Modular Construction Market Size, Share, Growth Analysis, By Product(Relocatable and Permanent), By Application(Commercial, Residential, Industrial, Healthcare and Educational), By Material(Wood, Steel, Concrete, and Others), By Region(North America, Asia Pacific, Europe, Latin America and Middle East Africa), By Region - Industry Forecast 2024-2031

Modular Construction Market size was valued at USD 97.28 billion in 2022 and is poised to grow from USD 104.67 billion in 2023 to USD 188.08 billion by 2031, growing at a CAGR of 7.6% in the forecast period (2024-2031).

The modular construction market is highly fragmented, with the presence of several regional and local players. The market is characterized by intense competition, with companies vying for market share through strategies such as product innovation, partnerships, and mergers and acquisitions. The competition is expected to intensify further as more players enter the market and existing players expand their offerings. To stay competitive, companies in the modular construction market need to focus on providing high-quality products and services, keeping up with technological advancements, and meeting the evolving needs of customers. 'Laing O'Rourke (UK)', 'Skanska (Sweden)', 'Red Sea Housing Services (Saudi Arabia)', 'CIMC Modular Building Systems Holdings Co. Ltd. (China)', 'Algeco (Luxembourg)', 'Katerra (US)', 'Lendlease Corporation (Australia)', 'Bouygues Construction (France)', 'Guerdon Enterprises LLC (US)', 'Wernick Group (UK)', 'Ausco Modular (Australia)', 'Redman Modular Buildings (Canada)', 'Portakabin Group (UK)', 'Ritz-Craft Corporation (US)', 'Champion Home Builders (US)', 'Alta-Fab Structures Ltd. (Canada)', 'Horizon North Logistics Inc. (Canada)', 'Daiwa House Industry Co. Ltd. (Japan)', 'Fleetwood Australia (Australia)', 'Modscape (Australia)'

One key driver of the modular construction market is the increasing demand for sustainable construction practices. Modular construction offers significant benefits in terms of reduced waste, lower energy consumption, and improved environmental performance compared to traditional construction methods. As environmental concerns continue to grow, governments and organizations are increasingly promoting sustainable construction practices. This trend is expected to continue driving the growth of the modular construction market as more developers and builders adopt modular construction to meet sustainability goals and reduce environmental impact.

One key market trend in the modular construction market is the growing use of Building Information Modeling (BIM) and other digital technologies. BIM enables the creation of a virtual model of a building, allowing for improved collaboration, cost estimation, and scheduling. The integration of BIM and other digital technologies into modular construction workflows is expected to increase productivity, reduce costs, and improve project outcomes. As a result, companies in the modular construction market are increasingly investing in digital technologies and building partnerships with technology providers to enhance their offerings and stay competitive in the market.

North America dominated the modular construction market due to its established infrastructure and the growing demand for sustainable construction practices. The United States is the largest market in the region, with significant growth potential in the commercial and residential sectors. The increased adoption of modular construction in the country is driven by factors such as reduced building time, lower costs, and the ability to meet environmental standards.