Analysis of the Modular Construction Market: Assessment of Market Size, Trends, Statistics, and Competitors
Global Modular Construction Market by Type (Permanent and Relocatable), by Material (Wood, Steel, Concrete, and Others), by Application (Residential, Hospitality, Commercial, Healthcare, and Educational & Institutional), and by Region (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa) – Market Size, Share, COVID-19 Impact, Regional Analysis & Forecast Till 2030
Category - Machinery & Equipment
Report Code - OMR-ME-195
Format: PDF, PPT, and Excel
Modular Construction Market Overview
Modular construction is roughly half the time required for traditionally constructed structures by constructing them in a factory under controlled circumstances. Structures are manufactured in "modules" that, once assembled on site, conform to the same design goals and standards as the most cutting-edge conventional building. The rising demand for low-cost housing and the rising investment in improving healthcare and business spaces worldwide are responsible for this expansion. The expansion of off-site building operations in metropolitan areas is also fueling the development of the modular construction industry. Modular construction saves money and reduces waste because of the advantages of off-site building. The number of new projects, especially in the tourism and industrial sectors, will likely rise rapidly as urbanization and industrialization proceed. Modular construction has become increasingly popular because of its many benefits, including shorter construction times, lower overall costs, better design freedom, higher reusability, and less waste. The need for extensive preparation in advance of every given project hampers the modularization process. It may need careful preparation of crucial elements, including design, on-site installation, and transportation. COVID-19 has inflicted significant economic harm. Construction has stopped, and the labor-intensive industry has felt the effects of the worldwide shutdown. This is because stranded migrant workers and the resulting suspension of building activity threaten global economic development.
Modular Construction Market Growth Factors
Lean Manufacturing Methods to Push Market Value Towards an Incremental Growth
The modular building sector is one of the most visible sectors now looking to lean methods to enhance operational processes. Permanent modular construction (PMC) provides environmentally friendly construction by prefabricating single- or multi-story structures through off-site fabrication. As a result, construction operations run more smoothly, and new opportunities for efficiency gains are discovered and assessed. Modular construction's time and cost efficiency and reduced defect and rework rates are likely to fuel the market's expansion, especially in the Asia-Pacific region. The building industry has been looking at new materials and techniques that help speed up the construction of high-quality homes. Modular construction's potential cost reductions and the widespread usage of building information modeling (BIM) point to exciting new opportunities for expansion in the sector. Modular building allows businesses to adapt to market needs and incorporate cutting-edge aesthetic and technological trends. Industries had to spend numerous man-hours on design and planning before the advent of modular construction, and the construction process may take months or even years. As a result of the efficiency and predictability of modular building, the time it takes to get from concept to completion can be cut by several months. High-performance materials are used in modular construction for both homes and businesses. These materials are ideal for high-performance buildings because they improve their efficiency, longevity, and adaptability over time. The modular building offers several advantages, including its excellent quality, beautiful designs, and longevity.
A Surge in Urbanization and Industrialization to Further Push Adoption of Market
The rapid expansion of many countries' economies has raised the need for prefabricated structures. This is because modular structures reduce construction time and hence cost. Urbanization is rising in emerging regions like Asia, Latin America, and Africa due to population increase. The need for shelter, clean water, power, transit networks, groceries, and social services are all anticipated to be significantly impacted. The growing investments in infrastructure in developing economies like India, Vietnam, and China are anticipated to boost the growth of the modular construction industry. Additionally, growing retail and office space spending could boost the prefab building industry's earnings. The market is driven by the government's ever-evolving attempts to cut down on construction waste and increase the prevalence of "green" buildings. In several cases involving public property, the government of Singapore has required PPVC (prefabricated, prefinished, volumetric construction) components. In addition, the government offers incentives to businesses that are standardizing contemporary building practices. The Canadian Minister of Families and other members of Parliament announced on 15 March 2021 that CAD 16.4 million would be allocated to the Rapid Housing Initiative to develop 44 new affordable dwellings in the Surrey Centre. Additionally, annual infrastructure investment is projected to increase to almost USD 5 trillion from its post-crisis low by 2025. Spending on housing and companies is expected to rise due to the rising urban population in emerging countries, including India, Japan, Indonesia, Nigeria, Mexico, and China.
Modular Construction Market Growth Factors
Type
• Permanent
• Relocatable
Material
• Wood
• Steel
• Concrete
• Others
Application
• Residential
• Hospitality
• Commercial
• Healthcare
• Educational & Institutional
Modular Construction Market Regional Segmentation
North America
o U.S.
o Canada
o Mexico
Europe
o Germany
o U.K.
o France
o Spain
o Italy
o Rest of Europe (RoE)
Asia Pacific (APAC)
o Japan
o China
o India
o South Korea
o Rest of APAC
Latin America
o Argentina
o Brazil
o Rest of Latin America
Middle East & Africa
o South Africa
o UAE
o Saudi Arabia
o Rest of MEA
Material Insights
Steel to be Utilized at a Wider Usage Owing to its Higher Strength & Durability
The global market can be differentiated into wood, steel, concrete, and others based on material.
In 2022, the steel industry was expected to be the most lucrative sector. H-beams, columns, angles, I-beams, and T-beams are only a few common configurations for this material. High durability, strength, flexibility, ease of manufacturing, seismic opposition, and rapid erection speed are only some of the mechanical and chemical features displayed by the material. Its poor tensile strength necessitates its usage as a reinforcing ingredient in concrete. Large, open areas typically serve commercial or industrial purposes, which is why pre-engineered steel frameworks are popular. Steel frames are more cost-effective and less disruptive to the surrounding region than other wall materials since they can be moved and craned more efficiently.
Wood modular construction is gaining popularity in the commercial, single-family detached, and urban construction sectors because of its strong compressive strength and resistance to bending. A major contributor to the expansion of this sector is the availability of high-quality wood construction that can be designed quickly. Prefabricated wood products are increasingly popular because they are more dimensionally precise than competing materials like steel and concrete.
Application Insights
The Residential Sector is the Most Adaptable Owing to Rising Need for Eco-Friendly Infrastructure
Based on application, the global market can be fragmented across residential, hospitality, commercial, healthcare, and educational & institutional.
In 2022, the residential sector was the most valuable part of the market, and by 2030, that sector is projected to have grown at the quickest rate. Modular building techniques allow for the creation of eco-friendly and aesthetically pleasing structures. It facilitates quick construction, architectural flexibility, and the construction of one-of-a-kind, adaptable dwellings that meet the needs of communities. Rental properties, apartment complexes, and multi-family homes all fall under residential applications. The capacity of modular construction to drastically cut down on both construction time and money is leading to its widespread acceptance in residential applications.
The market for the commercial modular building has exploded in recent years. Commercial construction is predicted to rise as the economies of major countries like the United Kingdom, the United States, and Asia continue to improve, fuelling increased demand for retail, office, and hotel space.
Regional Insights
Asia Pacific to Accommodate Enormous Market Girth Owing to Increasing Residential & Commercial
The global market can be divided into North America, Europe, Asia Pacific, Latin America, the Middle East and Africa based on location.
The building market in Asia Pacific is projected to increase at the highest rate. Factors including the rise of the residential and commercial building industry will spur regional market growth. The modular construction industry in Asia has expanded thanks to increasing corporate and government spending on infrastructure projects in countries like India and China. Demand in the construction of homes in the region is predicted to remain robust thanks to increased family income levels and population migration from rural to urban regions. The residential building industry is expanding due to the public and private sectors' renewed commitment to providing affordable homes. It is anticipated that non-residential infrastructure will expand rapidly. New healthcare facilities, including hospitals, are in high demand to meet the needs of the country's aging population. Large commercial and office spaces are being built because of recent structural developments in the Chinese economy. The service sector has taken a bigger percentage of the overall GDP.
It is anticipated that government measures in the United Kingdom would further contribute to expanding the business in Europe. For example, the UK government's accelerated construction programs and home building fund help pioneers develop land for housing, including modular projects, positively affecting the building and production industry and its customers' attitudes.
Modular engineering is becoming increasingly popular in the construction industry, leading experts to predict that the number of prefab buildings constructed in North America will rise. In addition, general contractors in the United States are increasingly turning to modular constructions to construct superstructures and complete plumbing, electrical, and mechanical work.
Modular Construction Industry Analysis
Major firms have turned to various growth tactics to expand their businesses and compete more effectively in the market, including mergers, acquisitions, contracts, and partnerships. They are also tailoring their efforts toward reducing energy use and meeting individual client needs. For instance, Red Sea Housing and Blu Homes both provide individualized options for home design, construction, and décor. Reports indicate that 40% of their dwellings provide state-of-the-art amenities like thermal insulation and environmentally friendly plumbing fittings.
The market leaders are also looking for ways to make their products more reasonably priced and environmentally sustainable. Additionally, businesses are concentrating on energy efficiency and personalization to meet the needs of their customers.
Modular Construction Market Recent Developments
• In December 2022, to advance the design and construction of small modular nuclear reactors in the United Kingdom, Balfour Beatty agreed to terms with Holtec Britain and Hyundai Engineering and Construction (HDEC).
• In October 2022, Balfour Beatty's 50/50 joint venture, Gammon, was just awarded an HKD 1.3 billion (USD 0.17 million) contract to build a residential development in Yau Tong, Hong Kong, on their behalf. Top Oasis Limited, a consortium formed by Sino Land Company Limited and CSI Properties Limited.
• In April 2022, Kitchens To Go, a market leader in temporary and permanent modular solutions for foodservice operators in need of adaptable space to maintain or grow their businesses, was bought by McGrath RentCorp. This acquisition might pave the way for McGrath RentCorp's Mobile Modular subsidiary to offer customers temporary and permanent restaurant facilities nationwide.
Global Modular Construction Market Prominent Players
• Algeco (United Kingdom)
• Red Sea International Company (Kingdom of Saudi Arabia)
• Laing O'Rourke (United Kingdom)
• ATCO (Canada)
• Bouygues Construction (France)
• KLEUSBERG GmbH & Co. KG (Germany)
• Katerra (California)
• Lendlease Corporation (Australia)
• VINCI Construction Grands Projets (United Kingdom)
• Guerdon Modular Buildings (Idaho)
• Fluor Corporation (U.S.)
• Skanska AB (Sweden)
Frequently Asked Questions (FAQs)
At what rate will the Modular Construction Market Expand?
According to Objective Market Research, the market for modular construction is projected to grow at a CAGR of 7.3% over the forecast period.
What are the factors driving the global Modular Construction Market?
The global modular construction market will grow during the forecast period due to a rising focus on improving work zone safety, creating sustainability, widening the population, and increasing the number of projects.
Which segment accounted for the largest Modular Construction Market share by Equipment?
In 2022, the residential sector had the highest market value; by 2030, it is anticipated to have grown at the fastest rate. Techniques of modular construction permit the creation of sustainable and aesthetically appealing structures.
What region holds the major share in the global market scape?
Asia Pacific is projected to have the fastest-growing construction sector. The rise of the building of homes and businesses industries will contribute to expanding the regional market. The modular construction sector's expansion across Asia results from rising corporate and government expenditure on development projects in countries such as India and China.
Which are the dominating players in the market during the forecast period?
Prominent market leaders in the global modular construction market are Algeco (United Kingdom), Red Sea International Company (Kingdom of Saudi Arabia), Laing O'Rourke (United Kingdom), ATCO (Canada), and Bouygues Construction (France), among others.
*Our reports are available on a region/wise and chapter/wise basis as well. For any additional personalization contact our sales representative directly at sales@objectivemarketresearch.com
Table of Content
1. Introduction
1.1 Market Definition
1.2 Objective of the Study
1.3 Market Scope
1.4 Years Considered in the Study
1.4.1 Historic Year: 2019-2021
1.4.2 Base Year: 2022
1.4.3 Forecast Period: 2023-2030
1.5 Currency Used in the Study
1.6 Boundaries for the Study
1.7 Collaborators/Stakeholders/Benefactors
2. Research Methodology
2.1 Research Outline
2.2 Data Collection Methods
2.3 Data Sources
2.3.1 Secondary Sources
2.3.1.1 Paid Sources
2.3.1.2 Unpaid Sources
2.3.2 Primary Sources
2.4 Market Estimation Methodology
2.4.1 Top-Down Approach
2.4.2 Bottom-Up Approach
2.5 Data Triangulation
2.6 Assumptions of the Study
2.7 Limitations of the Study
3. Executive Summary
3.1 Market Outlook
3.2 Analysts Perspective
4. Market Overview
4.1 Market Dynamics
4.1.1 Drivers
4.1.1.1. Introduction of Lean Manufacturing
4.1.1.2. Increasing Population
4.1.2. Restrain
4.1.2.1. Higher Initial Costs
4.1.3. Opportunities
4.1.3.1. Wider Design Solutions
4.1.4. Impact of Market Dynamics
4.2. Impact of COVID-19 pandemic
4.3. Value Chain Analysis
4.4. Porter’s Five Forces Analysis
4.4.1. Bargaining Power of Buyers
4.4.2. Bargaining Power of Suppliers
4.4.3. Threat of Substitution
4.4.4. Threat of New Entrants
4.4.5. Competitive Rivalry
5. Global Modular Construction Market Analysis & Forecast, by Type from 2019-2030 (in USD million) (Units)
5.1. Permanent
5.2. Relocatable
6. Global Modular Construction Market Analysis & Forecast, by Modular from 2019-2030 (in USD million) (Units)
6.1. Wood
6.2. Steel
6.3. Concrete
6.4. Others
7. Global Modular Construction Market Analysis & Forecast, by Application from 2019-2030 (in USD million) (Units)
7.1. Residential
7.2. Hospitality
7.3. Commercial
7.4. Healthcare
7.5. Educational & Institutional
8. Global Modular Construction Market Analysis & Forecast, by Region from 2019-2030 (in USD million) (Units)
8.1. North America
8.1.1. North America Modular Construction Market Analysis & Forecast, By Country
8.1.1.1. U.S.
8.1.1.2. Canada
8.1.1.3. Mexico
8.1.2. North America Modular Construction Market Analysis & Forecast, By Type
8.1.3. North America Modular Construction Market Analysis & Forecast, By Modular
8.1.4. North America Modular Construction Market Analysis & Forecast, By Application
8.2. Europe
8.2.1. Europe Modular Construction Market Analysis & Forecast, By Country
8.2.1.1. Germany
8.2.1.2. UK
8.2.1.3. France
8.2.1.4. Spain
8.2.1.5. Italy
8.2.1.6. Rest of Europe (RoE)
8.2.2. Europe Modular Construction Market Analysis & Forecast, By Type
8.2.3. Europe Modular Construction Market Analysis & Forecast, By Modular
8.2.4. Europe Modular Construction Market Analysis & Forecast, By Application
8.3. Asia-Pacific (APAC)
8.3.1. Asia-Pacific Modular Construction Market Analysis & Forecast, By Country
8.3.1.1. Japan
8.3.1.2. China
8.3.1.3. India
8.3.1.4. South Korea
8.3.1.5. Rest of the APAC
8.3.2. Asia-Pacific Modular Construction Market Analysis & Forecast, By Type
8.3.3. Asia-Pacific Modular Construction Market Analysis & Forecast, By Modular
8.3.4. Asia-Pacific Modular Construction Market Analysis & Forecast, By Application
8.4. Latin America
8.4.1. Latin America Modular Construction Market Analysis & Forecast, By Country/Region
8.4.1.1. Argentina
8.4.1.2. Brazil
8.4.1.3. Rest of Latin America
8.4.2. Latin America Modular Construction Market Analysis & Forecast, By Type
8.4.3. Latin America Modular Construction Market Analysis & Forecast, By Modular
8.4.4. Latin America Modular Construction Market Analysis & Forecast, By Application
8.5. Middle East & Africa
8.5.1. Middle East & Africa Modular Construction Market Analysis & Forecast, By Country/Region
8.5.1.1. South Africa
8.5.1.2. UAE
8.5.1.3. Saudi Arabia
8.5.1.4. Rest of Middle East & Africa
8.5.2. Middle East & Africa Modular Construction Market Analysis & Forecast, By Type
8.5.3. Middle East & Africa Modular Construction Market Analysis & Forecast, By Modular
8.5.4. Middle East & Africa Modular Construction Market Analysis & Forecast, By Application
9. Competitive Landscape
9.1. Market Share Analysis (2022)
9.2. Market Positioning of Top Players (2022)
9.3. Key Developments & Growth Strategies (2020-2022)
9.3.1. Product Launches
9.3.2. Merges, Collaborations & Agreements
9.3.3. Expansion
9.4. SWOT Analysis
10. Company Profiles (Business Overview, Products Offered, Financial Details*, Recent Developments)
10.1. Algeco (United Kingdom)
10.1.1. Company Snapshot
10.1.2. Business Overview
10.1.3. Financial Data
10.1.4. Key Products Offered
10.1.5. Recent Developments
10.2. Red Sea International Company (Saudi Arabia)
10.3. Laing O'Rourke (United Kingdom)
10.4. ATCO (Canada)
10.5. Bouygues Construction (France)
10.6. KLEUSBERG GmbH & Co. KG (Germany)
10.7. Katerra (California)
10.8. Lendlease Corporation (Australia)
10.9. VINCI Construction Grands Projets (United Kingdom)
10.10. Guerdon Modular Buildings (Idaho)
10.11. Fluor Corporation (U.S.)
10.12. Skanska AB (Sweden)
10.13. Others
11. Appendix
11.1. Currency Exchange Rate to USD
11.2. Abbreviations
* Financial details captured might be subjected to information available and not be given for privately-held companies or for companies that do not report it in the public domain