The global Prefabricated Building and Modular Construction Market size was estimated at USD 96.7 billion in 2023 and is projected to reach USD 154.2 billion in 2030 at a CAGR of 6.8% during the forecast period 2024-2030.
The global market for prefabricated building and modular construction is witnessing significant growth, driven predominantly by rapid urbanization trends in developing nations. Modular building techniques offer distinct advantages over traditional construction methods, including lower costs, reduced construction time, fewer on-site disruptions, and decreased waste production. By conducting a substantial portion of construction within factory settings, modular building minimizes the risk of weather-related delays, with 50 to 80% of building work completed off-site. This approach enhances construction flexibility and reduces energy consumption during building construction, contributing positively to environmental sustainability.
Off-site construction occurs under controlled environments, adhering to standardized components and regulatory requirements. Modular buildings are designed for ease of disassembly, refurbishment, and relocation, thereby promoting resource efficiency by lowering the demand for new raw materials. Factory-controlled processes further mitigate waste generation and minimize disturbances at construction sites. Projects are often completed in shorter durations compared to traditional methods, as site work and modular assembly progress simultaneously.
Despite these advantages, the expansion of the modular and prefabricated building industry faces challenges, particularly concerning transportation and logistics costs associated with moving modular components over long distances. Rural areas, where labor costs are lower, tend to see more prevalent use of modular building techniques. However, high transportation costs, exacerbated by weight restrictions and regulatory hurdles, pose significant barriers to market expansion.
The COVID-19 pandemic disrupted the industry significantly, causing supply chain disruptions and labor shortages that delayed or canceled many construction projects, including those utilizing modular methods. The closure of offices, schools, and other commercial buildings further dampened demand for modular and prefabricated constructions temporarily. Nonetheless, as economies reopen and governments prioritize affordable housing initiatives, the industry is expected to recover swiftly. Government support and renewed construction activity are likely to bolster market growth, offsetting pandemic-related setbacks.
In conclusion, while facing challenges such as transportation costs and pandemic-related disruptions, the prefabricated building and modular construction market remains poised for growth. Its advantages in cost-efficiency, speed, and sustainability position it favorably in meeting evolving construction demands, particularly in urbanizing regions of developing countries.
Anticipated increases in foundational investments are expected to drive measured growth in the modular construction market, spurred by rising industrialization and urbanization in developing countries like India, Vietnam, and China. However, the industry faces several challenges that impede its expansion, including shortages of skilled workers, logistical constraints, and knowledge gaps. Issues such as consumer perceptions of quality and difficulties in securing funding also hinder market growth. Additionally, the unpredictable nature of transportation costs poses risks that could hamper the global market for modular construction. Nevertheless, opportunities abound amidst these challenges. Factors such as escalating urbanization, housing shortages in developed nations, untapped potential in emerging economies, and population growth present avenues for positive growth in the sector. Strategic measures to address infrastructure challenges and capitalize on emerging opportunities will be crucial in driving substantial growth in the modular construction industry.
North America to Dominate the Market
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Report Feature |
Descriptions |
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Growth Rate |
CAGR of 6.8% during the forecasting period, 2024-2030 |
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Historical Data |
2020-2022 |
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Forecast Years |
2024-2030 |
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Base Year |
2023 |
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Units Considered |
Revenue in USD billion and CAGR from 2024 to 2030 |
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Report Segmentation |
Type, Material, End User, and Region. |
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Report Attribute |
Market Revenue Sizing (Global, Regional and Country Level) Company Share Analysis, Market Dynamics, Company Profiling |
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Regional Level Scope |
North America, Europe, Asia-Pacific, South America, and Middle East, and Africa |
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Country Level Scope |
U.S., Japan, Germany, U.K., China, India, Brazil, UAE, and South Africa (50+ Countries Across the Globe) |
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Companies Profiled |
ACS Group, Algeco (Modulaire Group), Berkeley Modular Limited, Bouygues Construction, DUB0X, Guerdon, LLC, Hickory Group, Kiewit Corporation, Kleusberg GmbH, Laing O’Rourke, Larsen & Toubro Limited, Lendlease Corporation, Red Sea International, Riko Group, Satellite Shelters, Sekisui House, Ltd., Skanska, Taisei Corporation, VINCI Construction. |
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Available Customization |
In addition to the market data for the Prefabricated Building and Modular Construction Market, Delvens offers client-centric reports customized according to the company’s specific demand and requirements. |
The Prefabricated Building and Modular Construction Market is segmented into various segments such as Type, Material, End User, and Region:
Based on Type
Based on the Material
Based on the End User
Based on region
The prominent players in the Prefabricated Building and Modular Construction Market are
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