The global modular construction market accounted for a value of USD 73.8 billion in 2019. Modular construction market projected to register growth at a CAGR of 4.9% during forecast period.
COVID-19 has impacted all the businesses over the globe. The manufacturing facilities have to shut down due to lockdown. The supply chain of raw material and finished products is disrupted due to travel restriction. The demand for the modular construction has been declined across world due to decline in construction activities. The construction activities were halted. There is a huge decline in construction industry due to spread of corona virus outbreak. The modular construction market is estimated to witness decline in growth due to COVID-19.
For more details, visit: Global Modular Construction Market By Type (Permanent, Relocatable), By Material (Steel, Wood, Others), By Module Market (Four-Sided, Open-Sided, Others), By End User (Retail, Office, Others), By Region–Forecast & Opportunities to 2026
Increase in awareness towards safe work zone, lower environmental impact, and initiative from the government etc are attributing towards the growth of this market. Rapid urbanization and increase in population (translating to a large number of new construction projects) is the major driving factor for the modular construction market. Lack of awareness and volatility in transportation charges may inhibit the market growth.
On the basis of type, the modular construction market is segmented into permanent and relocatable. The permanent modular construction segment accounted for maximum market share in 2019. The relocatable modular construction segment is estimated to hold largest market share during forecast period. It utilizes offsite manufacturing methods to prefabricate multi and single story structures in modular sections for better sustainability. It can be built independently or can be assembled into an existing structure. It time efficient and cost efficient. This drives growth in PMC segment during forecast period.
On the basis of end-use, the modular construction market is segmented into residential, office, healthcare, hospitality, retail & commercial and others. The healthcare segment is estimated to hold largest market share during forecast period. Major healthcare and hospitality segments are shifting towards modular constructions. They construct bathrooms, headwalls and other segments of hospitality from modular construction. This construction is clean, safe and cost efficient for healthcare purposes. This is likely to drive growth in healthcare segment during forecast period.
On the basis of material, the modular construction market is segmented into steel, wood and concrete. Steel material segment is estimated to be fastest growing segment during forecast period. Buildings are constructed using steel frames, hot rolled steel framework and steel etc. Steel have high strength to weight serviceability, it has high design flexibility and low maintenance throughout building’s lifespan. Steel material have various advantages such as high strength, durability, security, structural integrity and fire resistance. All these factors are responsible for driving growth in steel material segment during forecast period.
Asia-Pacific region is estimated to register growth at highest CAGR during forecast period. This region has manpower, technologies & innovations and availability of raw materials. The constructions industry is growing rapidly in this region and various countries in this region are shifting from traditional to modular constructions. The increasing population and economic growth of several countries like India and China have boost the demand for construction industry and for better & well equipped infrastructure. All these factors together drives growth in Asia-Pacific region during forecast period.
The key market players in modular construction industry are Laing O’Rourke, Atco Ltd., Red Sea Housing, Skanska AB, Algeco Scotsman, Kleusberg GmbH, Fluor Corporation, Bechtel Corp., Lendlease Corporation, Katerra, Dubox, Design Space Modular Buildings, Kwikspace modular Buildings, KoMA Modular, Guerdon LLC and Wernick Group Ltd.
- What are the expected industry trends over the next three to five years?
- Which of the modular construction type is likely to lead by 2025?
- Which of the end-user segments is expected to have the maximum potential to during the forecast period?
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- What are different organic and inorganic strategies implemented by companies to gain increased market share?