The global 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 a building is constructed off-site, under controlled plant conditions, using the same materials and constructing techniques as conventionally built structures. Modular buildings are made up of repeating sections called modules that are designed and constructed in a controlled environment before being transported and assembled on site. Some of the key advantages of modular construction include reduced construction schedule, controlled quality, cost-effectiveness, and sustainability.
Market key trends:
Increasing demand for affordable housing across residential sector is one of the major trends positively impacting the growth of modular construction market. Modular construction offers 30-50% savings in construction time along with 20-30% savings in construction costs as compared to traditional construction methods. This makes modular construction an affordable solution, especially for mass housing projects. Moreover, strict emission norms and increasing emphasis on green buildings have also propelled the demand for modular construction as it consumes less raw materials and results in lesser construction waste. The modular construction approach also helps in significantly reducing the on-site construction time and noise pollution.
Market Key Trends:
One of the key trends in the modular construction market is the growing demand for modular buildings from the commercial and infrastructure sector. With rapid urbanization and shortage of construction resources, modular buildings are gaining popularity due to their advantages like being factory-built, requiring lesser on-site construction time, and providing high quality. Modular construction helps in saving construction time up to 30-50% as compared to traditional methods.
SWOT Analysis
Strength: Prefabricated modules are assembled in a controlled factory environment resulting in high quality, higher efficiency, and predictable schedule and costs.
Weakness: Initial investments for setting up a modular construction facility are high. Transportation of modules to sites also requires careful planning.
Opportunity: Growing demand for green buildings provides an opportunity as modular construction minimizes construction waste. Rapid urbanization in developing regions increases the need for fast track infrastructure projects.
Threats: Traditional construction players resist change and act as a barrier. Stringent transportation rules & regulations restrict transport of modules.
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 urbanization and shortage of construction resources. The modular construction market size for 2023 is estimated to be US$ 84.48 Bn.
Regional analysis: North America dominates the modular construction market currently due to high acceptance and government support for prefabricated construction in the US and Canada. Asia Pacific is expected to be the fastest growing market, driven by China, India and other emerging countries experiencing rapid infrastructure development.
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.), and Lendlease Corporation (Australia).
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.