Modular Construction Market By Type (Permanent and Relocatable), by Material (Wood, Steel, and Concrete), By Module Type (Open-sided, Partially Open-sided, Four-sided, Mixed Modules & Floor Cassettes, and Others), by Application (Commercial, Residential, Healthcare, Hospitality, Others), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032

Market Overview

The global Modular Construction Market size was worth around USD 101.3 billion in 2022 and is projected to reach a valuation of USD 168.7 billion by 2032 at a CAGR of around 5.8% during the forecast period, 2023-2032.

The modular construction market has grown in recent years due to the demand for high-performing materials like steel, wood, and concrete in both the commercial and residential sectors. The growth is attributed to reduced costs and timelines, increased demand for new structures, and growth in population and urbanization. The market is expected to grow further with the rise in infrastructure project investments. Modular construction technology is seen as a hallmark of high-quality construction, benefiting home, business, and infrastructure building.

Key Insights of the Modular Construction Market

• Based on type, the permanent modular construction segment generated the highest market revenue
• Based on material, the concrete segment held the largest market share
• Based on the module type, open-sided dominated the market share
• On the basis of region, Asia Pacific accounted largest market share

High Adoption of Affordable Modular Construction Technologies Augments the Market Growth

Urbanization, industrialization, and demand for high-end yet affordable structures drive growth in the modular construction market. The market is also boosted by the increasing adoption of sustainable and affordable building practices and rising construction activity in developing countries. The need for housing, utilities, infrastructure, and social services drives the use of cost-effective modular construction technologies to ensure uniform quality, further supporting market growth. Additionally, modular construction results in less waste compared to traditional methods, expected to positively impact the global modular construction market.

3D Printed Technology is Gaining Ground in the Modular Construction Market

3D printing builds objects from digital files using layers of material. It's used in industries like engineering, construction, and manufacturing for quick, precise parts creation. Modular construction increasingly adopts 3D printing to speed up the construction process and minimize waste, as all parts can be reused or recycled.

For example, companies such as the National Fire Protection Association's Cheniuntai already use 3D printers to construct homes, buildings, and other structures globally. The University of Idaho developed a technology in September 2021 that turns wood waste into one of the most sustainable building materials using 3D printing. The university also secured additional funding to further advance the development and testing of 3D printing processes and the design of printers capable of producing modular wall, floor, and roof panels from wood for industrial construction.

The dearth of Skilled Labor in Emerging Nations is a Challenge for the Market

The market growth is hindered by various challenges such as a shortage of skilled personnel, mobility issues, and ignorance. Consumer perceptions of quality and financing concerns also limit the modular construction market growth. The uncertain and fluctuating cost of shipping can also be an obstacle for the modular construction market. However, the modular construction approach allows designers to prioritize component casting based on function, saving time and money.

Segmental Analysis

Based on type, the modular building market is bifurcated into two types, permanent and relocatable, with the permanent modular construction market holding the majority of the market share. Compared to on-site construction, it offers superior quality control and can either be integrated into an existing building or created to stand alone.

Based on material, the modular construction market is segmented into three material-based segments: wood, steel, and concrete, where the steel sector is predicted to lead throughout the projected period. This kind of steel is used to create columns, angles, I-beams, T-shapes, and H-type beams, among other shapes. The steel modular construction market offers strength and longevity, and it is suitable for parking lots, commercial buildings, mixed-use developments, and residential housing.

Based on application, the modular construction market is segmented into commercial, residential, healthcare, hospitality, and others based on application. Single-family homes, multi-story residential structures, and rental housing complexes are all included in the residential application section.

Recent Developments

• In November 2022- Panasonic Life Solutions India launched its latest modular kitchen range -I-Class Kitchen. The new product I-Class kitchen strengthens the marketing activities with a view to further expanding the business and establishing a brand for the residential equipment business.
• In May 2021- MiTek Inc. collaborated with Danny Forster & Architecture to streamline the process of installing the essential utilities, provide innovations through the modular initiative, and build the market for modular building more accessible.
• In July 2022- Nexii Building Solutions received funding of USD 35 million from a group of investors led by Horizon Technology Finance Corporation and Trinity Capital Inc. This funding helped Nexii to accelerate its on-going growth and manufacturing capacity through its innovative, effective, and environmentally friendly building.

Asia Pacific Region is Expected to Dominate owing to the Growing Construction of New Residential and Commercial Buildings

The Asia Pacific modular construction market has seen substantial growth in the past decade, driven by the demand for sustainable construction methods and new residential and commercial buildings. By 2022, Asia Pacific accounted for over 50% of the global market share for modular construction. This was primarily due to the high demand for new housing in China, India, and other countries in the region.

The Chinese government implemented policies to stimulate market growth, such as reducing down payments on second-home loans and exempting general housing from consumption tax, resulting in a recovery of the commercial housing market. Advanced robotics technology in Japan also drives modular construction market growth. Emerging Southeast Asian countries like India, Malaysia, and Thailand are investing heavily in government infrastructure plans to meet their populations' needs.

Europe to Foresee Healthy Growth due to the Increased Focus on Green Modular Construction Market Infrastructure

The Europe modular construction market is set to grow with increased government support for the creation of housing structures to house increasing numbers of migrants. The popularity of green buildings in industrialized nations like the UK, France, and Germany also drives growth. The Netherlands and the UK have focused on using innovative volumetric technology.

In 2020, the European Commission launched a USD 4.08 billion funding program to support green modular construction, aiming to increase modular construction by 25% by 2025 and reduce energy consumption and greenhouse gas emissions. The funding will support the development of innovative building methods and technologies, as well as retrofitting existing structures with modular building systems, resulting in greater durability and sustainability.

Key Market Players

Some of the key players in the modular construction industry are Red Sea International, Petroliam Nasional Berhad (PETRONAS), Bouygues Construction, Northgate Industries Ltd., ATCO LTD., Kleusberg GmbH & Co KG, Laing O'rourke, Ramtech Building Systems, Inc., VESTA Modular, Sika AG, Panasonic Corporation, MiTek Inc, and Nexii Building Solutions Inc., amongst others.

The global modular construction market is segmented as follows::

By Type

• Relocatable
• Permanent

By Material

• Wood
• Steel
• Concrete
• Others

By Module Type

• Open-sided
• Partially Open-sided
• Four-sided
• Mixed Modules & Floor Cassettes
• Others

By Application

• Commercial
• Residential
• Healthcare
• Hospitality
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America