Modular Construction Market Report 2025

The modular construction market size has grown strongly in recent years. It will grow from $101.67 billion in 2024 to $108.6 billion in 2025 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to industrialization and mass production principles, post-war housing demands, cost and time efficiency, sustainability awareness, transportation infrastructure development.

The modular construction market size is expected to see strong growth in the next few years. It will grow to $150.79 billion in 2029 at a compound annual growth rate (CAGR) of 8.6%. The growth in the forecast period can be attributed to resilient and disaster-ready solutions, government support and regulations, healthcare and education sector growth, flexibility in design, workforce shortages. Major trends in the forecast period include regulatory support, healthcare and education facilities, resilience and disaster response, cost predictability, flexibility and customization.

The upsurge in demand for construction is expected to propel the modular construction market going forward. The construction industry is the industrial branch of trade and manufacturing that is concerned with the construction, repair, renovation, and maintenance of infrastructures. The construction activities are creating a demand for modular construction to facilitate the faster construction of residential and commercial buildings. This construction enables the construction business to speed up the entire project by facilitating the establishment of climate-controlled facilities and minimizing labor expenses, thereby significantly reducing work and time. For instance, in the 2022 U.S. Construction Cost Trends report, in the U.S., there is a rise in residential construction which will continue to drive up demand for materials and labor, escalating competition and cost pressures. In the U.S., total construction spending has increased by 16% since the pandemic's onset. Therefore, increasing construction activities will drive the modular construction market.

The projected surge in urbanization stands as a catalyst for the modular construction market's growth. Urbanization, the concentration of populations in specific areas, is anticipated to bolster this industry due to its alignment with the demands of densely populated urban settings. Statistics from the World Bank indicate that over half of the global populace currently resides in urban regions, with projections indicating a 1.5-fold increase to 6 billion by 2045. By 2030, an estimated 1.2 million km2 of additional urban built-up space will emerge, expanding at a rate potentially 50% faster than population growth. This trend in urbanization significantly propels the modular construction market forward.

Innovation is a prominent trend shaping the modular construction sector. Industry leaders are actively introducing novel products to solidify their market positions. For instance, Black Buffalo 3D Corporation, a U.S.-based entity, unveiled the NEXCON 3D printers in February 2022. This technology integrates 3D printing into modular construction, effectively addressing conventional industry challenges. The NEXCON system boasts enhanced efficiency in printing components or walls, offering speed, cost-effectiveness, and stronger, more durable structures. Its motion-centric modular gantry design enables rapid construction of buildings up to three stories high, utilizing 3D-modeled designs developed through standard CAD software.

Major players in the modular construction realm are spearheading innovative construction solutions to expand their consumer base, drive sales, and augment revenue streams. Notably, China State Construction International Holdings (CSCI), a China-based construction giant, introduced the Hailong Cubes series in August 2022. These encompass three distinctive construction solutions such as E series featuring the Hailong high-rise MiC elevator solution, S series integrating the Hailong high-rise steel MiC solution, and C series embodying the Hailong high-rise concrete MiC solution. Each series offers unique features tailored to address specific construction challenges. The MiC building methodology, adaptable to various structures like commercial complexes, residences, schools, hospitals, and elevators, marks a versatile approach within the industry.

In April 2024, LaPhair Capital Partners, a venture capital firm based in the United States, acquired Kinexx Modular Construction for an undisclosed amount. This acquisition aims to enhance homeownership opportunities in urban areas and address the housing crisis by focusing on sustainable building solutions and fostering economic development in underserved communities. Kinexx Modular Construction is a U.S.-based company that specializes in the rapid design, manufacturing, and installation of sustainable modular homes, particularly for urban infill projects.

Major companies operating in the modular construction market are Bouygues Construction SA, Laing O'Rourke, Skanska AB, ATCO Ltd., Balfour Beatty Plc., Taisei Corporation, Supertech Industries LLC, Anderco Pte. Ltd., Giant Containers Inc., Honomobo Corporation, Lendlease Corporation, SG Blocks Inc., Guerdon L.L.C, Modulex PLC, Bechtel Corporation, ACS Group, Fluor Corporation, JL Construction, Julius Berger Nigeria PLC, Kiewit Corporation, Larsen & Toubro Limited, McGRATH RENTCORP, Palomar Modular Buildings, Red Sea Housing Services, SEKISUI CHEMICAL CO. LTD, System House R & C Co. Ltd, WillScot Mobile Mini Holdings Corp, Westchester Modular Homes, Koma Modular.

Asia-Pacific was the largest region in the modular construction market share in 2024. The regions covered in the modular construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the modular construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Modular construction involves off-site manufacturing of buildings while adhering to traditional building standards. It's widely used due to several advantages such as time-saving, reduced labor costs, minimized waste, and increased productivity through standardized components.

The modular construction primary types include permanent and relocatable. Permanent elements remain in place for extended periods, fitting into existing structures or designed around modular building techniques. Materials like steel, wood, and concrete are used in various forms such as four-sided, open-sided, partially open-sided modules, mixed modules, floor cassettes, and those supported by primary structures. These modular variations cater to residential, office, educational, retail, commercial, hospitality, healthcare, and other sectors.

The modular construction market research report is one of a series of new reports that provides modular construction market statistics, including modular construction industry global market size, regional shares, competitors with a modular construction market share, detailed modular construction market segments, market trends and opportunities, and any further data you may need to thrive in the modular construction industry. This modular construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The modular construction market includes revenues earned by entities by constructing or engineering prefabricated constructions. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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