The global modular construction market was valued at US$ 87.3 billion in 2021 and is expected to reach US$ 130.2 billion by 2028; growing at a CAGR of 5.9% during the forecast period from 2021 to 2028.
Modular construction is a type of off- site construction of structural units which are assembled on the site to complete the construction of a building. It produces less waste and less site disturbances compared to traditional construction. Modular construction is used for permanent and temporary services particularly for military, hotels, educational institutes like classrooms and student residences and healthcare facilities. Furthermore, dissembling and shifting of these buildings can be done without any wastage of time and it can be renovated for new modular construction reducing the raw material needed and energy requirement for construction of new setup.
Increasing urbanization & industrialization in developing countries and growing demand for affordable housing coupled with increasing investments in the development of healthcare and commercial infrastructure is anticipated to positively impact market growth. Moreover, growing population, raising demand for jobs, housing, increasing migration necessitates the demand of both temporary and permanent housing construction market. Increasing concern for work safety, need for lower environmental impacts and government initiatives offer opportunities for the growth of the modular construction market. Though factors such as unpredictability in transportation charges and lack of awareness may inhibit the growth of the market. However modular construction leads to higher investment due to offsite manufacturing and long duration returns.
UK appears as a prominent market which aims to establish 300,000 modular residential houses annually over the upcoming years, which is expected to augment the modular residential construction sector in the country. Europe was the second-largest market for modular construction in 2018, due to high level of diffusion in UK, Germany, Finland, and Sweden. The global modular construction is segmented on the basis of material, type, end- user and region. By type, it is categorised into permanent and relocatable. On the basis of End- user, it is categorised into residential, commercia and industrial. Based on material, it is categorized into steel, wood, concrete and others. Furthermore, segmenting based on region it is categorized into North America (US, Canada, Mexico), Asia Pacific (China, Australia, Japan, South Korea, Rest of Asia Pacific), Europe (Germany, UK, France, Italy, Rest of Europe), and Rest of the World (Latina America, Middle East & Africa).
Key major players in the modular construction market are Speed House Group of Companies, ATCO, Anderco Pte. Ltd., Honomobo Corporation, SG Blocks, Lendlease Corporation, Giant Containers Inc., SG Blocks, Inc., Speed House Group of Companies, Supertech Industries LLC and Skanska AB among others.
Global Modular Construction Market Segmentation and Scope
Global Modular Construction Market is segmented on the basis of type, material, end- user and region as mentioned below:
By End- user
The prominent players involved in the global modular construction market includes,