1 Global Modular Construction Market Insight Analysis
The global modular construction market is valued at USD 115,314.2 million in 2024 and is expected to grow at a CAGR of 5.04% from 2024 to 2033.
Modular construction is a process in which a building is constructed off-site, under controlled plant conditions, using the same materials and designing to the same codes and standards as conventionally built facilities in about half the time. These buildings are made in modules or small parts, which are transported to the construction site and assembled. Modular construction is becoming more popular mainly due to its quick completion, cost-effectiveness, and efficiency.
Figure Global Modular Construction Market Size (M USD) and CAGR (2024-2033)
2 Modular Construction Market Growth Drivers and Restraints
From the perspective of driving factors, there are mainly the following points: First, the investment in infrastructure projects has increased. With the acceleration of global urbanization and industrialization, the demand for various types of infrastructure continues to rise, including building facilities, roads, bridges, etc.
Modular buildings are widely used in many fields such as residential, office, and education due to their cost-effectiveness and time advantages, attracting a lot of investment. For example, many cities choose modular buildings to improve construction efficiency and quality when building affordable housing. These investments not only improve infrastructure, but also promote regional economic development, providing strong support for the growth of the modular building market.
Second, government support. Governments of various countries have gradually realized the advantages of modular buildings in solving housing shortages and promoting the development of green buildings. For example, London has invested funds to build modular apartments to solve the problem of insufficient affordable housing. The British government has also clearly stated in relevant documents that it supports the development of modular building technology, providing positive signals for enterprises and encouraging them to participate in the development and competition of the modular building market.
However, the growth of the modular building market also faces some limiting factors: on the one hand, there are geographical and quality supervision problems. In disaster-prone areas, especially earthquake zones, the requirements for building quality are extremely high, and modular buildings face challenges in terms of seismic performance and other quality aspects. Quality supervision under different geographical conditions has become an important problem in the development of the modular construction market, bringing great challenges to manufacturers.
On the other hand, there are financing difficulties and logistics costs. Many lending institutions do not have enough understanding of modular construction projects, making it difficult for companies to obtain financial support. Moreover, modular construction projects often involve a single or a few suppliers, which not only increases execution risks, but also requires companies to invest a lot of money in the early stage to purchase facilities and build processes. In addition, the geographical location of the production facilities has a huge impact on the project.
The long-distance transportation of modules will offset the cost advantages brought by the improvement of labor efficiency. There are also transportation risks. Road regulations in different regions will also limit the size and weight of modules, increasing potential costs. Finally, modular buildings are also limited in design flexibility. In order to achieve the time and cost advantages of producing modules, the project needs to complete the design in advance, which to a certain extent limits the flexibility of later design changes and makes it difficult to meet the diverse needs of customers.
3 Technological Innovations in the Modular Construction Market
Technological innovation is one of the core driving forces for the development of the modular construction market. At present, the modular construction industry is actively introducing lean manufacturing technology to improve the efficiency of the overall operation process. Permanent modular construction (PMC) uses off-site manufacturing technology to prefabricate single and multi-story buildings, significantly improving operational performance and optimizing construction workflows.
For example, in May 2019, Skender launched modular production buildings in its advanced manufacturing facility in Chicago, demonstrating the advantages of lean manufacturing technology in practical applications. In addition, major companies in the industry have also adopted innovative methods such as standardized project management (SPM) and building information modeling (BIM) to promote changes in the industry. These technological innovations not only improve production efficiency, but also improve construction quality, enhance the market competitiveness of enterprises, and promote the sustainable development of the entire industry.
Corporate mergers and acquisitions are also an important development trend in the modular construction market. Many companies have expanded their market share and strengthened their own strength through mergers and acquisitions. For example, Modulaire Group further consolidated its position in the Italian market by acquiring Tecnifor, Locabox and FAE; Aries Building Systems acquired Precision Structures Inc., expanded its business scope, and gained new customer groups and technical advantages; VESTA Modular acquired BD Modular, achieved rapid expansion, added about 350 modular units, and added a new branch in Dallas. These M&A cases show that by integrating resources, enterprises can achieve complementary advantages, enhance their competitiveness in the market, and promote the gradual increase of industry concentration.
4 Global Modular Construction Market Size by Type
Walls are a critical component of modular construction, accounting for a significant portion of the market revenue. In 2024, the market value for walls is projected to be $52,987.1 million USD, representing approximately 45.95% of the total market share. This segment’s growth is driven by the increasing demand for modular housing and commercial buildings, where walls are essential for structural integrity and design flexibility. The use of advanced materials and manufacturing techniques ensures that modular walls meet stringent building codes and standards, contributing to their widespread adoption.
Roof and floor systems are another vital component in modular construction, providing structural support and functional spaces. In 2024, the market value for Roof & Floors is expected to reach $35874.5 million USD, accounting for 31.11% of the total market share. The growth in this segment is driven by the need for efficient and durable solutions in both residential and commercial applications. Modular roofs and floors offer significant advantages, such as reduced construction time and enhanced quality control, making them a preferred choice for developers.
Columns and beams are essential structural elements in modular construction, providing the framework for multi-story buildings and large-scale projects. In 2024, the market value for Columns & Beams is projected to be $17433.8 million USD, representing 15.12% of the total market share. The demand for these components is driven by the increasing need for high-rise modular buildings and infrastructure projects. The use of modular columns and beams reduces on-site construction time and enhances overall project efficiency.
Table Global Modular Construction Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Walls | 52987.1 | 45.95% |
Roof & Floors | 35874.5 | 31.11% |
Columns & Beams | 17433.8 | 15.12% |
Others | 9018.7 | 7.82% |
5 Global Modular Construction Market Size by Application
The commercial application segment is projected to have a market revenue of 46984.7 million US dollars in 2024. Its market share is around 40.74%. The increasing demand from the commercial sector is a major driver for this segment. Commercial buildings are increasingly adopting modular construction due to its efficiency and cost – effectiveness. For example, in urban areas, modular construction can quickly provide office spaces, retail stores, and hotels, meeting the rapid – changing business needs.
The residential segment is estimated to have a market revenue of 57294.7 million US dollars in 2024, accounting for approximately 49.69% of the market share. The residential industry has always been an important application area for modular construction. With the growth of the global population and the increasing demand for housing, modular construction offers a fast – building and cost – controlled solution. In some regions with housing shortages, modular homes can be quickly assembled to meet the housing needs of residents.
In 2024, the industrial application segment is expected to generate a market revenue of 11034.8 million US dollars, with a market share of about 9.57%. Modular construction in the industrial sector is used for building factories, warehouses, and other industrial facilities. Its advantages such as quick construction time and high – quality control are highly valued in the industrial field, enabling industries to start production or storage operations more quickly.
Table Global Modular Construction Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Commercial | 46984.7 | 40.74% |
Residential | 57294.7 | 49.69% |
Industrial | 11034.8 | 9.57% |
6 Global Modular Construction Market Size by Region
In 2024, the North American modular construction market is expected to reach a revenue of 33155.7 million US dollars, with a market share of around 28.75%. The United States is the dominant market in North America. The development of the modular construction market in North America benefits from the region’s advanced construction technology and strong demand for housing and commercial buildings. For example, Clayton Homes Inc., a major player in North America, has been actively promoting modular construction in the residential market, providing a variety of modular home products.
The European market is projected to have a revenue of 29320.6 million US dollars in 2024, accounting for approximately 25.43% of the global market share. Germany, France, and the UK are important markets in Europe. These countries have a long – standing construction industry and are gradually embracing modular construction. Germany, for instance, has been promoting sustainable construction, and modular construction fits well with this concept. Many companies in Europe are investing in research and development to improve modular construction technology, such as Laing O – Rourke with its DfMA 70:60:30 operating model.
The Asia – Pacific region is expected to be the fastest – growing market. In 2024, its market revenue is estimated to be 43500.2 million US dollars, with a market share of about 37.72%. China, Japan, and South Korea are the main drivers of the market in this region. China has a huge construction market, and the demand for modular construction is increasing with the development of the economy and urbanization. The government’s support for affordable housing and sustainable construction has also promoted the development of the modular construction market. Japan has advanced construction technology and is actively exploring the use of modular construction in earthquake – resistant buildings.
In 2024, the Latin American modular construction market is expected to reach a revenue of 5503.5 million US dollars, with a market share of about 4.77%. Mexico and Brazil are the key markets in this region. The market in Latin America is growing steadily, driven by infrastructure development and the increasing demand for housing. However, it also faces challenges such as financing difficulties and limited design flexibility.
The Middle East & Africa market is projected to have a revenue of 3834.1 million US dollars in 2024, accounting for around 3.32% of the global market share. Countries like Turkey, Saudi Arabia, and the UAE are the major markets. The rapid development of the real estate and infrastructure industries in these countries has increased the demand for modular construction. For example, in Saudi Arabia, modular construction is being used to build housing and industrial facilities to meet the needs of the country’s development.
Figure Global Modular Construction Market Size (M USD) by Region in 2024
7 Global Modular Construction Market Analysis by Major Players
7.1 Clayton Homes Inc.
Company Introduction and Business Overview:
Clayton Homes Inc. is the largest builder of prefab and modular houses in the United States, established in 1966. The company is headquartered in Knoxville, Tennessee, and operates primarily in North America.
Clayton Homes specializes in the construction of traditional site-built homes, manufactured homes, modular homes, CrossMod™ homes, Designer Cottages, and PMRVs. Their modular construction products are known for their strength, quality, and durability, meeting federal HUD specifications and state/local building requirements.
Products:
Clayton Built® houses are its main modular construction products. These houses are known for their strength, quality, and durability. They undergo rigorous checkpoints and internal inspections, with prefabricated houses meeting federal HUD specifications and modular houses meeting state and local building requirements.
Market Performance in 2021:
In 2021, Clayton Homes Inc. had a revenue of 3395.6 million US dollars in the modular construction business. Its gross profit was 605.5 million US dollars, and the gross margin was 17.83%.
7.2 Laing O-Rourke
Company Introduction and Business Overview:
Laing O’Rourke is a leading international construction and engineering company, established in 2001. The company is headquartered in the UK and operates across Europe, Asia-Pacific, and the Middle East.
Laing O’Rourke provides a wide range of construction services, including commercial and industrial properties, roads, rail systems, airfields, and marine support facilities. They are known for their expertise in modern construction methods (MMC) and off-site manufacturing.
Products:
In modular construction, it uses the DfMA 70:60:30 operating model in the UK. This model allows it to bring 70% of off – site construction into a controlled environment, increasing efficiency by 60% and improving project schedules by 30%. It manufactures components like double walls, floors, pillars, high – quality exterior walls, and new digital modular bridges for large – scale construction and infrastructure projects.
Market Performance in 2021:
In 2021, Laing O – Rourke’s revenue in the modular construction business was 1996.0 million US dollars, with a gross profit of 214.3 million US dollars and a gross margin of 10.74%.
7.3 Bouygues Construction
Company Introduction and Business Overview:
Bouygues Construction is a global leader in civil engineering and construction, established in 1952. The company is headquartered in France and operates worldwide, with a strong presence in Europe, Asia-Pacific, and the Middle East.
Bouygues Construction specializes in the design and construction of apartments, commercial buildings, public works projects, electrical contracting, maintenance, renovation, and technical solutions. They are known for their comprehensive approach to modular construction, offering full-service solutions from feasibility studies to project handover.
Products:
Bouygues Bâtiment International, a part of Bouygues Construction, offers a full range of modular construction services from technical feasibility studies to project handover. It handles all aspects of production, including module manufacturing, transportation, logistics, installation, and on – site coordination. The company is also researching and developing construction methods to reduce the weight and cost of modules.
Market Performance in 2021:
In 2021, Bouygues Construction’s modular construction business had a revenue of 1447.4 million US dollars, a gross profit of 226.7 million US dollars, and a gross margin of 15.66%.