The Global Modular Construction Market was estimated at USD 95.49 billion in the year 2020, and is expected to reach USD 141.80 billion by 2027. The market is growing with a CAGR of 6.1%, in the forecast period (2017-2027). Modular construction is fast emerging as a sustainable affordable, economical, and environment-friendly construction method which is increasingly being adopted by builders and construction companies. Growth of the construction industry in the residential and commercial sector, primarily in the Asia Pacific, in order to meet the demand for housing from a rapidly growing population and has also led to a favorable market for modular construction. Also, new trends in the construction industry such as Lean Construction, Building Information Modelling (BIM), and Green Buildings have increased the role of prefabrication and modularization in construction.
The research report analyses the ecosystem of Modular Construction and categorizes the Modular Construction Market to forecast the revenues and analyse the trends in each of the following below-mentioned market segments.
The unique insights provided by this report also includes the following:
In terms of the type of modular construction, the permanent construction segment is estimated to be the largest segment during the forecast period
In terms of product type, the global Modular Construction market can be segmented into Permanent and Relocatable types. The permanent modular Construction segment of the Modular Construction market is projected to be the largest market. Relocatable modular structures are generally preferred for building accommodations or structures on a temporary basis such as laborers working at the worksite.
In 2019, Permanent Modular Construction was the largest market accounting for oversharing 60% share of the overall Modular Construction market. This market is growing mainly on account of demand from the industrial, commercial, and residential housing segment. Permanent modular construction is emerging as an alternative to conventional construction methods over the past few years. The market of the permanent modular construction market is also boosted due to the fact that modular construction techniques result in speedy project delivery, safe working conditions, and improved quality and material management benefits. Also, this technique allows expansion at a later stage which can be done by simply adding more modules. Even though these structures are said to be permanent, they still permit modules of steel and concrete to be moved if the need arises.
By Application, the residential construction application is expected to be the largest segment
The residential construction application segment dominated the Modular Construction market in terms of revenue in 2019. It is also the fastest-growing segment in terms of CAGR. The residential and housing sector is increasingly adopting modular Construction techniques on account of their numerous advantages. Modular homes are also faster and comparatively easy to build as they are built on a continuously operating assembly line. The modular construction technique also reduces the possibility of weather delays, the need for storage of construction materials, reduces labor costs, and reduces the volume of waste generated. The healthcare sector is expected to be fastest-growing segment in terms of CAGR trends.
The Asia Pacific is expected to be the fastest-growing segment in the forecast period
The Asia Pacific was the fastest-growing segment of the overall Modular Construction market. While Europe is expected to be the second-largest market. The North America region is also projected to witness a higher demand for modular construction in the coming years on account of the increasing adoption of modular construction in various end-user industries. The demand in the Asia Pacific region is primarily driven on account of easy raw material and manpower availability coupled with the demand from end-user industries such as residential housing, commercial construction, and the healthcare industry. Due to the growing eCommerce sector, there is a need to construct more warehouses in certain Asia Pacific countries. The construction industry in the Asia Pacific region is also growing on account of rising urbanization, rising disposable income, and government initiatives, and residential and commercial construction projects. Key Modular Construction markets in Asia- Pacific include China, Japan, India, South Korea, Thailand, and Indonesia. Key modular construction markets in Europe include Finland, Germany, Sweden, and the U.K.
The report also provides an in-depth analysis of market dynamics such as drivers, restraints opportunities, and challenges:
Recent News and Developments in the Modular Construction Market Market:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.