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Modular Construction Market Size, Share, and Analysis, By Type (Permanent Modular Construction and Relocatable Modular Construction), By Module (Four-Sided Modules, Open-Sided Modules, Partially Open Sided Modules, and Others), By Material (Wood, Steel, Concrete, and Others), By End User (Residential, Commercial, Industrial, and Others), and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2023-2032
Modular Construction Market is expected to grow at a CAGR of 7% in the forecast period (2023-2032), with the market size valued at USD 118.3 billion in 2021 and projected to reach USD 249.3 billion by 2032.
Modular construction market refers to a sector that deals with the design, manufacturing, shipping, and installation of building components or full buildings in a factory setting. The modular construction industry is expanding rapidly, owing to a number of factors such as the demand for efficient and quick building solutions, enhanced quality control, affordability, and durability. It is widely used in the residential, commercial, healthcare, education, and hospitality sectors, where it meets the growing need for adaptable, high-quality construction solutions.
Modular Construction Market is expected to reach USD 249.3 billion, growing at a CAGR of 7%, owing mostly to its capacity to provide efficient, high-quality, and cost-effective building solutions. Modular construction meets the demands of numerous fields, from homes and businesses to healthcare and education, with shorter construction schedules, improved quality control in regulated factory conditions, and sustainable practices. This development is urther fueled by technical breakthroughs, government assistance, and the global spread of modular building processes, transforming it into a revolutionary force in the construction sector.
Source: Fatpos Global
Based on the Type, the market is divided into Permanent Modular Construction and Relocatable Modular Construction. The Permanent Modular Construction (PMC) segment is dominating the market along with growing at the fastest rate, driving the modular construction industry's development. PMC often gives sustainability in construction by minimizing waste, utilizing recycled materials, and incorporating energy-efficient design principles.
By Material, the Modular Construction Market is typically segmented into Wood, Steel, Concrete, and Others. The concrete segment dominated the modular construction market, owing to rising demand for concrete materials, mainly in the transportation and highway infrastructure industry. Due to its extensive usage in the development of strong and durable road infrastructure, concrete has emerged as the material of choice, adding considerably to income.
Source: Fatpos Global
Rising Infrastructure Investments in Rapidly Growing Economies to Drive Market Growth
Growing infrastructure expenditures in developing economies such as India, Vietnam, and China are propelling the modular construction industry forward. These countries are investing heavily on infrastructure to support their rising economies, making modular construction an appealing alternative due to its efficiency and cost-effectiveness. Additionally, increased commercial space investments are favorably impacting the modular construction industry.
Changing Government Measures to Fuel Market Growth
Government measures focused on decreasing construction waste and encouraging environmentally friendly building methods are propelling the modular construction business forward. For example, the Singaporean government has enforced the use of PPVC (prefabricated, pre-finished, volumetric construction) parts in several government projects and pays incentives to encourage the use of contemporary building technologies. Similarly, the Chinese State Council has pushed the use of prefabricated building components in new construction. Additionally, rising government funding for R&D in fresh construction solutions is projected to strengthen the prefabricated construction industry in the coming years, reflecting a larger worldwide movement toward green and efficient building techniques.
Increasing Offsite Manufacturing Investments and the Global Financial Crisis are hindering Market Growth
Modular construction frequently requires large expenditures and relies on consistent market development for long-term profitability. Difficulties with project pre-planning, which could require considerable coordination efforts for important parts like as layout, on-site installation, and transportation. As a result of strategic project pre-planning, manufacturing expenditures may grow, putting pressure on the investment rate. This dynamic has the potential to hinder the overall growth of the modular building industry, highlighting the significance of strong project management and cost-effective planning procedures in order to overcome these obstacles and realize the full potential of this revolutionary construction strategy.
Modular Construction Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. The Asia Pacific region will dominate the modular construction market due to rising building activity driven by demand in the residential and commercial sectors, as well as government efforts to encourage eco-friendly housing. The usage of modular engineering for construction is increasing in areas such as healthcare, education, and multi-family housing throughout North America.
Source: Fatpos Global
The COVID-19 outbreak had resulted in the economic downfall. National lockdown measures have halted building activity, having a significant impact on construction sector. Migrant worker departures from construction site have arisen as a key concern, interrupting construction operations across the world. The COVID-19 pandemic has caused significant market uncertainty and volatility, resulting in total economic shutdowns in nations such as India, China, the United States, Italy, Israel, and the United Kingdom, damaging enterprises across several industries. As a result, the number of new residential and non-residential building projects has decreased significantly, lowering demand for modular construction. Commercial and residential development projects, which are frequently funded by financial institutions and investors, have also been hit.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2032 |
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Base Year |
2022 |
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Forecast Period |
2022-2032 |
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Historical Period |
2019-2021 |
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Growth Rate |
CAGR of 7% from 2022-2032 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Type |
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By Material |
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By Module |
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By End Users |
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By Region |
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Modular Construction Market size was values at USD 118.3 billion in 2021 and is projected to reach the value of USD 249.3 billion in 2032, exhibiting a CAGR of 7% during the forecast period.
The modular construction industry involves building structures using prefabricated modules or components manufactured in a controlled industrial setting and then assembling them on-site. It has advantages such as faster construction, lower expenses, and sustainability and is employed in a variety of industries including as residential, commercial, and healthcare.
The Permanent Modular Construction segment and the Concrete segment accounted for the largest Modular Construction Market share.
Key players in the Modular Construction Market include Lendlease Corporation, Skanska AB, Laing O'Rourke, Red Sea Housing Services, Bouygues Construction, Katerra, Kiewit Corporation, Balfour Beatty plc, Stora Enso, Clayton Homes, Champion Homes, Modular Space Corporation, Atco Ltd., Algeco Scotsman, Fluor Corporation, and Other Prominent Players.
Rising infrastructure investments and changing government measures are the factors driving the Modular Construction Market.
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