by The Global Modular Construction Market is estimated to be valued at US$ 131.1 billion in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Modular construction refers to the process of constructing pre-fabricated buildings and structures, where components are manufactured off-site and then assembled on-site. This method offers various advantages such as reduced construction time, lower costs, improved quality, and sustainable practices. Modular construction finds applications in residential, commercial, and industrial sectors. The market is witnessing significant growth due to the increasing demand for sustainable and cost-effective construction solutions, as well as the rapid urbanization and industrialization globally. Moreover, technological advancements and innovations in modular construction techniques are further driving market growth.
Market Dynamics:
The growth of the global modular construction market is primarily driven by two factors. Firstly, the increasing demand for sustainable construction practices due to the growing environmental concerns and stringent regulations regarding carbon footprint reduction is boosting the adoption of modular construction. Secondly, the cost-effective nature of modular construction methods compared to traditional construction methods is attracting several key players and investors in the market. Additionally, the ability of modular construction to reduce construction waste and improve construction efficiency is further fueling market growth. Overall, these drivers are expected to propel the global modular construction market during the forecast period.
SWOT Analysis:
Strength:
Modular construction market has several strengths such as cost-effectiveness, improved quality control, and reduced construction time. It offers pre-assembled modules that can be quickly assembled on-site, resulting in shorter project timelines and lower labor costs.
Weakness:
Despite its advantages, modular construction faces certain weaknesses. One weakness is limited customization options. Since modules are manufactured in a factory, there may be limitations in terms of architectural design and customization. Another weakness is the lack of skilled labor for modular construction, as it requires a different set of skills compared to traditional construction methods.
Opportunity:
The modular construction market presents opportunities for growth. One opportunity lies in the increasing demand for sustainable construction practices. Modular construction offers greater control over waste reduction and energy efficiency, making it an attractive option for eco-friendly building projects. Another opportunity is the growing need for affordable housing, especially in developing countries. Modular construction can provide cost-effective housing solutions, addressing the housing shortage.
Threats:
The modular construction market also faces threats. One threat is the perception of lower quality compared to traditional construction. To overcome this, the industry needs to emphasize the high-quality standards and benefits of modular construction. Another threat is the fluctuating raw material prices, which can impact the overall cost-effectiveness of modular construction.
Key Takeaways:
The Global Modular Construction Market Growth is expected to witness high, exhibiting a CAGR of 6.1% over the forecast period of 2023-2030, due to increasing demand for cost-effective and sustainable construction solutions.
In terms of regional analysis, North America is expected to be the fastest growing and dominating region in the modular construction market. Factors contributing to this growth include the rising adoption of modular construction methods in the healthcare and education sectors, as well as government initiatives promoting off-site construction practices.
Key players operating in the modular construction market include Laing O’rourke, Red Sea Housing, Atco, Bouygues Construction, Vinci, Skanska AB, Algeco Scotsman, Kleusberg GmbH & Co. Kg, Kef Katerra, Lendlease Corporation, and Cimc Modular Building Systems Holding among others. These key players contribute to the market growth through their expertise in modular construction technology and extensive project portfolios.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
