Modular construction for high rise buildings plays a primary role in the construction industry. The global modular construction for high rise buildings 2020 depends on this factor significantly, and based on this, it could expect an impactful growth of 5.60% CAGR during the forecast period (2017-2023), reveals Market Research Future (MRFR) in an extensively studied report. At this rapidity, the market will be gaining a valuation of USD 4,734 million within the same timeframe.
Top Market Factors & Drivers
Modular construction in high-rise buildings market primarily refers to the permanent modular construction that comes in the form of modules such as kitchen modules, bathroom modules, and room modules. The factors such as rising FDI in construction mainly in the Asia-Pacific region, the establishment of SEZs, encouraging government regulations and policies, and minimized construction wastage, are likely to have a positive impact on the modular construction for high-rise buildings market.
As per the market surveys, modular construction has acquired for 30% to 50% time savings over the traditional equivalent. The market is expected to witness a new interest from the building & construction industry on basing on growing emphasis on efficiency, productivity, and workplace safety, along with reducing the time and cost related to building activities.
The U.K. is one of the leading markets for modular construction as this region owes a high rate of adoption for the same. The chronic shortage of skilled labor, a renewed focus on upgrading healthcare infrastructure, and massive ongoing investment in residential housing development are likely to drive the market in the country over the forecast period. Furthermore, modular construction comprises components that are pre-fabricated and later assembled at the construction site are also being responsible for the market’s growth in the future. These provide leverage over metrics such as security, materials, and logistics and saving construction expenditure.
In fact, software such as computer-aided design and building information modeling can assist in the design process also contributes to expanding the market during the forecast period. On the contrary, the market growth could get hampered by some factors such as additional cost, variable raw material prices, and availability of skilled labor.
Segmentation of Market
MRFR’s report includes a thorough segmental analysis of the modular construction for high rise buildings market among various segments such as building height, material, and module type.
Among the material type, the modular construction for high rise buildings market has included wood, steel, concrete, and plastic. The steel segment is likely to produce maximum revenue for the market until the year 2023, owing to a higher preference for steel.
Among the building height type, the market has included up to 70 meters, 70-100 meters, 100-170 meters, as well as above 170 meters. The segment of up to 70 meters acquired 42.76% share and would likely continue its leading prospect during the forecast period.
Among the module type segment, the market has included bathroom pods, kitchenettes, and others. The bathroom pods segment is anticipated to produce maximum revenue for the market in support of the tendency towards a light-asset strategy of various construction companies. In case of point, Oldcastle SurePods designed bathroom pods for easy installation in dormitories, assisted living facilities, and projects mainly in the commercial sector.
The Americas, Europe, Asia Pacific (APAC), and the Middle East and Africa (MEA) are included in the region-wise study of the market.
The residential application evolved as the leading segment in the U.K. and is also expected to proceed at a CAGR of 7.2% over the assessment period. The U.K. government aims to establish 300,000 residential houses annually over the next five years, which is likely to augment the residential construction sector in the country, and that would positively impact the market for modular construction.
The commercial construction industry in Canada is backed by rising demand for commercial spaces such as offices, hotels, and retail showrooms. The commercial segment in the country is likely to touch USD 198.8 million by the year 2025, owing to the development of the commercial construction market and enhanced economic outlook.
In the last, the region of Europe was listed over the second-largest market for modular construction in 2018, over a high level of penetration in Germany, Finland, the U.K., and Sweden. The major driving factor is likely to be the rising influx of migrants necessitating the building of temporary and permanent housing structures.
Top Market Players
PUDA Industrial Co., Ltd., Walker Modular, Interpod Offsite, NeoPod Systems, Elements Europe, B&T Manufacturing, Intelligent Offsite, The Pod Company (Speed House Group Company), Eurocomponents Italia S.P.A., and Oldcastle Surepods are the key players investing in the market the most.