Global Modular Construction Market to Grow at a CAGR of 8% by 2030

Introduction

Traditional buildings are less cost-effective and less efficient than modular buildings. This is because both homes and businesses built with modular construction use high-performance materials. These products make buildings more efficient, durable, and flexible, so they meet the building needs and long-term demands of high-performance structures. 

The market is growing because of things like lower construction costs and shorter building times, as well as a rise in demand for new buildings due to more people living in cities and rapid urbanization. But the lack of skilled workers in developing countries slows down the demand for modular construction. On the other hand, an increase in investments in infrastructure projects is likely to give market players a good chance to grow during the forecast period.

Market Dynamics

Sudden Rise in Urbanization and Industrialization with Increase in the Speed of Construction and High Efficiency Driving Market Growth

Modular construction is a new way that homes and businesses are being built. The growth of cities and industries has made economies grow quickly, which has made the need for modular buildings grow. This is because modular buildings cost less as they take less time to build. This is likely to have a big effect on the demand for housing, clean water, energy, transportation infrastructure, food, and social services. In turn, this means that more cost-effective modular construction methods are used to make sure that the quality is the same everywhere. 

So, when cities grow quickly, the government and people spend more money on building homes and infrastructure, which makes the demand for modular construction go up a lot. The main benefits of modular construction technology are its high performance and its ability to keep projects on schedule by moving quickly through the designing, building, and finishing stages. Also, the modular construction method lets designers choose which parts to cast based on how well they work. This saves both time and money. Professionals like modular construction because it can be done quickly and lasts for a long time, which helps the market grow.

Not only this, modular construction has higher efficiency, which is why it is used for both homes and businesses; modular construction uses high-performance materials. These products make buildings more efficient, durable, and flexible. They also meet the long-term demand and construction needs of high-performance structures. Also, modular construction has many benefits, such as long-lasting durability, attractive designs, and high-quality building. These benefits can be used when building homes, businesses, and parking garages. Also, modular wooden construction is very popular because it saves energy, does not need much upkeep, and keeps costs down overall.

Increasing Investments in Infrastructure Opens a Wide Opportunities for Market Players

All over the world, infrastructure investment needs are growing a lot, especially in developing economies. The world is expected to spend around USD 78 trillion on building infrastructure between 2014 and 2025. Also, infrastructure spending has recovered from the global financial crisis and is expected to grow by more than USD 5 trillion per year by 2025. As more people move to cities in places like India, Japan, Indonesia, Nigeria, Mexico, and China, they are likely to spend more on things like homes and businesses. 

Also, modular construction is becoming more popular because it has many advantages, such as better structural stability, faster and better construction, more flexibility, less waste, and less need for labor. With all of these benefits, a lot of new people are trying their luck in this market to take advantage of the growth and make good money. With this, more professionals and even new companies are getting into the modular construction market, hoping to make a big name for themselves.

Regional Analysis of the Global Modular Construction Market 

The global modular construction market is primarily divided into three regions, namely – North America, Europe, and Asia-Pacific. 

Out of these three regions, the Asia-Pacific region is the most dominant and owes the major market share among the other regions. 

• North America 

North America being a developed region and having the presence of superpowers like the U.S. and Canada, owes a significant share of the global modular construction market that stood at USD 28 billion in 2021 and growing at a rapid pace to USD 53 billion by 2030 at a CAGR of 7%. 

• Europe 

Europe is the second dominant region in terms of market value for the said market, which stands at USD 33 billion in 2021 and is expected to reach USD 49 billion by 2030 at a CAGR of 6%. Europe is known as the industrial hub of the world, which is why it has a significant market share in every industrial segment, including the modular construction market.

• Asia-Pacific 

Asia-Pacific is the most dominant and leading region among the three regions, which has a market value of USD 67 billion in 2021 and is going to reach USD 139 billion by 2030 at a CAGR of 8%. Asia-Pacific is one of the most fast-paced developing regions. With the presence of major emerging economies like India and China, it does have a major market share in nearly every industrial segment out there.

Key Highlights 

• The global modular construction market to grow at USD 271 billion in 2030 at a CAGR of 8% from the early figures of USD 138 billion in 2021.
• Based on type, the permanent segment is the dominating the global market with a market value of USD 87 billion in 2021 and is expected to grow at USD 148 billion in 2030 at a CAGR of 7%. 
• On the basis of material, the global modular construction market is classified into steel, wood, and concrete, where wood owes the major market share that accounts for USD 95 billion in 2021 and is anticipated to grow to USD 179 billion in 2030 at a CAGR of 7%.
• The Asia-Pacific region is the most dominant and owes the major market share among the other regions. The market in Asia-Pacific was valued at USD 67 billion in 2021 and is going to reach USD 139 billion by 2030 at a CAGR of 8%.

Competitive Players

1. Atco
2. Anderson PTE Ltd.
3. Giant Containers Inc.
4. Honomobo Corporation 
5. Lendlease Corporation
6. S.G. Blocks Inc.
7. Skanska AB
8. Speed House Group of Companies

Recent Developments

• January 2024 - The researchers at the Korea Institute of Civil Engineering and Building Technology (KICT) created a novel construction technique that allows for the rapid assembly of modular components to construct buildings, especially in urgent situations such as catastrophes or disasters.
• January 2024 - The definitive business combination agreement (the "Transaction") between Zalatoris II Acquisition Corp. (NASDAQ: ZLS, ZLSWW, ZLSWU), a special purpose acquisition company focused on cutting-edge technology firms, and Ascotway Ltd., operating as Eco Modular, a pioneer in turnkey and offsite modular manufacturing, have been executed.

Segmentation

1. By Type
   1. Permanent
   2. Re-locatable
2. By Material
   1. Steel
   2. Wood
   3. Concrete
3. By Application
   1. Commercial
   2. Healthcare
   3. Education & Institutional
   4. Hospitality
   5. Others (Residential, etc.)
4. Based on the Module
   1. Four-sided
   2. Open-sided
   3. Partially open-sided
   4. Mixed modules & floor cassettes
   5. Modules supported by a primary structure
   6. Others
5. Based on the End-Use sector
   
   1. Residential
   2. Office
   3. Education
   4. Retail & Commercial
   5. Hospitality
   6. Healthcare
   7. Others