June 15, 2024

Modular Construction Market Is Estimated To Witness High Growth Owing To Industrialization In Construction Industry

Modular construction refers to a process in which a building is constructed off-site, under controlled plant conditions, using pre-fabricated components and modules such as walls, roof, and even finishing. The prefabricated components and modules are then transported and assembled onsite. Modular construction provides advantages such as speed of construction, flexibility in design, cost-savings, quality, reduced wastage, and environment friendliness. The demand for modular construction is increasing owing to increasing demand for affordable housing, infrastructural projects, and commercial construction coupled with advantages of modular construction over traditional construction methods.

The Global Modular Construction Market is estimated to be valued at US$ 97.33 Bn in 2024 and is expected to exhibit a CAGR of 6.7% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the Modular Construction Market Analysis are Gaiam, CAP Barbell, Marcy, PowerBlock, Bowflex, Bayou Fitness, Gold’s Gym, Valor Fitness, Body Solid, Universal, NordicTrack, Weider, runtfit, Titan Fitness, Yes4All, Ativafit, B luxury, Fitness Gear, XMark Fitness, Core Home Fitness. The modular construction companies are focusing on innovations and adoption of advanced technologies to improve construction process and efficiency. The key opportunities in the modular construction market include government support for infrastructure development and investments, adoption in commercial construction for malls, offices, and hotels. Technological advancements such as increased use of robotics, 3D printing, and Building Information Modelling (BIM) are enabling faster, cheaper and sustainable construction through modular methods.

Market Drivers
The primary driver for the modular construction market is rapid infrastructure development and urbanization. The demand for affordable housing and need for speedy construction of residential and commercial buildings is propelling the modular construction market growth. Other key drivers include cost advantages of modular construction over traditional methods, reduced construction timelines, lesser job site disturbances, and controlled environment manufacturing. The environmental benefits of modular construction including minimized construction waste and energy-efficient building also support the market growth.

Current challenges in Modular Construction Market:
The modular construction market faces several challenges currently which hinders its growth potential. Traditional on-site construction practices are still widely used which forms resistance to newer modular techniques. Lack of skilled labor and high initial capital costs for setting up a modular construction facility also poses major hurdles. Transportation and logistics of bulky modular units over long distances increases project costs. Differences in building codes across regions and acceptance of modular buildings also challenges the market growth.

SWOT Analysis
Strength: Prefabricated modules require less construction time on-site. Standardized modular designs ensure quality and consistency. Modular techniques provide safer and more controlled factory conditions.
Weakness: Higher upfront investment required for modular construction factories. Transportation of bulky modules requires careful planning. Limited design customization abilities compared to traditional construction.
Opportunity: Growing construction industry worldwide increases demand for faster construction techniques. Government support and building code approvals boost modular adoption. Large infrastructure projects offer opportunities for modular players.
Threats: Resistance from tradition-oriented construction industry slows market acceptance. Economic slowdowns or downturns impact overall construction spending. Stringent transportation regulations hinder module movement.

Geographical Regions:
North America currently dominates the modular construction market in terms of value, with the United States being the largest contributor. Availability of skilled labor, supportive government policies and early adoption of modular technologies have facilitated market growth in the region.

Asia Pacific region is poised to grow at the fastest pace during the forecast period. This can be attributed to the enormous infrastructure development activities underway in countries such as China and India. Increasing urbanization along with efforts to reduce construction timelines will augment modular construction demand across Asia Pacific.

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