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Modular Construction Industry Report 2025 | Market to Reach $148.57 Billion by 2029 at a CAGR of 8.3% - Global Long-term Forecast to 2034 - ResearchAndMarkets.com

The "Modular Construction Market Report 2025" has been added to ResearchAndMarkets.com's offering.

The modular construction market is poised for significant growth, expanding from $101.67 billion in 2024 to $107.83 billion in 2025, with a CAGR of 6.1%. This growth trajectory is driven by industrial advancements, cost-effectiveness, and increasing sustainability awareness. By 2029, the market is expected to reach $148.57 billion, achieving a CAGR of 8.3%, fueled by resilient construction solutions, regulatory support, and growth in healthcare and education sectors.

The slight reduction in the growth forecast, from a prior estimate of 8.5%, is attributable to tariffs affecting prefabricated housing unit deliveries in the US. This has ramifications due to essential inputs being sourced from countries like China and Poland, potentially leading to project delays. The ongoing trade tensions globally continue to pose challenges to the modular construction sector.

The rising demand for construction underscores the burgeoning modular construction market. The swift adoption of modular techniques enables expedited residential and commercial constructions, leveraging climate-controlled facilities to minimize labor expenses. As seen in the U.S. Construction Cost Trends report, increased residential projects drive up material and labor demand, accentuating competition and cost pressures. From the onset of the pandemic, there has been a 16% increase in construction spending, propelling demand for modular solutions.

Urbanization trends are pivotal to the market's expansion, with predictions of 6 billion global urban dwellers by 2045. This rapid urban growth aligns with modular construction's efficiency in dense settings, projected to expand urban areas cumulatively by 1.2 million km by 2030. This drives demand for modular construction to support booming urban populations.

Innovation remains central to modular construction. For instance, Black Buffalo 3D Corporation introduced NEXCON 3D printers in 2022, highlighting technology's role in overcoming traditional modular construction challenges. This innovation supports rapid, cost-effective building through 3D printing, demonstrating a significant leap in creating durable structures effortlessly.

China State Construction International Holdings (CSCI) launched the Hailong Cubes series in 2022, offering E, S, and C solutions tailored to varied construction challenges. Such advancements in Manufacturing in Construction (MiC) methodologies provide versatility across commercial, residential, and institutional applications, underscoring industry adaptability.

In a strategic move to boost urban homeownership, LaPhair Capital Partners acquired Kinexx Modular Construction in April 2024. Kinexx specializes in rapid, sustainable modular homes, aiming to mitigate the housing crisis through urban developments focused on sustainability and economic revitalization in underserved areas. Leading companies like Bouygues Construction, Laing O'Rourke, Skanska AB, and others are pivotal players in this landscape. Asia-Pacific region dominated the modular construction market share in 2024, with key regions including North America, Western Europe, among others.

Trade tensions, especially increased U.S. tariffs, have impacted the construction sector, inflating costs and creating material procurement challenges. By focusing on local sourcing and modular methods, the industry is adapting to maintain feasibility amid trade disparities, thus ensuring resilience and future growth.

Key Attributes:

Report Attribute Details
No. of Pages 250
Forecast Period 2025 - 2029
Estimated Market Value (USD) in 2025 $107.83 Billion
Forecasted Market Value (USD) by 2029 $148.57 Billion
Compound Annual Growth Rate 8.3%
Regions Covered Global

Companies Featured

  • 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

Scope

Markets Covered:

  • By Type: Permanent; Relocatable
  • By Material: Steel; Wood; Concrete
  • By Module: Four-sided; Open-Sided; Partially Open-Sided; Mixed modules; Others
  • By End-Use Sector: Residential; Office; Education; Retail; Hospitality; Healthcare; Others

Subsegments:

  • By Permanent: Modular Buildings; Permanent Structures
  • By Relocatable: Temporary Facilities; Mobile Units

For more information about this report visit https://www.researchandmarkets.com/r/fn8yuf

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