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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), COVID-19 Impact Analysis, Regional Outlook, End-user Development Potential, Price Trends, Competitive Market Share & Forecast, 2022 - 2030

  • Report ID: GMI4829
  • Published Date: Jul 2022
  • Report Format: PDF

Industry Trends

Modular & Prefabricated Construction Market size valued at USD 140 billion in 2021 and is estimated to grow at over 6.8% CAGR from 2022 to 2030.

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The demand for residential and commercial real estates is expected to increase significantly through 2030. Modular & prefabricated construction has proven to be more effective in reducing construction time. For instance, recent modular projects have a proven track record of reducing project timeframes by 20% to 50%. This saves a huge sum of money approximately 20% of the project's cost as well as man hours that can be put to better use.

According to the UN, metropolitan areas will house approximately 68% of the world's population by 2050. Furthermore, the World Bank projects that approximately 300 million new housing units will be required to house approximately three billion people by 2030. The increasing penetration of modular & prefabricated building systems in single-family and multifamily homes in the U.S. is predicted to boost the market growth.

The successful establishment of the modular & prefabricated construction market in developed regions, such as North America and Europe, along with the growing construction sector is driving the business statistics. To improve business processes including production productivity, accuracy & logistics, the construction sector is introducing new technologies such as environmental-friendly products and energy-absorbing materials including micro dwellings, resulting in the focus on energy efficiency.

Base material prices are constantly changing owing to several supply-side factors and geopolitical & economic decisions. The cost of major raw materials such as steel depends on various factors including demand and supply factors, which are often referred to as price elasticity. The frequently rising prices of raw materials, such as steel, concrete, etc., along with a slowdown in the construction sector amid the impact of COVID-19 has negatively impacted the market demand.

Permanent construction segment is the leading the industry

Permanent modular & prefabricated construction market accounted for about 52% of the revenue shares in 2021 and is projected to generate nearly USD 132 billion by 2030. The sector will grow quickly due to the cost advantages of modular buildings and rapid urbanization. The growing demand for mobile & custom houses will fuel the market expansion. The demand for modularized buildings is increasing led by the continuously rising cost of manufacturing and raw materials. New opportunities will arise in the coming years owing to the continuously expanding working population and the rising demand for commercial real estate in Europe & North America.

The use of concrete in modular & prefabricated construction will see considerable growth

The concrete material segment is anticipated to showcase considerable growth rate of around 8% from 2022 to 2030. In tornado-prone regions and seismic zones, contemporary & design-focused precast concrete is ideal. Precast concrete can be used as a primary building material and a structural support. High-quality and energy-efficient structures can be built using design-focused precast concretes. Furthermore, the development of new technologies, such as cavity-composite concrete structures, enables prefabricated construction to minimize defects and enhance quality, easy handling & cost-effectiveness, which are likely to propel the concrete material demand.

Growing hospitality sector in North America and Europe

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The modular & prefabricated construction market from hospitality application is set to reach over USD 56 billion by 2030. Several hotels across the U.S. and Europe, ranging from four-star hotels to model boutique hotels & resorts, are being constructed using modular technologies of construction. Furthermore, authorities and organizers behind major global events such as the Olympics rely on this innovative technique to construct accommodation facilities for support staff & officials and athletes.

North America to witness noteworthy demand

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The North America modular & prefabricated construction market captured significant share and is predicted to account for USD 79 billion revenue by 2030. The region saw considerable growth due to rising infrastructure projects such as office buildings, hospitals, new housing centers, and educational institutions.

Growing environmental concerns about the volume of carbon emissions from conventional construction methods has also augmented the regional business expansion. The introduction of several government programs to encourage the development of green buildings across the U.S. is also supporting the market revenue. Additionally, the region's high incidences of extremely cold weather, which causes shorter days and heavy snowfall, impedes on-site building, thus fueling the demand for modular construction.

The economic expansion in the Asia Pacific region is being impelled by factors including the convenient supply of raw materials & labor and advanced technologies & innovations. China and Japan, the two economic powerhouses of the Asia Pacific region, are the second- and third-largest economies in the world as of 2021.

Mergers & acquisitions, joint ventures, and product development are among the key activities by companies

Some of the key modular & prefabricated construction market players are Algeco, Red Sea Housing Services (RSHS), Lendlease, Bouygues Construction, Vanguard Modular Building Systems, Larsen & Toubro Limited, and Par-Kut International, Inc., among others. Other manufacturers of the industry include Kiewit Corporation, Hickory Group, Guerdon, LLC, Modular Engineering Company, Berkeley Modular, WillScot, FCP, Inc., Northgate Industries Ltd., ABTech, Inc., etc.

The industry is highly competitive with the presence of several small, medium, and global manufacturers, catering to a wide range of construction activities. Mergers & acquisitions, strategic partnerships, joint ventures, expansion of dealers, and production facilities, among others are key strategies adopted by manufacturers.

This market research report on modular & prefabricated construction includes in-depth coverage of the industry with estimates & forecasts in terms of volume in million square feet revenue in USD million from 2018 to 2030 for the following segments:

Market, By Type (Million Square Feet) (USD Million)

  • Permanent
  • Relocatable

Market, By Material (Million Square Feet) (USD Million)

  • Steel
  • Wood
  • Concrete
  • Others

Market, By Application (Million Square Feet) (USD Million)

  • 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
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • Indonesia
    • Malaysia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • South Africa
    • GCC


Authors: Kiran Pulidindi, Hiralkumar Patel

Frequently Asked Questions (FAQ) :

The market size of modular & prefabricated construction exceeded USD 140 billion in 2021 and is estimated to record a 6.8% CAGR between 2022 and 2030.
The permanent modular & prefabricated construction segment revenue will reach USD 132 billion by 2030 because of the cost advantages offered by modular buildings.
The modular & prefabricated construction industry size from concrete materials will register an 8% CAGR through 2030 because design-focused and contemporary concrete is ideal for tornado-prone regions and seismic zones.
North America market size is predicted to reach USD 79 billion by 2030 as the region is witnessing a notable surge in infrastructural projects, such as office buildings.
Red Sea Housing Services (RSHS), Algeco, Vanguard Modular Building Systems, Bouygues Construction, Par-Kut International, Inc., and Larsen & Toubro Limited, among others, are the renowned market players.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 18
  • Tables & Figures: 446
  • Countries covered: 17
  • Pages: 312
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