Modular & Prefabricated Construction Market Size

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.

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.