The Modular Construction Market is estimated to be valued at US$ 84.48 Bn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Modular construction refers to a process in which structures are constructed off-site in sections known as modules and then transported to the intended site for assembly. Modular construction offers advantages such as reduced costs, reduced construction time, improved safety, and standardization. It is widely used in commercial, healthcare, education, and residential construction.
Market key trends:
One of the major trends driving the growth of the modular construction market is prefabrication. Prefabrication refers to the construction of sections or modules of a building in an off-site manufacturing facility and transporting them to the construction site for assembly. Prefabrication offers advantages such as cost-efficiency, reduced construction time, flexibility in design, improved quality, and safety. It is estimated that prefabrication reduces construction time by 30% as compared to conventional on-site construction. With growing construction activities and shortage of labor, prefabrication is gaining widespread acceptance in the construction industry. This is expected to support the growth of the modular construction market over the forecast period.
Porter’s Analysis
Threat of new entrants: High capital requirements and recognizable brand names pose a high entry barrier for new entrants. Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and fragmented buyers base. Bargaining power of suppliers: Suppliers have moderate bargaining power due to differentiated requirements from buyers and availability of substitute materials. Threat of new substitutes: Threat of substitutes is moderate due to availability of alternative construction methods. Competitive rivalry: High due to presence of large number of vendors competing based on product quality, pricing and innovation.
SWOT Analysis
Strength: Standardized design and customizable offerings provide time and cost savings. Weakness: Depends on transportation infrastructure for delivery. Initial high costs for R&D. Opportunity: Increasing regulatory support and focus on green buildings present opportunities. Growing construction spending globally especially in emerging economies. Threats: Economic slowdowns can negatively impact demand. Substitutes like conventional construction pose threats.
Key Takeaways
The global Modular Construction Market Share is expected to witness high growth, exhibiting CAGR of 6.5% over the forecast period, due to increasing demand for affordable housing and infrastructure projects. The Asia Pacific region dominated the market in 2023 with a share of over 35%, due to rapid urbanization and increasing infrastructure development in major economies like China and India. North America is expected to grow at a CAGR of around 5.5% during 2023-2030 on account of rising commercial and industrial construction activities in the US.
Key players operating in the modular construction market are Guerdon Modular Buildings (U.S.),Laing O'Rourke (U.K.),ATCO (Canada),Red Sea International Company (Saudi Arabia),Bouygues Construction (France),VINCI Construction Grands Projets (U.K.),Skanska AB (Sweden),Algeco (U.K.),KLEUSBERG GmbH & Co. KG (Germany),Katerra (U.S.),Lendlease Corporation (Australia).
Read More,
https://www.newsstatix.com/modular-construction-market-trends-size-and-share-analysis/
