ID: MRFR/CO/1150-CR | October 2020 | Region: Global | 146 pages
Modular Construction Market Size will be 6.50% Also, the Modular Construction Market Value is estimated at USD 118.3 billion in the forecast year.
The covid 19 has caused plenty of economic damages. Construction is a labour-intensive industry. However, the global lockdown and restrictions have put a stop to the construction work. The workers are not able to reach the construction sites. Also, there are plenty of stringent rules to carry thee construction works during this time. All these factors are causing several challenges in the modular construction market. The outbreak of covid 19 has caused uncertainty of work and volatility in the market. The trading prices and stocks of the construction market are facing several losses. All these factors have caused a decline in the construction of modular buildings. However, the Modular Construction Industry Outlook will resume back to normal post covid 19.
The regional modular construction market is fragmented into Asia Pacific, Europe and North America. Asia pacific will lead with maximum Modular Construction Market Share. The rising construction work in the commercial sector is responsible for massive growth. Also, governmental initiatives promote eco field building construction. All these factors keep the Asia pacific modular construction industry at the top. North America is the second-largest modular construction industry. The requirement of high-end construction projects is a reason for the adoption of modular construction.
Also, the requirement of modular construction in the IT and telecommunication field is another crucial market driver. Constructing a building with a superstructure is possible with the modular concept in the US. Also, the investment rate in the building is high. Europe has exceptional governmental support to build modular construction. The healthcare centres, education spaces, industrial and commercial spaces use modular construction. The high infrastructural development is causing more adoption of modular construction. During the forecast period, Europe will record the highest demand rate.
The key players of the modular construction market are
The competition in the modular construction market is huge. The market players have plenty of measures for the market. They are enhancing the market through acquisitions, partnerships and expansions strategies in the forecast period. Also, innovation is a crucial concept that will provide growth prospects for the market.
The rising industrialization and urbanization are raising the requirement for construction. The investments in the infrastructure have increased in the past few years. The rising infrastructure investments are a crucial driver for the modular construction market. The population in the urban area is surging every year. It is a crucial requirement to offer comfortable living and professional places to urban citizens. The rapidly growing urbanisation is the main driver of the modular construction industry.
Also, the escalating investment in commercial spaces is another driver for the market. All these drivers will positively affect the market in the forecast period. Commercial property leasing encourages more construction of professional working spaces. All these aspects are the crucial drivers that give immense Modular Construction Market Revenue. The governmental initiative is higher to support environmental friendly construction. The government offers plenty of subsidiaries to promote green building. Plenty of governments today allocate a specific fund for modular construction. All these crucial drivers of the market will continually increase the demand.
The adoption rate of the lean manufacturing technique provides plenty of growth opportunities for the market. The adoption of these techniques can offer permanent and durable modular buildings. Also, the adoption of this construction technique provides profitability and other benefits to the market.
Plenty of verticals will offer exceptional investments to use these techniques in the modular building it will create plenty of growth prospects. R&D is another factor that offers several growth possibilities for the market. Modular construction is a vast concept. There are plenty of new techniques and strategies that can be derived through research. The investments in R&D are increasing in this market. It will open up new ways for Modular Construction Market Growth. Innovation is another key aspect that will escalate growth opportunities for this market. These growth opportunities will ultimately benefit the overall modular construction industry in the forecasts period.
The modular construction market includes plenty of offsite manufacturing items. The investment required for modular construction is massive. The returns are long-term and the high investments of the market are the crucial restraints. The modular process is cost and time-consuming. Apart from the construction, there are plenty of details that require serious attention. The fixtures, lights, interiors and much more are required in the process. The installation, planning and execution are some of the other tasks on the construction. It is a capital intensive project with plenty of labour work. Also, the timeline for modular construction is required less from the investors. All these pressures add up in the modular construction and these are the major market restraints.
The rise in industrialization and urbanization is a driving factor as well as a challenge for this market. The rising rate of urbanization puts more pressure on building construction. Also, the requirement to make efficient use of space and money is difficult in the modular construction. The need to create innovative building for every modular construction is a difficulty in this market. With the modular construction, the customers require uniqueness in the building.
However, sometimes providing these choices to the customers can result in plenty of challenges. Moreover, the high investments required for the construction of modular construction is another challenge. Also, the cost of modular construction is not standardized. It keeps on fluctuating as per the requirements of the customers. These are the few challenges that can affect the overall growth of the market in the forecast period.
The market growth looks stable during the forecast period. The modular construction industry comes with plenty of drivers. The market driver continuously boosts the demand for the market. The rising urbanisation is a crucial driver that creates opportunities for modular construction. Also, the support through governmental policies is highly benefitting the modular construction market. Few challenges can affect the market growth in the forecast. The high investment rate and offsite manufacturing can add more cost to the overall project. However, the positive Modular Construction Market Trends will continue.
The Asia Pacific will dominate the modular construction industry in the forecast period. The region is known for its high infrastructure development. Due to this, construction activities are raising both in the residential and commercial sector. The adoption rate of modular construction is high in Asia pacific. Also, plenty of individuals prefer modular construction as it is an energy-efficient and green building. The construction of smart cities in India is another factor that fuels modular construction growth. Modular construction is more convenient and functional for the individuals requiring a residence or a commercial building. As per the Market Analysis, the region will record the fastest growth rate in the forecast period. Overall, the modular construction market is booming in Asia pacific.
Modular construction is a type of construction technique that offers plenty of benefits. Efficiency is the main objective for constructing modular buildings. Flexibility, cost-effectiveness and eco-friendliness are some of the crucial features of modular construction. The modular construction offers customization and exceptional use of the space. It is a construction technique that can be modified according to the customer requirement. The rapidly growing urbanisation is the crucial cause for the popularity of modular construction. The modular construction is suitable for multistory buildings and offices. Most of these building incorporate steelwork in walls and other spaces. The modular constructions are well known for their style, reliability and durability.
Also, the adoption of high-end construction technique is driving more demand for this market. The modular construction offers inbuilt fixtures, spaces, interiors and appliance inside the building. The modular construction building is the most functional buildings. The demand for modular construction is massive in recent years. During the forecast period, the Modular Construction Market Size will be 6.50% Also, the Modular Construction Market Value is estimated at USD 118.3 billion in the forecast year.
|Market Size||2027 : USD 118.3 billion|
|CAGR||6.50% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||by Material, by Construction, by Product, By Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||ACS Group (Spain), Skanska AB (Sweden), Komatsu Ltd (Japan), L&T (India), Balfour Beatty Plc. (U.K.), Kiewit Corporation (U.S.), Taisei Corporation (Japan), Red Sea Housing Services (Saudi Arabia), System House R & C Co. Ltd (Japan), Bouygues Construction (France)|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
ACS Group (Spain), Skanska AB (Sweden), Komatsu Ltd (Japan), L&T (India), Balfour Beatty Plc. (U.K.), Kiewit Corporation (U.S.), Taisei Corporation (Japan), Red Sea Housing Services (Saudi Arabia), System House R & C Co. Ltd (Japan), Bouygues Construction (France)
Global Modular Construction Market is expected to reach a market size of USD 118.3 billion by the end of the forecast period at CAGR of 6.50%.
Asia-Pacific region dominates the Modular Construction market. It accounted for the largest market share of 46.30% in 2016, with a market value of USD 48.2 million. North America is the second largest region for the Modular Construction market. It accounted for the market share of 27.6% in 2016, with a market value of USD 28.7 million.
Contribute predominantly driving the market growth are rising industrialization & urbanization coupled with the improving economy that worldwide that allows increasing purchase affordability.
Saves Time. An obvious one is that modular construction allows a chunk of the work to be made in a factory while sitework and foundations are simultaneously performed on the site. This time-saving benefit keeps the project on schedule and speeds up construction time while still being efficient.