The report published by The Brainy Insights shows that the global modular construction market is expected to grow from USD 84.6 billion in 2021 to USD 141.7 billion by 2030, at a CAGR of 5.9% during the forecast period 2022-2030.
Modular building solutions are gaining popularity due to their various benefits, such as reducing waste, cost-effectiveness, eco-friendliness, speedy building, and flexibility. As per a study, it has been found that modular constructions can be completed 30% to 50% quicker when compared to conventional construction. These buildings are incredibly flexible as they are custom-made to fit the construction site according to the specific requirement of the customers or builders. Rapid urbanization has increased the demand for construction activities to bridge the rising demand for the infrastructure of the increasing population. GCC-based Amana investment plans to launch a platform for seamless offsite construction under its brand DuPod and DuBox, adopting advanced manufacturing techniques.
To enhance their market position in the global modular construction market, the key players are now focusing on adopting the strategies such as product innovations, mergers & acquisitions, recent developments, joint ventures, collaborations, and partnerships.
Market growth and trends:
The increasing demand rise in industrialization and urbanization in developing countries increases the need for modular construction to meet the housing demand of the growing population. Furthermore, the rising investment in building advanced infrastructure to provide the best amenities in a small space adds impetus to the market's growth. However, there is a high risk of project failure, while shifting the unit to the final installation site hinders the market's growth. There is also increased investment required for modular construction along with long-term returns, which restrain the market's growth. But the rising government initiatives to reduce construction waste and pollution at the construction site provide an opportunity for the market's growth. However, the outbreak of the Covid-19 pandemic negatively affected the market as lockdown restrictions were imposed, and construction industries were temporarily closed to stop the spread of the disease, challenging the market's growth. The raw material supply chain was also disrupted, challenging the market's growth.
The product type segment is divided into permanent and relocatable. In 2021, the permanent segment dominated the market with the largest market share of 65% and market revenue of 54.34 billion. The permanent modular construction can be built to stand independently and assembled into an existing structure, which drives the segment's growth.
The material segment is divided into concrete, steel, and wood. In 2021, the steel segment accounted for the largest share of the market, with 43% and market revenue of 54.34 billion. Steel provides strength-to-weight serviceability, strength, design flexibility, structural integrity, security, durability, and fire resistance, reducing maintenance and repairs throughout the building's lifespan and driving the segment's growth.
The application segment is divided into retail & commercial, residential, education, office, healthcare, and hospitalityâ. In 2021, the healthcare segment accounted for the largest share of the market, with 19% and a market revenue of 15.8 billion. The segment has been growing owing to the increasing need for improved healthcare infrastructure and better hospital amenities for treatment, surgeries, and clinical and dental use.
Regional Segment Analysis of the Modular Construction Market
Among all regions, Asia Pacific emerged as the largest market for the global modular construction market, with a market share of around 39% and 32.6 billion of the market revenue in 2021. The increasing investment and development in the construction industry in the region are driving the market's growth. The Asia Pacific region also has the fastest growing economies and two economic giants, namely China and Japan which boosts the market's growth. Furthermore, the increasing initiatives by the government to provide permanent housing to most residents add impetus to the market's growth.
Key players operating in the global modular construction market are:
This study forecasts revenue at global, regional, and country levels from 2019 to 2030. Brainy Insights has segmented the global modular construction market based on the below-mentioned segments:
Global Modular Construction Market by Product Type:
Global Modular Construction Market by Material:
Global Modular Construction Market by Application:
About the report:
The global modular construction market is analyzed based on value (USD Billion). All the segments have been analyzed worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyzes driving factors, opportunities, restraints, and challenges for gaining critical insight into the market. The study includes porter's five forces model, attractiveness analysis, raw material analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.