Modular Construction Market size to grow by USD 5.64 billion from 2023-2027, Improved Quality & Efficiency to boost the market growth, Technavio
NEW YORK, April 10, 2024 /PRNewswire/ -- The US modular construction market size is estimated to grow by USD 5641.62 million from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 5.61% during the forecast period. North America held the largest share of the global market in 2022, and the market in the region is estimated to witness an incremental growth of 100%. Advancements in modular construction have led to higher build quality, rigorous design standards, and extensive customization options. Structures are now manufactured in controlled environments, ensuring superior quality and adherence to safety standards. This improved quality and efficiency are driving increased demand for modular construction in the US market.
For more insights on the historic (2017 to 2021) and forecast market size (2023 to 2027)
What's New?
- Special coverage on the Russia-Ukraine war; global inflation; recovery analysis from COVID-19; supply chain disruptions, global trade tensions; and risk of recession
- Global competitiveness and key competitor positions
- Market presence across multiple geographical footprints - Strong
Segment Overview
Technavio has segmented the market based on type, Application (Residential and Commercial ), Type (Permanent and Relocatable ), and Geography (North America).
- The residential segment, the largest in the US market in 2022, is poised for significant growth. Population growth and urbanization are driving demand for new residential units. Modular construction offers time savings and quick ROI, meeting various building codes efficiently.
Geography Overview
By geography, the global modular construction market is segmented into US. The report provides actionable insights and estimates the contribution of all regions to the growth of the global modular construction market.
- Modular construction offers flexibility and environmental benefits, driving its expansion in the US market. Vendors are forming strategic partnerships and making acquisitions to enhance their market presence. For example, McGRATH RENTCORP acquired Vesta in February 2023, expanding its business. The complex approval process poses a significant obstacle to market growth. Compliance with local, state, and federal regulations is time-consuming, and varying regulations across jurisdictions add complexity. Union influence in some areas further complicates the approval and implementation phases, hindering market growth.
Insights on the market contribution of various segments including country and region wise, historic (2017 to 2021) and forecast market size (2023 to 2027)
Market Dynamics
Enhanced Build Quality and Customization is driving market growth:
Buildings constructed in the twentieth century often lacked quality and features, appealing mainly to lower-income individuals. However, modern modular construction offers superior quality, rigorous design, and extensive customization options. Structures are manufactured in controlled environments, ensuring high standards. These advancements alleviate common issues in traditional construction, making modular buildings safer and more durable. Consequently, consumer perceptions are shifting towards prefabricated construction, driving market demand and growth in the US.
- Modular construction offers contractors flexibility and is environmentally friendly, as key construction components are reusable and can be relocated without the need for new resources.
- The complicated approval process is a major challenge for market growth.
Insights on Market Drivers, trends, & Challenges, historic period (2017 to 2021) and forecast period (2023 to 2027)
What are the key data covered in this Modular Construction Market report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the growth of the Modular Construction Market between 2023 and 2027
- Precise estimation of the size of the Modular Construction Market size and its contribution to the market in focus on the parent market
- Accurate predictions about upcoming trends and changes in consumer behavior
- Growth of the Modular Construction Market industry across US
- A thorough analysis of the market's competitive landscape and detailed information about vendors
- Comprehensive analysis of factors that will challenge the growth of Modular Construction Market vendors
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Analyst Review:
The US Modular Construction Market is experiencing significant growth and transformation within the construction industry, driven by the adoption of innovative modular building methods and sustainable practices. Modular construction involves the use of prefabricated modules or sections that are constructed off-site in a controlled factory environment and then transported to the construction site for assembly. This method offers numerous advantages over traditional construction methods, including reduced material waste, faster construction timelines, improved quality control, and enhanced sustainability.
One of the key advantages of modular construction is its sustainability. By utilizing off-site manufacturing processes and optimizing material usage, modular construction minimizes waste and environmental impact compared to traditional construction methods. Additionally, modular buildings often incorporate sustainable building materials and technologies, further reducing their carbon footprint. The durability of modular construction is another significant factor driving its popularity in the housing, healthcare, and industrial sectors. Modular buildings are constructed with high-quality materials such as steel, timber, and modular concrete structures, ensuring resilience and resistance to natural disasters such as hurricanes, floods, wildfires, and earthquakes. This durability makes modular construction an attractive option for permanent and relocatable buildings alike. Government initiatives and support for modular construction are further propelling market growth, with policymakers recognizing its potential to address housing shortages, improve infrastructure, and promote economic expansion. In addition to financial incentives, government agencies are implementing regulations and standards to ensure the safety, quality, and compliance of modular buildings with international and local building codes.
Technological advancements, such as Building Information Modeling (BIM) and computer-aided design (CAD), are also driving innovation in the modular construction industry. These tools enable builders to visualize and optimize modular designs, streamline manufacturing processes, and enhance project management capabilities. Despite these advancements, challenges remain, including skilled labor shortages, material wastage, and regulatory hurdles. However, with ongoing investments in research and development, advancements in manufacturing processes, and a growing market share, the US modular construction market is poised for continued growth and expansion in the coming years.
Market Overview:
The US modular construction market is witnessing exponential growth driven by factors like sustainability, durability, and efficiency. Modular construction involves prefabricating modules in controlled factory settings before transporting them to construction sites for assembly. This method reduces material wastage, labor costs, and construction time, making it cost-effective. Additionally, modular buildings offer design flexibility, catering to various sectors like residential, healthcare, and industrial applications. With advancements in technology and stringent quality standards, modular construction ensures high-quality structures that meet both international and local building codes. Government initiatives and the need for sustainable building methods further propel the market, with a projected USD 10.53 billion valuation, reflecting its increasing popularity and demand.
Related Reports:
The Modular Fabrication Market size is forecast to increase by USD 2.64 billion, at a CAGR of 4.34% between 2023 and 2028.
The precast concrete market size is estimated to grow at a CAGR of 4.11% between 2023 and 2028. The market size is forecast to increase by USD 21.87 billion.
About US
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio
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