Prefabricated Building and Modular Construction Market

What are Prefabricated Buildings and Modular Construction?

Before we jump into the Prefabricated Building and Modular Construction Market, we need to understand what actually Prefabricated Building and Modular Construction are and why it is in trend nowadays. Construction has trailed behind other industries in productivity for many years. By moving numerous building-related activities from traditional construction sites to factories with off-site, manufacturing-style operations, modular construction gives the industry a chance to make a significant change.

Although the idea of modular (or prefabricated) construction is not new, recent technology advancements, economic pressures, and shifting cultural attitudes have led to an extraordinary surge in interest and investment. If it takes off, it might greatly increase industry productivity, aid in alleviating housing difficulties in many markets, and fundamentally alter how we construct buildings today.

In general, modular construction entails constructing standardized building parts in a factory off-site before putting them together on-site. Prefabrication, modular construction, and other terms like "off-site construction" are all interchangeable. These phrases include a wide range of methods and setups, from simple components that are connected and interfaced together to 3-D volumetric units with complete fixtures.

Several considerations suggest that modular construction may have newfound enduring power. It is currently the subject of a new wave of interest and investment. The modular building concept has been fundamentally altered by the development of digital technologies, which have facilitated module design and improved delivery logistics, among other things. Consumer opinions of prefab homes are starting to shift, especially when new, more interesting material options enhance the houses' aesthetic appeal.

Current market scenario

In Developing Economies rapid growth in urbanization is driving the adoption of modular construction technology. In comparison to traditional construction modular construction is cost-effective, less time-consuming, and creates less waste. As we know that about 70-90% of the construction work is completed inside the factory which mitigates the risk of weather delays.

In 2022 the global modular construction market was valued at $91 billion and is projected to reach $141.7 billion by 2030 at a CAGR of 6.5% in the forecast period of 2022 -2030. And if look at the Prefabricated Building and Modular Construction Market by the market of the material then Steel stands 1^st with 46.2%, wood at 2^nd at 39.3%, concrete at 3^rd with 11%, and other materials at 3.4%.

Major players in Modular Construction are Sekisui House Ltd.; LAING O'ROURKE; Red Sea International; Skanska; Bouygues Construction; Premier Modular Ltd.; KLEUSBERG GmbH & Co KG; DuBox; Wernick Group; CIMC Modular Building Systems Holdings Co., Ltd. (CIMC-MBS); Riko Hiše d.o.o; Lendlease Corp.; Modulaire Group; Guerdon, LLC; and Hickory Group

Geographies with high growth

In 2022 Europe had the highest global market size, then North America, Asia Pacific, Middle East & Africa, and Latin America follows. These regions consist of some of the fast-growing economies and have steady population growth. Which is going to be fuel for high growth in these regions. However, the strong presence of a cost-effective workforce and easy availability of raw materials will also supplement the progress.

Market Segmentation

 Based on the type analysis prefabricated buildings and modular construction market is segmented into two categories. These are permanent modular construction (PMC) and Relocatable Modular construction (RMC). PMC has the highest market size and also is the fastest-growing segment. Whereas RMC is expected to show progressive growth as Temporary housing for Emergency and Relief operations.

Based on application Prefabricated Building and Modular Construction market is segmented into the Commercial, Healthcare, Educational & Institutional, Hospitality, and others (residential, etc). In 2022 the growth-stage startup investment growth was 237% in India, and so as the number of start-ups is rising in developing economies due to this growth the commercial sector is supposed to have the largest market share.

While Health care sector is preferring Prefabricated Building and Modular Construction because of their cost efficiency, high quality, and time efficiency. Also, the Hospitality and Educational sector are preferring it because of reduced cost and time efficiency.

Conclusion

Modular construction entails constructing standardized building parts in a factory off-site before putting them together on-site. Prefabrication, modular construction, and other terms like "off-site construction" are all interchangeable. These phrases include a wide range of methods and setups, from simple components that are connected and interfaced together to 3-D volumetric units with complete fixtures.

The global modular construction market was valued at $91 billion in 2022 and is projected to reach $141.7 billion by 2030. Europe had the highest global market size, then North America, Asia Pacific, the Middle East & Africa, and Latin America follows. These regions consist of some of the fast-growing economies and have steady growth in population due the modular construction’s cost efficiency, high quality, and time efficiency. This market is supposed to grow with a high CAGR. The modular Construction market is segmented into the Commercial, Healthcare, Educational & Institutional, Hospitality, and others (residential, etc). The commercial sector will have the highest growth rate among the other sectors.