Modular construction is defined as a process in which a building is constructed off-site, under controlled plant conditions, using the same materials as well as designing to the same codes and standards as conventionally built facilities – but in about half the time. Market Research Future (MRFR) has published a research report about the global modular construction industry that enumerates profits for this market at 5.95% CAGR (Compound Annual Growth Rate) during the forecast period that would end in 2023. By value, the market has been figured to be worth the US $ 154.8 mn by the end of the forecast period.
The big factor in helping the global modular construction market growth is the growing population across the world. The growing population results in that demand for more houses which subsequently results in the construction of buildings with multiple apartments. With economic growth in the developing countries and more employment opportunities rising, there is a need for new buildings to be used as business offices and for the residential purposes due to people migrating to cities with the higher number of employment opportunities.
The global modular construction market can be segmented into application, construction, material, product, and lastly, region. The application-based segmentation segments this market into commercial, industrial, and residential. Commercial areas are where retail stores and business offices are located. Industrial areas are where factories and manufacturing units are located. Residential areas are where houses and residential buildings are located.
Based on construction, the market has been segmented into commercial permanent modular and re-locatable modular concrete. In the context of material, the market has been segmented into concrete, steel, plastic, wood, and others. On the basis of product, the market has been segmented into walls, columns & beams, roofs & floors, and other.
The regional segmentation of the global modular construction market can segment the market into the regional markets namely North America, Asia Pacific, Europe, and rest of the world (RoW). Asia Pacific region is holding the largest market share due to economic development in countries like China and India, growth in spending capacity, increase in industrialization, rising urbanized population, rising demand for eco-friendly & sustainable construction, and government support. The Chinese government has issued policies favorable to market growth, for example, the down payment for second house loan has been lowered, and ordinary housing has been exempted from sales tax, resulting into the recovery of the commercial housing market. Due to advanced technology, another important country-specific market in this region is Japan, followed by the remaining countries of the Asia Pacific region. Many major market players are based in this region.
North America is the second largest regional market due to consumer preference for eco-friendly buildings and sustained investments in commercial real estate. Other factors boosting the market growth in this region include the growing popularity of modular & panelized housing. The USA is the largest country-specific market in North America due to strong development in commercial and residential structures, followed by Canada and Mexico.
Europe is another important regional market that during the forecast period, is expected to grow at 4.90% CAGR due to increasing upgrade to the existing infrastructure, growing interest in energy saving & cost benefit construction, and rising environmental concerns are benefitting the market growth. The big-time country-specific markets in this region are France, Germany, Italy, Spain, and the UK, followed by the remaining countries of Europe. Some of the key market players are based in Europe too.
The RoW segment covers the countries of South America and the Middle East & Africa (MEA). South America is a small regional market because there is limited advanced technology available in this region. Argentina and Brazil are two powerful economies that have the potential to rise as lucrative markets in the future. In the MEA region, the market is minimal due to emerging countries, lack of skilled labor, lack of education, lack of awareness, and lack of technological advancement.
The key players in the global modular construction market include ACS Group (Spain), Balfour Beatty PLC (UK), Bouygues Construction (France), Kiewit Corporation (USA), Komatsu Ltd (Japan), L&T (India), Red Sea Housing Services (Saudi Arabia), Skanska AB (Sweden), System House R & C Co. Ltd (Japan), and Taisei Corporation (Japan).
Latest Industry News
- Marriott is all set to build the tallest modular hotel in New York. 18 APR 2019
- To reduce overcrowding in the classrooms of schools in California, iMod Structures has raised US $ 11 mn Series A led by the Goldman Sachs Urban Investment Group to build out modular classrooms. 8 APR 2019