North America Modular Construction Market Size (2024 - 2029)

North America Modular Construction Market Analysis

The North America Modular Construction Market size is estimated at USD 33.99 billion in 2024, and is expected to reach USD 42.58 billion by 2029, growing at a CAGR of 4.61% during the forecast period (2024-2029).

The COVID-19 pandemic had a negative impact on the market in 2020. In the event of a pandemic, construction operations were temporarily halted during the lockdown, resulting in a reduction in modular construction work in various construction segments such as educational, residential, and airports, negatively impacting demand for the modular market.

The North American modular industry is currently made up of over 250 regional manufacturers building everything from construction site offices to single-family homes and hotels. The industry is regulated primarily at the state level through administrative agencies that implement and enforce the rules for building in that state. However, only 35 states (and one Canadian province) have such a program, meaning the remaining jurisdictions rely on local code officials to determine compliance and safety. Additionally, the programs lack a degree of uniformity in requirements and even terminology. For example, the program in Massachusetts is referred to as the 'manufactured buildings program,' while in other states, the industry is referred to as 'industrialized buildings,' or 'factory-built housing.'

The modular industry manufactured and labelled 2,041 multifamily units in 2019 or about 7.2% of total industry output. This figure is down slightly from 2018 indicating a shift of production into other markets such as hospitality. . Five states account for the majority of multifamily modular projects: California, Massachusetts, New York, New Jersey, and Pennsylvania, with modular projects reported in nine other states. Many hospitals and healthcare facility contractors are turning to modular, primarily for building components such as bathroom pods and headwalls. However, entire hospitals have been constructed utilizing modular construction techniques. For educational units, California, Georgia, New York, North Carolina, Texas, and South Carolina were the top states in terms of utilizing modular construction in 2019, accounting for 45% of total production. Historically, one of the key markets for the modular industry in Canada has been the industrial workforce housing sector. The modular industry provided temporary workforce housing solutions in remote regions where the energy sector was active. With the decline in oil prices in recent years, the industry has diversified into some of the above-mentioned markets more aggressively.

North America Modular Construction Industry Segmentation

Modular construction is a construction technique that involves the prefabrication of 2D panels or 3D volumetric structures in off-site factories and transportation to construction sites for assembly. This process has the potential to be superior to traditional construction in terms of both time and cost. The North American modular construction market is segmented by type, sector, and country. By type, the market is segmented into permanent, and relocatable. By sector, the market is segmented into residential, and commercial. By country, the market is segmented into the United States, Canada, and Mexico.