Modular Construction Market - Forecast(2023 - 2028)

Report Code: CMR 90582 Report Format: PDF + Excel

Overview

Modular Construction Market size is forecast to reach $172.4 billion by 2025, after growing at a CAGR of 7.44% during 2020-2025. The Modular Construction (Prefabricated Buildings) market is expected to grow at a significant rate owing to rise in demand for complex structures at affordable cost as well as rapid urbanization and industrialization.

Modular buildings are built to the same or higher specifications than typically built homes, also called prefabricated buildings or precision built homes or pre-engineered building. The construction process is known as permanent modular construction.

Report Coverage

The report: “Modular Construction Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Modular Construction Industry.


Key Takeaways

North America dominates the Modular Construction market because of demand for relocatable and prefabricated buildings to be reused or repurposed multiple times and transported to different building sites.  

The government initiatives and regulations toward sustainability and green environment will also boost the modular construction market.

The housing segment will dominate the global market, owing to rising demand for smart homes and buildings, fuelled by rising disposable incomes from the middle class.

Construction - Segment Analysis

Permanent modular held the largest share in the Modular Construction market in 2019. Permanent modular has emerged as one of the key alternative to traditional building methods over the past few years. Permanent modular construction find its wide application in commercial and industrial sector. North America is one of the key region for the permanent modular construction because of increase in demand for smart construction. In U.S. permanent modular construction grew to 23,286 units in 2017, an increase of about 2.1% from 22,809 units in 2016 according to Deluxe Modular. Whereas in Canada nonresidential construction is fueling the growth of permanent modular.

Material – Segment Analysis

Precast Concrete based tapes are likely to gain high market as it offers durable solution with cost efficiency and high quality. Precast concrete are manufactured by industrial methods based on mass production in order to construct large number of buildings in short time at low cost. Compared to onsite cast concrete, precast concrete erection is faster and is less affected by adverse weather condition.

End Use - Segment Analysis

Residential sector accounts for the highest market share in the global market and is expected to grow with the CAGR of 8.04% over the forecast period from 2020 to 2025. The growth can be attributed to an increase in residential housing construction activities with burgeoning population, rapid urbanization, and strong economic growth. Prefabricated housing has achieved a sustainable foothold across globe. When using modular construction (prefabricated building) 66% of building professionals sped up their schedules, and 35% managed to cut their schedules by four weeks or more. 65% building professionals lowered the cost of the project overall, and 77% lowered construction site waste. Modular construction (Prefabricated Buildings) can be more cost-effective, but if the components are moved long distances it often comes fairly close to the costs of conventional construction. Mostly the monetary value of modular construction comes from the shorter timeframe.

Geography - Segment Analysis

North America dominated the Modular Construction market with a share of more than 40%, followed by Europe and Asia Pacific. Increasing utilization of high strength lightweight materials from the aerospace industry and presence of major players in North America is augmenting the market. According to International Trade Administration, in 2018, the industry contributed $151 billion in export sales to the U.S. economy. Investors in the U.S. aerospace industry are encouraged by the "gold standard" for aviation safety from the Federal Aviation Administration (FAA), which raises worldwide trust in the safety of aircraft and aircraft parts manufactured in the U.S.

Drivers – Modular Construction Market

The upsurge in building demand will propel the Modular Construction market.

According to Global Construction 2030 report by Global Construction Perspectives and Oxford Economics, the volume of construction output will grow by 85% globally by 2030. China, India, and the U.S. are leading the way and accounting for 57% of all global growth. According to Graham Robinson, Executive Director, Global Construction Perspectives "China's share of the global construction market will only increase slightly as growth slows down to 2030 on the world's largest construction sector. By comparison, over the next 15 years, U.S. construction will grow faster than China – growing by an average of five percent per year. Meanwhile, India is expected to see a rise in construction levels as it surpasses Japan to become the third largest construction market in the world by 2021”.

Challenges – Modular Construction Market

The alternative material can restrict the market growth

Steel Reinforced Polymer tapes used to strengthen externally bonded composite reinforcement are a relatively new material that is compatible with common organic fibers. SRP tapes are made from ultra-high strength steel wires that are embedded in cords and mounted into a fabric. The mechanical properties of SRP steel are comparable to those of other high carbon cold drawn steel by advanced processing.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Modular Construction market. In 2019, the market of Modular Construction has been consolidated by the top five players accounting for xx% of the share. Major players in the Modular Construction Market are Laing O’Rourke, Red Sea Housing, ATCO, Bouygues Construction, VINCI, and Skanska AB, among others.

Acquisitions/Technology Launches

In August 2016, Clayton Homes a manufacturer of housing and modular homes acquired Goodall Homes. The acquisition of Goodall Homes includes approximately 3,600 lots and 180 homes under construction in a five-county area in Middle Tennessee.

1. Modular Construction Market - Overview
        1.1 Definitions and Scope
2. Modular Construction Market - Executive summary
        2.1 Market Revenue, Market Size and Key Trends by Company
        2.2 Key Trends by type of Application
        2.3 Key Trends segmented by Geography
3. Modular Construction Market
        3.1 Comparative analysis
            3.1.1 Product Benchmarking - Top 10 companies
            3.1.2 Top 5 Financials Analysis
            3.1.3 Market Value split by Top 10 companies
            3.1.4 Patent Analysis - Top 10 companies
            3.1.5 Pricing Analysis
4. Modular Construction Market - Startup companies Scenario Premium
        4.1 Top 10 startup company Analysis by
            4.1.1 Investment
            4.1.2 Revenue
            4.1.3 Market Shares
            4.1.4 Market Size and Application Analysis
            4.1.5 Venture Capital and Funding Scenario
5. Modular Construction Market - Industry Market Entry Scenario Premium
        5.1 Regulatory Framework Overview
        5.2 New Business and Ease of Doing business index
        5.3 Case studies of successful ventures
        5.4 Customer Analysis - Top 10 companies
6. Modular Construction Market Forces
        6.1 Drivers
        6.2 Constraints
        6.3 Challenges
        6.4 Porters five force model
            6.4.1 Bargaining power of suppliers
            6.4.2 Bargaining powers of customers
            6.4.3 Threat of new entrants
            6.4.4 Rivalry among existing players
            6.4.5 Threat of substitutes
7. Modular Construction Market -Strategic analysis
        7.1 Value chain analysis
        7.2 Opportunities analysis
        7.3 Product life cycle
        7.4 Suppliers and distributors Market Share
8. Modular Construction Market - By Construction (Market Size -$Million / $Billion)
8.1 Permanent Modular
8.2 Relocatable Modular
9. Modular Construction Market - By Material (Market Size -$Million / $Billion)
9.1 Steel
9.2 Concrete
9.3 Wood
9.4 Plastic
10. Modular Construction - By End-user Industry (Market Size -$Million / $Billion)
10.1 Commercial
10.2 Industrial / Institutional
10.3 Residential
11. Modular Construction- By Geography (Market Size -$Million / $Billion)
        11.1 Modular Construction Market - North America Segment Research
        11.2 North America Market Research (Million / $Billion)
            11.2.1 Segment type Size and Market Size Analysis
            11.2.2 Revenue and Trends
            11.2.3 Application Revenue and Trends by type of Application
            11.2.4 Company Revenue and Product Analysis
            11.2.5 North America Product type and Application Market Size
                  11.2.5.1 U.S
                  11.2.5.2 Canada
                  11.2.5.3 Mexico
                  11.2.5.4 Rest of North America
        11.3 Modular Construction- South America Segment Research
        11.4 South America Market Research (Market Size -$Million / $Billion)
            11.4.1 Segment type Size and Market Size Analysis
            11.4.2 Revenue and Trends
            11.4.3 Application Revenue and Trends by type of Application
            11.4.4 Company Revenue and Product Analysis
            11.4.5 South America Product type and Application Market Size
                  11.4.5.1 Brazil
                  11.4.5.2 Venezuela
                  11.4.5.3 Argentina
                  11.4.5.4 Ecuador
                  11.4.5.5 Peru
                  11.4.5.6 Colombia
                  11.4.5.7 Costa Rica
                  11.4.5.8 Rest of South America
        11.5 Modular Construction- Europe Segment Research
        11.6 Europe Market Research (Market Size -$Million / $Billion)
            11.6.1 Segment type Size and Market Size Analysis
            11.6.2 Revenue and Trends
            11.6.3 Application Revenue and Trends by type of Application
            11.6.4 Company Revenue and Product Analysis
            11.6.5 Europe Segment Product type and Application Market Size
                  11.6.5.1 U.K
                  11.6.5.2 Germany
                  11.6.5.3 Italy
                  11.6.5.4 France
                  11.6.5.5 Netherlands
                  11.6.5.6 Belgium
                  11.6.5.7 Denmark
                  11.6.5.8 Spain
                  11.6.5.9 Rest of Europe
        11.7 Modular Construction - APAC Segment Research
        11.8 APAC Market Research (Market Size -$Million / $Billion)
            11.8.1 Segment type Size and Market Size Analysis
            11.8.2 Revenue and Trends
            11.8.3 Application Revenue and Trends by type of Application
            11.8.4 Company Revenue and Product Analysis
            11.8.5 APAC Segment - Product type and Application Market Size
                  11.8.5.1 China
                  11.8.5.2 Australia
                  11.8.5.3 Japan
                  11.8.5.4 South Korea
                  11.8.5.5 India
                  11.8.5.6 Taiwan
                  11.8.5.7 Malaysia
                  11.8.5.8 Hong kong
                  11.8.5.9 Rest of APAC
        11.9 Modular Construction - Middle East Segment and Africa Segment Research
        11.10 Middle East & Africa Market Research (Market Size -$Million / $Billion)
            11.10.1 Segment type Size and Market Size Analysis
            11.10.2 Revenue and Trend Analysis
            11.10.3 Application Revenue and Trends by type of Application
            11.10.4 Company Revenue and Product Analysis
            11.10.5 Middle East Segment Product type and Application Market Size
                  11.10.5.1 Israel
                  11.10.5.2 Saudi Arabia
                  11.10.5.3 UAE
            11.10.6 Africa Segment Analysis
                  11.10.6.1 South Africa
                  11.10.6.2 Rest of Middle East & Africa
12. Modular Construction Market - Entropy
        12.1 New product launches
        12.2 M&A s, collaborations, JVs and partnerships
13. Modular Construction Market - Industry / Segment Competition landscape Premium
        13.1 Market Share Analysis
            13.1.1 Market Share by Country- Top companies
            13.1.2 Market Share by Region- Top 10 companies
            13.1.3 Market Share by type of Application - Top 10 companies
            13.1.4 Market Share by type of Product / Product category- Top 10 companies
            13.1.5 Market Share at global level - Top 10 companies
            13.1.6 Best Practises for companies
14. Modular Construction Market - Key Company List by Country Premium
15. Modular Construction Market Company Analysis
        15.1 Market Share, Company Revenue, Products, M&A, Developments
15.2 Laing O'Rourke
15.3 Lendlease Corporation
15.4 Kleusberg GmbH & Co. KG
15.5 KEF Katerra, Skanska AB
15.6 Red Sea Housing
15.7 Company 6
15.8 Company 7 & More
*Financials would be provided on a best efforts basis for private companies
16. Modular Construction Market - Appendix
        16.1 Abbreviations
        16.2 Sources
17. Modular Construction Market - Methodology
        17.1 Research Methodology
            17.1.1 Company Expert Interviews
            17.1.2 Industry Databases
            17.1.3 Associations
            17.1.4 Company News
            17.1.5 Company Annual Reports
            17.1.6 Application Trends
            17.1.7 New Products and Product database
            17.1.8 Company Transcripts
            17.1.9 R&D Trends
            17.1.10 Key Opinion Leaders Interviews
            17.1.11 Supply and Demand Trends