Modular construction is a term that is used to describe the use of factory-produced pre-engineered building units that are delivered to the site and assembled as the elements of a building. The modular units are used for the construction of full or part rooms or separate units such as lifts or toilets etc. Modular construction is a less time-consuming process in comparison to the traditional construction process. In addition, modular construction has several advantages over conventional construction, for example- high flexibility, less pollution, improved air quality, less material waste, safe construction, advanced design opportunities, and better-engineered buildings, etc. Growing construction activities in countries like China or India are expected to drive the growth of the market. Furthermore, the cost-effectiveness of modular construction with fewer defects and reworks is expected to increase its demand and boost the overall market growth during the forecast period.
The use of modular construction for construction in the commercial segment is increasing due to its benefits, such as reduced maintenance or replacement costs over the life of the building, energy-efficient structure, and improved occupant productivity. These benefits have created a high demand for modular construction across the globe. Commercial buildings are constructed using modular construction according to the rules provided by the International Building Code (IBC) and state regulations. The materials used in modular construction have high durability, and low operational and repair costs and they can be recycled, which is why they are gaining popularity in the construction of commercial buildings. Developers across the world are investing billions of dollars in non-residential building projects. For instance, Habitas, a recent startup has invested USD 20 million to grow its ‘3D printed hotel’ concept from its Mexico base to Asia, the Middle East, and Africa. According to the American Institute of Architects, overall nonresidential sector construction is expected to increase by 0.9% in 2020 and 1.5% in 2021, with office building construction expected to increase by 0.5% in 2020 and 3% in 2021. In addition to this, New York is planning to build the most ambitious modular hotel, which will include a 168-room, 26-storey AC Marriott in Manhattan. Gulf development international has announced its plan to develop a $1bn modular assembly plant in Saudi Arabia’s Neom city. According to data given by the World Bank, the construction industry represented 25.606% of the global GDP, in the year 2018. The countries, which are part of the OECD, represented around 22.4% of their total GDP in the construction industry. Major government schemes are an imperative factor in the overall market. With 68% of the global population expected to reside in urban areas by the year 2020 (Source: World Bank), the investment in smart city solutions is expected to surge. Cities like Singapore, Tokyo, New York, and London have been making a significant impact in the investment in smart city solutions. In December 2020, Terminus, a Chinese Tech company, and BIG, a Danish architecture firm, announced the planning of a novel smart city development, which would be run completely by artificial intelligence.
The COVID-19 pandemic, however, is expected to act as a restraint to this market growth because of the pandemic, several countries around the world went into lockdown, which completely resumed construction activities. Also, work stoppages, labor shortages, and preventive quarantines to curb the spread of the virus are expected to have a negative impact on the market.
The increasing demand for advanced commercial buildings has led to the entry of several new players into the modular construction market. To increase their clientele as well as increase their market share in the upcoming years, many of these market players have taken various strategic actions like partnerships and the development of novel solutions, which are expected to keep the market competitive and constantly evolving. Major market players like VINCI and Laing O’Rourke and among others have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered, along with the recent deals and investments of these important players in the modular construction market.
Market Drivers
Rising construction activities, especially in the commercial sector
The use of modular construction for construction in the commercial segment is increasing due to its benefits, such as reduced maintenance or replacement costs over the life of the building, energy-efficient structure, and improved occupant productivity. These benefits have created a high demand for modular construction across the globe. Commercial buildings are constructed using modular construction according to the rules provided by the International Building Code (IBC) and state regulations. The materials used in modular construction have high durability, and low operational and repair costs and they can be recycled, which is why they are gaining popularity in the construction of commercial buildings. Developers across the world are investing billions of dollars in non-residential building projects. For instance, Habitas, a recent startup has invested USD 20 million to grow its ‘3D printed hotel’ concept from its Mexico base to Asia, the Middle East, and Africa. According to the American Institute of Architects, overall nonresidential sector construction is expected to increase by 0.9% in 2020 and 1.5% in 2021, with office building construction expected to increase by 0.5% in 2020 and 3% in 2021. In addition to this, New York is planning to build the most ambitious modular hotel, which will include a 168-room, 26-storey AC Marriott in Manhattan. Gulf development international has announced its plan to develop a $1bn modular assembly plant in Saudi Arabia’s Neom city. According to data given by the World Bank, the construction industry represented 25.606% of the global GDP, in the year 2018. The countries, which are part of the OECD, represented around 22.4% of their total GDP in the construction industry. Major government schemes are an imperative factor in the overall market. With 68% of the global population expected to reside in urban areas by the year 2020 (Source: World Bank), the investment in smart city solutions is expected to surge. Cities like Singapore, Tokyo, New York, and London have been making a significant impact in the investment in smart city solutions. In December 2020, Terminus, a Chinese Tech company, and BIG, a Danish architecture firm, announced the planning of a novel smart city development, which would be run completely by artificial intelligence.
The Impact of COVID-19 on the Modular Construction Market
The COVID-19 pandemic, however, is expected to act as a restraint to this market growth because of the pandemic, several countries around the world went into lockdown, which completely resumed construction activities. Also, work stoppages, labor shortages, and preventive quarantines to curb the spread of the virus are expected to have a negative impact on the market.
Competitive Insights
The increasing demand for advanced commercial buildings has led to the entry of several new players into the modular construction market. To increase their clientele as well as increase their market share in the upcoming years, many of these market players have taken various strategic actions like partnerships and the development of novel solutions, which are expected to keep the market competitive and constantly evolving. Major market players like VINCI and Laing O’Rourke and among others have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered, along with the recent deals and investments of these important players in the modular construction market.
Market Segmentation:
By Type
- Permanent
- Relocatable
By Material
- Steel
- Precast Concrete
- Wood
- Plastic
- Others
By End-User
- Residential
- Commercial
- Industrial
By Geography
- North America
- USA
- Mexico
- Canada
- South America
- Brazil
- Argentina
- Others
- Europe
- United Kingdom
- Germany
- France
- Spain
- Others
- Middle East and Africa
- Israel
- Saudi Arabia
- Others
- Asia Pacific
- China
- Japan
- South Korea
- India
- Thailand
- Indonesia
- Others
Table of Contents
1. INTRODUCTION
2. Research Methodology
3. Executive Summary
4. Market Dynamics
5. MODULAR CONSTRUCTION MARKET BY TYPE
6. MODULAR CONSTRUCTION MARKET BY MATERIAL
7. MODULAR CONSTRUCTION MARKET BY END-USER
8. MODULAR CONSTRUCTION MARKET BY GEOGRAPHY
9. COMPETITIVE INTELLIGENCE
10. COMPANY PROFILES
Companies Mentioned
- Laing O’Rourke
- Red Sea Housing
- ATCO
- Bouygues Construction
- VINCI
- Skanska AB
- Algeco Scotsman
- KEF Katerra
- Lendlease Corporation
- KLEUSBERG GmbH & Co. KG
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 122 |
| Published | April 2022 |
| Forecast Period | 2020 - 2027 |
| Estimated Market Value ( USD | $ 76.55 billion |
| Forecasted Market Value ( USD | $ 114.79 billion |
| Compound Annual Growth Rate | 5.9% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
