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Modular & Prefabricated Construction Market to reach $285 Bn by 2032

  • Published Date: February 13, 2023

Modular & Prefabricated Construction Market is expected to cross USD 285 billion by 2032, according to the recent research report by Global Market Insights Inc.

The increasing construction of new residential projects in emerging countries is projected to drive industry growth. Rising household income and urbanization have fueled the demand for residential spaces. Urban migration and industrialization will proliferate the demand for residential building construction, further offering a strong impetus for modular & prefabricated construction market expansion.

As per UN estimates, more than half of the 4.5 billion residents of Asia Pacific will live in cities by 2026. Approval of infrastructure projects including upgrading and repairing of existing structures could positively shape the industry landscape.

High sustainability of permanent modular buildings

The permanent modular & prefabricated construction industry is anticipated to amass USD 150 billion by 2032. Permanent modular buildings are constructed offsite and utilize lean manufacturing techniques for the prefabrication of high-rise or single-story buildings in deliverable modules. As opposed to projects that only leverage site-built construction, permanent modular buildings generate less waste and are constructed with fixtures & interior finishes in less duration and with superior quality control. Moreover, these buildings are compatible with standalone turnkey solutions and site-built projects.

Structural simplicity of wood prefabrication to impel material demand

The wood material segment in prefabricated construction market is poised to grow at 6.5% CAGR from 2023 to 2032. Prefabricated wood elements offer structural simplicity for cost-effective projects and can be handled easily. Additionally, they can be easily and quickly installed with less waste generation. They resolve many challenges related to the engineering and design of wall frames and other building elements. The rapid adoption of sustainable materials in the construction sector and a shift towards green and energy-efficient construction project would favors material requirement.

Browse key industry insights spread across 329 pages with 412 market data tables & 35 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), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2023–2032”, in detail along with the table of contents:

 Implementation of modular construction in the hospitality sector

The modular & prefabricated construction market from the hospitality application is anticipated to observe 7% growth during 2023 to 2032. The growing acceptance of modular and prefabricated construction in the industry for developing accommodations for staff, officials, and athletes of sports events such as the Olympic games will contribute to segment growth.

Modular construction technology also finds its applications in the construction of four-star hotels and model boutique hotels & resorts across Europe and the U.S. For instance, in January 2023, Volumetric Building Companies announced that it has developed and launched the first modular prototype for a new hotel concept that would help accelerate the expansion of the Fairfield by Marriott brand across Europe.

Increasing espousal of modular & prefabricated construction techniques in Europe

The Europe modular & prefabricated construction market revenue is estimated to reach USD 115 billion by 2032. Governments in the region have started adopting modular & prefabricated construction over traditional construction activities. The acceptance of construction techniques can save energy, space and cost.

Partnerships between modular & prefabricated construction companies

The leading modular & prefabricated construction industry players includes names such as Kleusberg GmbH, Algeco (Modulaire Group), Berkeley Modular Limited, VINCI Construction, and Riko Group, among others. Many of these players are emphasizing on partnerships to extend their global footprint

Authors: Kiran Pulidindi