July 18, 2024
Modular Construction Market

Modular Construction Market Is Estimated To Witness High Growth Owing To the Advantages of Cost-effectiveness

The global Modular Construction Market is estimated to be valued at US$ 131.1 billion in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period of 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Modular construction refers to the process of building structures off-site in a controlled environment, using prefabricated components, and then assembling them on-site. This construction method offers numerous advantages such as cost-effectiveness, reduced construction time, improved quality control, and sustainability.

Market Key Trends:

One key trend driving the growth of the modular construction market is the increasing adoption of green building practices. With a growing focus on sustainability and environmental conservation, modular construction techniques are being widely embraced due to their reduced environmental impact. These practices involve the use of eco-friendly materials, energy-efficient designs, and waste reduction strategies.

Moreover, the modular construction market is witnessing a surge in demand from the residential sector. Rapid urbanization, coupled with a rising population and housing shortage, has led to a significant need for affordable and quickly deployable housing solutions. Modular construction offers a cost-effective and time-efficient approach to address these housing challenges, thereby fueling market growth.

PEST Analysis:

Political: The political factors that may impact the modular construction market include government regulations and policies related to construction and infrastructure development. For example, changes in building codes and standards, zoning laws, and environmental regulations can affect the growth of the market.

Economic: The economic factors influencing the modular construction market include factors such as GDP growth, disposable income, and interest rates. Economic stability and favorable financing options can drive the market growth by encouraging construction activities.

Social: Social factors that can impact the modular construction market include changing demographics, urbanization, and lifestyle trends. For instance, the growing preference for sustainable and eco-friendly construction methods is driving the demand for modular construction.

Technological: Technological advancements play a crucial role in the modular construction market. Innovations in construction materials, 3D printing, Building Information Modeling (BIM), and modularization techniques can enhance the efficiency, speed, and quality of construction projects.

Key Takeaways:

The Global Modular Construction Market Size is expected to witness high growth, exhibiting a CAGR of 6.1% over the forecast period of 2023-2030. This growth can be attributed to the increasing need for affordable housing, rapid urbanization, and infrastructure development globally. Modular construction offers several advantages such as reduced construction time, cost savings, and minimized environmental impact, which are driving its adoption across various sectors.

In terms of regional analysis, Asia Pacific is projected to be the fastest-growing and dominating region in the modular construction market. The region’s economic growth, urbanization, and government initiatives to address the housing shortage are fueling the demand for modular construction. Countries like China, India, and Japan are witnessing significant investments in infrastructure and residential projects, further contributing to the market growth.

Key players operating in the 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 among others. These companies are focusing on strategic partnerships, mergers and acquisitions, and product innovations to gain a competitive edge in the market. Their strong market presence and wide range of modular construction solutions make them key players in the industry.

Overall, the modular construction market is poised for significant growth due to the increasing demand for cost-effective and sustainable construction methods. Factors such as government support, technological advancements, and urbanization are expected to drive market expansion, particularly in the Asia Pacific region. Key players in the market continue to invest in research and development to enhance their product offerings and stay competitive in the market.

 

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it