Modular Construction Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)

The global modular construction market was valued at USD 63.19 Billion in 2024 and is further expected to grow at a CAGR of 12.40% in the forecast period of 2025-2034 to reach a market value of USD 203.38 Billion by 2034. This growth is driven by the increasing demand for affordable housing, healthcare facilities, and commercial infrastructure.

Key Market Insights:

• The Middle East and Africa modular construction market commanded the dominant share in 2024 and is expected to grow at 13.3% CAGR over the forecast period.
• Country-wise, the India modular construction industry is expected to grow at a CAGR of 15.4% during the forecast period.
• By construction, the permanent modular category is expected to exhibit 12.3% CAGR over the forecast period.
• Based on the end use, the commercial segment represented the largest market share in 2024.

Market Size & Forecast

• Market Size in 2024: USD 63.19 Billion
• Projected Market Size in 2034: USD 203.38 Billion
• CAGR from 2025 to 2034: 12.40%
• Dominant Regional Market: Middle East and Africa

Off-site building activities are becoming more popular due to their cost-effectiveness and reduced construction time. Additionally, urban regions are seeing a surge in modular construction as cities strive to meet the growing population's needs. The continuous investment in these sectors further boosts the market growth, positioning modular construction as a solution for rapid urbanisation.

Another key factor driving the modular construction market is the environmental benefits it offers. As sustainability becomes a priority globally, the modular construction approach significantly reduces waste and energy consumption compared to traditional construction methods. The use of prefabricated components allows for more efficient material usage and lower carbon emissions. Governments and construction companies are increasingly adopting green building practices, contributing to the rise of eco-friendly modular structures. This shift is particularly noticeable in the residential, commercial, and industrial sectors, further expanding the market scope.

The evolving technological advancements also play a crucial role in the expansion of the modular construction market. The integration of Building Information Modelling (BIM) and other cutting-edge technologies enhances the design, planning, and execution of modular construction projects. These technologies enable better precision, faster project timelines, and improved quality control. As the market adopts more innovative construction methods, the affordability and efficiency of modular buildings continue to improve, attracting more developers and end-users. Consequently, this technological evolution is expected to drive sustained growth in the modular fabrication market.

Modular Construction Market Trends

The global modular construction services market is witnessing significant growth driven by the increasing demand for cutting-edge construction methods. Modular construction offers quicker project completion, reduced costs, and enhanced quality management, making it an attractive alternative to traditional methods. The industry's focus on environmental sustainability is also evident, as it reduces material waste and energy consumption. This modern approach offers flexibility, enabling a variety of building types, including homes, office spaces, schools, and hospitals. As modular construction provides an efficient, affordable, and sustainable solution, it is gaining momentum in the construction sector, offering advantages over conventional building methods.

The growing global population and rapid urbanization are major factors boosting the modular construction industry. With rising demand for housing, infrastructure, and commercial spaces, modular construction offers an efficient, sustainable solution to meet these needs. The approach reduces build times compared to traditional methods, especially in crowded urban areas, where space and time constraints are prominent. The adaptability of modular construction allows for the development of affordable, luxury, and commercial housing types. As the world faces housing shortages, modular construction contributes to building resilient, sustainable cities that can accommodate the increasing urban population.

Type Insights

In the global modular construction market, permanent modular construction is gaining significant traction, accounting for a substantial revenue share. This type offers long-lasting solutions, as it involves off-site manufacturing of structurally strong buildings that are then assembled on-site. With design flexibility, customization, and the ability to create architecturally diverse buildings, permanent modular construction caters to the needs of developers, architects, and clients. It ensures high-quality control, maintaining safety and durability standards, according to the relocatable building needs. The market demand for these solutions is driven by the growing need for efficiency and resilience, especially in sectors seeking reliable, permanent structures.

On the other hand, relocatable modular construction is also experiencing growth, particularly in areas requiring temporary housing and facilities. This type is expected to grow at a strong CAGR due to its use in emergency and relief efforts, as well as for temporary office spaces, storage, and housing in large construction projects. Relocatable buildings are designed to be relocated and adapted to different sites, offering a practical and flexible solution to meet short-term needs. Its popularity is particularly evident in providing temporary shelter for disadvantaged communities, where time and budget limitations demand efficient, cost-effective, and easily relocated structures.

Application Insights

In the global modular construction market, the residential modular construction sector has gained significant momentum due to its innovative approach in meeting diverse housing needs. This segment holds a considerable revenue share, offering sustainability, design, and cost-effective solutions for building customizable homes. With quick construction reduced build time and costs, modular construction addresses the growing demand for housing driven by the global population and rapid urbanization. Residential modular designs offer versatility, customizable residential designs, and visually appealing and customizable homes that cater to the complexities of modern design. As cities expand and face complex design challenges, this method is ideal for creating affordable and efficient housing solutions that meet the needs of rapidly growing communities.

In the commercial sector, modular construction market is witnessing robust growth, driven by recovering economic situations and a high CAGR. This approach is increasingly popular in the U.K., U.S., and Asia, where demand for flexible commercial spaces, including offices, showrooms, and hotels, continues to rise. Modular construction enables fast, cost-effective commercial building activities, with solutions such as portable commercial buildings and modular retail stores. These structures are built to meet the International Building Code (IBC), offering flexibility and dynamism for a wide range of commercial applications. Additionally, the growing trend of modular commercial spaces extends to additional commercial sectors like public restrooms, bathrooms, restaurants, and diners, providing an ideal option for businesses seeking speed and efficiency.

Material Insights

In the global modular construction market, the steel segment holds a significant market share due to its high strength, durability, and ductility. Steel is a popular choice for constructing pre-engineered steel structures such as steel frames and H-type beams, columns, angles, I-beams, T-shapes, which are widely used in commercial and industrial applications. The material's mechanical properties and chemical properties make it suitable for rapid assembly and ease of fabrication. Additionally, steel components offer excellent resistance to seismic forces, ensuring safety in earthquake-prone areas. Steel is also used as a reinforcing agent in concrete, enhancing the material's structural integrity. With the capability to transport building components and lower costs, steel remains a preferred material for modular buildings due to its versatility and ease of assembly.

The concrete segment in the modular construction market is also experiencing significant growth, driven by its durability and strength, crucial factors for maintaining the structural integrity of modular buildings. The CAGR of the segment reflects its growing adoption in both residential and commercial projects. Concrete's ability to provide resistance to extreme weather conditions and provide fire resistance makes it an ideal material for safety and long-term reliability. Moreover, its energy efficiency properties, such as insulation, help in reducing heating and cooling costs. With its minimal maintenance needs and cost-effectiveness, concrete is an attractive choice for sustainable building solutions, enabling faster project completions and lower ongoing costs.

Regional Insights

The global modular construction market is experiencing significant growth, with the Europe modular construction market holding a substantial revenue share. This is driven by investments in both temporary and permanent housing structures, particularly for migrants and addressing labor shortages. Advanced technologies are increasingly being adopted to streamline off-site construction processes, shifting work off-site to reduce on-site labor needs. Furthermore, government policies and incentives are supporting affordable, sustainable housing development, which further boosts market expansion. These factors collectively highlight Europe’s role in leading the global market, focusing on improving housing solutions while tackling societal challenges.

UK Modular Construction Market

The modular construction market in the UK is experiencing significant growth driven by factors such as housing shortages and increasing demand for affordable homes. With population growth placing pressure on traditional construction methods, modular homes are emerging as a sustainable solution. The revenue share of modular housing solutions is expanding as construction companies, investors, and developers recognise the benefits of speed and cost-effectiveness. The UK government’s focus on building new homes to address the housing market challenges further boosts the adoption of modular construction. As housing shortages continue, modular construction provides an innovative path forward, delivering efficient, scalable solutions for the growing demand.

Asia Pacific Modular Construction Market Trends

The Asia Pacific modular construction market is experiencing substantial growth, driven by emerging economies like India and China. The region’s focus on sustainable structures and environmental concerns, such as pollution rates, has led to increased adoption of modular construction as a deployment driver. With a projected CAGR, international investments in the infrastructural sector are fostering development in the region. As demand for efficient and eco-friendly solutions rises, the Asia Pacific market is seeing a shift towards modular construction, offering faster build times and reduced costs. Countries like China and India are leading the charge in this transformation.

The modular construction market in China holds a significant share in the Asia Pacific market, contributing to the region's growing revenue share. This trend is propelled by rapid economic development, rising labor costs, and the quality and affordability of homes. Technological innovations and national policies that promote green building practices and sustainable construction are enhancing the viability of modular and prefabricated methods. These methods not only help reduce construction waste but also improve efficiency in the building process, providing a cost-effective solution while maintaining high-quality standards in housing development.

North America Modular Construction Market Trends

The North America modular construction market share is increasing due to technological advancements such as BIM, 3D printing, and automation. These innovations enhance efficiency, precision, and quality, making modular solutions a popular choice among developers and investors. Urban centers, including New York and San Francisco, are particularly seeing a rise in modular construction, driven by the demand for affordable housing. Additionally, modular solutions are increasingly being used for disaster relief, providing scalable, quick solutions for essential facilities in the aftermath of natural calamities.

The modular construction market in the U.S. has dominated the sector, holding the highest revenue share within the U.S. construction industry. Off-site building methods, coupled with quality control in a controlled factory setting, ensure that each component undergoes rigorous quality checks and standardized procedures. This leads to higher-quality components and fewer errors compared to traditional building methods. Additionally, modular construction plays a vital role in rebuilding residential spaces after natural disasters, including hurricanes, floods, and earthquakes, by offering fast and reliable solutions that cater to urgent needs.

Key Modular Construction Company Insights

The global modular construction market is witnessing significant growth, driven by companies like Skanska, Laing O’Rourke, ATCO Ltd., and Bouygues Construction. Technological advancements such as Building Information Modeling (BIM) and automation are enhancing cost efficiency and sustainability. Urbanization and government support further fuel this trend, making modular construction a viable solution for fast and cost-effective projects. With strategic partnerships and an emphasis on design flexibility, the industry is also well-equipped for disaster recovery and tackling skilled labor shortages, enabling faster project completion.

The modular construction market's expansion is heavily influenced by these companies' ability to adapt to changing demands, including sustainability initiatives and advanced technological solutions. The integration of automation and BIM not only boosts efficiency but also supports urbanization trends and the need for faster, more resilient construction processes. Furthermore, the industry's focus on skilled labor ensures the continued success of modular construction, allowing projects to be completed swiftly without compromising on quality or design flexibility.

Key Modular Construction Companies

Bouygues Construction

Bouygues Construction, based in France, is a leading global player in construction and engineering, specialising in sustainable infrastructure, residential, and commercial projects. Known for its commitment to innovation and sustainable solutions, Bouygues integrates digital tools and modular construction for efficient, environmentally friendly project delivery worldwide.

Balfour Beatty plc

Balfour Beatty plc, headquartered in the UK, is a major infrastructure group delivering projects across construction, engineering, and services. Focused on innovation, the company integrates sustainable practices, technology, and a collaborative approach to offer cost-effective, high-quality projects in sectors such as transport, energy, and urban development.

Larsen & Toubro Ltd

Larsen & Toubro Ltd, based in India, is a global conglomerate with expertise in construction, engineering, and technology services. The company leads in diverse sectors, including infrastructure, defence, and power, with a strong emphasis on innovation, sustainable development, and digitalisation, delivering large-scale projects across the world.

Laing O'Rourke

Laing O'Rourke, a UK-based multinational, is renowned for its expertise in complex construction and engineering projects, focusing on infrastructure, residential, and industrial sectors. Emphasising technological integration and modular construction, the company is dedicated to delivering projects with efficiency, sustainability, and quality while enhancing workforce skills.

Katerra

Katerra, a US-based technology-driven construction firm, focuses on revolutionising the building industry through automation and modular construction. By integrating design, manufacturing, and construction, Katerra aims to reduce costs, improve sustainability, and increase efficiency, delivering high-quality projects in residential, commercial, and hospitality sectors worldwide.

• Bouygues Construction
• Balfour Beatty plc
• Larsen & Toubro Ltd
• Laing O'Rourke
• Katerra
• Sekisui House Ltd.
• Red Sea International
• Skanska
• Premier Modular Limited
• LEUSBERG GmbH & Co KG
• DuBox
• Wernick Group
• CIMC Modular Building Systems Holdings Co., Ltd. (CIMC-MBS)
• Riko Hiše d.o.o
• Lendlease Corporation
• Modulaire Group
• Guerdon, LLC
• Hickory Group

Recent Developments

• The Texas-based modular construction firm BRITCO Structures, USA (BUSA), which specialized in intricate commercial projects, was purchased by Sunbelt Modular Inc. in January 2025. BUSA was established in 2011 to support Sunbelt's approach of offering tailored modular solutions. Sunbelt's national platform is strengthened by this acquisition, which broadens its offers in housing, healthcare, education, and government. Following its acquisition by Littlejohn & Co. in 2024, this is Sunbelt's eleventh acquisition.
• The structures division of ATCO Ltd announced in June 2024 that it had acquired NRB Ltd (NRB), a Canadian firm that specializes in modular buildings for residential, commercial, and educational settings. By late July 2024, the CAD 40 million (~USD 29.24 million) agreement was expected to be finalized. ATCO Structures' strategic move highlights its goal to increase sales, operational reach, and manufacturing, with a focus on the expanding modular home market.
• In November 2023, Vanguard acquired Module-AR Ltd., a company engaged in modern construction. This acquisition aims to significantly enhance Vanguard's capacity for both temporary and permanent modular construction space production.
• WillScot purchased A&M Cold Storage in Ohio and Cold Box in California in August 2023. WillScot's position has been strengthened by this acquisition, making it one of the top suppliers in the temporary cold storage industry. These units cater to a wide range of clients who require on-site climate-controlled space. The acquisition gives the company ownership of about 2,200 refrigerated storage trailers and climate-controlled containers, a US national supplier of high-end large clearspan structures, and a regional modular space manufacturing and leasing company that mainly consists of about 1,300 modular leasing units.

Global Modular Construction Market Report Segmentation

This report projects revenue growth at both regional and country levels, offering an analysis of the most recent industry trends across each sub-segment from 2025-2034. For this study, Expert Market Research has divided the global modular construction market into segments based on type, application, material, module, and region.

Type Outlook (Revenue, Billion, 2025-2034)

• Permanent Modular
• Relocatable Modular

Material Outlook (Revenue, Billion, 2025-2034)

• Steel
• Concrete
• Wood
• Plastic

Application Outlook (Revenue, Billion, 2025-2034)

• Residential
• Commercial
• Industrial
• Healthcare
• Educational

Module Outlook (Revenue, Billion, 2025-2034)

• Four-sided
• Open-sided
• Partially open-sided
• Mixed modules & floor cassettes
• Modules supported by a primary structure
• Others

Region Outlook (Revenue, Billion, 2025-2034)

• North America
• United States of America
• Canada
• Europe
• United Kingdom
• Germany
• France
• Italy
• Others
• Asia Pacific
• China
• Japan
• India
• ASEAN
• Australia
• Others
• Latin America
• Brazil
• Argentina
• Mexico
• Others
• Middle East and Africa
• Saudi Arabia
• United Arab Emirates
• Nigeria
• South Africa
• Others