The global modular construction market size is expected to reach USD 162.40 billion by 2030, registering a CAGR of 7.5% over the forecast period, according to a new report by Grand View Research, Inc. This growth can be attributed to growing infrastructural development and building activities in developing countries around the globe. Rapid urbanization and industrialization are expected to increase the number of new projects, primarily in the commercial and industrial building sectors. This is likely to fuel the growth of the modular construction industry across the globe. Increasing technological advancements in the building industry coupled with the advantages provided by modular construction such as reduced building schedule, reduced cost, greater flexibility, reuse, and less material waste are contributing to the product demand in the market.
The relocatable modular construction (RMC) market is expected to witness rapid growth as temporary housing for emergency and relief operations has gained popularity over the past decade. These buildings are made to be repurposed and transported to various building sites. Government initiatives and regulations toward sustainability and a green environment are expected to fuel the market growth over the forecast period.
Using wood in modular construction is advantageous due to its favorable properties as a material. Wood is used in modular construction to create exterior wall panels including additional layers for insulation, vapor barrier, siding, waterproofing, and drywall. Moreover, global concerns regarding sustainability and increasing awareness about wood as a building material among consumers are the factors likely to augment the growth of the market over the forecast period.
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Modular Construction Market Report Highlights
• The permanent segment accounted for the largest revenue share of 64.1% in 2021. This is attributed to the several advantages of off-site construction such as high-quality control compared to traditional building methods.
• The steel material segment accounted for a major share of 41.5% in 2022, owing to its characteristics due to which structural steel is used in building materials and can be welded into different shapes and grades.
• The residential application segment was valued at USD 47.85 billion in 2022 and is further forecasted to grow rapidly by 2030. The residential application segment includes single-family houses, multi-story residential buildings, and rental housing properties. Modular construction is witnessing rapid adoption in residential applications on account of its ability to significantly reduce building costs and time.
• The European region accounted for the largest revenue share in 2022 and is forecast to grow at a CAGR of 7.1% by 2030. The primary driving factor is expected to be the rising influx of migrants necessitating the building of temporary and permanent housing structures in the region.
• Modular construction market is characterized by the presence of various established players with a strong financial base resulting in high barriers for new entrants in this market. High initial capital required for developing buildings with modular construction is expected to lower the threat of new entrants in the market.
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Modular Construction Market Segmentation
Grand View Research has segmented the global modular construction market report based on product, material, application, and region:
Modular Construction Product Outlook (Revenue, USD Million; 2018 - 2030)
• Relocatable
• Permanent
Modular Construction Material Outlook (Revenue, USD Million; 2018 - 2030)
• Wood
• Steel
• Concrete
• Others
Modular Construction Application Outlook (Revenue, USD Million; 2018 - 2030)
• Residential
• Commercial
• Industrial
• Healthcare
• Educational
Modular Construction Regional Outlook (Revenue, USD Million; 2018 - 2030)
• North America
o U.S.
o Canada
o Mexico
• Europe
o U.K.
o Germany
o Sweden
• Asia Pacific
o China
o India
o Japan
o Singapore
o Australia
• Central & South America
o Brazil
• Middle East & Africa
o Saudi Arabia
o UAE
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