Modular Construction Market Overview
The modular construction industry is set for significant growth, with market value expected to rise from USD 91.25 billion in 2025 to USD 122.24 billion by 2030, registering a steady CAGR of 6.02%. The global modular construction market is benefiting from increasing labor shortages, favorable regulations, and the proven success of factory-built housing, positioning modular methods as mainstream construction solutions in several regions.
Market Highlights in the Modular Construction Market
Developed Economies Increase Adoption
North America and Western Europe face high housing demand and shrinking construction workforces, which has prompted broader adoption of modular solutions. Sweden, for example, produces 84% of its detached homes in factories, providing a blueprint for other nations.
Government Support Boosts Growth
Government initiatives play a crucial role in driving the market. Queensland allocated AUD 2.8 billion (USD 1.85 billion) in 2024-25 for 600 modular homes, reducing on-site construction times from months to just three. Similarly, the U.S. Department of Housing and Urban Development updated 90 manufactured home standards, simplifying approvals and encouraging modular adoption.
Temporary Structures Enhance Market Flexibility
Relocatable units accounted for 33% of demand in 2024. These units are highly effective for disaster relief, healthcare surges, and temporary school expansions. During the COVID-19 pandemic, modular triage centers and testing booths were deployed within days, highlighting their efficiency.
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Modular Construction Segmentation Overview
By Construction Type:
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Permanent Modular
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Relocatable Modular
By Material:
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Steel
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Concrete and Others
By End-User Sector:
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Industrial/Institutional
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Residential
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Commercial
By Service Stage:
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New Construction
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Maintenance & Refurbishment
By Geography:
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Asia-Pacific
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North America
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Europe
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Key Players in the Modular Construction Market
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Bechtel Corporation – Global engineering and construction leader with modular capabilities.
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Laing O’Rourke – Integrated modular projects across multiple sectors.
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Red Sea International – Focuses on large-scale residential and industrial projects.
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Sekisui House Ltd – Japanese pioneer with efficient factory-built homes.
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Skanska – European leader in modular construction and vertical integration.
Conclusion: Modular Construction Market Outlook
The modular construction market is poised for steady growth through 2030, driven by permanent steel-based structures, institutional demand, and supportive government policies. Temporary units provide additional flexibility for emergency and transitional needs, while faster project timelines improve economic efficiency. Although initial capital requirements and regulatory differences pose challenges, the increasing adoption across developed and developing regions indicates a clear path for sustainable market expansion.
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