by The modular construction market offers a comprehensive solution for the construction needs with the advantages of reduced waste, cost savings, and decreased construction time. Modular construction includes building modules or sections in a controlled factory environment and transporting them to the construction site for assembly. The growing need for affordable residential and commercial infrastructure with minimized environmental footprint has been driving the demand for modular construction solutions.
The global Modular Construction Market is estimated to be valued at US$ 84.48 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increased demand for cost-effective and sustainable construction has been a key growth driver for the modular construction market. Modular construction offers 15-30% faster construction time compared to conventional construction methods along with 20-30% cost savings due to controlled factory conditions, reduced waste generation, and shorter on-site installation time. It leads to less disturbance to the local environment and minimizes health and safety risks associated with on-site construction works. With rising environmental concerns and the need for affordable housing and commercial infrastructure, modular construction is expected to witness increased adoption globally during the forecast period. Manufacturers are also focusing on innovations to develop advanced modular construction techniques for customized, multi-story, and complex infrastructure projects.
SWOT Analysis
Strength: Modular construction provides many benefits compared to traditional construction such as better quality, lower costs, reduced construction time, and less environmental impact.
Weakness: Modular construction requires substantial up-front investment and relocation of modules can be complex. Existing construction practices and regulations may also pose challenges to modular building adoption.
Opportunity: Growing infrastructure investment worldwide along with emphasis on green buildings present significant opportunities for modular construction market.emerging technologies are also optimizing modular construction methods.
Threats: Economic slowdowns can negatively impact infrastructure and construction spending affecting demand. Traditional construction lobbies may also pose regulatory or competitive threats to modular building acceptance.
Key Takeaways
The Global Modular Construction Market Size is expected to witness high growth over the forecast period supported by the rising construction activity worldwide along with emphasis on sustainable building practices. The global Modular Construction Market is estimated to be valued at US$ 84.48 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030.
The Asia Pacific modular construction market accounted for the largest share in 2023 and is expected to retain dominance over the forecast period with China, India, Japan, South Korea emerging as major hotspots.
Key players operating in the modular construction market are Red Sea Housing, Bouygues Construction, Skanska AB, Kleusberg GmbH, Kiewit Corporation, Lendlease Corporation, Laing O’Rourke, ATCO Structures & Logistics, VINCI, Algeco Scotsman, Champion Home Builders Inc. Modular methods are helping optimize construction cycles particularly for commercial and industrial projects. Adoption in residential sector will gain further traction with innovative financing and customization options. Emerging technologies will help enhance modular building flexibility, efficiency, and sustainability.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
