Modular Construction Market Derails Slightly as COVID-19 Hits Construction Industry

Modular Construction Market Highlights

The modular construction market will surge from USD 91862.08 min 2022 to USD 35865.44 million by 2030, capturing a CAGR of 6.55% from 2022 to 2030, believes Market Research Future (MRFR).

Modular construction helps build temporary or permanent facilities including classrooms, military housing, construction camps, industrial facilities, and classrooms. Additionally, modular buildings and houses are extensively used in remote locations where traditional construction activities are not possible. Modular construction further has key applications in churches, healthcare facilities, commercial offices, and fast-food restaurants. On top of this, it has been gaining popularity worldwide thanks to its benefits including the ability to function in remote locations, eco-friendly construction process, low waste generation, high quality, high market acceptance, and enhanced flexibility.

Studies have confirmed that modular construction is responsible for around 30 to 50% of the total time savings compared to its traditional counterpart. The global market will enjoy renewed interest from the construction and building industry in the years ahead, thanks to the surging emphasis on efficiency, workplace safety, and productivity. The focus is also on bringing down the cost and time associated with building activities. The European market for modular construction has been performing exceedingly well owing to the significant adoption rate. massive investments in the development of residential housing and a renewed interest in improving the healthcare infrastructure in Europe will further elevate the market growth rate over the review period.

However, lower awareness levels and a shortage of funds for building modular construction can be a huge restrain for the worldwide market. Additionally, the economic slowdown following the COVID-19 outbreak in major markets including China, the U.S., and the U.K. can be a key barrier to business growth.

On the bright side, the soaring popularity of the lean manufacturing technique offers plenty of significant opportunities. The adoption of such techniques can give rise to durable and permanent modular buildings. Moreover, these construction techniques offer profitability and various benefits to the vendors. Research and development activities could be another strong factor providing several business opportunities. There are a host of the latest techniques in modular construction that can be derived via extensive research and with the rising investments in R&D, the market position is touted to touch new heights in the years to follow.

Market Segmentation

Concrete, Steel, Plastic, Wood, and others are among the material types included in the segmentation of the modular construction market. The steel segment grew to be the largest in 2021, accounting for a maximum share of over 41.60 percent of total sales. It is used in many different shapes, such as columns, angles, I- and T-shaped beams, columns, and H-type beams.

Relocatable and permanent structures are included in the segmentation of the modular construction market, in terms of the type. Permanent modular buildings dominated the market in 2021 and produced more than 63.90% of the whole revenue. Additionally, the years 2022 to 2030 are predicted to see the fastest growth. It offers better quality control than building done on-site. These modules can be developed independently or merged into an existing structure.

The top products covered in the MRFR study are columns & beams, roofs & floors, walls, and others. In 2021, the market was led by roof and floor construction, which generated more than 43.90% of total sales. It is also anticipated to develop most quickly between 2022 and 2030.

Regional Insights

The Asia Pacific market, which touched USD 35.8 billion in 2021, can develop at a substantial rate throughout the research period. The market benefits from the soaring demand for modular construction from the residential and commercial sectors. The increase in demand for modular homes is also a result of government initiatives to promote environmentally friendly housing. The fastest CAGR will be captured by India because of the expanding commercial construction sector. India will experience rapid growth due to the increase in commercial construction projects. The main factor fueling demand for commercial premises across the country is foreign direct investment (FDI) in the I.T., telecommunications, healthcare, and automotive sectors. Additionally, as a way to offer green building solutions, commercial modular construction is swiftly gaining appeal among Indian builders and investors.

Competitive Dashboard

Lendlease Corporation, Guerdon modular building, Laing O’Rourke,  Katerra, Red Sea Housing, Bechtel Corporation, and Kleusberg are some of the top contenders in the modular construction industry.Read More About This Report: Modular Construction Market Share