Year | Value |
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2024 | USD 97.38 Billion |
2035 | USD 150.0 Billion |
CAGR (2025-2035) | 4.01 % |
Note – Market size depicts the revenue generated over the financial year
The Modular Buildings Market is expected to reach a value of $97.38 billion by 2024, and is expected to reach $ 150.00 billion by 2035. This growth translates into a CAGR (compound annual growth rate) of 4.01% from 2025 to 2035, indicating a steady increase in the market. The demand for efficient and sustainable building solutions, which reduce the time and cost of construction, and minimize the impact on the environment, is the main reason for this market growth. The integration of building information modeling (BIM) and off-site construction processes is also expected to further boost the market. These innovations increase the efficiency and quality of the construction process, thereby increasing the attractiveness of modular construction to contractors and investors. The major players in the industry, such as Katerra, Skanska, and the Modular Building Institute, are actively pursuing strategic initiatives, such as entering into new alliances and investing in new technology, to benefit from this trend. Katerra’s focus on digital construction methods, for example, is a good example of the way the industry’s major players are adapting to the changing demands of the market.
The Modular Construction Market is growing significantly in various regions, owing to the increasing demand for sustainable construction, cost efficiency, and quick construction time. In North America, the market is characterized by the increasing number of companies adopting the prefabrication technology to overcome the housing shortage and the challenges of urbanization. Europe is characterized by the implementation of regulatory policies that promote sustainable construction, while Asia-Pacific is characterized by the growing demand for prefabricated buildings in the construction of roads, airports, and other large-scale projects. Middle East and Africa is characterized by large-scale developments, while Latin America is characterized by a gradual shift towards prefabricated buildings to overcome the housing deficit.
“With the construction of the prefabricated building the time of construction is reduced by up to 50%, compared to the time of construction with the usual building methods.” — Modular Building Institute
The Modular Construction Industry is a growing industry, based on the growing demand for sustainable, energy-efficient building solutions. There are many factors that have a positive influence on this industry, such as the need for affordable housing, government regulations promoting sustainable building practices and technological advancements in prefabrication. These factors are reshaping the building landscape and making modular construction an attractive option for both property developers and builders.
At present, the market is in a stage of implementation, with Factory OS in the United States and Legal & General Modular Homes in the United Kingdom leading the way. In the main, the technology is used for housing, offices, and health care facilities, where speed and efficiency are paramount. Growth will be accelerated by a drive towards sustainability and a demand for lower carbon footprints from governments. Moreover, building information modelling (BIM) and the use of robots will increase accuracy and reduce waste.
The Modular Construction Market is expected to grow significantly from 2024 to 2035. The projected market value is expected to increase from $97.38 billion to $148.2 billion, at a compound annual growth rate (CAGR) of 4.01%. The growth is driven by the growing demand for efficient and cost-effective building solutions that can address the issues of urbanization and the lack of housing. Modular construction will gain market share in the construction industry as a whole. The penetration rate is expected to increase from 10% to 15% in 2035, compared to 9% in 2024.
This growth is largely due to the development of technology, such as BIM (Building Information Management) and automation of manufacturing processes, which improves the accuracy and speed of prefabrication. Also, the governments’ support for sustainable building and the reduction of waste is likely to increase the growth of the market. Also, the integration of smart technology into the building system and the increasing popularity of off-site construction will have a significant impact on the future of the market. It is expected that the industry will continue to grow rapidly, and that it will become a cornerstone of modern building methods.
Covered Aspects:Report Attribute/Metric | Details |
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Growth Rate | 6.57% (2024-2032) |
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