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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), & Forecast, 2023-2032
- Report ID: GMI4829
- Published Date: Feb 2023
- Report Format: PDF
Modular & Prefabricated Construction Market Size
Modular & Prefabricated Construction Market size surpassed USD 147 billion in 2022 and is anticipated to register 6.5% CAGR from 2023 to 2032.
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Rapid urbanization across developing economies will drive the adoption of modular construction technology. Opposed to traditional construction methods, modular construction is cost-effective, utilizes less time, creates fewer site disturbances, and generates less waste. Furthermore, in this method, about 60-90% of the construction activity is completed inside a factory, mitigating the risk of weather delays. It provides greater flexibility in construction and reduces the amount of energy expended in new building construction, which is shaping the industry outlook positively.
| Report Attribute | Details |
|---|---|
| Base Year: | 2022 |
| Modular & Prefabricated Construction Market Size in 2022: | 147.5 USD Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 6.5% |
| 2032 Value Projection: | 285 USD Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 329 |
| Tables, Charts & Figures: | 447 |
| Segments covered: | Type, Material, Application, Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Challenges in logistics & transportation may constrain industry development
The cost restraints linked to the transportation & logistics of different sizes of modular structures could be a major restraint to modular & prefabricated construction market growth. Modular construction takes place mostly in rural areas due to the availability of cheap labor. However, the movement of completed modular structures over long distances can be expensive. The challenges are also exacerbated due to truck usage-related regulations on weight limits and other constraints. For instance, time to establish workforce and material transport platforms poses a major challenge for the industry.
Modular & Prefabricated Construction Market Analysis
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The prefabricated construction market share from the relocatable segment is expected to cross a valuation of USD 135 billion by 2032, owing to the growing espousal of relocatable modular construction for commercial buildings such as schools, sales centers, offices, medical clinics and others to meet temporary space requirements. Relocatable buildings, assembled in a controlled facility, are partially or completely designed structures that adhere to the set construction regulations. They are lightweight and easier to transport and reinstall and are suitable for quick construction that demands further relocation. New investments in relocatable house manufacturing will propel sector growth.
The modular & prefabricated construction market from the steel material type is poised to attain 6.5% gains through 2032. Prefab steel buildings are constructed using pre-engineered steel and their fabrication takes place in a controlled facility inside the factory and moved to the client’s site for assembly. These building constructions are quick and cost-effective and remain unaffected by weather as components are designed in factory conditions. They are also suitable for commercial and industrial applications and have an aesthetic appeal. Features like easy dismantling and reuse at another site will garner the product demand by 2032.
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The modular construction market revenue from the multi-family residential application is projected to reach USD 140 billion by 2032. This sector development gained traction after the economic slowdown of 2020. The segment progression can be attributed to the inclusion of many amenities such as yoga spaces, pools, and others in multi-family residences. The U.S. Census Bureau estimates that of the 371,000 multifamily units completed in 2021, of which 35,000 had three bedrooms. As occupants are looking for spacious homes that promote well-being, the demand for modular construction materials for multi-family residences will grow by end of 2032.
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The APAC modular & prefabricated construction market is projected to witness 7.5% growth between 2023 and 2032, due to advancements and innovations in prefabrication technologies. A strong presence of affordable workforce and easy availability of raw materials will also supplement the progress. The region consists of some of the fastest-growing economies and has perceived a steady rise in population in recent years. The swift rise in the number of residents has proliferated demand for housing infrastructure, which will open new regional growth avenues.
Modular & Prefabricated Construction Market Share
Some leading modular & prefabricated construction market players include
- Red Sea International
- Guerdon, LLC
- Lendlease Corporation
- Taisei Corporation
- Kleusberg GmbH
- Kiewit Corporation
- Hickory Group
- Bouygues Construction
Many of these firms are focusing on strategic contractual agreements to enhance their market position. For instance, in June 2021, Red Sea International, a Saudi Public Joint Stock Company specializing in prefabricated modular buildings, inked a USD 14.1 million deal with Royal Commission for AlUla (RCU), for constructing a turnkey housing complex in AlUla. The contract is inclusive of construction, design, installation, and supply of 150 high-quality fully furnished housing units.
Impact of the COVID-19 pandemic
Th COVID-19 pandemic hit the construction sector hard on account of postponed and cancelled construction projects due to supply chain halts and labor shortages. The closure of offices, schools, and other commercial spaces also declined the demand for modular & prefabricated construction to some extent. However, the industry is said to chart a quick path toward recovery due to the resumption of construction activities and government support for affordable housing.
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 2018 to 2032 for the following segments:
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Market, By Type
- Permanent
- Relocatable
Market, By Material
- Steel
- Wood
- Concrete
- Others
Market, By Application
- Single Family Residential
- Multi-Family Residential
- Office
- Hospitality
- Retail
- Healthcare
- Others
Market, By Region
- 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
Frequently Asked Questions (FAQ) :
Modular & Prefabricated Construction Market Scope
