Modular Construction Market Expected to Reach USD 140.8 Billion by 2029, Driven by Urbanization and Sustainability

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The global modular construction market is projected to grow from USD 104.1 billion in 2024 to USD 140.8 billion by 2029, with a CAGR of 6.2% during the forecast period, according to a report by MarketsandMarkets™.

The rapid growth of the modular construction market can be attributed to factors such as urbanization, population growth, and the need for faster and more efficient building methods. Technological advancements have improved the quality and customization options of modular buildings, making them increasingly popular. Furthermore, the adoption of modular construction is driven by a focus on sustainability, as modular construction generates less waste and requires fewer resources compared to traditional methods.

Permanent modular buildings are estimated to dominate the market, as they save time, labor, and construction costs. Steel is projected to be the fastest-growing segment in the modular construction market due to its increasing use in construction activities. Steel is lighter than other materials, making it easier to transport and causing less disruption to the local area.

In terms of end-use industry, the residential segment is expected to dominate the market. Modular construction allows for the rapid construction of residential buildings, reducing construction time by about half compared to traditional methods. The adoption of modular construction methods also helps in waste reduction during the construction process.

The Asia-Pacific region is the largest market for modular construction, primarily driven by rapid urbanization, industrialization, and expanding middle-class populations in countries like China, India, and Southeast Asian nations. Construction players in the region have adopted various technologies to meet the growing demand and competition.

Key players in the modular construction market include Laing O’Rourke, Red Sea Housing, Atco Ltd., Skanska AB, Modulaire Group, Bechtel Corporation, Fluor Corporation, Lendlease Corporation, Kleusberg GmbH, and others. These companies are implementing strategies such as expansions, acquisitions, joint ventures, and new product developments to enhance their market positions.

The global modular construction market operates within the construction industry. Modular construction involves the manufacturing of pre-fabricated building components in an off-site location. These components are then transported to the construction site where they are assembled to form a complete building structure.

The market for modular construction is expected to experience significant growth in the coming years. According to a report by MarketsandMarkets™, the market is projected to grow from USD 104.1 billion in 2024 to USD 140.8 billion by 2029, with a compound annual growth rate (CAGR) of 6.2%. This growth can be attributed to several factors.

One of the key drivers of the modular construction market is urbanization. As more people migrate to urban areas, there is a need for faster and more efficient building methods to accommodate the growing population. Modular construction offers a solution to this demand by providing a quicker and more streamlined construction process.

Population growth is another factor contributing to the growth of the modular construction market. With an increasing population, there is a higher demand for residential buildings. Modular construction allows for rapid construction of residential buildings, reducing construction time by about half compared to traditional methods.

Technological advancements have also played a significant role in the growth of the modular construction market. The development of advanced manufacturing techniques and technologies has improved the quality and customization options of modular buildings. This has made modular construction increasingly popular among builders and developers.

Sustainability is another driving factor for the adoption of modular construction methods. Modular construction generates less waste and requires fewer resources compared to traditional construction methods. This aligns with the increasing focus on green and sustainable building practices.

In terms of end-use industry, the residential segment is expected to dominate the modular construction market. The rapid construction of residential buildings is crucial to meet the housing needs of the growing population. Modular construction methods offer a faster and more efficient solution to residential construction.

The Asia-Pacific region is the largest market for modular construction. This is primarily driven by factors such as rapid urbanization, industrialization, and expanding middle-class populations in countries like China, India, and Southeast Asian nations. Construction players in the region are adopting various technologies to meet the growing demand and competition.

Key players in the modular construction market include Laing O’Rourke, Red Sea Housing, Atco Ltd., Skanska AB, Modulaire Group, Bechtel Corporation, Fluor Corporation, Lendlease Corporation, Kleusberg GmbH, and others. These companies are implementing strategies such as expansions, acquisitions, joint ventures, and new product developments to enhance their market positions.

For further information and market updates related to the modular construction industry, you can visit the official website of MarketsandMarkets™ at https://www.marketsandmarkets.com/.