Modular and Prefabricated Construction Market Report 2026

The modular and prefabricated construction market size has grown strongly in recent years. It will grow from $147.32 billion in 2025 to $157.54 billion in 2026 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to urbanization growth, labor shortages in construction, cost efficiency needs, disaster recovery housing demand, infrastructure expansion.

The modular and prefabricated construction market size is expected to see strong growth in the next few years. It will grow to $203.44 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to smart city development, sustainable building regulations, affordable housing demand, growth of modular healthcare facilities, rapid commercial construction. Major trends in the forecast period include faster construction project delivery, factory based building manufacturing, reduced material waste construction, rising adoption in urban housing, growth of relocatable building units.

The increasing demand for affordable housing is expected to drive the growth of the modular and prefabricated construction market in the coming years. Affordable housing consists of units that are reasonably priced and accessible to individuals or families with low to moderate incomes. This demand is rising due to urbanization, as expanding city populations require more low-cost, high-density housing options. Modular and prefabricated construction supports affordable housing by enabling faster and more cost-effective building processes, making it suitable for addressing housing shortages in urban and low-income regions. It shortens construction time and lowers labor costs through off-site manufacturing combined with on-site assembly, enhancing accessibility and scalability. For example, in November 2024, the UK’s Ministry of Housing, Communities, and Local Government reported that 56,971 new affordable homes were completed in 2023-24, marking a 0.2% increase in England’s total housing stock of 25.4 million homes as of March 2023. Thus, the growing need for affordable housing is fueling the expansion of the modular and prefabricated construction market.

Leading companies in the modular and prefabricated construction sector are concentrating on creating innovative solutions, such as sustainable and cost-efficient modular construction methods, to meet increasing demand, minimize environmental impact, and speed up project completion. Sustainable and cost-efficient modular construction refers to eco-friendly and effective building techniques that reduce waste, cut costs, and accelerate timelines. For instance, in November 2024, Module-T Prefabrik, a Turkey-based modular manufacturer, introduced a wide range of sustainable and affordable modular construction solutions in the U.S. Their products include office containers, sanitary containers, locker containers, dormitory containers, and modular office buildings, with a special emphasis on labor accommodation complexes for both permanent and temporary needs. These modular structures are pre-manufactured off-site and rapidly assembled on-site, enabling quicker project delivery, lowering environmental footprint, and minimizing disruption to nearby communities. This addresses the increasing need for efficient, adaptable, and eco-friendly construction across multiple industries.

In September 2024, ATCO Structures & Logistics Ltd., a Canadian modular construction firm, acquired NRB Modular Solutions Limited for an undisclosed sum. Through this acquisition, ATCO Structures & Logistics intends to strategically broaden its manufacturing presence within Canada, enter new markets, and improve its modular housing capabilities to satisfy the rising demand for rapid and innovative construction solutions. NRB Modular Solutions Limited is a Canada-based portable building manufacturer specializing in modular and prefabricated construction.

Major companies operating in the modular and prefabricated construction market are Bouygues Construction, Daiwa House Industry Co. Ltd., Skanska AB, Sekisui Chemical Co. Ltd., Lendlease Corporation Limited, Laing O’Rourke Limited, ATCO Ltd., Champion Home Builders Inc., Cavco Industries Inc., WillScot Corporation, Horizon North Logistics Inc., Katerra Inc., Fleetwood Corporation Limited, Clayton Homes Inc., Red Sea International Company, Guerdon Modular Buildings Inc., Modulaire Group Limited, Tata Steel Nest-In, Larsen & Toubro Limited, Zekelman Industries Inc.

North America was the largest region in the modular and prefabricated construction market in 2025. The regions covered in the modular and prefabricated construction market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the modular and prefabricated construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The modular and prefabricated construction market consists of sales of modular buildings, prefabricated wall panels, bathroom and kitchen pods, steel or timber frames, and roof and floor systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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