Modular Construction Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Material, By Type, By End User, By Region & Competition, 2020-2030F

Description

The Global Modular Construction Market was valued at USD 113.09 billion in 2024 and is projected to reach USD 160.40 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.84% during the forecast period. The market is experiencing significant growth driven by increasing demand for cost-effective and time-efficient construction solutions. Modular construction involves the prefabrication of building components in a controlled factory environment, which are then assembled on-site. This method reduces construction time and material wastage, gaining traction across various sectors, including residential, commercial, healthcare, and education, due to its ability to enhance efficiency, sustainability, and quality control. Factors such as the rising need for affordable housing, rapid urbanization, and growing investments in infrastructure development are key drivers of market expansion. Moreover, stringent government regulations promoting eco-friendly construction practices and advancements in building materials, such as cross-laminated timber and steel-framed modules, are contributing to market growth.

Market Overview
Forecast Period	2026-2030
Market Size 2024	USD 113.09 Billion
Market Size 2030	USD 160.40 Billion
CAGR 2025-2030	5.84%
Fastest Growing Segment	Precast Concrete
Largest Market	North America

Technological innovations, including the integration of Building Information Modeling (BIM) and automation in modular construction, are transforming the industry by improving precision, reducing labor costs, and enhancing project management. North America and Europe are leading regions in the adoption of modular construction, driven by high labor costs, regulatory support for green buildings, and growing preference for off-site construction methods. In contrast, the Asia-Pacific region is experiencing the fastest growth due to rapid urbanization, increasing disposable incomes, and government initiatives that promote modular building techniques, particularly in countries like China, Japan, and India.

Despite promising growth prospects, the modular construction market faces challenges such as high initial investments, logistical complexities, and limited design flexibility. The transportation and assembly of large prefabricated modules can be costly, especially in regions with insufficient infrastructure. Additionally, the lack of skilled labor familiar with modular construction techniques can hinder adoption in emerging markets. However, industry players are addressing these challenges by investing in research and development, expanding manufacturing capabilities, and forming strategic partnerships with developers and contractors.

Key Market Drivers

Growing Demand for Affordable and Rapid Housing Solutions

The increasing global population and urbanization trends are intensifying the demand for affordable housing, making modular construction an attractive solution. Traditional construction methods are often slow and expensive, unable to meet the growing need for residential units. Prefabrication enables faster project completion, allowing developers to construct housing units in significantly less time compared to conventional methods. According to a United Nations report, over 3 billion people worldwide will require adequate housing by 2030. Modular construction is poised to address this need by streamlining processes, reducing material waste, and optimizing labor costs. Countries like China, India, and the United States are increasingly adopting modular construction to tackle housing shortages, with China alone completing thousands of modular residential buildings annually.

Key Market Challenges

High Initial Investment Costs

A significant challenge facing the global modular construction market is the high initial investment required to establish modular construction facilities. Unlike traditional construction methods, modular construction depends on advanced manufacturing processes such as precision engineering, automation, and robotics, which require substantial capital investment. The setup of specialized factories, procurement of advanced machinery, and training of skilled workers contribute to these high upfront costs. Developers and contractors must also invest in logistics and transportation infrastructure to ensure the smooth delivery of prefabricated modules to construction sites.

While modular construction offers long-term cost savings through reduced labor expenses and shorter project timelines, the high initial capital required remains a deterrent, particularly for small and medium-sized construction firms. Many companies struggle to secure funding to transition from traditional methods to modular techniques, especially in markets where financing options for modular projects are limited. Furthermore, the return on investment (ROI) for modular construction may not be immediate, creating financial risks for stakeholders. Governments and financial institutions are increasingly recognizing the potential of modular construction and are introducing subsidies, tax incentives, and low-interest loans to encourage adoption. However, widespread financial backing and industry-wide acceptance are still needed for greater adoption. As the market matures and technology advances, the challenge of high initial investments is expected to diminish, making modular construction a more financially viable option for a wider range of developers.

Key Market Trends

Increasing Adoption in Residential and Affordable Housing Projects

The global shortage of affordable housing is accelerating the adoption of modular construction, particularly in urban areas where land and labor costs are high. Governments and private developers are turning to modular solutions to address housing shortages efficiently, as prefabricated modules can reduce construction timelines by up to 50% compared to traditional methods. Modular housing is gaining popularity due to its ability to provide high-quality, customizable, and scalable solutions. Countries like the United States, the United Kingdom, and China are investing in large-scale modular housing projects to meet the increasing demand for urban dwellings. Additionally, rental housing, student accommodations, and co-living spaces are being developed using modular techniques, further fueling market growth.

Key Market Players

ACS Group
Skanska AB
Taisei Corporation
Lendlease Corporation
Balfour Beatty plc
L&T Group
ATCO Ltd.
Modulaire Group Holdings Limited
Red Sea International Company
VINCI SA

Report Scope

This report segments the Global Modular Construction Market into the following categories, in addition to detailing the industry trends:

Modular Construction Market by Material:

Steel
Precast Concrete
Wood
Plastic
Others

Modular Construction Market by Type:

Permanent
Relocatable

Modular Construction Market by End-User:

Residential
Retail
Office
Hotel
Education
Others

Modular Construction Market by Region:

North America: United States, Canada, Mexico
Europe: Germany, France, United Kingdom, Italy, Spain
South America: Brazil, Argentina, Colombia
Asia-Pacific: China, India, Japan, South Korea, Australia
Middle East & Africa: Saudi Arabia, UAE, South Africa

Competitive Landscape

This section provides a detailed analysis of the major companies operating in the Global Modular Construction Market.

Available Customizations

TechSci Research offers the option for customizations to the Global Modular Construction Market report based on a company's specific needs. Customization options include:

Detailed analysis and profiling of additional market players (up to five).

Product Code: 3342

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Baseline Methodology
2.2. Key Industry Partners
2.3. Major Association and Secondary Sources
2.4. Forecasting Methodology
2.5. Data Triangulation & Validation
2.6. Assumptions and Limitations

3. Executive Summary

4. Voice of Customer

5. Global Modular Construction Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Material (Steel, Precast Concrete, Wood, Plastic, Others)
- 5.2.2. By Type (Permanent, Relocatable)
- 5.2.3. By End User (Residential, Retail, Office, Hotel, Education, Others)
- 5.2.4. By Region (North America, Europe, South America, Middle East & Africa, Asia Pacific)
5.3. By Company (2024)
5.4. Market Map

6. North America Modular Construction Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Material
- 6.2.2. By Type
- 6.2.3. By End User
- 6.2.4. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Modular Construction Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Material
    - 6.3.1.2.2. By Type
    - 6.3.1.2.3. By End User
- 6.3.2. Canada Modular Construction Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Material
    - 6.3.2.2.2. By Type
    - 6.3.2.2.3. By End User
- 6.3.3. Mexico Modular Construction Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Material
    - 6.3.3.2.2. By Type
    - 6.3.3.2.3. By End User

7. Europe Modular Construction Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Material
- 7.2.2. By Type
- 7.2.3. By End User
- 7.2.4. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Modular Construction Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Material
    - 7.3.1.2.2. By Type
    - 7.3.1.2.3. By End User
- 7.3.2. France Modular Construction Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Material
    - 7.3.2.2.2. By Type
    - 7.3.2.2.3. By End User
- 7.3.3. United Kingdom Modular Construction Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Material
    - 7.3.3.2.2. By Type
    - 7.3.3.2.3. By End User
- 7.3.4. Italy Modular Construction Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Material
    - 7.3.4.2.2. By Type
    - 7.3.4.2.3. By End User
- 7.3.5. Spain Modular Construction Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Material
    - 7.3.5.2.2. By Type
    - 7.3.5.2.3. By End User

8. Asia Pacific Modular Construction Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Material
- 8.2.2. By Type
- 8.2.3. By End User
- 8.2.4. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Modular Construction Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Material
    - 8.3.1.2.2. By Type
    - 8.3.1.2.3. By End User
- 8.3.2. India Modular Construction Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Material
    - 8.3.2.2.2. By Type
    - 8.3.2.2.3. By End User
- 8.3.3. Japan Modular Construction Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Material
    - 8.3.3.2.2. By Type
    - 8.3.3.2.3. By End User
- 8.3.4. South Korea Modular Construction Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Material
    - 8.3.4.2.2. By Type
    - 8.3.4.2.3. By End User
- 8.3.5. Australia Modular Construction Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Material
    - 8.3.5.2.2. By Type
    - 8.3.5.2.3. By End User

9. Middle East & Africa Modular Construction Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Material
- 9.2.2. By Type
- 9.2.3. By End User
- 9.2.4. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Modular Construction Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Material
    - 9.3.1.2.2. By Type
    - 9.3.1.2.3. By End User
- 9.3.2. UAE Modular Construction Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Material
    - 9.3.2.2.2. By Type
    - 9.3.2.2.3. By End User
- 9.3.3. South Africa Modular Construction Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Material
    - 9.3.3.2.2. By Type
    - 9.3.3.2.3. By End User

10. South America Modular Construction Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Material
- 10.2.2. By Type
- 10.2.3. By End User
- 10.2.4. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Modular Construction Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Material
    - 10.3.1.2.2. By Type
    - 10.3.1.2.3. By End User
- 10.3.2. Colombia Modular Construction Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Material
    - 10.3.2.2.2. By Type
    - 10.3.2.2.3. By End User
- 10.3.3. Argentina Modular Construction Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Material
    - 10.3.3.2.2. By Type
    - 10.3.3.2.3. By End User

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends and Developments

13. Company Profiles

13.1.ACS Group
- 13.1.1. Business Overview
- 13.1.2. Key Revenue and Financials
- 13.1.3. Recent Developments
- 13.1.4. Key Personnel
- 13.1.5. Key Product/Services Offered
13.2.Skanska AB
- 13.2.1. Business Overview
- 13.2.2. Key Revenue and Financials
- 13.2.3. Recent Developments
- 13.2.4. Key Personnel
- 13.2.5. Key Product/Services Offered
13.3.Taisei Corporation
- 13.3.1. Business Overview
- 13.3.2. Key Revenue and Financials
- 13.3.3. Recent Developments
- 13.3.4. Key Personnel
- 13.3.5. Key Product/Services Offered
13.4.Lendlease Corporation
- 13.4.1. Business Overview
- 13.4.2. Key Revenue and Financials
- 13.4.3. Recent Developments
- 13.4.4. Key Personnel
- 13.4.5. Key Product/Services Offered
13.5.Balfour Beatty plc
- 13.5.1. Business Overview
- 13.5.2. Key Revenue and Financials
- 13.5.3. Recent Developments
- 13.5.4. Key Personnel
- 13.5.5. Key Product/Services Offered
13.6.L&T Group
- 13.6.1. Business Overview
- 13.6.2. Key Revenue and Financials
- 13.6.3. Recent Developments
- 13.6.4. Key Personnel
- 13.6.5. Key Product/Services Offered
13.7.ATCO Ltd.
- 13.7.1. Business Overview
- 13.7.2. Key Revenue and Financials
- 13.7.3. Recent Developments
- 13.7.4. Key Personnel
- 13.7.5. Key Product/Services Offered
13.8.Modulaire Group Holdings Limited
- 13.8.1. Business Overview
- 13.8.2. Key Revenue and Financials
- 13.8.3. Recent Developments
- 13.8.4. Key Personnel
- 13.8.5. Key Product/Services Offered
13.9.Red Sea International Company
- 13.9.1. Business Overview
- 13.9.2. Key Revenue and Financials
- 13.9.3. Recent Developments
- 13.9.4. Key Personnel
- 13.9.5. Key Product/Services Offered
13.10.VINCI SA
- 13.10.1. Business Overview
- 13.10.2. Key Revenue and Financials
- 13.10.3. Recent Developments
- 13.10.4. Key Personnel
- 13.10.5. Key Product/Services Offered