Global Modular Construction Market - 2023-2030

Market Overview

Global Modular Construction Market reached US$ 91.1 billion in 2022 and is expected to reach US$ 121.4 billion by 2030 growing with a CAGR of 5.7% during the forecast period 2023-2030. The growing need for affordable housing, together with increased investment in the construction of healthcare and commercial facilities around the world, is driving market expansion.

In 2022, Asia-Pacific is expected to account for around 1/3rd of the global modular construction market. Rising household income levels, as well as population migration from rural to urban areas, are predicted to fuel demand in the region's residential construction sector. Singapore's Central Bank estimates that the country will invest more than US$ 2.7 billion in infrastructure and housing projects. The government declared that the public sector will issue up to US$ 25.3 billion in green bonds by 2030 to fund sustainable infrastructure projects.

Market Dynamics

The Rise in Demand for Permanent Modular Houses

Permanent modular homes are economical and easy to construct. Furthermore, the houses can be found in a variety of forms and patterns. Duplexes and multistory apartments are two prominent types of houses based on their shape. The houses are built beautifully with CorTen steel and anticorrosive paint finish. Furthermore, there is an increase in demand for customized and do-it-yourself construction.

Many companies, architects and builders are developing homes out of stored shipping containers. Z Modular, based in UK, provides modular homes made from recycled shipping containers as student housing, multifamily and workforce housing. Furthermore, a surge in the trend of green buildings in developed countries such as U.S., UK, France and Germany is expected to drive the expansion of the global modular construction market.

The Rising Costs of Traditional Building Construction

The average cost of residential home building in Russia has been increasing year after year, according to the Russian Federal State Statistics Service. In 2021, the values surpassed US$ 0.70 Thousand per square meter. In comparison, it will cost around US$ 0.067 Thousand less to construct one square meter of residential house in 2020. Russia's residential building construction costs have steadily risen, owing to increasing global demand.

Furthermore, as a result of the Russia-Ukraine conflict, construction material prices in the country are rising. The rising costs of conventional construction are encouraging the region's embrace of modular construction. Meanwhile, the main reason for the increase in construction prices was an increase in the pricing of building materials such as cement, steel and other insulation materials. As a result, construction material supply problems and rising costs are driving the modular construction market.

Transportation, Regulatory Challenges and Shortage of Skilled Labor

Transferring modular parts from the manufacturing plant to the construction site can be difficult and costly, particularly for large or heavy modules. Limited transportation alternatives, regulatory obstacles and potential damage while in transit can all be issues. Building codes and regulations differ between regions and governments.

Modular building may be required to meet specific requirements in order to comply with local rules, delaying the approval process. While modular building requires a different set of skills than traditional construction, specialized labor in areas like as module assembly, factory management and quality control may be in short supply. While factory-controlled conditions provide superior quality control, it can be difficult to ensure identical standards across all modules and during on-site assembly.

COVID-19 Impact Analysis

Modular construction is gaining popularity among developers as a method of building multifamily residences, hotels and workplaces. As a result of the epidemic, the pace of hospitality and office projects has slowed in 2020 and many developers have shifted their focus to medical facilities, inexpensive housing and data centers. The push has been driven by a desire to address the health concerns of businesses and institutions attempting to function properly.

Modular hospitals, for example, were created in Wuhan, China, in less than two weeks earlier in 2020. The University of Denver's testing pod, which was created in partnership with WZMH Architects and Microsoft, can be outfitted with sensors and cameras that can determine the temperature of persons wearing masks and standing six feet away. The pod was produced in a factory in Bakersfield, California, in 10 days and required one day to put it at the campus.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine situation is expected to have a long-term impact, particularly in Europe and might accelerate global trends in minimizing the effects on supply chains caused by the pandemic, Suez Canal closure and other disasters. Hitachi Construction Machinery's European arm has selected Mobile Heavy Machinery (MHM) as a new dealer in Ukraine, allowing it to sell medium, large and wheeled excavators, as well as medium wheeled loaders.

Holcim, a Swiss-based construction materials producer, has declared that it will begin the process of exiting the Russian market in 2022. According to the corporation, this is consistent with the company's values of operating responsibly. The company has already indicated that it will cease all market capital investments. According to the UNDP report - the development consequences of the war in Ukraine - published in 2022, the war has driven 50% of Ukrainian firms to close down completely, while the other half has been compelled to operate at or near capacity.

Segment Analysis

The global modular construction market is segmented based on material, type, end-user and region.

The Excellent Mechanical and Chemical Properties of Steel

Steel, which is utilized in a variety of shapes such as H-type beams, columns, angles, I-beam shapes and T-shapes, is estimated to account for around 1/3rd of the global modular building market in 2022. The material has outstanding mechanical and chemical features, including high strength, endurance, ductility, simple fabrication, seismic resistance and fast erection speed. To compensate for its poor tensile strength, it is utilized as a reinforcing material in concrete.

Pre-engineered steel structural systems are commonly used in broad open areas, primarily for commercial or industrial purposes. Steel frameworks are lightweight than other wall materials, enabling building structures to be easily craned and transported effectively, leading to less disruption and reduced costs to the local region. As steel is naturally recyclable, buildings made of it can be easily dismantled.

Geographical Analysis

The Rising Need for Investments in Housing Sector in Europe

Europe is anticipated to hold around 1/4th of the global modular construction market during the forecast period 2023-2030. The key driving element is expected to be the increasing number of migrants, which would need the creation of temporary and permanent housing structures.

Furthermore, factors such as multiple expenditures and the deployment of modern methods are driving the modular construction market in Europe. According to the EU Industrial R&D Investment Scoreboard, Europe's industrial industry is back on track in terms of research and development investments, with a gain of 8.9% in 2021 compared to a -2.2% drop in 2020 due to the pandemic.

Due to issues such as population increase and housing constraints, modular construction is gaining favor in UK as a viable technique of producing inexpensive houses. The number of modular homes in the country is on the rise and the country's leading construction companies, investors and developers are looking into modular housing choices. As UK government expects to build around 300,000 new homes per year to address housing market difficulties, modular construction is likely to play an important role.

Competitive Landscape

The major global players include: Bouygues Construction, Algeco Scotsman, Laing O'rourke, Cimc Modular Building Systems Holding, Red Sea Housing, Kleusberg GmbH & Co. Kg, Kwikspace Modular Buildings, Westchester Modular Homes, Koma Modular and Skanska AB.

Why Purchase the Report?

• To visualize the global modular construction market segmentation based on material, type, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of modular construction market level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global modular construction market report would provide approximately 61 tables, 60 figures and 205 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies