Modular & Prefabricated Construction Market Size worth $174.37 Bn by 2026
Published Date: September 29, 2020 Authors: Kiran Pulidindi, Hemant Pandey
Modular & Prefabricated Construction Market size will exceed USD 174.37 billion by 2026; according to a new research report by Global Market Insights, Inc.
A fully integrated prefab project offers an array of benefits and can be cost-effective on various grounds such as minimum material wastage, decreased amount of equipment used on-site, decreased operational and labor cost due to short project timeline, fewer resource requirements, and increased control over factory production. With the integration of artificial intelligence and robotics to create modules with high precision, factories are becoming more efficient; therefore, prefabricated construction will play a crucial role in real estate in coming years.
Increased adoption of modular & prefabricated construction in the U.S. and Europe is a key factor driving modular & prefabricated construction market growth. Modular construction is gaining more popularity in the U.S. to ease housing shortage mainly in New York City and San Francisco. Significant rise in material, labor, permit fees, and land costs has shifted consumers preference toward modularization.
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High level of repetition in hotel buildings will escalate the hospitality sector to capitalize in off-site construction. Although the market is growing at a faster pace, it will foresee hurdles such as shipment of modules, low awareness in developing nations, assembly issues, etc.
The coronavirus pandemic has severely disrupted the construction sector, created contraction in consumer expenditure along with supply chain disruption, contractual implications, unstable raw material prices, and industry layoffs, diminishing growth of the market. In developed nations, the pandemic has brought disruption to work and reduced the demand for non-essential projects, such as entertainment and sports facility. However, off-site construction of medical infrastructures and diagnostic centers continued to grow during the period.
Browse key industry insights spread across 200 pages with 203 market data tables & 26 figures & charts from the report, “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), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trend, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Relocatable modular construction to accommodate substantial demand
The relocatable modular construction market is expected to hold over USD 61.96 billion revenue by 2026. The main purpose of these temporary space buildings is to be reused or repurposed several times, and they can be transported on different construction sites. They are partial or complete buildings complying with state regulations and local codes built on-site with the modularization process. They are generally used during the construction of schools, offices, hospitals, and sales centers where relocatable buildings are required during the construction period.
Steel material will foresee high acceptance in permanent modular & prefabricated construction market
The steel material segment is likely to register 7% growth rate during 2020 to 2026 driven by the advantage of off-site prefabrication. Structural steel also facilitates the panelization and modularization process. Steel-based panels and frameworks are required in construction sites due to their ability to service high weight to strength ratio. They offer several advantages over wood-based materials such as fire resistance, reinforcement, design flexibility, durability, structural integrity, weather resistance, and reduced maintenance cost.
Healthcare application will generate promising revenue growth
The healthcare application segment to hold around 10.7% modular & prefabricated construction market share by 2026. Healthcare is a preferred sector in prefabricated construction since the interior layout of hospitals allows for efficient use of modularization technique. Healthcare infrastructure is highly dependent on shorter schedule, thereby offering significant opportunity for modularization. It also applies to components in medical centers such as medical pods, laboratories, restrooms, etc.
North America will witness significant growth due to huge acceptance of the product among people
North American modular & prefabricated construction market is predicted to account 30% share in 2026. The regional construction industry is majorly engaged in restructuring and remodeling activities that involve quick turnkey solutions. The region is a hub for small to large scale modular service providers. A large number of industries including schools, restaurants, daycare centers, banks, and correctional facilities regularly use permanent modular construction due to streamlined construction process and reduced environmental impacts.
The “5-in-5” industry growth initiative introduced by Modular Building Institute with the objective of growing prefabrication to 5% of new construction by 2019 has boosted the growth prospects and gained attention of large contractors. Growth opportunities in the Southeast U.S. and Eastern Canada especially in retail and pharma sectors will surge the product demand.
Strategic collaborations and innovation will help achieve competitive edge
The competitive landscape of the modular and prefabricated construction market is moderately fragmented. Industry players are expanding their geographical reach to serve a large customer base. New startups are also emerging in the modular construction industry to increase competitiveness.