The global modular construction market is expected to register a CAGR of around 8% during the forecast period. The major factor driving the growth of the market studied is the increasing demand from construction industries in countries of Asia-Pacific. On the flip side, the high cost of logistics is expected to hinder the growth of the market studied.
- By the construction industry, the permanent modular segment accounted for the largest share and by material, the steel segment accounted for the largest share
- Implementation Of Building Information Modelling is projected to act as an opportunity for the market in future.
Key Market Trends
Relocatable Modular Construction - A Huge Market Potential
- A relocatable building is a partially- or completely-assembled building that complies with applicable codes and state regulations and is constructed in a building manufacturing facility, using a modular construction technique.
- Relocatable modular buildings are designed to be reused or repurposed multiple times and transported to different sites. Some owners or manufacturers provide lease for such relocatable modular building services, as per the consumer's requirements for office expansion, auditorium space, and medical facilities, in a short-term agreement.
- Consumers served by relocatable modular buildings include state, provincial, and local governments, non-profit organizations, corporations, school boards, health care providers, retail establishments, as well as individuals, partnerships, and sole proprietorships. School districts, across North America, are the largest owners of relocatable classrooms buildings.
- These factors are leading to the increasing demand in the modular construction in global market throughout the study period.
Asia-Pacific to Dominate the Market
- Asia-Pacific holds the largest share of the market worldwide and China alone has more than 7,000 indigenous dedicated players.
- The rapid increase in population in regions of China and India is expected to give a rise in modular construction activity.
- The key areas of expected growth are social infrastructure, schools, hospitals, government accommodation, water, defense infrastructure, and water resources. Singapore has mandated elements of prefabricated, pre-finished, and volumetric construction (PPVC) for all projects on government land.
- The government backs this with subsidies for companies that participate with the aim of increasing and standardizing modern methods of construction (MMC) in the country. All such factors are increasing the demand for modular construction in the Asia-pacific region.
The global modular construction market is highly fragmented, with no player holding a significant share to influence the market. Key players in global modular construction market include Skanska, Bouygues Construction, Balfour Beatty Plc, ACS Group, and Taisei Corporation.
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