The global modular construction market is estimated to be valued at US$ 90.79 billion in 2022 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
- A) Market Overview:
Modular construction refers to the process of building structures offsite, under controlled factory conditions, and then assembling them on-site. This method offers several advantages such as reduced construction time, lower costs, improved quality control, and sustainability. The need for faster and more efficient construction methods, especially in residential and commercial sectors, is driving the demand for modular construction products.
- B) Market Key Trends:
One key trend in the global Modular Construction Market is the increasing adoption of offsite construction methods. Construction projects are increasingly turning to modular construction due to its ability to reduce construction time by up to 50% and improve overall project efficiency. For example, Laing O’rourke, a leading construction company, has successfully implemented modular construction methods in various high-profile projects, including hospitals and schools.
- C) PEST Analysis:
- Political: Governments across the globe are promoting modular construction techniques to address the housing shortage and infrastructure demands efficiently.
- Economic: Modular construction offers cost savings and improved project timelines, making it an attractive option for developers and contractors.
- Social: Modular construction supports sustainable development, as it reduces waste generation and minimizes disruption to local communities during construction.
- Technological: Advancements in technology have allowed for increased precision and automation in modular construction processes, ensuring higher quality and faster completion.
- D) Key Takeaways:
- The global modular construction market is expected to witness high growth, exhibiting a CAGR of 7.5% over the forecast period. The increasing adoption of offsite construction methods is a key driver contributing to this growth.
- Regionally, North America is expected to be the fastest-growing and dominating region in the modular construction market due to the growing need for affordable housing and infrastructure development.
- Key players operating in the global modular construction market include Laing O’Rourke, Red Sea Housing, Atco, Bouygues Construction, Vinci, Skanska AB, Algeco Scotsman, Kleusberg GmbH & Co. KG, Kef Katerra, Lendlease Corporation, and Cimc Modular Building Systems Holding.
In conclusion, the global modular construction market is experiencing significant growth due to the increasing adoption of offsite construction methods. This trend, combined with the advantages offered by modular construction, such as reduced construction time and improved quality control, is driving the demand for modular construction products. With the support of governments and advancements in technology, the modular construction market is expected to continue growing in the coming years.