Modular and Prefabricated Construction Market Report 2025

The modular and prefabricated construction market size has grown strongly in recent years. It will grow from $137.67 billion in 2024 to $147.32 billion in 2025 at a compound annual growth rate (CAGR) of 7%. The growth during the historic period can be attributed to factors such as increasing urbanization globally, a rising demand for affordable housing, a stronger emphasis on shortening construction timelines, growing labor shortages in conventional construction, and increased investment in healthcare and education infrastructure.

The modular and prefabricated construction market size is expected to see strong growth in the next few years. It will grow to $191.06 billion in 2029 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to a growing emphasis on green building practices, increased government support and policy initiatives, the rising popularity of smart cities and smart infrastructure, and greater demand for disaster recovery and emergency housing. Major trends during this period include advancements in building information modeling (BIM), the integration of robotics and automation in manufacturing, the adoption of technology in smart modular units, developments in hybrid modular systems, and progress in sustainable construction materials.

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 players in the modular and prefabricated construction market are Bouygues Construction, Daiwa House Industry Co. Ltd., ACS S.A., Larsen & Toubro Limited, Bechtel Corporation, Skanska AB, Fluor Corporation, 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., Zekelman Industries Inc., Fleetwood Corporation Limited, Clayton Homes Inc., Red Sea International Company, Guerdon Modular Buildings Inc., Modulaire Group Limited, and Tata Steel Nest-In.

North America was the largest region in the modular and prefabricated construction market in 2024. The regions covered in modular and prefabricated construction report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the modular and prefabricated construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The swift increase in U.S. tariffs and the ensuing trade tensions in spring 2025 are significantly affecting the machinery sector by increasing costs for steel, hydraulic systems, and precision bearings critical components often imported from tariff-affected regions. Manufacturers of construction, agricultural, and industrial machinery now face squeezed margins, as many long-term contracts prevent immediate price adjustments. The uncertainty has also delayed investment in automation and smart machinery technologies, slowing productivity gains. To adapt, firms are accelerating local supplier development, redesigning products to use alternative materials, and leveraging predictive maintenance to extend equipment lifespans amid higher replacement costs.

Modular and prefabricated construction involves manufacturing building components or entire modules within a factory environment, which are then transported to the site for rapid assembly. This approach enhances construction speed, quality assurance, and cost-effectiveness. Its main goal is to optimize building processes, minimize labor and material waste, and allow for quicker project completion.

The primary types of modular and prefabricated construction include permanent and relocatable structures. Permanent structures are modular or prefabricated buildings designed and built for long-term or indefinite use at a fixed site. They are made from a variety of materials such as steel, wood, concrete, and others, and are used in applications like single-family homes, multi-family residences, offices, hospitality, retail, healthcare, and more. These structures serve a diverse range of end users, both residential and non-residential.

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

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 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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