Global Modular Construction Market Insights Forecasts to 2030
- The global modular construction market was valued at USD 137.8 Billion in 2021.
- The market is growing at a CAGR of 8.1% from 2022 to 2030
- The global modular construction market is expected to reach USD 277.76 Billion by 2030
- Europe is expected to grow the fastest during the forecast period
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The global modular construction market is expected to reach USD 277.76 Billion by 2030, at a CAGR of 8.1% during the forecast period 2022 to 2030. The modular construction market has grown due to the increasing investment in the construction sector for affordable, environment-friendly, high-quality modular structures. There are advancements in new technologies to help ease the modular construction experience of people, which is expected to provide growth opportunities for the market during the forecast period.
Modular construction refers to the construction of a building offsite and assembling it at its final location under controlled plant conditions. In the modular construction industry, lean techniques are being implemented to improve overall operational workflows to improve productivity, quality, efficiency and safety. Depending on the design, modular modules could include fully functional rooms, such as bathrooms or elevators, or only a portion of a room. In comparison with conventional construction, modular construction produces fewer site disturbances and reduces waste. Structures like industrial buildings, classrooms, construction camps, and military housing can be constructed using modular construction. In the hospitality and education sector, modular units will likely become increasingly popular due to their reduced cost and ease of installation. Although modular construction is widely used, the lack of reliability in earthquake-prone regions substantially hampers its growth. The modular construction market is estimated to grow to USD 277.76 billion by 2030 at a CAGR of 8.1%. A number of additional benefits are contributing to its growing popularity, such as its ability to compete in remote areas, its environmentally friendly construction process, its high quality, market acceptance, and low waste generation. Moreover, the pre-planning of strategic projects leads to increased manufacturing investments and greater pressure on investment rates for further stages, inhibiting the market’s overall growth. Additionally, rapid industrialization, urbanization, and the demand for highly technical buildings at reasonable prices are expected to fuel the growth of the industry for the next few years.
This research report categorizes the global modular construction market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global modular construction market. Recent market developments and competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each global modular construction market sub-segments.
Global Modular Construction Market Report Coverage
|Market Size in 2021:||USD 137.8 Billion|
|Forecast Period 2021-2030 CAGR:||8.1%|
|2030 Value Projection:||USD 277.76 Billion|
|Historical Data for:||2017-2020|
|No. of Pages:||206|
|Tables, Charts & Figures:||137|
|Segments covered:||By Type, By Material, By End User, By Region, COVID-19 Impact Analysis|
|Companies Covered:||Skanska AB, Speed House Group of Companies, S.G. Blocks Inc., Atco, Katerra, Balfour Construction, TAISEI CORPORATION, Bouygues Construction, Lendlease Corporation, Giant Containers Inc., Red Sea Housing, Bechtel Corporation, Kleusberg GmbH, Laing O’Rourke, and Algeco Scotsman.|
|Pitfalls & Challenges:||Modern modular constructions are of excellent quality, adaptability, and design, but they still carry a negative connotation.|
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- Driver- Rise in Demand
In the upcoming years, rising urbanisation and industrialisation in developing nations like India and Indonesia is anticipated to be the primary development driver for the modular building industry. The market for modular construction is also anticipated to expand in the next years as a result of increased infrastructure spending. The market for modular construction may potentially expand as a result of increased investments in the development of commercial spaces employing the module format in the future. The market for modular construction may experience development in the years to come as a result of an increased need for work-zone safety. The development of green buildings and waste reduction programmes are two government efforts and policies that may in the future potentially boost the market for modular construction.
- Restraint- Huge size
The size of modular buildings is constrained since they must be delivered to your location. For instance, the traditional construction technique might be the ideal choice if you want to add a really large building to your property. Despite this, many companies, healthcare organizations, and educational institutions choose to purchase a number of modular buildings that may be combined to form a larger complex of additional offices, conference rooms, and classrooms.
- Opportunity- Structural Development
This expansion is related to the expanding off-site construction activity in urban areas. Additionally, the expansion of modular building is being aided by the expanding infrastructure in emerging nations all over the world. Off-site construction is not impacted by weather because it is produced in enclosed factories with cutting-edge equipment, reducing erection time and delivering high-quality goods.
- Challenges- Stigma
Modern modular constructions are of excellent quality, adaptability, and design, but they still carry a negative connotation. Prefabs from the 1970s come to mind, which is a long cry from the kinds of modular structures that are offered nowadays. Even if this drawback is modest, certain people express worries about choosing modular buildings over traditional construction, it might occasionally slow down your internal planning process.
- In 2021, the solution segment accounted for the largest share of the market, with 58.6% and a market revenue of 80.7 billion.
Based on the technology, the modular construction market is categorized into relocatable and permanent. In 2021, the solution segment accounted for the largest share of the market, with 58.6% and a market revenue of 80.7 billion. The demand for solutions is increasing because these are used in the treatment of dry eye disease. The rising demand for solutions propels the growth of the OTC artificial tears market.
- In 2021, the steel segment accounted for the largest share of the market, with 26.8% and market revenue of 36.93 billion.
Based on the material, the modular construction market is categorized into plastic, steel, wood, precast concrete and others. In 2021, the steel segment accounted for the largest share of the market, with 26.8% and market revenue of 36.93 billion. The increasing financial outlay for the development of affordable housing structures coupled with the rapid growth of the industrial sector in developing economies is expected to augment the market growth.
- In 2021, the commercial segment accounted for the largest share of the market, with 31.6% and a market revenue of 43.54 billion.
Based on the end user, the modular construction market is categorized into healthcare, education, commercial, industrial and housing. In 2021, the commercial segment accounted for the largest share of the market, with 31.6% and market revenue of 43.54 billion. Starting up is an increasing trend in developing economies, which means the commercial sectors with the most market share are growing the fastest.
Regional Segment Analysis of the modular construction Market
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- North America (U.S., Canada, Mexico)
- Europe (Germany, France, the U.K., Italy, Spain, Rest of Europe)
- Asia-Pacific (China, Japan, India, Rest of APAC)
- South America (Brazil and the Rest of South America)
- The Middle East and Africa (UAE, South Africa, Rest of MEA)
Asia Pacific emerged as the largest market for the global modular construction market, with a market share of around 35.87% and 137.8 billion of the market revenue in 2021.
- In 2021, Asia Pacific emerged as the largest market for the global modular construction market, with a market share of around 38.28% and 137.8 billion of the market revenue. Asia Pacific is expected to be the largest market. With access to raw materials and manpower, along with advances in technology and innovation, Asia Pacific has seen its economy grow rapidly.
- European market is expected to grow at the fastest CAGR between 2021 and 2030. In addition to its dominant position in many industrial segments, Europe also has a significant market share in modular construction.
The report offers the appropriate analysis of the key organizations/companies involved within the global modular construction market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the companies' current news and developments, including product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.
List of Key Market Players:
- Skanska AB
- Speed House Group of Companies
- S.G. Blocks Inc.
- Balfour Construction
- TAISEI CORPORATION
- Bouygues Construction
- Lendlease Corporation
- Giant Containers Inc.
- Red Sea Housing
- Bechtel Corporation
- Kleusberg GmbH
- Laing O’Rourke
- Algeco Scotsman
Key Target Audience
- Market Players
- Government Authorities
- Consulting And Research Firm
- Venture capitalists
- Third-party knowledge providers
- Value-Added Resellers (VARs)
Some of the Key Developments:
- In April 2021, With the acquisition of Kitchens To Go, McGrath RentCorp has become the world's leading provider of interim and permanent modular food service facilities to enable food service providers to continue or expand operations while providing temporary and customized permanent food service facilities across the nation.
- In July 2021, A significant market presence across Europe was established by Modulaire Group through the acquisition of Procomm Site Services Ltd.
This study forecasts global, regional, and country revenue from 2019 to 2030. Spherical Insights has segmented the global modular construction market based on the below-mentioned segments:
Global Modular Construction Market, By Type
Global Modular Construction Market, By Material
- Precast Concrete
Global Modular Construction Market, By End User
Global Modular Construction Market, Regional Analysis
- North America
- THE US
- Rest of Europe
- The Asia Pacific
- South Korea
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
Frequently Asked Questions (FAQ)
What is the market size of the Modular Construction market?As per Spherical Insights, the size of the Modular Construction market was valued at USD 137.8 billion in 2021 to USD 277.76 billion by 2030.
What is the market growth rate of the Modular Construction market?The Modular Construction market is growing at a CAGR of 8.1% from 2021 to 2030.
Which country dominates the Modular Construction market?Asia Pacific emerged as the largest market for Modular Construction.
Who are the key players in the Modular Construction market?Key players in the Modular Construction market are Skanska AB, Speed House Group of Companies, S.G. Blocks Inc., Atco, Katerra, Balfour Construction, TAISEI CORPORATION, Bouygues Construction, Lendlease Corporation, Giant Containers Inc., Red Sea Housing, Bechtel Corporation, Kleusberg GmbH, Laing O’Rourke, and Algeco Scotsman.
Which factor drives the growth of the Modular Construction market?Rapid urbanization and industrialization is expected to drives the market's growth over the forecast period.
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