Modular Construction Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 86.09 Billion |
| Market Size (2029) | USD 115.32 Billion |
| CAGR (2024 - 2029) | 6.02 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Modular Construction Market Analysis
The Modular Construction Market size is estimated at USD 86.09 billion in 2024, and is expected to reach USD 115.32 billion by 2029, growing at a CAGR of 6.02% during the forecast period (2024-2029).
During the COVID-19 pandemic, there was a negative impact on the modular construction market globally as factories and manufacturing facilities were shut down, which stopped the production of modules or pre-engineered building units. Additionally, nationwide lockdowns in several countries and strict social distancing measures affected the construction industry. However, the modular construction market has recovered from the pandemic and is growing significantly.
- In the short term, increasing demand for modular construction from developed economies and supportive government initiatives are expected to propel the market's growth.
- Conversely, supply chain challenges, shortage of skilled labor, and adverse macroeconomic conditions are expected to hinder growth.
- However, the growing global housing crisis is expected to create opportunities in the market during the forecast period.
- Asia-Pacific is expected to dominate the market and witness the highest annual growth rate during the forecast period.
Modular Construction Market Trends
The Industrial/Institutional Segment is Expected to Dominate the Market
- The industrial/institutional segment is the largest in the modular construction market. Modular construction provides a faster, more efficient, and cost-effective way of building components away from the site in a controlled location in the industrial/institutional construction sector.
- According to MBI, an industrialized building is classified by building codes for occupancy and used by groups other than residential ones for one or more families.
- Industrialized modular buildings are commercial structures constructed off-site in one or more modules or using modular components. These buildings are designed to be transported to the commercial site, which is erected or installed for immediate use.
- According to MBI, institutional modular constructions in North America accounted for over 17.5% in 2023, a major share of the country’s modular construction industry comprising major projects.
- Further, as per Mordor Intelligence analysis, the industrial/institutional segment is expected to grow moderately with an annual growth rate of 3.99%.
- Modular construction is poised to play a pivotal role in the future of industrial and institutional buildings as the industry undergoes significant transformations.
Asia-Pacific is Expected to Dominate the Market
- Asia-Pacific takes the lead as the swiftest expanding market for modular construction. The burgeoning industrial and commercial construction segments underpin the region's market growth.
- Some major manufacturers spearhead strategic initiatives in Asia-Pacific, driving up the modular construction market's demand. For instance,
- In January 2024, Broad Group Holon Jianan Co., a subsidiary of Broad Group Holon, built a 26-story apartment building in Hunan, China, in just five days. The structure, named the Jingdu Holon Building, spans 14,000 square meters. Notably, the apartments were preassembled in a factory, with each unit measuring 12 meters long, 2.4 meters wide, and 3 meters high. Also, the units come equipped with pre-installed wiring and ductwork, showcasing a remarkable feat in construction efficiency.
- In October 2023, CIMC Modular Building Systems Holding Co. Ltd, a subsidiary of CIMC Construction Technology under CIMC Group, hosted a delivery ceremony for the Hong Kong Legislative Council Complex's expansion project. This endeavor was groundbreaking, as it was the first time Hong Kong had seen modular construction technology used for expansion, breaking away from traditional methods. This project is expected to be Hong Kong's inaugural modular legislative office and its premier high-end office space upon completion. The slated completion date is by the end of 2024.
- In March 2024, Magicrete, a prominent producer of AAC Blocks and Construction Chemicals, completed a significant housing project in Ranchi, Jharkhand. Utilizing the innovative 3D Modular Precast Construction System, the 1,008-unit project achieved cost parity with traditional methods and slashed construction timelines by up to 40%. This enhances housing accessibility and underscores the growing influence of precast concrete technology in India.
- In January 2024, Sekisui House announced plans to acquire the US builder MDC Holdings for a significant USD 4.95 billion. This move positions the Japanese firm as the fifth-largest homebuilder in the United States, the world's largest economy. Leveraging its high-end modular division, SHAWOOD by Sekisui House aims to introduce advanced technologies to MDC, including earthquake-resistant home frames and zero-emissions building processes. These strategic endeavors are poised to bolster Japan's modular construction demand.
- In August 2023, LG Electronics, a leading South Korean electronics firm, collaborated with GS E&C to explore the modular housing market, unveiling their Smart Cottage concept. LG's strategy integrates high-efficiency products like heat pumps and induction electric ranges with modular housing, eyeing opportunities to replace aging rural homes with smart cottages.
- Therefore, these factors are poised to increase demand for the regional modular construction market in the coming years.
Modular Construction Industry Overview
The modular construction market is fragmented in nature. The major players (not in any particular order) include WillScot, Fluor Corporation, Daiwa House Industry Co. Ltd, Larsen & Toubro Limited, and ATCO LTD.
Modular Construction Market Leaders
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WillScot
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Fluor Corporation
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Daiwa House Industry Co. Ltd
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Larsen & Toubro Limited
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ATCO LTD
*Disclaimer: Major Players sorted in no particular order
Modular Construction Market News
- June 2024: ATCO Ltd structures division revealed its acquisition of NRB Ltd (NRB), a Canadian manufacturer specializing in modular structures for industrial, educational, and residential purposes. The deal, valued at CAD 40 million (~USD 29.24 million), was slated for completion by late July 2024. This strategic move by ATCO Structures underscores its ambition to bolster manufacturing, operational reach, and sales, particularly targeting the growing modular residential segment.
- August 2023: WillScot acquired Cold Box in California and A&M Cold Storage in Ohio. This acquisition has solidified WillScot's position, propelling it to become one of the leading providers in the temporary cold storage sector. These units serve diverse customers in need of onsite climate-controlled space. Through this acquisition, the company owns approximately 2,200 climate-controlled containers and refrigerated storage trailers, a regional modular space manufacturing and leasing business consisting primarily of approximately 1,300 modular leasing units, and a US national provider of premium large clearspan structures.
Modular Construction Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Increasing Demand for Modular Construction from Developed Economies
- 4.1.2 Supportive Government Initiatives for Modular Construction
- 4.2 Restraints
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Value)
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5.1 Construction
- 5.1.1 Permanent Modular
- 5.1.2 Relocatable Modular
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5.2 Material
- 5.2.1 Steel
- 5.2.2 Concrete
- 5.2.3 Wood
- 5.2.4 Plastic
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5.3 End-user Industry
- 5.3.1 Commercial
- 5.3.2 Industrial/institutional
- 5.3.3 Residential
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5.4 Geography
- 5.4.1 Asia-Pacific
- 5.4.1.1 China
- 5.4.1.2 India
- 5.4.1.3 Japan
- 5.4.1.4 South Korea
- 5.4.1.5 Rest of Asia-Pacific
- 5.4.2 North America
- 5.4.2.1 United States
- 5.4.2.2 Canada
- 5.4.2.3 Mexico
- 5.4.3 Europe
- 5.4.3.1 Germany
- 5.4.3.2 United Kingdom
- 5.4.3.3 France
- 5.4.3.4 Italy
- 5.4.3.5 Benelux Countries
- 5.4.3.6 Rest of Europe
- 5.4.4 South America
- 5.4.4.1 Brazil
- 5.4.4.2 Argentina
- 5.4.4.3 Rest of South America
- 5.4.5 Middle East and Africa
- 5.4.5.1 Saudi Arabia
- 5.4.5.2 South Africa
- 5.4.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 ACS Group
- 6.4.2 ATCO LTD
- 6.4.3 Bechtel Corporation
- 6.4.4 Daiwa House Industry Co. Ltd
- 6.4.5 Fluor Corporation
- 6.4.6 LAING O'ROURKE
- 6.4.7 Larsen & Toubro Limited
- 6.4.8 Sekisui Chemical Co. Ltd
- 6.4.9 Skanska
- 6.4.10 WillScot
- 6.4.11 Zekelman Industries
- *List Not Exhaustive
- 6.5 List of Other Prominent Companies
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Growing Global Housing Crisis
Modular Construction Industry Segmentation
Modular construction involves delivering and assembling pre-fabricated engineered building units on the construction site. The construction process of modular buildings is faster than the conventional process, as it requires less time and offers greater flexibility and improved air quality.
The modular construction market is segmented by construction, material, end-user industry, and geography. By construction, the market is segmented into permanent modular and relocatable modular. The market is segmented by materials: steel, concrete, wood, and plastic. By end-user industry, the market is segmented into commercial, industrial/institutional, and residential. The report also covers the market sizes and forecasts for the modular construction market in 15 countries across major regions. For each segment, the market sizing and forecasts are done based on value (USD).
| Construction | Permanent Modular | |
| Relocatable Modular | ||
| Material | Steel | |
| Concrete | ||
| Wood | ||
| Plastic | ||
| End-user Industry | Commercial | |
| Industrial/institutional | ||
| Residential | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Italy | ||
| Benelux Countries | ||
| Rest of Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East and Africa | Saudi Arabia |
| South Africa | ||
| Rest of Middle East and Africa |
Modular Construction Market Research FAQs
How big is the Modular Construction Market?
The Modular Construction Market size is expected to reach USD 86.09 billion in 2024 and grow at a CAGR of 6.02% to reach USD 115.32 billion by 2029.
What is the current Modular Construction Market size?
In 2024, the Modular Construction Market size is expected to reach USD 86.09 billion.
Who are the key players in Modular Construction Market?
WillScot, Fluor Corporation, Daiwa House Industry Co. Ltd, Larsen & Toubro Limited and ATCO LTD are the major companies operating in the Modular Construction Market.
Which is the fastest growing region in Modular Construction Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Modular Construction Market?
In 2024, the Asia Pacific accounts for the largest market share in Modular Construction Market.
What years does this Modular Construction Market cover, and what was the market size in 2023?
In 2023, the Modular Construction Market size was estimated at USD 80.91 billion. The report covers the Modular Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Modular Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the challenges faced by the Modular Construction Industry?
The challenges faced by the Modular Construction Industry are a) Lack of proper recycling infrastructure b) Transportation and assembly issues c) Shortage of experts with specialized knowledge in modular construction d) Fluctuations in transportation costs e) Adapting to varying regulatory requirements in different regions
What are the challenges faced by the Modular Construction Industry?
The challenges faced by the Modular Construction Industry are a) Lack of proper recycling infrastructure b) Transportation and assembly issues c) Shortage of experts with specialized knowledge in modular construction d) Fluctuations in transportation costs e) Adapting to varying regulatory requirements in different regions
Modular Construction Industry Report
The modular construction market is experiencing significant growth, driven by its numerous advantages over traditional construction methods. This innovative approach involves prefabricating modules in controlled factory settings and assembling them on-site, which not only speeds up construction times but also enhances quality control and reduces costs. Top modular construction companies are leading the way in this sector, utilizing advanced technologies to deliver high-quality modular buildings. The market is segmented by type, material, and end-use industry, with permanent modular construction and wood material segments dominating due to their durability, aesthetic appeal, and sustainability. Globally, the market is witnessing a surge in demand across various sectors, particularly in residential and healthcare, driven by rapid urbanization and the need for efficient building solutions. Modular building companies are increasingly recognized for their ability to meet these demands quickly and sustainably. The Asia-Pacific region leads the market, propelled by urbanization, supportive government policies, and technological advancements in modular construction. The focus on enhancing workplace safety and sustainability continues to drive the modular construction industry forward. Obtain a free report PDF download from Mordor Intelligence™ Industry Reports, which provides a comprehensive analysis of the modular construction landscape.
