The report “Modular Construction Market by Type, Module (Four-Sided Modules, Open-Sided Modules, Partially Open Sided Modules, Mixed Modules & Floor Cassettes, Modules Supported By a Primary Structure), Material, End-Use Sector, Region – Global Forecast to 2027”, size is projected to grow from USD 91.0 billion in 2022 to USD 120.4 billion by 2027, at a CAGR of 5.7% from 2022 to 2027. The growth of this market is attributed to an increase in concern for work-zone safety, the need for lower environmental impacts, and supportive government initiatives. A growth in population and swift urbanization offer opportunities for the growth of the modular construction market. However, factors such as lack of awareness and volatility in transportation charges may inhibit the growth of the market.
Some of the prominent key players are:
· Laing O’Rourke (UK)
· Red Sea Housing (Saud I Arabia)
· Atco Ltd. (Canada)
· Skanska AB (Sweden)
· Kleusberg GmbH (Germany)
· Katerra (US)
Opportunities- Population increase and development to increase the number of projects
Corresponding to the United Nations Department of Economic and Social Affairs/Population Division and World Population, the world's population is estimated to reach 9.5 billion by 2050. The increasing population, plus the industrial expansion after the economic downturn, has offered a rise up to new constructions in together commercial and residential sectors. Furthermore, the movement of the rural population to urban areas and the transformation of municipalities into cities have further driven the rate of growth of the modular construction market.
Permanent modular building is estimated to lead the modular construction market.
Permanent modular buildings, by type, are reported as the largest market share in the modular construction market. Permanent modular construction saves time and labor which are necessary for construction, thereby lowering the construction cost significantly. It also offers high-quality control in comparison to on-site construction. These reasons drive the demand for this construction technique.
Europe is the largest market for modular construction market.
The Europe region is projected to lead the modular construction market, in terms of both value and volume from 2022 to 2027. Construction, one of the biggest and most valuable manufacturing sectors in the region, is highly fragmented and consists of a considerable number of large, medium-sized, and small construction companies. The construction players in the industry have adopted various technologies as a strategy to sustain the growing demand and competition. In Europe, high levels of cost inflation, labor shortages, and several delays push the construction industry into a modern method of building and have a direct impact on the increased demand for modular construction. However, one of the main reasons for using modular technology is to pace up the delivery time compared to traditional on-site construction.
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