PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1944731
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1944731
The modular construction market is expected to reach USD 142.87 billion by 2030 from USD 109.60 billion in 2025, at a CAGR of 5.4% during the forecast period.
| Scope of the Report | |
|---|---|
| Years Considered for the Study | 2021-2030 |
| Base Year | 2024 |
| Forecast Period | 2025-2030 |
| Units Considered | Value (USD Million) and Volume (Thousand Square Feet) |
| Segments | Type, Material, Module, End-use Industry, and Region |
| Regions covered | North America, Asia Pacific, Europe, Middle East & Africa, and South America |
Modular construction is rapidly finding relevance in the residential, commercial, industrial, and institutional sectors due to the increasing need for fast- track construction, cost management, increased workforce efficiency, and adherence to the newer norms of building safety and sustainability regulations. The Modular Building Institute (MBI), International Code Council (ICC), and building regulations authorities are working toward ensuring the durability, safety, and energy efficiency of modular construction. Modular construction is designed with the use of advanced structural technology, mechanical, electrical, and plumbing assemblies, and building envelopes to meet or surpass the standards of conventional construction. Modular construction can be applied to multi-family residential, hotels, healthcare, data centers, and educational institutions, where there is a need for fast-track construction and repeatability. Moreover, research carried out by the U.S. Department of Housing and Urban Development (HUD) and the industry confirms the ability of modular construction to save up to 30-50% of the construction period and construction waste by as much as 20-25%, thereby making it sustainable and agile in the context of the built environment of the present and the future.

"Relocatable is projected to be the fastest-growing type in the modular construction market during the forecast period."
Relocatable modular construction is projected to be the fastest-growing type in the modular construction market during the forecast period. This is because relocatable modular constructions are very flexible and easy to set up. These types of constructions are reusable and can be disassembled for easy transfer from place to place. This feature makes them most appropriate for temporary use in educational institutions, health facilities, offices, employee settlements, and temporary aid facilities for disaster victims. Moreover, relocatable modular constructions have various advantages over conventional ones. These include minimizing construction waste, decreasing capital costs, and faster construction time. Government support for modular infrastructure development and the advantages of sustainability and rapid growth potential further contribute to the growth of the relocatable modular construction segment worldwide.
"Steel is projected to be the fastest-growing material in the modular construction market during the forecast period."
Steel is expected to be a fast-growing material in the modular construction market during the forecast period. This is because steel has unmatched strength, durability, and suitability for construction purposes in multi-story buildings. As steel can be fashioned off-site with great accuracy, this will facilitate faster assembly, better quality control, and faster construction. Additionally, steel has better resistance to fire, pests, and adverse climatic conditions, ensuring better safety. Moreover, with increased focus on greener materials in construction, modular construction involving steel is becoming common all over the globe.
"Hospitality is projected to be the fastest-growing end-use industry in the modular construction market during the forecast period."
The hospitality sector is expected to be the fastest-growing end-use sector of modular construction in the coming years. In fact, this push in the industry is because of the need for speed and scalability while trying to have tighter cost control. Hotels, resorts, serviced apartments, and budget stays are increasingly incorporating modular builds in their projects, thereby reducing project timelines by as much as 30-50% and speeding up time-to-market, critical in busy tourism and business hubs. On-site/off-site construction, managed during the prep work and facilitated through modular manufacturing, ensures a way around labor shortages, weather delays, and budget overruns. Similar room layouts repeated throughout a property, facilitated through quality inspections within the factory, allow the hospitality industry the way around maintaining consistency within a brand for multiple properties. It encourages greater use, particularly given the investment surge within the tourism infrastructure, leading the way for a middle- to low-end hotel market, pushing the hotel chains' expansion into new markets, in addition to the sustainable aspect, which resonates given the necessity for a greener approach for a new development within the industry.
"Asia Pacific is projected to be the fastest-growing region in the modular construction market during the forecast period."
The modular construction market in the Asia Pacific region is anticipated to be the fastest-growing market during the forecast period, largely reflecting the unfolding urbanization, steady population increase, and upgrading of infrastructure in the emerging economies such as China, India, and the countries of Southeast Asia. Developers, faced with the rising need for affordable housing, commercial spaces, and hotels, are turning to modular construction techniques to speed up the work and lower expenses. Further, the governmental schemes, which are aimed at smart cities, sustainable urban development, and energy-efficient building practices, also help in the widespread legacy of such a market proposal. Furthermore, the region's expanding industrial base, increased wages, and the increasing awareness of the environmental benefits of prefabricated construction have rendered modular technologies an attractive choice. These factors collectively position the Asia Pacific as a primary hub for growth, presenting significant opportunities for modular construction initiatives in both residential and commercial domains.
By Company Type: Tier 1: 40%, Tier 2: 30%, and Tier 3: 30%
By Designation: Directors: 30%, Managers: 20%, and Others: 50%
By Region: North America: 20%, Europe: 10%, Asia Pacific: 40%, South America: 10%, and Middle East & Africa 20%
Notes: Others include sales, marketing, and product managers.
Tier 1: >USD 1 Billion; Tier 2: USD 500 million-1 Billion; and Tier 3: <USD 500 million
Companies Covered: Skanska (Sweden), Laing O'Rourke (UK), ATCO Ltd. (Canada), Modulaire Group (UK), Red Sea International (Saudi Arabia), VINCI (France), THE Bouygues group (France), Bechtel Corporation (US), Fluor Corporation (US), Lendlease Corporation (Australia), and KLEUSBERG Group (Germany) are covered in the report.
The study includes an in-depth competitive analysis of these key players in the modular construction market, with their company profiles, recent developments, and key market strategies.
Research Coverage
This research report categorizes the modular construction market based on type (Permanent and Relocatable), material (Wood, Steel, and Concrete), module (Four-sided Modules, Open-sided Modules, Partially Open-sided Modules, Mixed Modules and Floor Cassettes, Modules Supported by a Primary Structure, and Other Modules), and end-use industry (Residential, Retail & Commercial, Office, Education, Hospitality, Healthcare, and Other End-use Industries). The report's scope covers detailed information regarding the drivers, restraints, challenges, and opportunities influencing the growth of the modular construction market. A detailed analysis of the key industry players has been done to provide insights into their business overview, products offered, and key strategies, such as mergers, acquisitions, product launches, and expansions, associated with the modular construction market. This report covers a competitive analysis of upcoming startups in the modular construction market ecosystem.
Reasons to Buy the Report
The report will offer the market leaders/new entrants with information on the closest approximations of the revenue numbers for the overall modular construction market and the subsegments. This report will help stakeholders understand the competitive landscape, gain more insights into positioning their businesses better, and plan suitable go-to-market strategies. The report will help stakeholders understand the pulse of the market and provide them with information on key market drivers, restraints, challenges, and opportunities.