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Modular Construction Market
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Modular Construction Market

Author: Vineet Pandey - Business Consultant, Report ID - DS1703002, Published - April 2025

Segmented in Type (Permanent Modular, Relocatable Modular), Material (Steel, Concrete, Wood, Plastic, Composite), Application, Construction Method, Service offered and Regions - Global Industry Analysis, Size, Share, Trends, and Forecast 2023 – 2033

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Modular Construction Market Outlook

Modular construction is changing the game in the construction industry with its cost effective solutions that are also environmentally friendly across a variety of uses. In 2024, the modular construction market was valued at USD 118.5 billion and is expected to grow to USD 180 billion by 2030 and possibly reach USD 248 billion by 2035 with CAGR of 6.9%. This growth is fueled by urbanization trends, lack of labor and a growing need for affordable housing, in different areas.


The process of construction includes creating building parts off site and then moving them to the actual construction site for assembly purposes. This method is recognized for its adaptability, speed and positive impacts on the environment. It is becoming more popular in business and institutional ventures due to its ability to scale up using standardized materials and cutting edge technologies which in turn leads to less wastage making it a favored choice, among developers seeking efficient ways to cater to increasing needs.


Market Size Forecast & Key Insights

2018
$112B2023
2028
$218B2033

Absolute Growth Opportunity = $106B

The Modular Construction market is projected to grow from $112.2 billion in 2023 to $218 billion in 2033. This represents a CAGR of 6.9%, reflecting rising demand across Permanent Modular Construction, Steel Modular Construction and Relocatable Modular Construction.

The Modular Construction market is set to add $106 billion between 2023 and 2033, with service providers targeting Concrete & Wood Material projected to gain a larger market share.

With Reduced construction time, and Sustainability and waste reduction, Modular Construction market to expand 95% between 2023 and 2033.

Opportunities in the Modular Construction Market

Advancements in Modular Technology

Advancements in materials and automation tech are allowing for the creation of designs and enhancing the effectiveness of modular production processes.

Expansion in Emerging Markets and Growing Demand for Sustainable Buildings

In countries such as India and Brazil growing economies offer potential for modular construction due to the rising need, for cost effective housing and business infrastructure.

The increasing demand for friendly buildings has led to a rise in the popularity of modular construction. This sustainable approach helps carbon emissions and align with sustainability objectives in various parts of the world.

Growth Opportunities in North America and Asia-Pacific

Asia Pacific Outlook

The Asia Pacific region is observing a rise in modular construction activity with a notable focus in China and India due to urbanization and government efforts to enhance accessible housing options are driving the demand upwards for such solutions. Companies such as Katerra are scaling up their operations to cater to the increasing requirements, in these areas

North America Outlook

In North America's construction sector, modular construction is thriving due to the need for cost-optimum housing options and modernized healthcare facilities and commercial structures. The industry giants such as WillScot and Algeco are dominating the market by meeting the rising demand, for modular units.

North America Outlook

In North America's construction sector, modular construction is thriving due to the need for cost-optimum housing options and modernized healthcare facilities and commercial structures. The industry giants such as WillScot and Algeco are dominating the market by meeting the rising demand, for modular units.

Asia-Pacific Outlook

The Asia Pacific region is observing a rise in modular construction activity with a notable focus in China and India due to urbanization and government efforts to enhance accessible housing options are driving the demand upwards for such solutions. Companies such as Katerra are scaling up their operations to cater to the increasing requirements, in these areas

Growth Opportunities in North America and Asia-Pacific

Established and Emerging Market's Growth Trend 2024–2033

1

Major Markets : United States, China, United Kingdom, Canada, Germany are expected to grow at 4.5% to 6.6% CAGR

2

Emerging Markets : India, Brazil, Mexico are expected to grow at 7.9% to 9.5% CAGR

Market Analysis Chart

The modular construction industry is experiencing growth due to the increasing need for more environmentally friendly building techniques that are also cost efficient despite obstacles like initial investment requirements and logistical issues. However a rise in innovations and the worldwide demand for affordable housing present promising prospects for expansion, in the foreseeable future.

Recent Developments and Technological Advancement

September 2023

Construction company Lainge O'Rourke successfully finished a modular housing project, in the United Kingdom.

June 2023

Skanska revealed plans for a modular hospital initiative, in Sweden that incorporates state of the art steel modules.

March 2023

Katerra recently opened a modular manufacturing plant in India as part of its expansion efforts, in Asia.

The latest advancements in building highlight the increasing importance of smart technologies and sustainability within the construction industry landscape. The residential project by Laung O’Roarke and the hospital initiative by Skanska demonstrate a trend towards paced and top notch construction practices. Furthermore; Katerra's expansion into India signifies an escalating need for modular construction solutions—especially, in developing markets.

Impact of Industry Transitions on the Modular Construction Market

As a core segment of the B&C Integrated Technologies industry, the Modular Construction market develops in line with broader industry shifts. Over recent years, transitions such as Integration of Smart Building Technologies and Shift Toward Circular Economy have redefined priorities across the B&C Integrated Technologies sector, influencing how the Modular Construction market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.

1

Integration of Smart Building Technologies:

The modular building sector is integrating technologies, like Internet of Things (IOT) systems and automated climate control to improve the efficiency and attractiveness of constructions.

2

Shift Toward Circular Economy:

The modular building sector is embracing the concepts of the economy by encouraging the reuse and recycling of materials and reducing construction waste. This promotes an eco friendly approach, to construction.

Global Events Shaping Future Growth

The chart below highlights how external events including emerging market developments, regulatory changes, and technological disruptions, have added another layer of complexity to the B&C Integrated Technologies industry. These events have disrupted supply networks, changed consumption behavior, and reshaped growth patterns. Together with structural industry transitions, they demonstrate how changes within the B&C Integrated Technologies industry cascade into the Modular Construction market, setting the stage for its future growth trajectory.

Market Dynamics and Supply Chain

Driver: Reduced Construction Time, and Cost-Effective Solutions

Modular construction can also greatly cut down project schedules as it enables on site prep and module fabrication off site to happen at the time a key advantage, for developers working against tight deadlines.
By simplifying the building process and cutting down on labor expenses modular construction provides cost effective solutions especially in areas grappling with a shortage of workers or soaring construction costs.
Modular building techniques produce waste than conventional methods because they make better use of materials in well managed factory settings that promote sustainability in line, with worldwide eco-friendly construction efforts.

Restraint: High Initial Investment, and Limited Design Flexibility

Setting up factories and investing in advanced machinery can be quite expensive initially, for small to medium sized construction companies.
Although modular construction provides consistency in design elements and materials used but it may lack the flexibility needed for customizing features in unique projects.

Challenge: Logistical Challenges

Moving pre-fabricated sections to building locations can be tricky and expensive. This is especially true in cities, with streets and limited space.

Supply Chain Landscape

Material Supplier


Modular Manufacturer


Transportation Provider
Contractor
Material Supplier


Modular Manufacturer


Transportation Provider


Contractor


Banner LogoBanner Logo

Leading Providers and Their Strategies

Application AreaIndustryLeading ProvidersProvider Strategies
Permanent Modular Construction
Residential
Laing O'Rourke
Focus on large-scale, high-density residential projects
Relocatable Modular Units
Education
WillScot
Providing temporary, reusable classrooms and offices
Steel Modular Construction
Commercial
Skanska
Implementing advanced steel modules for hospitals and office buildings
Wood Modular Construction
Residential
Modscape
Offering sustainable, eco-friendly modular homes

Elevate your strategic vision with in-depth analysis of key applications, leading market players, and their strategies. The report analyzes industry leaders' views and statements on the Modular Construction market's present and future growth.

Our research is created following strict editorial standards. See our Editorial Policy

Applications of Modular Construction in Steel Modular Construction, Relocatable Modular Construction and Permanent Modular Construction

Steel Modular Construction

Steel is valued for its robustness and longevity. Qualities highly sought after in constructing buildings in city settings. Companies like Katerra and Algeco spearhead advancements in steel construction solutions.

Relocatable Modular Construction

Relocatable modular units are created to be used temporarily or semi permanently. Offer versatility for sectors like education and healthcare Companies such as WillScot and Mobile Modular specialize, in supplying mobile and reusable construction units

Permanent Modular Construction

This approach is employed for creating lasting solutions over time that offer the level of robustness and excellence as conventional construction techniques but with shorter project durations in mind. Prominent industry leaders such as Laung O'Rourke and Skanska have spearheaded its adoption, in residential and healthcare.

Modular Construction vs. Substitutes:
Performance and Positioning Analysis

Although traditional building techniques provide room for design creativity; the quicker completion of projects and cost benefits associated with modular construction make it an attractive choice for large scale endeavors. Especially in areas where labor is scarce and construction expenses are high. Even though there are options available in the construction industry; the demand for modular construction is on the rise due to its ability to scale up easily and its environmentally friendly practices.

Modular Construction
    Faster Project Delivery
    Limited Customization Options
    More Design Flexibility
    Longer Construction Timelines

Modular Construction vs. Substitutes:
Performance and Positioning Analysis

Modular Construction

  • Faster Project Delivery
  • Limited Customization Options

Traditional On-Site Construction / Precast Concrete / Steel Frame Construction

  • More Design Flexibility
  • Longer Construction Timelines

Although traditional building techniques provide room for design creativity; the quicker completion of projects and cost benefits associated with modular construction make it an attractive choice for large scale endeavors. Especially in areas where labor is scarce and construction expenses are high. Even though there are options available in the construction industry; the demand for modular construction is on the rise due to its ability to scale up easily and its environmentally friendly practices.

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Research Methodology

This market research methodology defines the Modular Construction market scope, captures reliable data, and validates findings through integrated primary and secondary research. The framework ensures accurate market sizing, demand-supply analysis, and competitive benchmarking specific to service-driven business models.


Secondary Research Approach


We begin secondary research by defining the targeted market at both global and regional levels. Positioned within the B&C Integrated Technologies ecosystem, we analyze Modular Construction adoption across Residential, Commercial, and Healthcare Applications. Data is systematically collected from Professional Associations, Industry-specific Service Registries, company annual reports, country level ministerial sources and other credential sources, enabling detailed mapping of service delivery models, pricing structures, regulatory compliance, and technology enablers.


Key Sources Referenced:

• NAICS - Economic Statistics (US, Canada)

Annual Reports / Industry Magazines / Country Level Ministerial Sources

DnB / Factiva / Hoovers / Financial Reports

Interviews of Industry Stake Holders

Industry Views of Consultants

DataString Database

We benchmark service providers such as Laing O'Rourke, Skanska, and Katerra, using industry databases, client case studies, annual reports, and partnership disclosures. This secondary research identifies market drivers and constraints, providing the foundation for validation through primary research.


Primary Research Methods


We conduct structured interviews and surveys with industry stakeholders, including Material Supplier, Modular Manufacturer, and Transportation Provider. Our geographic coverage spans Americas (45%), Europe (30%), and Asia-Pacific (25%) and Middle East & Africa (5%). Our online surveys generally secure a 70% response rate, while in-depth interviews achieve 84% engagement, ensuring a 91% confidence level with ±8.5% margin of error.


Through targeted questionnaires and in-depth interviews, we capture customer satisfaction, vendor selection criteria, service delivery effectiveness, outsourcing vs in-house trade-offs, and post-service value realization. We use interview guides to ensure consistency and anonymous survey options to mitigate response bias. These primary insights validate secondary findings and align market sizing with real-world conditions.


Market Engineering and Data Analysis Framework


Our data analysis framework integrates Top-Down, Bottom-Up, and Company Market Share approaches to estimate and project market size with precision.


Top-down and Bottom-up Process


In the Top-down approach, we disaggregate the global B&C Integrated Technologies revenues to estimate the Modular Construction segment, guided by enterprise spending, outsourcing penetration, and service intensity ratios. In the Bottom-up approach, we aggregate project-level, contract-level, and client-spending data at the country and industry levels to construct detailed adoption models. By reconciling both methods, we ensure forecast accuracy and statistical robustness.


We evaluate the service value chain, covering Material Supplier ({Component 1}, {Component 2}), Modular Manufacturer ({Component 1}, {Component 2}), and Transportation Provider. Our parallel substitute analysis examines alternative models such as Traditional On-Site Construction, Precast Concrete, and Steel Frame Construction, highlighting diversification opportunities and competitive risks.


Company Market Share and Benchmarking


We benchmark leading service providers such as Laing O'Rourke, Skanska, and Katerra, evaluating their strengths in workforce capacity, global delivery centers, client engagement models, pricing competitiveness, and digital transformation capabilities. By analyzing company revenues, service portfolios, and client contracts, we derive comparative market shares, competitive positioning and growth trajectories across the ecosystem.


Our integration of data triangulation, contract analysis, and company benchmarking, supported by our proprietary Directional Superposition methodology, ensures us precise forecasts and actionable strategic insights into the Modular Construction market.


Quality Assurance and Compliance


We cross-reference secondary data with primary inputs and external expert reviews to confirm consistency. Further, we use stratified sampling, anonymous surveys, third-party interviews, and time-based sampling to reduce bias and strengthen our results.


Our methodology is developed in alignment with ISO 20252 standards and ICC/ESOMAR guidelines for research ethics. The study methodology follows globally recognized frameworks such as ISO 20252 and ICC codes of practice.

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Modular Construction Market Data: Size, Segmentation & Growth Forecast

Report AttributeDetails
Market Value in 2024USD 119 billion
Revenue Forecast in 2033USD 218 billion
Growth RateCAGR of 6.9% from 2024 to 2033
Base Year for Estimation2023
Industry Revenue 2023112 billion
Growth OpportunityUSD 106 billion
Historical Data2018 - 2022
Growth Projection / Forecast Period2024 - 2033
Market Size UnitsMarket Revenue in USD billion and Industry Statistics
Market Size 2023112 billion USD
Market Size 2026137 billion USD
Market Size 2028156 billion USD
Market Size 2030179 billion USD
Market Size 2033218 billion USD
Market Size 2035249 billion USD
Report CoverageMarket revenue for past 5 years and forecast for future 10 years, Competitive Analysis & Company Market Share, Strategic Insights & trends
Segments CoveredType, Material, Application, Construction Method, Service offered
Regional scopeNorth America, Europe, Asia Pacific, Latin America and Middle East & Africa
Country scopeU.S., Canada, Mexico, UK, Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, UAE and South Africa
Companies ProfiledLaing O'Rourke, Skanska, Katerra, WillScot, Algeco, Mobile Modular, Modscape, Eco Fast Modular, Red Sea International, Guerdon Modular Buildings, Prefab Logic and Horizon North Logistics
CustomizationFree customization at segment, region or country scope and direct contact with report analyst team for 10 to 20 working hours for any additional niche requirement which is almost equivalent to 10% of report value

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Table of Contents

Industry Insights Report - Table Of Contents

Chapter 1

Executive Summary

Major Markets & Their Performance - Statistical Snapshots

Chapter 2

Research Methodology

2.1Axioms & Postulates
2.2Market Introduction & Research MethodologyEstimation & Forecast Parameters / Major Databases & Sources
Chapter 3

Market Dynamics

3.1Market OverviewDrivers / Restraints / Opportunities / M4 Factors
3.2Market Trends
3.2.1Introduction & Narratives
3.2.2Market Trends - Impact Analysis(Short, Medium & Long Term Impacts)
3.3Supply Chain Analysis
3.4Porter's Five ForcesSuppliers & Buyers' Bargaining Power, Threat of Substitution & New Market Entrants, Competitive Rivalry
Chapter 4

Modular Construction Market Size, Opportunities & Strategic Insights, by Type

4.1Permanent Modular
4.2Relocatable Modular
Chapter 5

Modular Construction Market Size, Opportunities & Strategic Insights, by Material

5.1Steel
5.2Concrete
5.3Wood
5.4Plastic
5.5Composite
Chapter 6

Modular Construction Market Size, Opportunities & Strategic Insights, by Application

6.1Residential
6.2Commercial
6.3Healthcare
6.4Education
6.5Industrial
6.6Others
Chapter 7

Modular Construction Market Size, Opportunities & Strategic Insights, by Construction Method

7.1Panelized
7.2Volumetric Modular
7.3Component
Chapter 8

Modular Construction Market Size, Opportunities & Strategic Insights, by Service offered

8.1Design & Engineering
8.2Fabrication
8.3Logistics
8.4Assembly
8.5Maintenance
Chapter 9

Modular Construction Market, by Region

9.1North America Modular Construction Market Size, Opportunities, Key Trends & Strategic Insights
9.1.1U.S.
9.1.2Canada
9.2Europe Modular Construction Market Size, Opportunities, Key Trends & Strategic Insights
9.2.1Germany
9.2.2France
9.2.3UK
9.2.4Italy
9.2.5The Netherlands
9.2.6Rest of EU
9.3Asia Pacific Modular Construction Market Size, Opportunities, Key Trends & Strategic Insights
9.3.1China
9.3.2Japan
9.3.3South Korea
9.3.4India
9.3.5Australia
9.3.6Thailand
9.3.7Rest of APAC
9.4Middle East & Africa Modular Construction Market Size, Opportunities, Key Trends & Strategic Insights
9.4.1Saudi Arabia
9.4.2United Arab Emirates
9.4.3South Africa
9.4.4Rest of MEA
9.5Latin America Modular Construction Market Size, Opportunities, Key Trends & Strategic Insights
9.5.1Brazil
9.5.2Mexico
9.5.3Rest of LA
9.6CIS Modular Construction Market Size, Opportunities, Key Trends & Strategic Insights
9.6.1Russia
9.6.2Rest of CIS
Chapter 10

Competitive Landscape

10.1Competitive Dashboard & Market Share Analysis
10.2Company Profiles (Overview, Financials, Developments, SWOT)
10.2.1Laing O'Rourke
10.2.2Skanska
10.2.3Katerra
10.2.4WillScot
10.2.5Algeco
10.2.6Mobile Modular
10.2.7Modscape
10.2.8Eco Fast Modular
10.2.9Red Sea International
10.2.10Guerdon Modular Buildings
10.2.11Prefab Logic
10.2.12Horizon North Logistics