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Modular Construction Market By Type (Permanent, Relocatable) By Material (Steel, Wood, Concrete) By Module (Four-sided, Open-sided, Partially open-sided, Mixed modules & floor cassettes, Modules supported, Others) By End-Use (Residential, Office, Education, Retail & Commercial, Hospitality, Healthcare, Others) - Growth, Future Prospects & Competitive Analysis, 2016 – 2028

About this report

The global Modular Construction Market report explores the critical analysis of the Modular Construction industry using key parameters. The report consists of investment strategies, the need for investments in the Modular Construction industry, and the multiple benefits for the investors. Importantly, this report sets out major changes in the global technical regulations for the Modular Construction industry, as well as how economic and non-economic barriers are helping the Modular Construction market grow. Moreover, the report analyzes the global, regional, and country-level historic and forecasted market size. The report also provides a comprehensive analysis of key investment propositions, demand and supply gap, competitors positioning, STAR analysis, SRC analysis, and Tornado analysis. Key technological developments and other analyses such as porter's five forces analysis, PESTEL analysis, value chain analysis, etc.

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Key Highlights of the report

How are the major segments performing in the Modular Construction Market?

In 2021, the permanent modular and prefabricated construction market accounted for around 52% of sales. The growing urbanization and cost advantages of modular buildings will cause the sector to expand quickly. The industry will expand due to the rising demand for mobile and bespoke homes.

The concrete material market is expected to experience significant expansion. Precast contemporary and design-focused concrete is the best choice for earthquake and tornado-prone areas. Precast concrete is a key building material that can also serve as structural support. Precast concretes with a design-focused focus can be used to construct high-quality, energy-efficient structures.

Which region dominated the Modular Construction Market?

The North American modular and prefabricated construction market accounted for a sizeable portion of the worldwide modular construction market. Due to the expansion of infrastructure projects like office buildings, hospitals, new housing communities, and educational facilities, the area experienced significant growth. The area's economic expansion has been aided by growing environmental concerns about the number of carbon emissions produced by traditional construction techniques. The market income is also being supported by the launch of numerous government initiatives to promote the construction of green buildings across the United States. Additionally, the region experiences frequent periods of severely cold weather, which shortens days and brings on heavy snowfall, which makes it difficult to build on-site and increases demand for modular construction.

What is the competitive environment of the Modular Construction Market?

The modular construction industry's competitive environment offers information on the total economic profit made by suppliers and businesses, the sales and revenues produced in this sector, the modular construction market share globally, the business organization overview, the introduction of new products, and the opportunities for the modular construction market. Major competitors are focused on modular construction innovation to gain a competitive advantage.

Executive Summary

What are the technological developments being developed in the Modular Construction Market?

By prefabricating single- or multi-story structures using offsite manufacturing methods, permanent modular construction (PMC) offers sustainable building. This boosts operational efficiency, discovers and assesses process improvement initiatives, and enhances the workflow for construction. For instance, Skender's advanced manufacturing facility in Chicago introduced a modular production building in May 2019. To transform the sector, important well-known firms throughout the world are adopting cutting-edge strategies like lean manufacturing and management, standardized project management (SPM), building information modeling (BIM), etc.

Which are the key investments by the players in the Modular Construction Market?

Various investments are made throughout the market by key players. For instance, Algeco Group announced in June 2020 that it had acquired Wexus Group AS (Norway) from Norvestor Equity AS and other shareholders, expanding its footprint in the Nordic region. Wexus is a top supplier of premium modular building solutions in the Nordic region. Wexus has its headquarters in Norway, has activities in Sweden and a cutting-edge manufacturing facility in Estonia. Wexus had 110 employees, a fleet of 1,600 vehicles, and $33.6 million in sales in FY2019. The COOEC-Fluor Heavy Industries, Co., Ltd. fabrication yard in Zhuhai, China, successfully finished the entire module program for the Kuwait Integrated Petroleum Industries Company (KIPIC) Al-Zour project in December 2019, according to a Fluor announcement. To do this, COOEC-Fluor shipped 188 modules totaling 65,000 tonnes in 20 different shipments. The project crew will install over 95,000 pipe spools of carbon, alloy, and stainless steel manufactured in the yard. 

Some of the major players in the market are Laing O’rourke, Red Sea Housing, Atco Ltd, Skanska Ab, Algeco Scotsman, Kleusberg Gmbh & Co. Kg, Katerra, Lendlease Corporation, Bechtel Corporation, Fluor Corporation, Design Space Modular Buildings Inc, Design Space Modular Buildings Inc, Dubox, Wikspace Modular Buildings, Guerdon Enterprises Llc, Westchester Modular Homes, Wernick Group Limited, Koma Modular, Elements Europe, Formhomes, Bouygues Construction, Premier Modular, Starrco, Vinci S.A, Turner Industries, Dmd Modular, and The Alho Group.

What are the Major Driving Factors for the Modular Construction Market?

The demand for lower environmental consequences, growing concern for work-zone safety, and encouraging government actions are all factors contributing to the growth of this industry. The modular construction market can expand due to population increase and fast urbanization, which result in numerous new construction projects. Through 2030, a large increase in demand for residential and commercial real estate is anticipated to promote the modular construction market further. Construction that is prefabricated and modular has shown to be more efficient at speeding up construction. For instance, it has been demonstrated that modern modular projects have a track record of cutting project timelines by 20% to 50%. This saves significant money—about 20% of the project's cost—and frees up labor hours that may be used more effectively.

What are the Major Risks for the Modular Construction Market?

Lack of knowledge and fluctuating transportation costs are some of the factors that may limit market expansion. Awareness regarding modular construction is limited in developing economies as compared to developed economies. 

Which is the key Type in the Modular Construction Market?

Because permanent modular construction has been more efficient than conventional building methods over the past ten years, it has led the market and held the biggest revenue share of 63.8% in 2021. The rising trend of home ownership is attributed to several causes, including a rise in per capita income and easy access to capital, which is helping the market expand. The market expansion is anticipated to be boosted by rising building costs for affordable housing structures and developing nations' booming industrial sector. Additionally, a decrease in waste in the modular building is anticipated to fuel industry expansion.

Workers are housed in portable, modular constructions on construction sites as temporary quarters. As temporary offices, medical clinics, hotels on temporary bases, and schools, relocatable modular buildings are also used by various end customers, including local governments, industrial businesses, school boards, and healthcare organizations.

How is the Modular Construction Market performing in regions?

The North American modular and prefabricated construction market accounted for a sizable percentage of the global modular building market. The region saw tremendous growth due to the expansion of infrastructure projects such as office buildings, hospitals, new housing communities, and educational facilities. Growing environmental worries about the number of carbon emissions that conventional construction methods have contributed to the area's economic growth. The development of several government initiatives to encourage the construction of green buildings across the United States also contributes to the market income. Additionally, the area frequently endures extremely cold spells that shorten days and cause heavy snowfall, making on-site building challenging and raising demand for modular construction.

Availability of raw materials and labor, as well as cutting-edge ideas and technology, drive the region's economic growth. As of 2021, the two economic titans of the Asia Pacific region—China and Japan were the second-and third-largest economies in the world.

In 2021, Europe continued to rule the modular construction industry. This resulted from the region's governments' increasing efforts to adopt modular buildings. The increased number of migrants who require the construction of temporary and permanent dwellings is also anticipated to be a major driver of the industry's growth.

What is the regulatory landscape for the Modular Construction Market?

The industry does have several administrative rules and regulations, and in certain cases, guidelines and standards, even though there is no modular code. However, the modular construction sector adheres to the same applicable building codes as its site-built competitors when creating buildings themselves. That is often a state-adopted version of the International Building Code in the United States (IBC). The most recent modification to the IBC, known as the "2018 IBC," occurs every three years. A national base-model code with multiple regional variations is produced because each state has its code adoption cycle and policies for updating the IBC. The National Building Code, updated every five years, is adopted by most Canadian provinces.

What is the Market Size of Modular Construction regarding value?

The global Modular Construction Market is anticipated to grow at a substantial CAGR of 5.5% in the upcoming years. The global Modular Construction industry was estimated to be worth USD 82.8 billion in 2021 and was expected to be worth USD 114.2 billion by 2028. 

What are the major players planning for the future of the Modular Construction Market?

The key players in the Modular Construction market invest heavily in numerous cutting-edge technologies, including permanent and relocatable modular designs. Additionally, the future scenarios indicate that well-known market players would make major investments in startups and medium-sized businesses to provide effective solutions to the industry. There are high predictions that the major players will acquire or merge with the major companies or startups to competitive edge.

Segmentation of Global Modular Construction Market-

Global Modular Construction Market – By Type

  • Permanent
  • Relocatable

 Global Modular Construction Market – By Material

  • Steel
  • Wood
  • Concrete

Global Modular Construction Market – By Module

  • Four-sided
  • Open-sided
  • Partially open-sided
  • Mixed modules & floor cassettes
  • Modules supported by a primary structure
  • Others

Global Modular Construction Market – By End-Use

  • Residential
  • Office
  • Education
  • Retail & Commercial
  • Hospitality
  • Healthcare
  • Others

Global Modular Construction Market – By Region

  • North America
    • US
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East and Africa

Frequently asked questions about the global modular construction market.

Modular Construction Market was negatively impacted as the overall construction industry growth declined during the COVID-19 pandemic.

North America accounted for the highest global modular construction market share.

Rapid urbanization and industrialization are resulting in an increasing number of development projects and are the major factors driving the market growth.

Permanent segment had a major share in 2021.

The residential segment had a major global market share in 2021.

Modular Construction Market Scope

Report Attribute Details
Market Value in 2021 USD 82.8 billion
Market Value in 2028 USD 114.2 billion
CAGR 5.5%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Trusted By
Godaddy
Published Date:  Oct 2022
Category:  Automation & Process Control
Report ID:   60746
Report Format:   PDF
Pages:   130
Rating:    4.6 (40)
Delivery Time: 24 Hours to 48 Hours   
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