Modular construction is a process involving constructing sections or modules of a structure in an off-site manufacturing facility, which are then transported and installed onsite. Modular construction reduces construction time significantly as major work is carried out in parallel at two different places instead of linear execution of tasks. Modular construction also reduces costs through repetition of same procedures in a tightly controlled manufacturing facility environment which minimizes construction waste.
The global Modular Construction Market is estimated to be valued at US$ 84.48 billion in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rapid growth in the modular construction market is driven by reduced cost and construction time associated with modularization of construction. Modular construction involves high volume production techniques in controlled factory conditions which significantly reduces construction waste. It also allows parallel execution of onsite installation activities while offsite manufacturing is underway. This reduces the construction time by 30-50% as compared to traditional construction methods. Further, modular built structures are estimated to be 20% cheaper than conventional built buildings. Savings from reduced construction time and wastage have been driving increased adoption of modularization in commercial and residential construction globally. Standardized and repeatable modular construction processes help in optimizing the cost efficiencies.
Segment Analysis
The global modular construction market can be segmented based on type, material, and application. Based on type, the modular construction market is dominated by permanent modular construction. Permanent modular construction offers cost-saving advantages over traditional construction methods. Permanent modular construction involves constructing complete building modules or sections in a controlled factory environment and transporting them for on-site assembly. This allows construction to progress regardless of weather conditions and reduces the construction time.
Key Takeaways
The Global Modular Construction Market Demand is estimated to be valued at US$ 84.48 billion in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030.
Regional analysis: North America currently dominates the modular construction market owing to favorable government policies regarding green construction in the region. However, Asia Pacific is expected to witness the highest growth over the forecast period. The rapidly growing industrial and commercial sectors along with pro-infrastructure policies in developing countries such as China and India are boosting the demand for modular construction in Asia Pacific.
Key players: Key players operating in the modular construction market are Laing O’Rourke, Red Sea Housing, Atco, Bouygues Construction and VINCI. Laing O'Rourke is one of the leading modular construction companies globally. It has delivered various modular construction projects across sectors such as education, healthcare, transportation, and infrastructure. Red Sea Housing is a leader in prefabricated construction and provides customized modular building solutions.
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