Modular Construction MarketSize and Trends

Market Dynamics:

The Modular Construction market is expected to witness significant growth over the forecast period, owing to an increase in government initiatives for promoting green buildings and also reducing waste generated during construction activities. For instance, in 2016, the State Council of China had released a circular which stated that around 30% of the buildings would be utilizing prefabricated construction. Also, as per the announcement of Australia’s Minister for Industry, Science & Technology, in 2019, Australia would spend US$ 2 million for establishing a collaborative lab which would help the manufacturers design innovative and eco-friendly prefabricated buildings. However, the growth of this market is expected to be hampered by the volatility in the transportation charges which are required to be borne for transportation of modular construction units. This can also create an unpredictable business environment.

Market Trends:

On the basis of product type, the permanent modular construction segment is expected to hold a dominant position in the global modular construction market. The permanent modular construction utilizes offsite lean manufacturing techniques for prefabricating the buildings in a deliverable module section. These modules are either integrated into the site built projects or are stand-alone constructions which are provided as turn-key solutions. These are usually delivered with interior finishes or fixtures in lesser time, waste, and high quality control compared to on-site production.

On the basis of region, the market is segmented into North America, South America, Europe, Asia Pacific, and Middle East & Africa. The Asia Pacific region is expected to showcase the highest market growth over the forecast period. Construction activities in Asia Pacific have been increasing as a result of growing demand from the residential and commercial sectors. Also, governments of various developing and developed nations are taking efforts to promote eco-friendly housing properties. For instance, the Singapore government has made use of prefabricated construction mandatory in housing projects undertaken on government land.