Modular Construction Industry Overview
The global modular construction market size is expected to reach USD 138.9 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 6.4% from 2021 to 2028. Increasing emphasis on improving productivity and rising focus on workplace safety at construction sites are expected to drive the market over the forecast period.
The process involves the prefabrication of modules at a different location from the actual site in a controlled environment, resulting in reduced timelines for completing building projects. This process allows planned inventory usage and limited wastage of raw materials, thereby, significantly reducing the investment required for building work. Assembly lines for modular construction help producers streamline raw material purchasing and inventory management.
Modular Construction Market Segmentation
Grand View Research has segmented the global modular construction market on the basis of application, type, and region:
Based on the Application Insights, the market is segmented into Residential, Commercial, Industrial, Healthcare, and Educational
- The residential application segment led the market and accounted for the largest revenue share of 52.8% in 2020.
- The commercial application segment was valued at USD 83.8 billion in 2020 and is expected to witness a CAGR of 4.2% over the projected period.
- The growing e-commerce industry coupled with rising industrialization has resulted in an increased demand for warehouses and inventory storage buildings. As a result, the demand for modular construction in industrial applications is expected to grow over the forecast period.
Based on the Type Insights, the market is segmented into Relocatable and Permanent.
- The permanent modular construction segment led the market and accounted for the largest revenue share of 63.8% in 2020 due to increased efficiency as compared to traditional building methods over the past decade.
- The increasing financial outlay for the development of affordable housing structures coupled with the rapid growth of the industrial sector in developing economies is expected to augment the market growth.
Modular Construction Regional Outlook
- North America
- Europe
- Asia Pacific
- Central & South America
- Middle East & Africa (MEA)
Key Companies & Market Share Insights
The market is characterized by the presence of small- and large-scale players, resulting in a moderate level of competition. Companies are focusing on R&D initiatives related to the use of raw material, supply chain management, transportation, and the adoption of innovative methods to cope up with rising demand from residential, commercial, and industrial building applications.
Some of the prominent players in the modular construction market include:
- Laing O'Rourke
- Katerra
- Skanska AB
- Red Sea Housing
- DuBox
- Sekisui House Ltd
- KLEUSBERG GmbH & Co KG
Order a free sample PDF of the Modular Construction Market Intelligence Study, published by Grand View Research.
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