Modular Construction Market Report 2026

The modular construction market size has grown strongly in recent years. It will grow from $107.83 billion in 2025 to $116.81 billion in 2026 at a compound annual growth rate (CAGR) of 8.3%. The growth in the historic period can be attributed to early adoption of prefabricated building techniques, rising need for faster construction timelines, growth in cost-saving construction methods, expansion of standardized module production, increasing demand for relocatable temporary structures.

The modular construction market size is expected to see strong growth in the next few years. It will grow to $161.02 billion in 2030 at a compound annual growth rate (CAGR) of 8.4%. The growth in the forecast period can be attributed to growing adoption of automated modular manufacturing, rising focus on sustainable building materials, increasing demand for modular healthcare and education facilities, expansion of permanent modular housing projects, greater integration of IoT-enabled building systems. Major trends in the forecast period include rising adoption of off-site construction methods, expansion of standardized prefabricated components, growing demand for cost-efficient modular housing, increased utilization of mixed-module structural designs, higher market focus on temporary and mobile modular units.

The projected surge in urbanization stands as a catalyst for the modular construction market's growth. Urbanization, the concentration of populations in specific areas, is anticipated to bolster this industry due to its alignment with the demands of densely populated urban settings. Statistics from the World Bank indicate that over half of the global populace currently resides in urban regions, with projections indicating a 1.5-fold increase to 6 billion by 2045. By 2030, an estimated 1.2 million km2 of additional urban built-up space will emerge, expanding at a rate potentially 50% faster than population growth. This trend in urbanization significantly propels the modular construction market forward.

Major companies operating in the modular construction market are prioritizing the development of technological advancements such as standardized design modules to speed up project delivery, improve scalability, lower construction expenses, and maintain consistent quality across various projects. Standardized design modules are pre-engineered and prefabricated building elements created with uniform dimensions and specifications, enabling simplified assembly, scalability, and reuse across multiple construction developments. For example, in November 2023, TenneT, a Netherlands-based energy company, introduced a modular construction approach for its Large Projects program to accelerate electricity grid expansion. This initiative centers on building 380 kV substations and high-voltage pylons using fixed modules and standard designs. The modular strategy streamlines and standardizes the design, planning, and execution stages, improving efficiency in procurement, plot acquisition, and environmental approvals. It also minimizes repetitive tasks, allowing engineers and technicians to focus on more complex and demanding aspects of grid development. This program represents a major step toward enabling faster and more efficient grid expansion, essential for advancing the energy transition and meeting increasing electricity needs.

In April 2024, LaPhair Capital Partners, a venture capital firm based in the United States, acquired Kinexx Modular Construction for an undisclosed amount. This acquisition aims to enhance homeownership opportunities in urban areas and address the housing crisis by focusing on sustainable building solutions and fostering economic development in underserved communities. Kinexx Modular Construction is a U.S.-based company that specializes in the rapid design, manufacturing, and installation of sustainable modular homes, particularly for urban infill projects.

Major companies operating in the modular construction market are Bouygues Construction SA, Laing O'Rourke, Skanska AB, ATCO Ltd., Balfour Beatty Plc., Taisei Corporation, Supertech Industries LLC, Anderco Pte. Ltd., Giant Containers Inc., Honomobo Corporation, Lendlease Corporation, SG Blocks Inc., Guerdon L.L.C, Modulex PLC, Bechtel Corporation, ACS Group, Fluor Corporation, JL Construction, Julius Berger Nigeria PLC, Kiewit Corporation, Larsen & Toubro Limited, McGRATH RENTCORP, Palomar Modular Buildings, Red Sea Housing Services, SEKISUI CHEMICAL CO. LTD, System House R & C Co. Ltd, WillScot Mobile Mini Holdings Corp, Westchester Modular Homes, Koma Modular.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the modular construction market by increasing the cost of imported steel, wood, and prefabricated components, resulting in higher production expenses and slower deployment of permanent and relocatable modular structures. Regions reliant on imported raw materialssuch as North America and parts of Europeare seeing the greatest impact across residential, commercial, and healthcare end-use sectors. However, tariffs are also encouraging domestic material sourcing, boosting local manufacturing capacity, and accelerating innovation in cost-efficient modular building systems.

The modular construction market research report is one of a series of new reports that provides modular construction market statistics, including modular construction industry global market size, regional shares, competitors with a modular construction market share, detailed modular construction market segments, market trends and opportunities, and any further data you may need to thrive in the modular construction industry. This modular construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Modular construction involves off-site manufacturing of buildings while adhering to traditional building standards. It's widely used due to several advantages such as time-saving, reduced labor costs, minimized waste, and increased productivity through standardized components.

The modular construction primary types include permanent and relocatable. Permanent elements remain in place for extended periods, fitting into existing structures or designed around modular building techniques. Materials like steel, wood, and concrete are used in various forms such as four-sided, open-sided, partially open-sided modules, mixed modules, floor cassettes, and those supported by primary structures. These modular variations cater to residential, office, educational, retail, commercial, hospitality, healthcare, and other sectors.Asia-Pacific was the largest region in the modular construction market share in 2025. The regions covered in the modular construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the modular construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The modular construction market includes revenues earned by entities by constructing or engineering prefabricated constructions. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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