Modular Construction Market Growth Analysis Report (Type: Permanent and Relocatable; Structure: Walls, Floors, Frames, Ceilings & Roofs, Doors & Windows, and Others) - Market Dynamics, Insights, Trends, Regional Outlook and Forecast, 2023-2030
Categories: Manufacturing & Construction
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Modular Construction Market Overview
“The global Modular Construction Market is expected to grow rapidly at a 7.35% CAGR consequently, it will grow from its existing size of from $96.50 billion in 2023 to $167.35 billion by 2030.”
What exactly is modular construction?
Modular construction is a method where a building is built off-site, using the same materials and standards as conventionally built facilities, but in half the time. These "modules" are assembled on-site, ensuring the same design intent and standards as the most advanced site-built complex.
Discover the Advantages of Modular Construction
Modular buildings are stronger structurally due to their engineered modules, which resist transportation and craning into foundations. When joined and sealed, they form a single integrated structure. Offsite construction improves construction quality management, as manufacturing factories have strong QA/QC processes and independent inspection protocols to ensure outstanding construction quality at all stages.
Modular buildings are stronger structurally due to their engineered modules, which resist transportation and craning into foundations. When joined and sealed, they form a single integrated structure. Offsite construction improves construction quality management, as manufacturing factories have strong QA/QC processes and independent inspection protocols to ensure outstanding construction quality at all stages.
Modular construction offers benefits such as improved completion time and quality management, reduced site disruption, improved safety, and security. By relocating 80% of building activity, it reduces ongoing construction risks, providing businesses like education and healthcare with a significant advantage in establishing new facilities.
Modular construction businesses offer superior design and construction expertise, surpassing site-built counterparts for architects, developers, and owners. Early offsite construction is beneficial to avoid redesigning, but most firms can convert site-built designs into modular versions as needed. Exploring the possibilities is never too late for modular construction businesses.
Modular construction is increasingly being considered by owners and designers as a sustainable solution for less environmental impact. This method reduces waste by avoiding it upstream, increases quality management, and reduces on-site activity, supporting sustainability. Modular construction offers high quality, long-term sustainability, innovation, efficiency, cost-effectiveness, and shorter finishing time.
Modular construction is a promising solution for affordable and sustainable housing in the future.
The modular construction sector's growth is primarily driven by the increasing demand for affordable housing, especially in urban areas.
Modular homes and flats are gaining popularity due to their rapid construction, affordability, and sustainable materials. This growth is driven by the growing demand for eco-friendly living solutions among customers, who are increasingly seeking eco-friendly living options in the construction industry.
Benefits and challenges of modular construction in building better structures.
Modular construction offers numerous benefits but also faces challenges such as a lack of qualified personnel, complicated and costly transportation of modular units, and the perception that it is inferior to traditional methods. These issues can impact the quality and speed of building, consumer demand, and industry trust, making it a complex and challenging option for businesses.
Demand Outlook
The modular building industry offers numerous investment opportunities for individuals and organizations, particularly in the growing demand for affordable and eco-friendly homes, with potential for substantial returns.
The expanding industry presents opportunities for innovative companies and technology development, along with tax breaks and government programs supporting modular construction and affordable housing efforts.
The expanding industry presents opportunities for innovative companies and technology development, along with tax breaks and government programs supporting modular construction and affordable housing efforts.
The modular construction sector has experienced a steady growth over the past decade, with a CAGR of over 4.8%, largely due to various factors:
- There is an increasing demand for cheap homes.
- Technological advancements in modular building
- A focus on sustainability and environmental friendliness.
- There has also been a trend in the business toward more sophisticated and large-scale projects, such as hotels and multi-unit residential buildings.
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Market Dynamics
Growth Drivers
The global modular construction industry is projected to experience a 7.35% CAGR growth in the coming years, driven by urbanization, population growth, and the need for sustainable, cost-effective solutions.
The modular building industry is expected to benefit from technological advancements like 3D printing and Building Information Modeling, which are expected to streamline construction processes and reduce costs.
The Asia-Pacific region is expected to experience significant growth in the modular construction market due to rapid urbanization and infrastructure development, while Europe and North America are also expected to experience growth.
The modular building industry is poised for growth and innovation, as the demand for affordable and sustainable housing and commercial structures increases, making modular construction a crucial solution.
Trends
Advancements in modular building trends and technologies that are revolutionizing the construction industry.
The construction industry is embracing new technologies like Building Information Modeling (BIM), which allows architects and engineers to create 3D models of modular units, thereby enhancing design and production processes.
Modular construction is gaining popularity in commercial and hospitality projects like hotels and student accommodation, with increased customization and personalization allowing for greater flexibility and design alternatives.
Market Segment Analysis
The relocatable modular construction industry is the primary factor in the market.
Relocatable modular construction, which is characterized by portability, versatility, and low cost, is projected to lead the modular building sector with a projected market share of 60% in 2023.
Relocatable modular constructions are popular among businesses and governments due to their low cost and quick construction, making them ideal for temporary structures like classrooms, retail businesses, and healthcare facilities.
Steel is gaining popularity as a preferred material for modular construction.
Steel modular construction is predicted to dominate the 45% market share in 2023, outperforming other materials like wood and concrete. This sturdy, long-lasting, and fire-resistant framework is commonly used in multi-story structures like flats, hotels, and workplaces.
Steel modular construction can be prefabricated off-site, reducing building time, improving quality control, and reducing waste, while being 100% recyclable, making it an environmentally friendly building material.
Modular construction is gaining popularity in the commercial sector.
In 2023, commercial modular construction is projected to dominate the market with a 35% share, surpassing residential, industrial, healthcare, and educational applications, including office, retail, and hospitality structures.
Commercial modular building is gaining popularity due to its affordability, durability, and adaptability, enabling businesses to quickly establish their spaces and commence operations, leading to cost savings and income growth.
Competitive Landscape of the Modular Construction Market
- Red Sea International
- Skanska
- DuBox
- Wernick Group
- CIMC Modular Building Systems Holdings Co., Ltd
- Riko Hiše d.o.o
- Lendlease Corporation
- Modulaire Group
- Guerdon, LLC
- Hickory Group
- Bouygues Construction
- Premier Modular Limited
- KLEUSBERG GmbH & Co KG
- Sekisui House Ltd.
- LAING O'ROURKE
Recent Development in Modular Construction Market
In October , the largest construction company in Japan, Daiwa House, established a partnership with Capital Bay to provide modular buildings throughout Europe. As a result of the JV, Capital Bay was going to use modular construction modules for its own projects and operator brands and was also going to make them available to other clients in Europe.
In June , Laing O'Rourke Delivery Ltd. constructed the new Interchange Station for HS2 in Solihull, which served as the hub of the country's new high-speed rail network. They collaborated with HS2 Ltd. under the terms of the contract, which could be valued at up to GBP 370 million, to complete the station's precise design in two stages before it was built over the following several years.
Tempohousing, a leading organization in manufacturing real-estate structures, is developing innovative and scalable solutions for its end-users. The company primarily aims to improve the speed, cost, and social value of housing set to be built over the next five years. For instance, Tempohousing is increasingly investing in producing lightweight, non-flammable, and durable modules using special aerated concrete material.
KLEUSBERG GmbH & Co. KG is constantly developing sustainable building products that are also cost-efficient for customers. Additionally, the company is planning and designing prefabricated modules as per the customer’s requirements.
Allied Modular Building Systems, Inc. featured its modular building products and services on the television show, Office Spaces, on Fox Business Channel, which features contemporary innovations in commercial property and design. Moreover, the company is dedicated to working with advanced technologies and has spent over US$ 1.0 Mn on Microsoft software. By combining Microsoft software with custom project management software, the company is able to track a product effectively from start to finish.
Regional Insights
The United States is witnessing a surge in players showcasing potential for modular construction innovation.
The US modular building market is projected to grow gradually, reaching a 33% market share by 2030, driven by the increasing demand for eco-friendly and energy-efficient structures.
Modular construction projects are gaining popularity due to offsite construction methods, but high transportation costs and a shortage of experienced workers may limit the industry's growth potential.
Germany is experiencing a significant increase in the demand for green building solutions.
Germany is projected to dominate the global modular building market by 2030, thanks to its robust construction sector and favorable regulatory framework, attracting numerous enterprises.
The German prefabricated building sector is experiencing a surge in cost-effective and environmentally friendly solutions, despite challenges such as a shortage of skilled workforce and high initial investment costs.
China's rapid urbanization is expected to significantly influence the adoption of modular construction.
China is expected to dominate the modular building market by 2030, accounting for 23% of global sales, driven by the country's government's focus on sustainable and affordable housing options.
The rise of 3D printing technology simplifies the construction of modular building components, but potential issues like lack of standards and quality control could hinder its growth.
Japan is focusing on utilizing advanced technology and long-term sustainability in the development of modular construction.
Japan's modular building industry is projected to grow moderately in the next decade, reaching a market share of 9.75% by 2030, driven by the growing use of modular building methods in disaster recovery operations.
The demand for affordable, energy-efficient homes is driving sector investments, but the industry faces challenges such as a shortage of skilled labor and high transportation and logistics costs.
Segments Covered in the Modular Construction Market
Modular Construction Market By Product
- Relocatable
- Permanent
Modular Construction Market By Material
- Wood
- Steel
- Concrete
- Others
Modular Construction Market By Application
- Residential
- Commercial
- Industrial
- Healthcare
- Educational
Modular Construction Market By Region
- North America
- Latin America
- Europe
- South Asia & Pacific
- East Asia
- The Middle East and Africa
Frequently Asked Questions:
How was the Historical Performance of the Market?
The market expanded at a CAGR of 2.3% from .
What Restraints the Growth Potential of the Market?
Consuming too much starch and poor penetration of confectionery products across various underdeveloped regions.
Which is the Top Trend in the Market?
The growing popularity of molding starch in gluten-free and low-fat products.
Which Country is Dominating the Industry?
China is dominating with a CAGR of 7.18% from 2023 to 2030.
What is the Predicted Valuation of the Market by 2033?
The market is likely to surpass US$ 167.35 billion by 2030.
Base Year:2022
Historical Data:2018-2022
No of Pages:122
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