building
    • 6.4.9 Daiwa House Industry Co. Ltd
    • 6.4.10 Fluor Corporation
    • 6.4.11 Guerdon, LLC.
    • 6.4.12 Laing O'Rourke
    • 6.4.13 Larsen & Toubro Limited
    • 6.4.14 Lendlease Corporation
    • 6.4.15 Red Sea International
    • 6.4.16 Sekisui House Ltd
    • 6.4.17 Skanska
    • 6.4.18 Stack Modular
    • 6.4.19 Wernick Group
    • 6.4.20 WillScot Holdings Corporation
    • 6.4.21 Zekelman Industries

7. Market Opportunities and Future Outlook

  • 7.1 Green and Sustainable Construction Demand
  • 7.2 White-space and Unmet-Need Assessment
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Global Modular Construction Market Report Scope

Modular construction involves delivering and assembling pre-fabricated engineered building units on the construction site. The construction process of modular buildings is faster than the conventional process, as it requires less time and offers greater flexibility and improved air quality.

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. The market is segmented by materials: 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 sizes and forecasts for the modular construction market in 15 countries across major regions. For each segment, the market sizing and forecasts are done based on value (USD).

Segmentation by Construction Type Permanent Modular
Relocatable Modular
Segmentation by Material Steel
Concrete
Wood
Plastic
Segmentation by End-user Sector Residential
Commercial
Industrial/Institutional
Segmentation by Service Stage New Construction
After-sales Maintenance and Refurbishment (Renovation)
Segmentation by Geography Asia-Pacific China
India
Japan
South Korea
Australia
Rest of Asia-Pacific
North America United States
Canada
Mexico
Europe Germany
United Kingdom
France
Italy
Nordics
Rest of Europe
South America Brazil
Argentina
Chile
Rest of South America
Middle East and Africa Saudi Arabia
United Arab Emirates
Turkey
South Africa
Nigeria
Rest of Middle East and Africa
Segmentation by Construction Type
Permanent Modular
Relocatable Modular
Segmentation by Material
Steel
Concrete
Wood
Plastic
Segmentation by End-user Sector
Residential
Commercial
Industrial/Institutional
Segmentation by Service Stage
New Construction
After-sales Maintenance and Refurbishment (Renovation)
Segmentation by Geography
Asia-Pacific China
India
Japan
South Korea
Australia
Rest of Asia-Pacific
North America United States
Canada
Mexico
Europe Germany
United Kingdom
France
Italy
Nordics
Rest of Europe
South America Brazil
Argentina
Chile
Rest of South America
Middle East and Africa Saudi Arabia
United Arab Emirates
Turkey
South Africa
Nigeria
Rest of Middle East and Africa
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Key Questions Answered in the Report

What is the current value of the modular construction market?

The modular construction market is valued at USD 91.25 billion in 2025 and is forecast to reach USD 122.24 billion by 2030.

Which region holds the largest modular construction market share?

Asia-Pacific leads with 47% of 2024 revenue, supported by rapid urbanization and strong government backing for factory-built housing.

Why is steel the preferred material for modular buildings?

Steel commands 84% share because of its strength-to-weight ratio, fire resistance, and mature recycling and supply chains, which together reduce lifecycle costs.

How quickly can a modular project be delivered compared with traditional construction?

Parallel site and factory workflows cut schedules by 30–50%, enabling faster revenue generation and lower financing risk.

What are the main barriers to wider modular adoption?

High upfront factory investment and inconsistent building codes across jurisdictions raise entry costs and complicate expansion for modular producers.

Modular Construction Market Report Snapshots