Modular Construction Market Is Expected To Expand At A CAGR Of 6.4% From 2021 To 2028

 Modular Construction Industry Overview

The global modular construction market size is expected to reach USD 138.9 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 6.4% from 2021 to 2028. Increasing emphasis on improving productivity and rising focus on workplace safety at construction sites are expected to drive the market over the forecast period.

The process involves the prefabrication of modules at a different location from the actual site in a controlled environment, resulting in reduced timelines for completing building projects. This process allows planned inventory usage and limited wastage of raw materials, thereby, significantly reducing the investment required for building work. Assembly lines for modular construction help producers streamline raw material purchasing and inventory management.

Modular constructions are monitored regularly, ensuring a better quality of final products. Furthermore, they can be easily replaced or recycled during renovation activities, thus making them more user-friendly. The permanent modular construction segment dominated the industry in Sweden and accounted for 69.20% of the overall market share in 2020 owing to increased demand for residential wooden housing structures in the region.

The industry players are expected to target developing economies such as India, China, and Southeast Asian countries to tap robust opportunities resulting from the rapid growth of the building sector. Increasing efforts by companies to adopt the latest technologies such as 3D printing and building information modeling (BIM) for optimizing offsite module construction activities are expected to have a positive impact on the industry growth. However, fluctuation in transportation costs is anticipated to hamper the market growth over the forecast period.

 

Modular Construction Market Segmentation

Grand View Research has segmented the global modular construction market on the basis of type, application, and region:

Based on the Type Insights, the market is segmented into Relocatable, and Permanent.

  • The permanent modular construction segment led the market and accounted for the largest revenue share of 63.8% in 2020 due to increased efficiency as compared to traditional building methods over the past decade. An increase in per capita income and easy availability of finances are some of the factors responsible for the rising trend of owning a house, thereby, positively influencing the market growth.

 

  • Relocatable modular structures are utilized to provide temporary accommodations for laborers at worksites. Relocatable modular structures are also utilized by a variety of end-users including local governments, industrial corporations, school boards, and healthcare providers as makeshift offices, healthcare clinics, temporary hotels, and schools.

 

Based on the Application Insights, the market is segmented into Residential, Commercial, Industrial, Healthcare, and Educational.

  • The residential application segment led the market and accounted for the largest revenue share of 52.8% in 2020. This can be attributed to an increase in residential housing construction activities in the Asia Pacific with a burgeoning population, rapid urbanization, and strong economic growth, which is expected to emerge as a key driver for the growth of the industry.

 

  • The commercial application segment was valued at USD 83.8 billion in 2020 and is expected to witness a CAGR of 4.2% over the projected period. Recovering economic situations in key markets such as the U.K., the U.S., and China are expected to generate robust demand for commercial spaces such as offices, showrooms, and hotels, thus, leading to an increase in commercial construction activities.

 

  • The growing e-commerceindustry coupled with rising industrialization has resulted in an increased demand for warehouses and inventory storage buildings. As a result, the demand for modular construction in industrial applications is expected to grow over the forecast period.

 

Modular Construction Regional Outlook

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa (MEA)

 

Key Companies & Market Share Insights

The market is characterized by the presence of small- and large-scale players, resulting in a moderate level of competition. Companies are focusing on R&D initiatives related to the use of raw material, supply chain management, transportation, and the adoption of innovative methods to cope up with rising demand from residential, commercial, and industrial building applications.

Key players in the market include Laing O'Rourke, Katerra, Skanska AB, Red Sea Housing, DuBox, and Sekisui House Ltd. A large number of startups have entered the modular construction industry and are garnering a huge interest from venture capital firms and angel investors. For instance, in January 2018, Katerra raised USD 865 million in a Series D funding round led by SoftBank. Some of the prominent players in the modular construction market include:

  • Laing O'Rourke
  • Katerra
  • Skanska AB
  • Red Sea Housing
  • DuBox
  • Sekisui House Ltd
  • KLEUSBERG GmbH & Co KG



Order a free sample PDF of the Modular Construction Market Intelligence Study, published by Grand View Research.

 

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

 

Contact:

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Grand View Research, Inc.

Phone: 1-415-349-0058

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Email: sales@grandviewresearch.com

Web: https://www.grandviewresearch.com

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