Modular & Prefabricated Construction Market Size By Type (Permanent, Relocatable), By Material (Steel, Wood, Concrete), By Application (Single Family Residential, Multi-family Residential, Office, Hospitality, Retail, Healthcare), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trend, Competitive Market Share & Forecast, 2021 - 2027

Industry Trends

Modular & Prefabricated Construction Market size exceeded USD 129 billion in 2020 and is anticipated to showcase considerable growth of about 6.5% from 2021 to 2027. The growing construction activities following modular & prefabricated method for construction will drive the industry growth.
 

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The rising urbanization along with industrialization in many emerging countries is further fueling the market demand. Moreover, the growth in population is expected to have a significant impact on the market growth in order to cater to the growing needs for the housing of consumers. The rise in demand for housing, clean water, transportation infrastructure, jobs, and various other social services has led to the increased adoption of cost-effective modular & prefabricated construction technologies to ensure that uniform quality and speed of construction are maintained.
 

The growing investments in the infrastructure sector both in residential & commercial sectors are positively impacting the modular & prefabricated construction market. Various property developers are actively looking toward other options for construction houses and commercial spaces in order to save space, energy, time, and money.
 

The modular & prefabricated construction solutions are gaining popularity among various consumers and among construction companies. This technique offers various added benefits such as reduced waste, flexibility, eco-friendly construction techniques, speed of construction, etc. Moreover, the modular & prefabricated construction activities can be completed in less amount of time as compared to the traditional construction methods. As this technique offers flexibility, customers can customize their houses as per their need and can change or add any specific requirement according to their need.

The safe & convenient transportation of constructed modular & prefabricated modules and the requirement of skilled workforces are some of the factors that are likely to hamper the industry statistics. All the modular & prefabricated modules require transportation from the site of construction to the customers location. This can create various problems such as lack of safe transportation and inability to transport large modules to longer distances as it cannot be feasible. However, various industry players are looking at establishing their construction sites that are closer to residential areas that will help in lowering the transportation factor.
 

Permanent segment will dominate the market share

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The permanent type of segment is predicted to reach about USD 105 billion revenue by 2027. Generally, it uses offsite lean manufacturing in order to develop different types of building & construction solutions. Moreover, permanent modular construction utilizes prefabricated building modules that are produced offsite and then assembled on the site of construction. This type of technique aids in delivering high-quality construction projects along with minimal wastage. The increasing residential sector in various emerging economies will further create new market opportunities.
 

Increased usage of wood in modular & prefrabricated construction

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The modular & prefabricated construction market from wood material segment valued at around USD 50 billion in 2020. The increased use of wood in modular & prefabricated construction is extremely beneficial owing to its properties as a construction material. Moreover, wood has low toxicity associated with it, is biodegradable, easy to recycle, reuse, and cost effective. As wood is a good insulator against electricity, it aids in minimizing electrical shocks and energy loss.
 

Multi-family residential segment will attract the industry players attention

The multi-family residential segment is poised to witness 6.7% gains through 2027. The growing urbanization and increasing demand for bigger residential units will fuel the modular & prefabricated construction market revenue. The different generations of families have now started to live together in order to minimize their expenses. Additionally, the multi-family residential spaces are quite bigger as compared to single family residential spaces. The steady rise in the growth of multi-family housing is likely to augment the market growth.
 

Europe will lead the market expansion

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The Europe modular & prefabricated construction market is predicted to cross nearly USD 80 billion by 2027. The governments in the region have started adopting modular & prefabricated construction as an alternative to traditional construction activities. As this technique helps save space, energy, and cost, the adoption of modular & prefabricated construction is set to further increase in the construction industry.
 

Furthermore, the rising influx of migrants in various European countries is propelling the market as the need for building temporary and permanent housing structures increases. The UK government plans to build 300,000 residential houses annually over the next few years, which is estimated to boost the residential construction activities in the country.
 

Mergers & acquisitions along with geographical expansion to augment industry growth

The industry participants are actively focused on developing strategic partnerships to expand their presence and drive their revenue generation. Many companies are working on forming mergers & acquisitions and exploring new product development to strengthen their position in the industry. For instance, in July 2020 Totally Modular, a firm based in the UK and the University of Wolverhampton secured USD 2.7 million funds from the UK Research and Innovation to help develop modern methods of construction in order to find solutions to the UK housing crisis.

Some of the key players in modular & prefabricated construction market are Bouygues Construction, ACS Group, Taisei Corporation, Katerra, Kleusberg GmbH, Riko Group, Algeco, Red Sea Housing Services, Kiewit Corporation, Laing O’Rourke, Skanska AB, Guerdon Modular Buildings, Hickory Group, Lendlease Corporation, Larsen & Toubro Limited, Berkley Homes, Dubox, and Sekisui House Ltd., among others.
 

This market research report on modular & prefabricated construction includes in-depth coverage of the industry with estimates & forecast in terms of volume in million square foot and revenue in USD million from 2017 to 2027 for the following segments:

Market, By Type

• Permanent
• Relocatable

Market, By Material

• Wood
• Steel
• Concrete
• Others

Market, By Application

• Single Family Residential
• Multi-Family Residential
• Office
• Hospitality
• Retail
• Healthcare
• Others

The above information is provided on a regional and country basis for the following:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • South Africa
  • GCC