Global Modular Construction Market by Application (Residential, Commercial, Industrial, Healthcare), by Type (Relocatable, Permanent) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global modular construction market was valued at USD 112.3 million in 2018. It is forecast to grow 6.5% during the forecast period. Market growth is expected to be positive due to rising demand for affordable housing and increasing investments in healthcare and commercial infrastructure.

According to industry surveys modular construction can save 30% to 50% on time compared with traditional construction. Due to growing focus on productivity, efficiency and workplace safety, the market will see a renewed interest in the building and construction industry.

Because of its high adoption rate, the U.K. is a leading market for modular construction. Over the forecast period, the country's market will be driven by a chronic shortage of skilled labor and massive ongoing investments in residential housing development. There will also be a renewed focus to improve healthcare infrastructure.

Traditional building methods are not possible in countries like Sweden, Canada, Finland and the United States. Modular construction is a viable alternative to traditional methods. Around 85% of all new homes in Sweden were built using modular construction as of 2018.

Modular construction is attractive because it allows you to benefit from economies of scale, faster speeds, and better quality control. Modular construction also has a significant decrease in the amount of waste generated by traditional building methods.

Market growth is being slowed by lack of awareness, poor consumer perceptions about quality, and difficulties in accessing finance. Market growth will be hindered by the possibility of an economic slowdown in key markets like the U.K. and China.

Type Insights

In the last decade, permanent modular construction has been gaining popularity as an alternative to traditional building techniques. The market's positive growth is being driven by the increasing popularity of buying a house. This can be attributed to the easy availability of finance and an increase in per capita income.

The largest share, 64.4%, was held by the permanent modular segment in 2018, due to the increasing demand for permanent housing and commercial structures. Market growth will be boosted by the increasing cost of housing construction and the rapid growth in the industrial sector of developing countries.

To provide temporary accommodation for workers at work, modular structures that can be moved around are used. A variety of end-users can also use modular, relocatable structures, including local governments and industrial corporations, school boards, schools, and healthcare providers. They are used as temporary offices, clinics, temporary hotels, and healthcare providers.

Over the forecast period, Africa and the Middle East are expected to see a large demand for modular construction that can be moved around. Market growth is expected to be driven by the rising trend to provide housing facilities for migrant blue-collar workers who are engaged in ongoing construction projects and industrial projects.

Application Insights

Modular construction is expected to be the most lucrative segment, with the residential market gaining the highest share at 6.9% CAGR over the forecast period. This is due to an increase of residential housing construction in Asia Pacific, which has a growing population and rapid economic growth.

In 2018, the commercial application segment was valued USD 15.8 billion. It is projected to grow at 6.2% CAGR over the forecast period. The recovery of key markets like the U.K. and the U.S. is expected to drive strong demand for commercial space such as offices, showrooms and hotels. This will lead to an increase in commercial building activities.

Modular construction reduces disruptions and allows for closure of existing structures. Modular construction is becoming more popular in capital-intensive sectors like healthcare. It allows for a shorter construction time and lowers costs, while maintaining the highest quality building materials and design.

A growing eCommerce sector and rising industrialization have resulted in a higher demand for warehouses. The forecast period will see an increase in demand for modular construction in industrial applications.

Regional Insights

The U.K.'s leading segment, residential application, emerged and will continue to grow at 7.2% CAGR over the forecast period. The U.K. government plans to build 300,000 homes annually in the next five-years, which will increase the residential construction industry. This plan is expected positively to impact the modular construction market.

Canada's growing commercial construction market is supported by the demand for commercial space such as offices, hotels, and retail showrooms. Due to the improved economic outlook and the growing commercial construction market, the country's commercial application segment is expected to grow to USD 198.8 millions by 2025.

Europe was the second largest market for modular construction in 2018, due to the high penetration in Sweden, Finland, Germany and the U.K. It is likely that the main driving factor will be the increasing influx of migrants, which will require the construction of permanent and temporary housing structures.

India's modular construction market is expected to grow at 8.4% CAGR over the forecast period. Market growth is expected to be boosted by the ambitious plan of the Indian government to provide permanent housing to all citizens by 2022.

Market Share Insights & Key Companies

There are both small- and big-scale players in the market, which results in moderate competition. Companies are investing in R&D to improve their supply chain management, transportation and use of raw materials. This will allow them to meet rising demand from commercial, residential and industrial buildings.

Laing O'Rourke and Katerra are key players in this market. They also have Red Sea Housing, Red Sea Housing and Sekisui House Ltd. Venture capital firms and angel investors are very interested in these startups. In January 2018, Katerra, led by SoftBank, raised USD 865 millions in a Series D round of funding.

Modular Construction Market Report Scope

The Report Covers Certain Segments

This report predicts revenue growth at the global, regional and country level and analyzes the industry trends in each sub-segment from 2014 through 2025. Grand View Research divided the global modular construction market report by type, region, and application.

• Type Outlook (Revenue USD Million, 2014-2025)

  • Relocatable

  • Permanent

• App Outlook (Revenue USD Million, 2014-2025)

  • Residential

  • Commercial

  • Industrial

  • Healthcare

  • Education

• Region Outlook (Revenue USD Million, 2014-2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • Sweden

  • Asia Pacific

    • China

    • India

    • Japan

    • Singapore

    • Australia

  • Central & South America (CSA)

    • Brazil

  • Middle East & Africa (MEA)

    • Saudi Arabia

    • United Arab Emirates

These are the most frequently asked questions about this report

b. Global modular construction market was valued at USD 125.6 billion in 2019, and is forecast to grow to USD 139.3 trillion in 2020.

b. Global modular construction market will grow at 6.5% compounded annually between 2019 and 2025, reaching USD 174.6 billion by 2025.

b. With a 38.6% share in 2019, residential dominated the modular construction industry. This is due to the rapid growth of residential housing construction in Asia Pacific, as well as strong economic growth and rapid urbanization.

b. Laing O'Rourke and Katerra are key players in the modular construction market.

b. b.

Up Market Research published a new report titled “Modular Construction Market research report which is segmented by Application (Residential, Commercial, Industrial, Healthcare), by Type (Relocatable, Permanent), By Players/Companies Skanska AB, Katerra raised USD 865 million in a Series D funding round led by SoftBank, in January 2018, Katerra, Laing O'Rourke, Sekisui House Ltd A large number of startups have entered the modular construction industry and are garnering a huge interest from venture capital firms and angel investors For instance, Dubox, Red Sea Housing”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Modular Construction Market Report Segments:

The market is segmented by Application (Residential, Commercial, Industrial, Healthcare), by Type (Relocatable, Permanent).

Modular Construction Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Modular Construction Market

Overview of the regional outlook of the Modular Construction Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Modular Construction Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Modular Construction Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Residential

                2. Commercial

                3. Industrial

                4. Healthcare

                1. Relocatable

                2. Permanent

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Modular Construction Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
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Reasons to Purchase the Modular Construction Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.