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China Modular Construction Market Size

ID: MRFR//10911-HCR | 128 Pages | Author: Snehal Singh| May 2024

The China Modular Construction Market is influenced by a multitude of factors that collectively shape its dynamics and growth. One of the primary drivers propelling this market is the rapid urbanization and the need for efficient and cost-effective construction solutions. With China experiencing significant population migration to urban areas, there is a growing demand for fast and scalable construction methods. Modular construction, with its off-site fabrication and assembly, meets this demand by offering speed, precision, and reduced construction timelines, making it a preferred choice for various building types, including residential, commercial, and institutional structures.

Changing government policies and initiatives play a pivotal role in shaping the China Modular Construction Market. The Chinese government has been actively promoting the use of prefabricated and modular construction methods to address challenges such as housing shortages, urban congestion, and the need for sustainable development. Policies that incentivize the adoption of modular construction techniques, coupled with supportive regulations and standards, have created a conducive environment for the growth of the modular construction market in China.

Technological advancements and innovations contribute significantly to the market dynamics of modular construction in China. Continuous research and development efforts in materials, design, and construction processes lead to improvements in the quality, durability, and customization options of modular buildings. The integration of digital technologies, Building Information Modeling (BIM), and automation further enhances the efficiency and precision of modular construction, facilitating the development of high-quality and sophisticated modular structures.

Market factors are also influenced by the sustainability and environmental considerations driving the construction industry in China. Modular construction, characterized by reduced waste generation, minimized site disturbances, and energy-efficient practices, aligns with the country's broader goals of green and sustainable development. The ability of modular construction to optimize resource use, coupled with the government's focus on eco-friendly construction practices, contributes to the increasing adoption of modular methods in the Chinese construction sector.

Economic conditions and the demand for cost-effective construction solutions impact the China Modular Construction Market. The cost-effectiveness of modular construction stems from its ability to streamline processes, reduce labor costs, and minimize construction delays. As economic factors drive the demand for efficient and budget-friendly construction methods, modular construction emerges as a strategic solution for developers, contractors, and investors looking to optimize project costs while maintaining construction quality.

Consumer preferences and the growing acceptance of modular construction contribute to market growth. With increasing awareness of the benefits of modular buildings, consumers are more open to considering modular solutions for their construction projects. The ability to customize modular designs, coupled with the assurance of high-quality construction, resonates with consumers seeking efficient and modern building solutions in China's evolving real estate landscape.

The competitive landscape and industry collaborations influence market factors in China's Modular Construction Market. Manufacturers, developers, and construction companies are actively engaging in collaborations and partnerships to leverage each other's strengths and capitalize on the growing demand for modular construction. The competitive nature of the market is driving innovation, driving the development of new technologies, and expanding the range of modular construction applications.

Urbanization trends and the need for rapid infrastructure development further contribute to the demand for modular construction in China. As cities expand and infrastructure requirements increase, modular construction provides a scalable and efficient solution for meeting the demands of urbanization. The ability to construct modular buildings quickly and in a controlled environment addresses the urgency of developing infrastructure in rapidly growing urban areas.

Covered Aspects:

Report Attribute/Metric Details
Market Size Value In 2022 USD 16.2 Billion
Market Size Value In 2023 USD 17.3 Billion
Growth Rate 6.60% (2023-2032)

China Modular Construction Market Overview

China Modular Construction Market Size was valued at USD 16.2 Billion in 2022. The China modular construction industry is projected to grow from USD 17.3 Billion in 2023 to USD 28.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.60% during the forecast period (2023 - 2032). Rising urbanization and industrialization in emerging nations are among the key market drivers propelling the growth of the modular building industry in China. A major effect on market expansion to meet growing customer demands is also expected to be seen from the population growth.China Modular Construction Market OverviewSource: Secondary Research, Primary Research, MRFR Database and Analyst Review

Modular Construction Market Trends

  • Due to the establishment of the Special Economic Zone and the restructuring of bank lending policies has increased market growth

The market CAGR for modular construction has grown dramatically as a result of the creation of Special Economic Zones (SEZs) and revised bank lending practices. Special Economic Zones (SEZs) are places inside a nation that provide firms with unique economic advantages, like tax exemptions and lenient restrictions. These areas encourage foreign investment, accelerate economic expansion, and generate job possibilities. SEZs have helped China's prefabricated construction industry flourish by creating an atmosphere that encourages the expansion of prefabrication-based construction firms. Furthermore, in order to encourage the expansion of the prefabricated construction industry, the Chinese government has changed bank lending guidelines. Moreover, Prefabrication-based construction enterprises now have easier access to bank financing with more favorable terms and circumstances. Due to the ease with which businesses may now invest in the development of prefabrication technology, production facilities, and distribution networks, the modular construction market in China is expanding.

Furthermore, China is one of the world's worst polluters, hence the country has a growing need for sustainable green infrastructure to address a range of environmental issues. The network of natural and semi-natural places, such as parks, wetlands, woods, and green roofs, that serve society on an ecological, economic, and social level is referred to as "green infrastructure." These advantages include preservation of biodiversity, control of the temperature, management of water resources, purification of the air, leisure, and human welfare. Additionally, green infrastructure helps lessen the effects of climate change, including drought, flooding, and urban heat islands. The nation's requirement for modular prefabricated building is a result of the growing need for green infrastructure. Thus, driving the modular construction market revenue.

Modular Construction Market Segment Insights

Modular Construction Type Insights

The China Modular Construction market segmentation, based on type includes permanent (PMC) and relocatable. The permanent (PMC) segment dominated the market mostly because relocating a building allows us more flexibility. Affordable and easy to assemble are permanent modular homes. Additionally, there is a vast array of patterns and styles for these houses. Two-story apartments and duplexes are two common home designs based on their shape.

Modular Construction Material Insights

The China Modular Construction market segmentation, based on material, includes concrete, steel and wood. The concrete category generated the most income due to the fact that concrete modular construction is far more affordable and requires less time to complete. In addition, steel modular construction provides faster on-site assembly—roughly eight units per day—and increased stability for larger structures.

Figure 1: China Modular Construction Market, by Material, 2022 & 2032 (USD Billion)China Modular Construction Market, by Material, 2022 & 2032Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Modular Construction Application Insights

The China Modular Construction market segmentation, based on application, includes commercial, healthcare, educational & institution, hostility, and others (residential, religious buildings). The commercial category generated the most income because sophisticated business owners are driving the market expansion with their high demand for quick construction. In addition, the growth tendencies of the commercial category are being followed by the healthcare and education sectors. because of the growing need in China for the construction of large buildings for hospitals and educational institutions.

Modular Construction Country Insights

China's economy has been expanding quickly over the last few decades, and the Chinese government has made significant investments in the building and construction industry. Labor and operating costs in China are rising in tandem with the country's expanding construction industry. For the past 20 years, prefabricated construction has become more and more popular in China as a solution to the issues of high labor costs and longer construction times. In addition, China's government consistently finances the building sector in an effort to boost the national economy. For instance, the Chinese government decided in August 2022 to invest over $1 trillion (6.8 trillion yuan) in the nation's building and construction sector. Over the course of the forecast period, this investment is anticipated to generate profitable growth prospects in the Chinese modular and prefabricated construction market.

Modular Construction Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the modular construction market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, modular construction industry must offer cost-effective items.

Key Companies in the modular construction market include

  • Ark Prefab Co., Ltd.

  • Atlantic Modular System

  • China State Construction

  • CIMC Modular Building Systems

  • GS Housing

  • Hangxiao Steel Structure

  • Kong Sing Building Co., Ltd.

  • Ningbo Deepblue Smart House Co., Ltd.

  • Shanghai Haisheng Special Metal Box Co., Ltd.

  • Zhejiang Putian Integrated Housing Co., Ltd

Modular Construction Market Segmentation

Modular Construction Type Outlook

  • Permanent (PMC)

  • Relocatable

Modular Construction Material Outlook

  • Concrete

  • Steel

  • Wood

Modular Construction Application Outlook

  • Commercial

  • Healthcare

  • Educational & institution

  • Hostility

  • Others (Residential, Religious Buildings)


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