The global modular construction market is expected to grow from USD 84.6 billion in 2021 to USD 141.7 billion by 2030, at a CAGR of 5.9% during the forecast period 2022-2030. The market is anticipated to be driven by rising industrialization and urbanization in developing countries. Furthermore, the increasing number of stringent government measures and government funding to reduce carbon emissions at the construction site adds impetus to the market’s growth during the forecast period. Furthermore, the increasing investment in building advanced infrastructure to provide the best amenities in a small space adds impetus to the market’s growth.
The permanent modular construction segment dominated the market with market revenue of 54.34 billion in 2021
The product type segment is divided into permanent and relocatable. In 2021, the permanent modular construction segment dominated the market with market revenue of 54.34 billion. The segment has been growing owing to its ability to be built to stand independently and assembled into an existing structure drives the segment’s growth.
The steel segment is expected to grow at the fastest CAGR of 6.6% over the forecast period.
The material segment is divided into concrete, steel, and wood. Over the forecast period, the steel segment is expected to grow at the fastest CAGR of 6.6%. The steel segment has been increasing owing to its strength and rigidity, making it an ideal material to be used in the construction of buildings.
The healthcare segment accounted for the largest share of the market, with 19% in 2021.
The application segment is divided into retail & commercial, residential, education, office, healthcare, and hospitality. In 2021, the healthcare segment dominated the market, accounting for around 19% of global revenue. The growing segment is driven by the increasing need for improved healthcare infrastructure and better hospital amenities for treatment, surgeries, and clinical and dental use.
Regional Segmentation Analysis:
The modular construction market is analyzed based on five regions: North America, Europe, Asia Pacific, South America, the Middle East, and Africa. The Asia Pacific is expected to be the largest market during the forecast period. The demand for modular construction in the Asia Pacific has been growing owing to the rising research and development in the construction industries and the increasing demand for luxury amenities in the region. In addition, the presence of one of the fastest growing economies, India, coupled with two of the economic giants in the region, namely China and Japan, adds impetus to the market’s growth.
The major players in the modular construction market include Laing O’Rourke, Red Sea Housing, Katerra, Skanska AB, Sekisui House Ltd, DuBox, Atco Ltd., KLEUSBERG GmbH & Co KG, Algeco Scotsman, and Lendlease Corporation, among others.