Modular Construction Market Current Development Status & Growth Opportunities Highlighted During 2023

Modular Construction Industry Overview

The global modular construction market size was estimated at USD 90.79 billion in 2022 and is expected to register a growth of 7.5% over the forecast period.

This growth is attributed to the growing demand for affordable housing coupled with the increasing investment in the development of healthcare and commercial infrastructure around the globe. Off-site building activities in the urban regions are also growing, which is further driving the growth of modular construction market. Off-site building is not affected by weather conditions as they are manufactured within closed factories using advanced machinery, thereby, optimizing the construction time and providing high-quality products. The aforementioned benefits of off-site building make modular construction cost-effective and contribute to less site-generated waste.

Rapid urbanization and industrialization are expected to increase the number of new projects, primarily in the commercial and industrial sectors. This is likely to fuel the growth of the construction industry across the globe. Increasing technological advancements in building industry coupled with the advantages provided by modular construction such as reduced building schedule, reduced cost, greater flexibility, reuse, and less material waste are contributing to the product demand.

Gather more insights about the market drivers, restrains and growth of the Modular Construction Market

The U.S. market is expected to grow both in terms of the number of building units and revenue. Several multinational companies are investing in advanced modular construction technologies such as Building Information Modeling (BIM), artificial intelligence (AI), Internet of Things (IoT), 3D printing, and real-time data analytics for cost savings. Additionally, to provide multifamily residential structures, the U.S. government and companies are investing heavily in modular construction sector, thus boosting the market growth.

Modular construction enables the completion of a project in less than half of the time taken by traditional construction methods. In a time of crisis like the COVID-19 pandemic, time is invaluable in building new healthcare set-ups. Several countries are adopting and approving modular construction techniques for hospitals and treatment centers.

Modular construction enables industries to customize their designs and utilize the latest innovations in style and functionality. Before the development of modular construction, industries were compelled to spend countless man-hours on planning and designing, while actual construction took months or years to complete. Modular construction takes the guesswork out of the planning stages and simplifies building to a large extent, reducing the time from conception to completion by months or more.

Increasing efforts by the players to adopt the latest technologies such as 3D printing, building information modeling (BIM) for the optimizing their offsite module construction activities is likely to have a positive impact on the market growth. However, fluctuation in the transportation cost is anticipated to hamper the market growth over the projected period.

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Modular Construction Market Segmentation

Grand View Research has segmented the global modular constructionmarket report based on product, material, application, and region:

Modular Construction Product Outlook (Revenue, USD Million; 2018 - 2030)