Global Modular Construction Market Size, Share, Growth Analysis, By Type(Volumetric Module and Panelized Module), By Application(Commercial and Residential), By Material(Wood, Steel) - Industry Forecast 2024-2031

The global modular construction market size was valued at USD 97.28 billion in 2022 and is poised to grow from USD 104.67 billion in 2023 to USD 188.08 billion by 2031, growing at a CAGR of 7.6% in the forecast period (2024-2031).

The modular construction sector is poised for substantial expansion driven by swift urbanization and industrialization, notably in commercial and industrial building domains. This growth is underpinned by advancements in building technology and the advantages offered by modular construction, including accelerated building schedules, cost reductions, enhanced flexibility, material reuse, and minimized waste. Consequently, there's a projected global upsurge in demand for modular construction. Additionally, the market for relocatable modular construction (RMC) is anticipated to soar, primarily due to the rising demand for temporary housing in emergency and relief scenarios. These structures are designed for easy repurposing and transportation to various sites. Furthermore, governmental sustainability initiatives and regulations are forecasted to further propel the growth of the RMC market. The utilization of wood in modular construction presents notable benefits owing to its favorable material properties. Wood is employed in crafting exterior wall panels with added layers for insulation, vapor barriers, siding, waterproofing, and drywall. The growing recognition of wood as a building material, coupled with global sustainability concerns, is expected to bolster the market for modular construction utilizing wood. The commercial sector in the Asia Pacific region is poised to significantly contribute to the modular construction market's growth, driven by the increasing presence of multinational brands supported by favorable trade policies. Moreover, the construction of office spaces, shopping complexes, lodging facilities, and other utility structures across the region is anticipated to foster the adoption of modular construction practices. To ensure a consistent supply of raw materials and mitigate sourcing volatility, modular construction manufacturers prioritize maintaining strategic partnerships with raw material suppliers and reducing reliance on single sources. Leading companies within the industry are also embracing cutting-edge modular construction techniques and solutions to drive innovation.

Top-down and bottom-up approaches were used to estimate and validate the size of the global modular construction market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Modular Construction Market Segmental Analysis

The global modular construction market is segmented based on type, end-user, and region. By type, the market is segmented into volumetric module and panelized modules. By end-user, the market is segmented into commercial, and residential. By material, the market is segmented into wood, steel, concrete, and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Modular Construction Market

A prominent catalyst propelling the global modular construction market is the surging demand for sustainable construction methodologies. Modular construction presents substantial advantages, including minimized waste generation, decreased energy consumption, and enhanced environmental efficacy compared to conventional construction techniques. With escalating environmental apprehensions, governments and entities are progressively advocating for sustainable construction practices. This trend is anticipated to persist, propelling the growth of the modular construction market as developers and builders embrace modular construction to align with sustainability objectives and diminish environmental footprints.

Restraints in the Global Modular Construction Market

A notable hindrance in the global modular construction market stems from the limited awareness and comprehension of modular construction methods among developers, architects, and contractors. Traditional construction practices have dominated the industry for decades, and numerous professionals may lack familiarity with modular construction techniques or harbor misconceptions regarding its quality or constraints. This dearth of awareness can foster reluctance in embracing modular construction, potentially impeding market expansion. Thus, enhancing awareness and education regarding the advantages of modular construction is imperative to address this restraint effectively.

Market Trends of the Global Modular Construction Market

A significant trend observed in the global modular construction market is the increasing adoption of Building Information Modeling (BIM) and other digital technologies. BIM facilitates the development of a virtual model of a building, fostering enhanced collaboration, accurate cost estimation, and efficient scheduling. The incorporation of BIM and other digital technologies into modular construction processes is anticipated to boost productivity, decrease expenses, and enhance project outcomes. Consequently, businesses operating in the modular construction sector are progressively allocating resources towards digital technologies and forging alliances with technology providers to enrich their offerings and maintain competitiveness in the market.