US Modular Construction Market US Modular Construction Market Research Report: By Material (concrete, steel, plastic, wood, other), By Construction Type (permanent modular, relocatable modular) and By Products (walls, roofs & floor, columns & beams, others) - Forecast to 2035

US Modular Construction Market

US Modular Construction Market Research Report: By Material (concrete, steel, plastic, wood, other), By Construction Type (permanent modular, relocatable modular) and By Products (walls, roofs & floor, columns & beams, others) - Forecast to 2035.

US Modular Construction Market Overview:

As per MRFR analysis, the US Modular Construction Market Size was estimated at 18.27 (USD Billion) in 2023. The US Modular Construction Market Industry is expected to grow from 19.31(USD Billion) in 2024 to 40.76 (USD Billion) by 2035. The US Modular Construction Market CAGR (growth rate) is expected to be around 7.028% during the forecast period (2025 - 2035).

Key US Modular Construction Market Trends Highlighted

The US Modular Construction Market is experiencing a shift towards sustainability and efficiency, driven by the increasing demand for affordable housing and rapid project turnaround. One of the key market drivers is the focus on reducing construction waste and minimizing the carbon footprint, aligning with governmental initiatives promoting green building practices. With an increasing emphasis on energy-efficient designs, modular construction offers a viable solution. The push for affordable housing has created significant opportunities in urban areas where traditional building methods struggle to keep up with demand, allowing modular construction to fill this gap.In recent times, the trend of utilizing advanced technologies such as Building Information Modeling (BIM) and automation in the construction process has gained traction. These technologies enhance precision, streamline project management, and reduce costs, making modular construction increasingly attractive to developers and investors. Additionally, the flexibility and scalability of modular projects are appealing, particularly in the wake of labor shortages and rising construction costs in the US. Off-site construction methods allow for more predictable schedules and reduced site disruption, which are crucial in crowded urban environments. Opportunities exist for further integration of modular construction across various sectors, including healthcare, education, and commercial real estate.As local governments support modular initiatives through regulations and incentives, this method is likely to gain more acceptance and prevalence in the market. The collaboration between manufacturers, architects, and builders is essential to harness these benefits fully, leading to a more robust and resilient construction industry in the US.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Modular Construction Market Drivers

Rising Demand for Affordable Housing

The US Modular Construction Market Industry is significantly driven by the increasing demand for affordable housing solutions. According to the U.S. Department of Housing and Urban Development, the affordable housing shortage has intensified, with nearly 7 million low-income households spending over half of their income on rent. This market need has propelled the adoption of modular construction, renowned for its cost-effective and speedy building processes.Organizations like the National Association of Home Builders have indicated that modular construction can reduce construction time by up to 50 percent compared to traditional methods, allowing for quicker responses to urgent housing demands. Furthermore, as the cost of raw materials continues to fluctuate, modular construction offers a predictable budgeting framework, which is critical for builders aiming to meet affordability criteria amidst economic uncertainty.Thus, the drive for affordable housing supports a robust growth trajectory for the US Modular Construction Market Industry over the next decade.

Sustainability and Eco-Friendliness

Sustainability is becoming an increasingly prominent driver for the US Modular Construction Market Industry as developers and consumers alike move towards environmentally friendly options. Research from the U.S. Green Building Council suggests that buildings constructed with modular techniques can reduce waste by as much as 90 percent compared to traditional construction. Major construction giants like Skanska and Turner Construction are investing heavily in sustainable building practices, recognizing that modular construction aligns well with green building certifications such as LEED.Additionally, the U.S. Environmental Protection Agency has reported that construction and demolition waste constitutes a significant portion, demanding practices that mitigate environmental impact. The push for sustainability is thus driving growth in the US Modular Construction Market Industry as both public and private sectors seek to align with eco-friendly practices.

Labor Shortages in the Construction Industry

Labor shortages present a critical challenge in the U.S. construction sector, fueling the rise of the US Modular Construction Market Industry. The Associated General Contractors of America has reported that 80 percent of construction firms are struggling to find qualified workers. Modular construction offers a solution by allowing much of the building process to occur off-site in controlled environments, reducing the dependency on skilled labor on job sites.Companies such as Katerra have emerged, focusing on technology-driven modular processes that streamline productivity despite the labor crunch. By addressing labor shortages with efficient manufacturing methods, the US Modular Construction Market Industry positions itself as a viable solution, thus enhancing its growth potential.

US Modular Construction Market Segment Insights:

Modular Construction Market Material Insights

The US Modular Construction Market, focusing on the Material segment, is experiencing significant growth driven by various factors related to efficiency, sustainability, and cost-effectiveness. This segment includes various materials such as concrete, steel, plastic, wood, and other innovative materials, each playing a crucial role in modular construction processes. In recent years, the preference for sustainable and recyclable materials has surged among consumers and builders alike, as the demand for environmentally friendly practices continues to influence market trends. Concrete remains a leading choice due to its durability and versatility, often utilized in the construction of modular housing and commercial structures. Similarly, steel is favored for its strength and longevity, making it a critical component for frameworks and structural elements in modular buildings. Plastic has been gaining traction for its lightweight properties and ease of manufacturing, contributing to better construction timelines and lower labor costs. Meanwhile, wood is favored for its aesthetic appeal, renewability, and natural insulating properties, aligning with the growing trend towards eco-friendly and energy-efficient building materials. The evolution of new materials in the "other" category, such as advanced composites and hybrid solutions, is revolutionizing the construction landscape, offering enhanced performance and adaptability in the modular sector. The significance of each material varies, with some dominating specific applications while others are used for their unique advantages in design and structural requirements. Overall, the US Modular Construction Market segmentation highlights a shift towards innovative and sustainable building practices that align with both consumer preferences and regulatory pressures aimed at reducing the environmental impact of construction activities. As this market evolves, stakeholders are increasingly focused on research and development to optimize material use, thus providing numerous opportunities for advancements in modular construction techniques and the overall efficiency of projects. The ongoing investment into improved material technologies is poised to further enhance the US Modular Construction Market revenue, reflecting the robust demand for modular solutions that meet contemporary standards for quality, durability, and environmental responsibility.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Modular Construction Market Construction Type Insights

The US Modular Construction Market, particularly in the construction type segment, is witnessing notable growth driven by a shift in building practices toward efficiency and sustainability. The permanent modular construction sector, designed for long-term use, plays a crucial role in urban developments and is often favored for its cost-effectiveness and speed of installation. This type tends to dominate in sectors such as education and healthcare, where demand for rapid deployment is essential. Meanwhile, the relocatable modular construction segment is gaining traction as it offers flexibility, allowing structures to be moved as needed, which is particularly beneficial in situations like disaster recovery and temporary housing.The increasing need for affordable housing solutions and quick construction timelines further fuels the importance of these construction types. Overall, the evolution of building codes and regulations in the US has enhanced the acceptance and integration of modular construction, reinforcing its potential for significant contributions to the overall market growth. The ongoing trends toward sustainability and efficient resource management are transforming how projects are approached in the US Modular Construction Market, setting the stage for a transformative future in construction methodologies.

Modular Construction Market Products Insights

The US Modular Construction Market, particularly in the Products segment, showcases significant growth driven by innovative construction techniques and increased demand for quick and efficient building solutions. The market has evolved to include various essential elements such as walls, roofs and floors, columns and beams, and other components crucial for modular building systems. Walls have become particularly vital, often contributing to energy efficiency and thermal performance, making them essential in meeting modern standards. Roofs and floors bring structural integrity and ensure space optimization, which is increasingly important as urbanization accelerates in the US, leading to higher population densities in cities.Columns and beams are fundamental to providing sturdy frameworks, enabling the flexible design that modular construction offers, which is appealing to developers looking for adaptable space solutions. As sustainability becomes a focal point, the demand for modular products that minimize waste and utilize eco-friendly materials is evident, presenting notable opportunities. The influence of advancements in technology further complements product developments, enhancing durability and aesthetic appeal. Overall, the US Modular Construction Market segmentation highlights the critical role of these products in shaping contemporary construction practices and meeting the evolving needs of society.

US Modular Construction Market Key Players and Competitive Insights:

The US Modular Construction Market has seen significant growth and transformation in recent years, driven by a combination of factors including the need for rapid construction, sustainable practices, and technological advancements. The competitive landscape is characterized by a diverse range of companies that offer innovative solutions tailored to various construction demands. Key players in this market are pushing the boundaries of traditional construction methods, focusing on enhancing efficiency, reducing costs, and meeting the rising consumer expectations for quicker and environmentally friendly building solutions. The competition spans modular homes, commercial spaces, and specialized facilities, representing a dynamic industry that is evolving with customer needs and industry trends.Procure Infrastructure holds a notable position in the US Modular Construction Market, emphasizing its commitment to providing high-quality modular solutions suited for various sectors. The company’s strengths lie in its extensive experience, robust supply chain management, and capability to deliver projects within tight timelines. With a strong focus on collaboration and customer satisfaction, Procure Infrastructure has successfully established lasting relationships with clients and stakeholders, resulting in repeat business and a growing portfolio of projects. The firm harnesses modern technology and practices that optimize construction processes, ensuring that it remains competitive in an ever-evolving market.American Modular Systems is another key player within the US Modular Construction landscape, recognized for its innovative approach towards modular building. Specializing in educational, healthcare, and commercial facilities, American Modular Systems delivers a range of key products and services that enhance operational efficiency and meet specific client needs. The company’s positioning in the market is strengthened by its history of successful projects and a reputation for high-quality workmanship. Moreover, American Modular Systems has engaged in strategic mergers and acquisitions to expand its capabilities and market reach, effectively positioning itself for future growth. By continuously adapting to industry trends and focusing on sustainable construction practices, American Modular Systems stands out as a leader committed to shaping the future of modular construction in the United States.

Key Companies in the US Modular Construction Market Include:

Procure Infrastructure

American Modular Systems

Civitas Modular

DPR Construction

Jackie Construction

Lendlease

Graham Construction

Skansa

Modular Building Institute

Z Modular

HITACHI ZOSEN CORPORATION

Balfour Beatty

Kiewit Corporation

Factory OS

Turner Construction

US Modular Construction Market Industry Developments

The US Modular Construction Market has been experiencing notable advancements with numerous companies expanding their footprints. Procure Infrastructure has announced a partnership with American Modular Systems to enhance sustainable building practices, aiding environmental initiatives. Civitas Modular is expanding its operations in the Northeast, tapping into the burgeoning demand for affordable housing while DPR Construction recently secured a contract for a government modular project, showcasing the increasing acceptance of modular solutions in public sectors. There have been significant growth trends with Lendlease and Graham Construction reporting a substantial increase in project bids for modular designs aimed at urban development. In terms of mergers, Factory OS made headlines in June 2023 by merging with Z Modular, positioning themselves as a key player in prefabricated housing solutions, leveraging combined resources to enhance market presence. The Modular Building Institute has been advocating for the benefits of modular construction, further solidifying this construction method’s acceptance among industry stakeholders in the face of rising material costs and labor shortages. This sector has seen consistent growth, with industry revenue increasing, creating a ripple effect that positively impacts job creation, productivity, and supply chain efficiency across the construction landscape in the US.

US Modular Construction Market Segmentation Insights

Modular Construction Market Material Outlook

concrete

steel

plastic

wood

other

Modular Construction Market Construction Type Outlook

permanent modular

relocatable modular

Modular Construction Market Products Outlook

walls

roofs & floor

columns & beams

others

Report Scope:

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	18.27(USD Billion)
MARKET SIZE 2024	19.31(USD Billion)
MARKET SIZE 2035	40.76(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	7.028% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Procure Infrastructure, American Modular Systems, Civitas Modular, DPR Construction, Jackie Construction, Lendlease, Graham Construction, Skansa, Modular Building Institute, Z Modular, HITACHI ZOSEN CORPORATION, Balfour Beatty, Kiewit Corporation, Factory OS, Turner Construction
SEGMENTS COVERED	Material, Construction Type, Products
KEY MARKET OPPORTUNITIES	Sustainable building solutions adoption, Urban infill projects growth, Affordable housing demand surge, Workforce housing expansion efforts, Technological advancements in construction
KEY MARKET DYNAMICS	sustainable building practices, rising labor costs, regulatory complexities, increased technology adoption, demand for affordable housing
COUNTRIES COVERED	US