info@marketresearchfuture.com   📞  +1 (855) 661-4441(US)   📞  +44 1720 412 167(UK)

Change in construction scenario: growing need for quick construction with minimal wastage

Published On: March 2018

Modular Construction Market Introduction


Modular construction industry is the process in which prefabricated building or modules are delivered to site and assembled as substantial elements of a building. These modular units may build fully or semi rooms. Modular construction gives benefit over various issues like storage of material, security, transportation, and traffic & route access. Modular construction reduces the construction work, avoids error and makes the smooth building process. Here labor is more skilled and specialized, which tend to increase labor cost.


Many organizations especially in Europea and Asia Pacific region have witnessed expanding share. Asia Pacific being one of the fastest growing markets, companies are grabbing opportunity and are keen on expanding their units in this region. Moreover, there are other small and medium scale players that are able to generate revenue from the local markets. Komatsu Ltd., ACS Actividades De Construcción Y Servicios S.A., Balfour Beatty PLC, Skanska AB, Larsen & Toubro Limited, Kiewit Corporation, Taisei Corporation, Bouygues Construction, Red Sea Housing Services, and System House R & C Co., Ltd. has been recognized as the global leaders with serving the broad range of modular construction products.


Supportive government regulations & initiatives


The emerging nations are the ones which are particularly bringing various reforms and regulations to boost their infrastructure growth and real-estate market. Such growth is expected to augment the market growth of modular construction. The government of India announced several major policy initiatives such as the passage of the Real Estate (Regulation and Development) Act 2016, the amendment to the Benami Transactions Act, 100% deduction in profits for affordable housing construction, change in arbitration norms for construction companies, and many others to boost the construction industry in the country. Similarly, in China, the central policies on housing were relaxed, the lowest down payment ratio decreased in 2016. Cheaper down payments encouraged more homebuyers to borrow money from banks. This in turn pushed the construction industry, which ultimately lead to the increased demand for modular buildings.


Future Trends in Modular Construction


The concept of modular construction comes with added advantages specifically energy efficiency. The options of LED lighting, triple glazed windows, application of geothermal systems over HVAC systems that come with modular construction strike the right cords with environmentalist and concerned government bodies alike. With 88 million tons of C&D waste being added to landfills annually, green construction alternatives has become increasing important in the recent time. With energy efficiency being one of the prime point modular constructions being marketed around, it has been welcomed by government bodies with tax deductions and subsidies. Energy efficient modular options make it easier for end users to cut back on energy consumption and therefore cut costs in the process.


The average population in APAC region has increased their spending on e-commerce platforms. Even in countries like Japan, where retail sales showed stagnation, e-commerce continues to grow. Higher internet penetration, and mobile usage has enabled consumers to purchase more frequently. This has also led to the retailers improving their shipping, storage and delivery methods to expand their reach in the region. This in turn is expected to spike the demand for prefabricated construction solutions to build storage shelters, warehouses, and pickup and drop location shelters for such e-commerce companies.


In recent times several multinational entities have been adopting green modular construction. With big names like Google, McDonalds and Yale University going for modular construction rather than traditional construction, the market is expected to witness a steep rise in the demand. Major League Soccer Team NY Red Bulls have used modular construction for their new training facilities. Thus ultimately marketing is adding to the growth of the modular construction market.


Expansion – Growth strategy


Extensive research in this market has brought to light that expansion is the key strategy adopted by the major players in the global modular construction market. This strategy is widely adopted to spread their geographical presence and achieve operational efficiencies. In addition to this, mergers & acquisitions are strategies adopted extensively by the players with a share of 33.3% to increase the market share and their client base. The market of modular construction is governed by the increased expenditure on infrastructure and construction activities. The demand of such Modular Construction have become more popular due to less time consumed in construction and minimal wastage. Thus the market requires constant product innovation and development along with expanding its capacity and presence. The companies are investing heavily in expanding its presence across borders. The increasing demand and private construction has led to investment by manufacturers to expand the market share and brand name.


Balfour Beatty Plc have resorted to expanding their geographical operations across the regions of rest of Europe, U.S, and Asia-pacific as its key strategy. Furthermore Larsen & Toubro Limited has presence in India, Middle East and Africa, Far East and Europe. It is also focusing to enter new markets such as Africa.


To Get a Detailed Report Summary and Research Scope of the Modular Construction Market Research Report

Article Topic

Binoculars Market Global Industry Analysis & Forecast to 2027

Binoculars Market Introduction: Binoculars Are The Instruments Which Are Especially Designed To See The Distant Objects. The Binoculars Are Having Two Symmetrical Telescopes Which Are Attached Side By Side ...

Global Hygienic Easy-to-Clean Food Processing Equipment Market - Market Analysis & Forecast to 2017 to 2027

Hygienic Easy To Clean Food Processing Equipment Market Rising Concerns For The Food Safety And Increasing Demand For New Products, Makes It Mandatory For The Equipment Designed For The Processing Of Food T...

Global Denture/ Artificial Teeth Market Analysis & Forecast to 2017 to 2027

Artificial Teeth/ Denture Market: Denture Is Set Of The Artificial Teeth Custom Made For The Replacement Of The Missing Teeth And Its Surrounding Tissues.Typically Dentures Are Produced Fromvarious Porcelai...

Calculators Market - Global Industry Analysis & Forecast to 2027

Calculators Market Introduction Everybody Has A Curiosity To Work Fast And In An Efficient Manner. If We Relate This Sentence To Calculation, The First Word Which Comes In Our Mind Is A Calculator. So Keepi...