Modular Construction Market: By Material Type (Steel, Concrete, Wood, and Plastic), By Modules (4-Sided, Partially Open-Sided, Fully Open-Sided, and Others), By Construction (Permanent, Re-locatable), By End Users (Residential, Commercial, Industrial, Institutional/ Educational, Healthcare, and Others), and Geography

Modular Construction Market size was valued at USD 84,239.3 Million in 2023 and is poised to grow at a CAGR of 6.1% over 2024-2030. The modular construction market refers to the industry involved in the design, production, and installation of modular buildings and structures. Modular construction, also known as off-site or prefabricated construction, is a modern construction method that involves assembling building components off-site in a controlled factory environment. These components, referred to as modules, are then transported to the construction site and assembled into a complete building. The concept of modular construction has gained significant popularity in recent years due to its numerous advantages, such as faster construction, cost-effectiveness, and flexibility, in contrast to traditional on-site construction methods. Rising population coupled with increasing residential buildings is the primary reason that contributes to the growth of the modular construction market.

Modular construction is commonly used for building houses, apartments, and other residential structures. Moreover, rising educational facilities is another factor that significantly drives the modular construction market. Schools, colleges, and other educational institutions are increasingly adopting modular construction to meet the growing demand for educational spaces. Modular classrooms and buildings can be delivered quickly, minimizing disruptions to the academic calendar. Furthermore, increased adoption of Hybrid modular construction that combines two or more offsite construction types to minimize on-site construction activities is presenting potential opportunities for the growth and development of the modular construction market. However, while modular construction offers many benefits, it may have limitations in terms of design flexibility compared to traditional construction, which act as a potential restraint to the growth of the modular construction market. Additionally, high initial investment can limit the adoption of modular construction facilities in smaller or less financially robust firms. Continuous collaborative efforts from industry stakeholders, including manufacturers, contractors, policymakers, and investors are contributing to the development of the modular construction market. For instance, in February 2023, McGrath acquired Vesta Modular for $400 million to expand its business.

Modular Construction Market Key Developments:

• In April 2023, Modular building market leader Portakabin has acquired healthcare modular buildings specialist Darwin Group to offer significant benefits to healthcare providers across the UK.
• In December 2022, PHP Ventures Acquisition Corp. and Modulex Modular Buildings Plc signed an agreement for a Business Combination.
• In August 2021, UK modular housing manufacturer CoreHaus has opened its first modular construction plant, and begun full production of its steel-framed modular homes.