Prefabricated Building and Modular Construction Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Prefabricated Building and Modular Construction Market size was estimated at USD 96.7 billion in 2023 and is projected to reach USD 154.2 billion in 2030 at a CAGR of 6.8% during the forecast period 2024-2030.

The global market for prefabricated building and modular construction is witnessing significant growth, driven predominantly by rapid urbanization trends in developing nations. Modular building techniques offer distinct advantages over traditional construction methods, including lower costs, reduced construction time, fewer on-site disruptions, and decreased waste production. By conducting a substantial portion of construction within factory settings, modular building minimizes the risk of weather-related delays, with 50 to 80% of building work completed off-site. This approach enhances construction flexibility and reduces energy consumption during building construction, contributing positively to environmental sustainability.

Off-site construction occurs under controlled environments, adhering to standardized components and regulatory requirements. Modular buildings are designed for ease of disassembly, refurbishment, and relocation, thereby promoting resource efficiency by lowering the demand for new raw materials. Factory-controlled processes further mitigate waste generation and minimize disturbances at construction sites. Projects are often completed in shorter durations compared to traditional methods, as site work and modular assembly progress simultaneously.

Despite these advantages, the expansion of the modular and prefabricated building industry faces challenges, particularly concerning transportation and logistics costs associated with moving modular components over long distances. Rural areas, where labor costs are lower, tend to see more prevalent use of modular building techniques. However, high transportation costs, exacerbated by weight restrictions and regulatory hurdles, pose significant barriers to market expansion.

The COVID-19 pandemic disrupted the industry significantly, causing supply chain disruptions and labor shortages that delayed or canceled many construction projects, including those utilizing modular methods. The closure of offices, schools, and other commercial buildings further dampened demand for modular and prefabricated constructions temporarily. Nonetheless, as economies reopen and governments prioritize affordable housing initiatives, the industry is expected to recover swiftly. Government support and renewed construction activity are likely to bolster market growth, offsetting pandemic-related setbacks.

In conclusion, while facing challenges such as transportation costs and pandemic-related disruptions, the prefabricated building and modular construction market remains poised for growth. Its advantages in cost-efficiency, speed, and sustainability position it favorably in meeting evolving construction demands, particularly in urbanizing regions of developing countries.

Delvens Industry Expert's Standpoint

Anticipated increases in foundational investments are expected to drive measured growth in the modular construction market, spurred by rising industrialization and urbanization in developing countries like India, Vietnam, and China. However, the industry faces several challenges that impede its expansion, including shortages of skilled workers, logistical constraints, and knowledge gaps. Issues such as consumer perceptions of quality and difficulties in securing funding also hinder market growth. Additionally, the unpredictable nature of transportation costs poses risks that could hamper the global market for modular construction. Nevertheless, opportunities abound amidst these challenges. Factors such as escalating urbanization, housing shortages in developed nations, untapped potential in emerging economies, and population growth present avenues for positive growth in the sector. Strategic measures to address infrastructure challenges and capitalize on emerging opportunities will be crucial in driving substantial growth in the modular construction industry.

Market Portfolio

Key Findings

• On the basis of Type, The Type segment includes Relocatable and Permanent categories. With increasing demand for permanent residential, commercial, and industrial structures, the permanent modular category is anticipated to dominate market share in the coming years. This trend is driven by factors such as rising per capita income and improved access to capital, facilitating market growth. The growing trend towards home ownership further supports this expansion, underpinned by socioeconomic factors contributing to heightened demand for durable modular building solutions.

• On the basis of Material, The Material segment is divided into Concrete, Steel, and Wood. Among these, the steel segment is experiencing the most rapid growth in the modular construction market. This growth is attributed to factors such as structural integrity, design flexibility, strength, durability, fire resistance, and reduced maintenance requirements over the building's lifespan. Steel components commonly used in modular construction include hot-rolled steel, cold-formed steel wall panels, and steel structures, known for their strength-to-weight ratio and practicality. These qualities are driving significant interest and adoption in this market segment.

• On the basis of End User, The End User segment is divided into Housing, Commercial, Education, Healthcare, and Industrial categories. Currently holding the largest market share, the housing sector is expected to experience the most rapid growth in the foreseeable future. This growth is driven by factors such as the expanding population, rapid urbanization, and strong economic growth in the Asia Pacific region. These conditions are fostering increased residential construction activities, thereby augmenting demand within the housing market segment.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America held the largest Prefabricated Building and Modular Construction Market share propelled by technological advancements and changing consumer perceptions, is gaining traction as a solution to housing challenges.

Regional Analysis

North America to Dominate the Market

• The North America region is Dominate to be the largest region in the Prefabricated Building and Modular Construction market during the forecast period.

• The increased demand from the residential and commercial sectors is to blame for the increase in construction activity. Additionally, the demand for modular houses is rising as a consequence of aggressive government activities to support eco-friendly housing.

Competitive Landscape

• ACS Group
• Algeco (Modulaire Group)
• Berkeley Modular Limited
• Bouygues Construction
• DUB0X
• Guerdon, LLC
• Hickory Group
• Kiewit Corporation
• Kleusberg GmbH
• Laing O’Rourke
• Larsen & Toubro Limited
• Lendlease Corporation
• Red Sea International
• Riko Group
• Satellite Shelters
• Sekisui House, Ltd.
• Skanska
• Taisei Corporation
• VINCI Construction

Recent Developments

• In December 2023, Red Sea International has forged a four-year agreement with Baker Hughes Company, a global leader in oilfield services, to design, manufacture, supply, and operate modular accommodation facilities in the Eastern Province. These facilities are intended to support oil exploration operations in the region.

• In August 2022, Broad Group, a Chinese company, completed the construction of the Living Building, a modular 10-storey apartment block in Changsha, China, in slightly more than a day. The building was erected using cranes and assembled within 28 hours.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
• Gain authentic and granular data access for the Prefabricated Building and Modular Construction Market to understand the trends and the factors involved in changing market situations.
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope